According to the Detroit Free Press’ Tom Walsh, the Detroit Pistons and Los Angeles Billionaire Tom Gores have reached a tentative agreement for him to purchase the team from current owner Karen Davidson.
The deal was reportedly reached Thursday evening at a Birmingham Law Firm and must be approved by the NBA. An official announcement can come as early as Friday.
Walsh states that the total value of the deal which includes the team, The Palace of Auburn Hills and DTE Energy Music Theatre is expected to be announced at around $420 million dollars. It is however expected that the current ownership would still have around a 10% stake in the team for the next several years meaning that Gores will not have to pay the $420 million right away.
NBA Commissioner David Stern is said to be supportive of the deal.
If this deal goes through, the Pistons can finally start to build for the future since the ownership situation has been a huge factor and road block in any player development being made.
Gores, who is estimated to be valued at $2 billion dollars according to Forbes is the founder and chairman of Platinum Equity, a private equity investment firm in Beverly Hills California. He (Gores) is a Michigan native and graduate of Michigan State University.
Source: Detroit Free Press