Pistons may sell for well below market value

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Thumbnail image for pistons_logo.pngLocation, location, location. Oh, and timing.

Golden State just sold for well above its value as estimated by Forbes, in part because the San Francisco Bay Area is one of the wealthiest areas of the nation.

The Detroit Pistons are estimated to be worth $479 million and have turned more than $40 million in profit the last three seasons. It as well run a franchise as there is in the NBA, with a fantastic brand name.

Yet the sale price may be $100 million or more below that estimated value, according to a report in Forbes today.

But location and timing are critical factors to consider.  As it relates to location, the Detroit MSA faced a 15.4 unemployment rate as of June 2010 compared to the national 9.5 rate.  This would cause any potential investor to seriously question whether fans would continue to support the team at the level of avidity they have historically, especially given that the team is in major rebuilding mode and not likely to challenge the current Beasts of the East (Orlando, Boston, Miami) anytime soon.

Furthermore, in light of the climate of ‘guilt’ that surrounds corporate spending on sports sponsorships (especially in a city whose main industry has been the beneficiary of significant TARP money), a prospective buyer would be justifiably anxious over the likelihood of short term corporate support (e.g. buying luxury suites, paying for facility signage, etc…).

Karen Davidson also owns the Palace at Auburn Hills, where the Pistons play. The team and the building may be sold as a package.

Still buyers are leery. Any investor coming is has to be wary of the almost-certain lockout coming next fall — you will be getting no income from the team next fall (and have reduced expenses, but still). The economics of the NBA may be friendlier to owners on the other side of that lockout, but the down time has to be taken into consideration.

Still, Bill Davidson bought the Pistons in 1974 for $8 million (Forbes says that counting for inflation that is $28 million in today’s market). Even if the team only sells for $350 million that is a tidy little profit.

Stephen Curry, Kevin Durant ejected at end of loss to Grizzlies

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Stephen Curry is going to get fined for this.

The former MVP was frustrated, his team losing and thinking he was fouled by Mike Conley as he attacked the rim late in the Warriors loss in Memphis Saturday night. Curry threw his mouthpiece at the referee, which deservedly got him ejected instantly.

Durant followed him to the locker room, making a gesture that will earn him a fine as well.

The Warriors are 1-2 to start the season and there are a lot of factors at play. The China trip does this to teams, and throw in three straight trips to the Finals on top of it and it has an impact. The team is a little banged up. However, the biggest issue is their defense is a mess right now.

The Warriors will straighten it out eventually, but the start of the season could be a rough one for them.

Pacers owner says team not for sale, will not be moved from Indianapolis

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There are more than a few NBA owners who are seeing the prices teams are being sold for — the Rockets just sold for a record $2.2 billion — and considering their options. Some other billionaires are looking for teams, several with the goal of packing up the franchise and moving it to their respected hometowns.

Those billionaires need not call Herb Simon. The Pacers owner said the team is not going anywhere, speaking to Gregg Doyel of the IndyStar.

“I want to leave my legacy: This team permanently in Indianapolis,” Simon told IndyStar Friday in an interview at Bankers Life Fieldhouse. “That’s my No. 1 goal.”

Simon bought the Pacers in 1983 with his older brother, Melvin — who died in 2009 at age 82. He told IndyStar the team someday will be owned by his 53-year-old son, Steve. Behind the scenes, Steve Simon has been working closely with Pacers Sports and President Rick Fuson for five years — “He knows more about the dollars and cents than I do,” Herb said of his son — and met this week with several department heads.

“If anything happens to me, he’d be taking over,” Herb said, adding that father and son are on the same page: The Pacers are staying in Indianapolis.

Good. That is as it should be.

Indiana is part of America’s basketball heartland, and it should have a team. Pacers fans are smart and loyal, and the team has a long history going back to the ABA, running from Mel Daniels and George McGinnis through Reggie Miller and up to Myles Turner (hopefully he can be on the level of the rest of them someday). They play in the coolest basketball building in the league, one with the history of the sport wolven in.

Indy is the nation’s 27th largest television market, bigger than San Antonio, Salt Lake City, Oklahoma City and other successful NBA franchises. There is no reason the Pacers cannot thrive, so long as ownership is committed.

They are. Which is excellent news for Pacers’ fans.

Stan Van Gundy speaks out again in support of protesting athletes

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WASHINGTON (AP) — Detroit Pistons coach Stan Van Gundy used his team’s trip to Washington to again voice his support for athletes who kneel during the national anthem and his opposition to President Donald Trump.

Van Gundy was asked before Friday night’s game against the Wizards what he hoped would result from the president’s criticism of NFL players who refuse to stand for the anthem and the resulting national dialogue about political activism by professional athletes.

“I don’t know what good can come out of anything the president has said,” Van Gundy said. “As far as the athletes’ protest, I hope people would pay attention to the issues that caused the protest in the first place and realize that we have problem disproportionately with police brutality towards men of color.”

Van Gundy also criticized fans who have booed those athletes because they believe the gesture is disrespectful to the United States military.

“I thought that one of the things the military is fighting for is the American way of life and our values, which I think starts with freedom of speech,” Van Gundy said. “Our country was founded on protest. Otherwise, we would still be a colony of England. You would think people would appreciate non-violent protests that will be made.

“If you don’t stand for freedom of speech and you don’t think those players have the right to freedom of speech, what American values are you for?”

It was not the first time Van Gundy has spoken out on these issues. When Trump was elected last November, Van Gundy told the Detroit Free Press it was the first time he had been “ashamed” of his country.

Last month on the team’s media day, he read a prepared statement in support of athletes who use their visibility for political purposes, including protests during the anthem. The NBA has a policy requiring that players stand for the anthem.

The Pistons’ visit to Washington was their first since Jan. 21, one day after Trump’s inauguration.

More NBA basketball: https://apnews.com/tag/NBAbasketball

Cavaliers’ Derrick Rose out Saturday with sprained left ankle

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CLEVELAND (AP) — Cavaliers point guard Derrick Rose was held out of Saturday night’s game against the Orlando Magic because of a sprained left ankle.

Rose twisted his ankle after being fouled by Milwaukee’s Greg Monroe while driving to the basket in the fourth quarter on Friday. Monroe grabbed Rose by his neck and pulled him to the floor.

Rose landed awkwardly, but stayed in the game to shoot two free throws before going to the bench. The play was originally called a common foul but was upgraded to a flagrant 1 Saturday by the NBA.

Jose Calderon started at point guard Saturday for the Cavaliers, who have won their first two games.

Rose signed a one-year contract with Cleveland in July. He became the team’s starter when Kyrie Irving was traded to Boston. Rose was named the league’s MVP in 2011 while with the Chicago Bulls, but has battled injuries since.