Here's something you might be interested in.
Tom Gores, whose Beverly Hills-based Platinum Equity owns the Union-Tribune, has received an additional 14 days to reach an agreement to buy the Detroit Pistons of the National Basketball Association, according to the Detroit News. Rumors earlier in the day (Feb. 11) had Gores finalizing the purchase for $420 million. "Reports that a deal is already in place are incorrect," said Mark Barnhill, Platinum spokesman. But he confirmed that the exclusive negotiating period has been extended. "Both sides are working hard in hopes of reaching an agreement." Last year, Forbes magazine said the team was worth $479 million. It recently lowered that estimate to $360 million. Another bidder recently lowered its bid to $360 million, according to the News. It's not clear if Gores would buy and operate the team and related facilities himself, or whether they would become part of the Platinum portfolio. Thanks to Matt Potter for alerting me to this story.
Tom Gores, whose Beverly Hills-based Platinum Equity owns the Union-Tribune, has received an additional 14 days to reach an agreement to buy the Detroit Pistons of the National Basketball Association, according to the Detroit News. Rumors earlier in the day (Feb. 11) had Gores finalizing the purchase for $420 million. "Reports that a deal is already in place are incorrect," said Mark Barnhill, Platinum spokesman. But he confirmed that the exclusive negotiating period has been extended. "Both sides are working hard in hopes of reaching an agreement." Last year, Forbes magazine said the team was worth $479 million. It recently lowered that estimate to $360 million. Another bidder recently lowered its bid to $360 million, according to the News. It's not clear if Gores would buy and operate the team and related facilities himself, or whether they would become part of the Platinum portfolio. Thanks to Matt Potter for alerting me to this story.
The Gores brothers grew up in Flint, right? About 30 miles from The Palace in Auburn Hills? (Ironically, Beverly Hills, MI is also just a stones throw from the Palace).
Does this sound like a business move to buy an undervalued team, or a sentimental/ego move to buy the sports team he grew up with?
Yes, the Gores brothers are from Michigan. Actually, pro sports can be enormously profitable, and the embarrassment of riches is kept quiet. Gores normally buys at very low prices. (Platinum bought the Union-Tribune at the bottom of the market, well below the value of the real estate.) Best, Don Bauder
The grew up in FLint? I never knew that! I wonder if they knew Michael Moore?
I have been to the Palace, and it is pretty swank, and Aurburn Hills is a very upscale area of MI.
The Gores family came to the U.S. from the Middle East when Tom was 5. If Tom Gores buys the team, he gets the arena and other assets, as I understand it. But the negotiations are still ongoing. Best, Don Bauder
Matt Potter wrote a good article when Platinum bought the UT.
Billionaire Tom Gores, the <em>Union-Tribune</em>'s new owner
That was an excellent cover story by Matt. Best, Don Bauder