NBA Approves Sales Of Detroit Pistons To Tom Gores

Tom Gores' purchase of the Detroit Pistons has been approved by the NBA Board of Governors, the league announced late Tuesday. Gores had reportedly reached an agreement to buy the Pistons for $420 million during the season, with the Palace of Auburn Hills included in the purchase. The NBA requires majority approval from the other 29 owners in the league for any transfer of sale.

Karen Davidson, the widow of longtime Pistons owner Bill Davidson, put the team up for sale last year. Gores lives in Los Angeles where he runs a major investment firm, but is a Michigan native and proud Michigan State University alum. There's no chance he relocates the Pistons, despite the team's need for a new arena as the Palace ages.

The Pistons have long been one of the NBA's most valuable franchises, and despite a couple of tough seasons it's no surprise there was such a prominent suitor willing to pay so much. Gores has a couple of major decisions to make soon, though; coach John Kuester's fate should be determined within days, and a public statement on president Joe Dumars should come, too.

For more on the Pistons, visit Detroit Bad Boys and SB Nation Detroit.

The Detroit Pistons have been sold to Tom Gores for $420 million, according to the Detroit Free Press. The deal includes the Palace of Auburn Hills and a music venue, as well. The Pistons have not announced the deal; in fact, franchise owner Karen Davidson released a statement on Friday saying that she and Gores had agreed to extend their exclusive negotiating window by 14 days.

The Free Press, however, reports that just details need to be ironed out.

With a tentative deal reached, the sides need to dot their I's and cross their T's before it becomes official.

Davidson looked to sell the highly valuable Pistons franchise in the months following her husband Bill Davidson's death. Davidson purchased the Pistons in the 1970s, and the team's value shot up thanks to the NBA's popularity explosion in the '80s and Detroit's own success on the court in the late '80s and entire first decade of the new millennium.

The Golden State Warriors sold for a record $450 million in 2010. The Charlotte Bobcats, on the other hand, sold for less than $300 million. Gores, a 46-year-old billionaire and Michigan State alum, is expected to keep the Pistons in Detroit long-term, and as such has been embraced by fans, as evidenced by the reaction to the news at Detroit Bad Boys.

Tom Gores, a billionaire Michigan native, has emerged as the latest potential buyer for the Detroit Pistons. The Detroit Free Press reports that Gores has 30 days to negotiate a purchase agreement with selling owner Karen Davidson. Gores' bid follows an unsuccessful attempt by Detroit sports baron Mike Illitich, who sought to buy the Pistons and build a new arena for the team and the NHL's Red Wings (owned by Illitich) in downtown Detroit.

Gores, 46, grew up in Flint, Mich., and attended Michigan State. He made his billions as the found of a Los Angeles-based equity firm. It's unclear whether, like the NBA's other billionaires like Paul Allen and Mark Cuban, Gores would be a free spender for the Pistons, or whether he would see the Pistons' eternal profits as an addition to his profit margin.

Davidson has been attempting to offload the Pistons since her husand, Bill, died in 2009. Mr. Davidson had purchased the Pistons in the 1970s for just $7 million; the franchise is believed to be worth at least $400 million today, and has long been one of the NBA's most profitable enterprises.

For more on the Pistons, visit Detroit Bad Boys and SB Nation Detroit.