Pistons Could Sell Well Below Market Value

Discussion in 'Detroit Pistons' started by truebluefan, Aug 3, 2010.

  1. truebluefan

    truebluefan Administrator Staff Member Administrator

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    Forbes ranked the Pistons as the NBA's fourth most valuable franchise last year at $479 million, but Dr. Patrick Riske writes that the team is unlikely to sell for market value.

    "But unlike the Golden State Warriors - a team that just sold at a price ($450 million) that was over $125 million above its projected Forbes market value - the Pistons may sell for $100-125 million below their currently projected market value," Riske wrote on Monday.

    The struggling Detroit economy will have a severe effect on the team's sale price. The economy in San Francisco is much stronger.

    Also, Karen Davidson will still profit considerably from a Pistons sale under any circumstance.

    "The Pistons were purchased by her late-husband in 1974 for $8 million. Adjusting for inflation, that's approximately $28 million today," Riske wrote.

    http://blogs.forbes.com/sportsmoney...w-timing-and-location-impact-franchise-value/
     

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