Tom Gores, chairman and CEO of private equity firm Platinum Equity LLC, is branching out from the world of youth soccer and basketball.
The self-described youth athletics coach is buying the National Basketball Association's Detroit Pistons from Karen Davidson, wife of longtime owner, the late William Davidson.
Mr. Gores is not going solo on the deal for the three-time championship team, which also includes The Palace of Auburn Hills, DTE Energy Music Theatre and the operating rights to Meadow Brook Music Festival. Platinum Equity's second fund is co-investing on the deal, said Mark Barnhill, Platinum spokesman, in an e-mail. Terms of the transaction, which is expected to close June 30, and the percentage to be owned by the fund were not released.
The deal is pending approval by the NBA Board of Governors and normal closing conditions, Mr. Barnhill stated.
“I grew up here, I am glad to be back, and I am very excited about all the possibilities looking forward,” Mr. Gores said in a joint news release with Ms. Davidson about the deal.
Mr. Gores, a Michigan State University alumnus, is not planning to move his family from their home in Beverly Hills, Calif., to Michigan, Mr. Barnhill stated.
In a Twitter post after the deal, which was months in the making, was finalized, Mr. Gores thanked the fans.
“Thanks to all the Pistons fans for all the kind words of congratulations. We appreciate your patience.”