April 14, 2011 01:00 AM

Platinum Equity CEO snags Detroit Pistons

Tom Gores scores the three-time NBA championship franchise

Arleen Jacobius

The Milwaukee Bucks are the latest sports team owned by hedge fund executives. A group that includes Avenue Capital Management's Marc Lasry (pictured) and Fortress Investment Group co-founder Wesley Edens agreed to buy the team for $550 million.

The owners of the New York Mets sold a $20 million stake to Steve Cohen of SAC Capital after the team experienced financial troubles associated with the Madoff case. Mr. Cohen reportedly is interested in a larger stake.

Stephen Pagliuca, a managing partner at Bain Capital, is one of two money managers that are lead owners in the Boston Celtics of the NBA. The other co-owner is Wycliffe "Wyc" Grousbeck, a former partner at venture capital firm Highland Capital Partners.

Joseph Lacob, a partner at venture capital firm Kleiner Perkins Caufield & Byers, is the majority owner of the National Basketball Association's Golden State Warriors.

Ted Leonsis, the owner of the NHL's Washington Capitals and the NBA's Washington Wizards, is also a venture capitalist at Revolution LLC.

While Paul Allen (left) is best known for co-founding Microsoft with Bill Gates (right), he also is a venture capital and private equity fund manager via Vulcan Inc., not to mention the owner of the NBA's Portland Trail Blazers and the NFL's Seattle Seahawks.

Mark Attanasio (center in gray shirt), the principal owner of the Milwaukee Brewers of Major League Baseball, is also a director of the TCW Group.

John William Henry II, the founder of commodities manager John W. Henry & Company, is better known as the principal owner of the Boston Red Sox and Liverpool F.C., and co-owner of NASCAR team Roush Fenway Racing.

Before Randy Lerner became the principal owner of the Cleveland Browns of the National Football League, he was co-founder of money manager Securities Advisors Inc. In 2006, he also became chairman of Aston Villa Football Club of the Premier League.

Crain's Chicago

Mark Walter, CEO of asset manager Guggenheim Partners LLC

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.”