Pistons' Move To Detroit Will Have Positive Economic Impact On Downtown Area, U-M Study Shows
ANN ARBOR (WWJ) -- A newly released study on the economic impact of the Detroit Pistons moving back to the downtown area says the move from Auburn Hills will be a positive one.
Dr. Mark Rosentraub, professor of sports management and director of the University of Michigan's Center for Sport and Policy, lead the study and says an estimated $22 million will come just from fan spending every year.
"We're excluding any of the payments that the fans make for tickets and/or luxury seating," Rosentraub said. "That $22 million is just the average spending by fans, we estimate not less than 636,000 additional visits to downtown."
In a press conference on November 22, Pistons owner Tom Gores -- along with Ilitch Holdings president & CEO Chris Ilitch, Detroit mayor Mike Duggan and NBA commissioner Adam Silver -- announced that the team would play at Little Caesars Arena starting Fall 2017.
The city of Detroit issued $250 million in public bonds in 2014 to help finance the new home for the Detroit Red Wings. The Olympia organization is responsible for all the cost above the $250 million.
"We're delighted to not just move to the city, to commit to all these community benefits, we want to be all in in Detroit," vice chairman of the Palace Sports and Entertainment Arn Tellem said.
About 60 basketball courts will be repaired at a cost of $2.5 million over the next six years by the Pistons organization, Duggan said at the press conference.
The Pistons also agreed to give 20,000 tickets per year to city residents and youth as a community benefit.
Rosentraub says the new practice facility and executive offices for the team will generate $216 million in one-time economic impact. He also says the density of having four teams in three venues will also propel the city forward.
"So if you think about a Pistons games now -- you go to the arena and you leave, there's not a lot," Rosentraub said. "It's a great arena, great sightlines, home to a lot of great thrills over the years, but there really wasn't a lot to do adjacent to the facility."
Rosentraub says about 2,000 jobs will be created by the move, more than 1,700 of which will be dedicated to construction.
The Pistons are currently playing their 29th and final season at The Palace of Auburn Hills and will honor that history throughout the season.
