The Detroit Pistons are up for sale. It may be a tough sale in a declining market. The other consideration, according to the article in the Detroit News is that the team, like other NBA teams on the sales bloc may choose to move to a new location. That is if the team can be sold.
No one expects the team to get its asking price. I supose hard times have fallen on every business, even professional basketball, in this tough economy. Twelve teams reportedly lost money last year. The vlaue of some teams has declined by close to fifteen percent of their former value.
And interesting point here. Before a team can be sold, the National Basketball Association, or NBA, mandates that they must approve the financial agreement and that the buyers must undergo the requisite background checks. The new ownership will also need two thirds approval by the League’s Board of Governors.
It is something to keep in mind when you are thinking about buying and selling your business. Or, if you are planning on entering into co-ventures or strategic partnerships, you may want to conduct the necessary business research that requires background checks. You should order business credit reports on the entity, and conduct criminal background screening and civil background checks on the principals of the company. This may well save you money, time, and the embarrassment of having been lulled into a fraudulent or unsavory situation.
The NBA mandates background checks in order to help protect the franchise and the League’s reputation. It is wise for you to do the same.
