The Detroit Pistons are expected to share suite sales revenue at Little Caesars Arena, according to Crain’s Detroit Business.
For the 2017-18 season, the Pistons are expected to leave The Palace of Auburn Hills and move into Little Caesars Arena, the downtown Detroit venue that is currently under construction. While it was announced last November that the Pistons intended to relocated to the new arena, several terms of the team’s use of the venue still have to be finalized.
One of the major points will be an agreement between the Pistons and Olympia Entertainment, the operator of Little Caesars Arena. There are still many points in the negotiations that have to be resolved, but for now it is expected that the Pistons and the NHL’s Detroit Red Wings will have a joint suite sales arrangement. More from Crain’s Detroit Business:
The teams are still negotiating the exact revenue split for suites. It’s not known yet if the teams are splitting things such as static signage and concessions.
Confirmation of the joint suite sales and revenue sharing arrangement is the first public glimpse into the formal business relationship between the teams. Both teams say their business relationship is a secret and won’t divulge specifics.
Suites are among the critical revenue streams for pro sports teams because they’re typically long-term leases, usually with corporations, that generate money regardless of how the team is performing. The Pistons have fewer suites to sell at Little Caesars Arena (52) compared with their inventory at the Palace (175).
Olympia Entertainment, which runs the business functions of the Red Wings, by the end of 2015 had presold all of the Little Caesars suites for the National Hockey League team’s games.
Crain’s goes on to note in this story that this arrangement does not cover courtside seating, revenue from which is expected to be kept by the Pistons.
Though the move is not final, work is already underway to make sure Little Caesars Arena has the proper amenities for basketball. In addition, the Pistons recently announced plans for a new practice facility near the venue.
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