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Pistons Biz Scorecard Improves Return to Playo S, Growing Fan Interest Drive Team’S  Nancial Comeback

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Pistons Biz Scorecard Improves Return to Playo S, Growing Fan Interest Drive Team’S  Nancial Comeback A story space with room for robots. Does that compute? Page 3 MAY 9-15, 2016 Pistons biz scorecard improves Return to playo s, growing fan interest drive team’s nancial comeback By Bill Shea [email protected] The Detroit Pistons made the playoffs this year for the fi rst time in seven seasons, and from a business perspective, they were profi table with an improv- ing fi nancial outlook. A winning record and playoff berth have improved the team’s Fewer trees, per-game revenue totals. At their nadir a few years ago, the but still scenic Pistons were generating about Sleeping Bear Dunes $600,000 per game compared to National Lakeshore and the the NBA average of about $1 mil- lion. Now they’re at about surrounding communities in $750,000 per game, a fi gure that northwest Michigan are includes all ticket and food and DUANE BURLESON/ASSOCIATED PRESS preparing for the coming beverage sales, but not mer- chandise revenue. Detroit Pistons owner Tom Gores during the rst half of an NBA basketball game against the Orlando Magic in March. tourist season less than a Over 41 home games, that A winning record and playo berth have improved the team’s per-game revenue totals. year removed from a represents about $6 million in 100 mph windstorm that new game-day revenue growth lates the totals for this season be “modest.” game over 41 home games at for the season. With merchan- next year. To boost revenue, the Pistons the 21,231-seat Palace of Au- tore into the vistas of “the dise and ancillary sales such as “I feel very strongly our game- also will continue to refi ne their burn Hills. That ranked 25th in most beautiful place in corporate sponsorships, the day revenue has picked up dra- use of dynamic ticket pricing, a the 30-team NBA and was an overall new revenue total is like- matically,” said Dennis Man- real-time digital technology that improvement of more than America.” Crain’s Michigan ly higher. The Pistons had nion, president of the Pistons uses software that measures 20 1,200 per game over the previ- Business, Page 9 $154 million in total revenue for and Palace Sports & Entertain- factors to determine the best ous season. When the Pistons the 2014-15 season, Forbes.com ment. And it likely will pick up market price (for the team) of win, they lead the league in at- estimated in January, and that even more in 2016-17 with a single-game tickets. tendance, something they did number is expected to be higher to-be-determined ticket price Attendance improved mod- when the fi nancial site calcu- increase that Mannion said will estly this season, to 16,515 per SEE PISTONS, PAGE 32 “If that place comes down, it will cut the heart out of the Detroit music business.” Ed Wolfrum, former engineer, United Sound Systems Drug accusations jeopardize future of legendary Detroit recording studio By Robert Snell founder Berry Gordy recorded the nation’s oldest independent United Sound Systems opened in 1933 [email protected] hits, factors into a bizarre case in- recording studio. The studio drew as a producer of ad jingles. It’s since A landmark Detroit recording volving coast-to-coast manhunts, attention last year when Detroit recorded classic pop, rock and R&B. studio threatened by the I-94 wid- a $3 billion highway project and City Council designated it a histor- ROBERT SNELL ening project is in jeopardy again two alleged drug dealers, includ- ic district. This means it would because the historic venue was ing one who had hair and eyebrow require city approval before the Hommie Records, was a fugitive for bought with alleged drug money, transplant surgery while hiding venue could be demolished to four years before being caught in according to federal court records. from federal agents, according to accommodate the widening of metro Detroit in January. United Sound Systems Recording court records. I-94. The legal fi ght could give the Studios, where Aretha Franklin, The federal court records Late last month, federal prose- Justice Department a prime piece of Bob Seger and Motown Record Corp. chronicle a troubled chapter for cutors asked a judge to have the Midtown real estate and remove Midtown property forfeited to the an obstacle slowing progress on © Entire contents copyright 2016 government because the studio al- Dwayne Richards, according to a the federally funded I-94 project. by Crain Communications Inc. All rights reserved legedly was purchased with mon- court fi ling. Richards, 44, who The project is being redrawn to crainsdetroit.com Vol. 32 No 19 $2 a copy. $59 a year. ey from alleged drug dealer owned Detroit record label Big SEE STUDIO, PAGE 33 A BETTER PARTNERSHIP® By providing discerning and proactive legal counsel, we build a better partnership with clients. 2 CRAIN’S DETROIT BUSINESS // MAY 9, 2016 Brembo North America has ex- Grand Rapids Business Journal re- MICHIGAN panded or built at the Homer ported. The facility will bring all INSIDE manufacturing site in Calhoun Mercy Health Muskegon inpatient THIS ISSUE ....................................... County. At full capacity, the found- services together at a central loca- CALENDAR 28 CLASSIFIED ADS ............................. 29 ry will be capable of 80,000 tons of tion. Set for completion by June DEALS & DETAILS ............................27 brake disc castings annually. 2019, it will feature a state-of-the- KEITH CRAIN.......................................6 n Kansas City-based Commerce art emergency department and MARY KRAMER ..................................9 Bank plans to open a commercial optimized patient flows. OPINION ..............................................6 BRIEFS banking office in downtown Grand n Alberta-based pipeline com- PEOPLE ............................................. 28 ‘I’ve got your back,’ Obama Rapids, MLive.com reported. pany Enbridge said it expects RUMBLINGS ..................................... 34 tells Flint residents in visit Commerce Bank, a subsidiary of $62 million in fines and penalties WEEK ON THE WEB ........................ 34 Commerce Bancshares Inc., serves related to a 2010 Michigan oil spill, Sipping filtered city water to customers in 191 locations in Mis- AP reported. In a filing with the Se- show it is again drinkable, Presi- souri, Kansas, Oklahoma, central curities and Exchange Commission, COMPANY INDEX: dent Barack Obama promised last Illinois and Denver. Enbridge said $55 million rep- SEE PAGE 33 week to ride herd on government n Aeropostale Inc., the New York resents penalties under federal leaders at all levels until every City-based teen-clothing chain water law. The company said flagship U.S. Morning Foods cereals drop of water flowing into homes ASSOCIATED PRESS that recently filed for bankruptcy, about 20,000 barrels of oil spilled segment; the dip reflects the ongo- in Flint is safe to use. President Barack Obama drinks water said it plans to close 154 stores im- into the Kalamazoo River system ing struggles for Kellogg and rival During a visit Wednesday to the as he speaks at Flint Northwestern mediately, including locations in near Marshall from a ruptured General Mills Inc. as Americans in- beleaguered city, Obama also High School about the water crisis. Howell, Jackson, Muskegon, Tra- line. creasingly reach for alternatives at promised that the aging pipes that verse City and in Fort Gratiot near n Kellogg’s profit declined in the breakfast. Still, Kellogg CEO John contaminated the water with lead nasium. He called providing safe Port Huron, Bloomberg reported. first quarter as the maker of Frost- Bryant expressed confidence that will be replaced but cautioned that drinking water a basic responsibil- Mall-based retailers such as Aero- ed Flakes, Froot Loops and Pop the company would end the year the project will take time. Obama ity of government. postale have struggled to adapt to Tarts continued to fight sluggish with positive cereal sales. That said he wanted to use the crisis to After coughing several times online sales and the changing cereal sales, AP reported. The Bat- would mark the first time Kellogg’s make long-term improvements to during his remarks, Obama asked tastes of teenagers. tle Creek-based company said U.S. cereal sales were positive the city, The Associated Press re- for and drank from a glass of water. n Reservations are available for sales slipped 1.2 percent for its since 2012, he said. ported. three daily nonstop flights from Obama was greeted at the Flint MICH-CELLANEOUS Lansing’s Capital Region Internation- Corrections airport by Michigan Gov. Rick Sny- n Brembo North America Inc. con- al Airport to Chicago. Service der, who has been heavily criti- ducted the first pour at its new launches Aug. 23, the Lansing n The story “Taubman’s former CFO looks forward to new chal- cized for his administration’s han- cast iron foundry built at its Ho- State Journal reported. The Ameri- lenge at Soave,” on Page 1 of the May 2 issue, should have said Tony dling of the crisis; Flint Mayor mer brake parts production facili- can Airlines flights represent a ma- Soave sold City Management Corp. to Waste Management in 1998. The Karen Weaver and other officials. ty, Tire Business reported. The jor upgrade in service to Lansing, date of the sale was incorrect. Obama spoke after he was briefed $100 million Homer cast iron airport CEO Robert Selig said. n An article on Page 9 of the May 2 issue incorrectly reported that on the federal response to the wa- foundry is the fourth in Brembo’s n Mercy Health Muskegon an- a rooftop restaurant is part of the plan for the Best Western Premier ter contamination and had met worldwide foundry network and nounced final design plans for its hotel in the round tower of the former Holiday Inn of Southeld.
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