Different kind of sports owner

L.A. billionaire Tom Gores, who made his fortune in the private equity business, appears to be treating his newly purchased Detroit Pistons like any other investment. That is, he fired CEO Alan Ostfield and installed two partners from his firm, Bev Hill-based Platinum Equity. Actually, this is pretty standard stuff when a private equity firm takes over. From DealBook:

When a buyout shop, especially a firm like Platinum that specializes in turnaround situations, takes over a company, it comes in, puts a transition team on the ground and radically restructures. It looks to execute a "100-day" plan that deals with the most pressing problems at the company, whether it's weakness in the executive ranks or holes in the company's strategy. From there, a private equity firm carefully monitors the investment on a monthly or quarterly basis. These early and aggressive actions by Mr. Gores underscore the private-equity nature of this deal. What is more, Platinum's $2.75 billion buyout fund invested in the team alongside Mr. Gores's personal funds.

Normally, private equity funds want to make a return on their investment and then sell out after a few years. Given Gores' personal interest - Michigan native and basketball nut - he might hang in there longer than usual. Of course, he and the other owners first have to get past the labor dispute.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Sports stories:
Lakers 'faith' may lead to folly
Doug Krikorian back on the beat in Long Beach
Jonathan Martin's Harvard-Westlake (and LA)
The beard stands on principle
The case for Ed Orgeron

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner

Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook