Pistons say their move to Little Caesars Arena could be jeopardized by lawsuit

The Detroit Pistons have filed a brief in regards to a federal court lawsuit that argues that their potential relocation to Little Caesars Arena might not be approved by the NBA unless the lawsuit is dismissed.

A lawsuit which argues that a public referendum must be held on the use of additional tax dollars for the construction of Little Caesars Arena could result in much more than a delay of the arena’s construction. According to the Detroit Pistons, their move to downtown Detroit could also be in jeopardy.

According to Katrease Stafford of the Detroit Free Press, Pistons chief financial officer Greg Campbell filed an affidavit with the court on Friday. The affidavit states that unless all financial and legal matters regarding the team’s move to downtown Detroit are resolved before the next meeting of the NBA board of governors, which is July 11, the relocation of the team won’t be approved.

At issue is the usage of tax dollars for not only the construction of the mixed use arena, but a new practice facility for the Pistons as well. Two Detroit citizens filed a lawsuit on June 1 which argues that the usage of additional tax dollars for these purposes without a public referendum violates the Michigan state constitution. Campbell stated in his affidavit that the reception of the tax funds was a condition of the team’s agreement to abandon the Palace of Auburn Hills, the Pistons’ home for the past four decades.

With this affidavit, the Pistons have joined the City of Detroit and the city council in seeking the dismissal of the lawsuit altogether. Their reasons for seeking that dismissal are clear. If the suit succeeds and the usage of an additional $34.5 million in public bonds is put up to a public vote, there’s a strong possibility that the ballot measure could fail.

The crux of the argument that the plaintiffs in the lawsuit are making is that the tax dollars which would be used by the city for the Pistons’ facilities are dollars intended for funding public schools. That fact requires a public referendum according to Michigan’s constitution. The city council has already approved the usage of the funds, but the public referendum would make that decision meaningless.

If the measure goes to a public vote, not only would the Pistons have to deal with the turning tide of public sentiment nationwide against the use of tax dollars for stadium projects, but a voter education campaign which would likely focus on a message of the Pistons taking dollars away from school kids.

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If the lawsuit proceeds, the NBA might still approve the Pistons’ move regardless, or the fears of Campbell might prove to be founded. What’s certain right now is that the Pistons hope that the suit gets dismissed and no referendum is held. The result of the defeat of such a ballot measure could leave the team stuck in the Palace of Auburn Hills for an indefinite amount of time.