Sign of the (Lean) Times: Are Detroit Teams Endangered?

Perhaps it is a reflection of the financial issues that many people face today.

Perhaps it is a result of seeing article after article discuss how sports franchises are having to tighten their belts amid their financial struggles.

Or perhaps it is a direct result of having just watched The Road this past week.

A thought continues to weigh on my mind: Could one or more Detroit franchises be in danger of moving, or worse yet, collapsing?

The city of Detroit has an incredibly long and storied career as a sports town. The Tigers are the oldest franchise in town, established in 1894 as one of the original eight American League teams.

Next came the Red Wings in 1926 and quickly on their heels were the Lions in 1929. The Pistons did not join the mix until 1957 when they were moved from Fort Wayne, Indiana. The franchise itself was established in the early 1940s.

Detroit has won a title in every decade since the 1930s (save for the '70s), their most recent being the Red Wings' win of the Stanley Cup in 2008.

While some franchises are more successful than others, each team has won at least three titles. Very few cities can boast the same dominance.

However, very few cities have been affected in quite the same way as Detroit by the recent economic turmoil.

What's worse is that while most people believe the United States will rebound (some think it has already begun to), the economic outlook for Michigan is much bleaker.

The reason for this grim outlook is a lack of economic diversity. For the better part of a century, the auto industry has driven (no pun intended) the state's economy.

While the auto industry will likely still exist in the coming decades, few believe that it will be the force it once was. The economic pie has expanded, but so too have the non-domestic auto competitors.

So, can a streamlined auto industry still drive the state's economy? It is not likely to reach the same level it did in previous decades.

And, while green industries and movie-making are some of the plans for economic revival in the future, for the time being, good old-fashioned agriculture and tourism will continue to be the most stable economic forces.

If this is the case, the state itself will likely have to become streamlined, population-wise.

This has already begun, but it will get worse. In the last 30 years, the population of Detroit has decreased by almost 20 percent.

To put that in perspective, Detroit has lost almost 200,000 people in 30 years. That is larger than the population of the second largest city in Michigan, Grand Rapids.

An even scarier comparison is that Detroit has lost more people over that time than the entire population of Green Bay, Wisconsin—a city large enough to support an NFL team.

Detroit has already had to lose its WNBA franchise, the Shock, who had won multiple titles and were considered one of the more successful WNBA teams.

So, how secure are Detroit's teams? Let's explore each.

The NHL is likely the least popular American sport, but Detroit features one of the more successful franchises. The Red Wings are valued at over $300 million, they play in an arena that is paid for, and they are one of the top six teams in attendance. The league may not be in great shape financially, but the Wings should be there until the end.

The third-ranked sport is the NBA, and the Pistons are clearly in a state of transition. Not only is their team in the process of rebuilding, but their owner recently passed away, leaving his family in control.

But the Pistons appear to be in solid shape. Like the Red Wings, they play in a stadium that is debt-free, their attendance is flagging, but they still are making money, and the franchise itself was worth nearly $500 million when it was last appraised a few years ago.

Next come the Tigers, who might be in trouble. According to Forbes, operating income for the Tigers actually dropped to negative $26 million. That means the Tigers lost a lot of money last year.

The result of this can be felt in this current offseason as Detroit is rumored to be close to a fire sale, currently nearing completion on a trade of two of their most popular and prized players (Curtis Granderson and Edwin Jackson) for prospects. Not a good sign.

If Detroit is indeed gearing up for a fire sale, their already dropping attendance (31,693 average per game—their lowest since 2005) should fall even lower.

The Lions are in significantly less trouble. They have a state-of-the-art stadium and benefit from being part of the most popular sport in the United States.

And, even though they are coming off the worst season in NFL history, they still manage to be worth more than any other team in Detroit, at over $800 million.

They also are owned by one of the wealthiest men in America, William Clay Ford.

In fact, each of the Detroit franchises is owned by extremely wealthy people, but even wealthy people reach their limits.

It reminds me of an episode of the Simpsons in which Homer negotiates with Bill Gates. Gates tells Homer that he would like to make him an offer. Homer, expecting a huge payday, agrees.

However, Gates unleashes a host of goons who pummel Homer and his financial investment. To which Gates crows, "I didn't get rich writing a bunch of checks!"

So, who might be willing to part with their team?

Mike Illitch, the billionaire pizza magnate owns both the Red Wings and the Tigers. While he is still making quite a bit of money each year ($1.5 billion annually), he might tire of throwing good money after bad with the Tigers, who seem to be in the most financial trouble of the big four.

Ford will likely hold onto the Lions until he dies, and his family has seemed more than willing to keep his team in-house.

Which brings me to the Pistons. Last year, owner William Davidson died. As a result, his wife is now in charge of the team. It is not yet known how much longer she plans to hold onto the team.

It may be a sign of things to come that the Davidson family sold their share of the Tampa Bay Lightning last year. Only time will tell.

In the meantime, Detroit fans will look at the future with guarded optimism. Why optimism? Because realism might hurt too much.