Monday, November 23, 2009
In 1975, for a mere $55.7 million, the National Football League’s Detroit Lions got a new home, the Silverdome, in Pontiac, Michigan (pictured). In 2002, the team moved back to Detroit, and according to Time.com’s Detroit Blog, it now costs the city of Pontiac $1.5 million/year to maintain the stadium, which no longer generates significant revenues. So, the city put the stadium up for sale, and according to the Detroit Free Press website, the high bidder was an unnamed Toronto company, with a bid of $583,000.
Last week, H. Wallace Parker, owner of Silver Stallion Development filed a breach of contract suit and sought an injunction of the sale. According to the Wall Street Journal blog, a judge granted the injunction on Wednesday. Silver Stallion alleges that it was negotiating the terms of a contract to purchase the Silverdome and that the city breached its contractual obligations. In addition, Silver Stallion alleges racial bias in the city’s decision to put the stadium up for auction rather than permit its development by a minority-owned company.