The credit union alleges it has “suffered a loss of goodwill” as a result of the Pistons’ actions, but again conceded that a loss of goodwill is “difficult to value.” Michigan First President and CEO Michael Poulos also testified during the hearing that he did not know how to measure damages because he “did not know how to put a value on brand alignment, community support, and name recognition.” According to court documents, she also asserted that the credit union’s relationship with the Pistons was “more than economic” because Michigan First was “attempting to develop awareness of its brand by associating with the Pistons.” Speaking during an evidentiary hearing, Michigan First Chief Marketing Officer Sue Postemski said it is difficult to measure the financial value of a sponsorship deal. One of the major issues surrounding the case is the difficulty in calculating actual damages Michigan First has suffered as a result of the canceled sponsorship., Kevin Grigg, VP of public relations for the Detroit Pistons, told Credit Union Journal via email that the club will have no comment on the case. Once the Flagstar agreement was signed, the Pistons were unable to offer anything sponsorship-related and even refused to allow the credit union to call itself a sponsor. “What they offered the credit union was more in the lines of ‘hospitality’ instead of a proper sponsorship arrangement,” he said. Michigan First claims negotiations on a new deal can not be done in good faith since the tam has already signed a new deal with Flagstar.Ĭhuck Holzman, managing member and founder of Holzman Corkery of Southfield, Mich., and general counsel for Michigan First, told Credit Union Journal the Pistons offered the credit union a number of sponsorship, marketing and brand alignment opportunities at Little Caesars Arena before they signed their exclusive agreement with Flagstar, but those opportunities were not to the same level as the original deal. The sponsorship agreement specified that the Pistons had the right to terminate their deal with the credit union in the event that the team left the Palace, but could negotiate “in good faith” to reach a new sponsorship deal. Shortly after the deal was signed, however, the Pistons announced plans to relocate from the Palace of Auburn Hills in Auburn Hills, Mich., to the new Little Caesar’s Arena in downtown Detroit. The Lathrup Village, Mich.-based institution subsequently sought an injunction compelling the team and its owners to negotiate a new deal, but an appeals court in the state has now reversed that injunction, meaning the next steps in the fight are unclear.Īccording to a document from the State of Michigan Court of Appeals, the deal between the Pistons and the credit union would have kept Michigan First as a sponsor for almost five years – until Oct. The dispute between the two parties began in August 2017, when the Pistons canceled a sponsorship deal, citing alleged breach of a contract first signed in November 2016 between $863 million-asset Michigan First Credit Union and Palace Sports & Entertainment. The NBA’s Detroit Pistons are facing off against an unusual opponent – a credit union.
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