LATHRUP VILLAGE, Mich.–Michigan First Credit Union has filed suit against the NBA’s Detroit Pistons as well as Palace Sports and Entertainment alleging the team has breached a 2016 sponsorship agreement.
The credit union had obtained an injunction requiring the Pistons to uphold a commitment to negotiate a new deal, but that injunction order was reversed last week by the Michigan Court of Appeals. It is unclear if further action will be taken, according to Crain’s Detroit.
Crain’s Detroit reported the Pistons signed a new exclusive deal with Flagstar Bancorp Inc. when the team moved from its former home, the Palace of Auburn Hills, to Little Caesars Arena in Detroit, after agreeing to a sponsorship with Michigan First while still at the Palace, according to the credit union’s suit.
The agreement with Michigan First said that if a move occurred, the Pistons could terminate the agreement with notice and would "in good faith" negotiate opportunities for a new comparable deal, Crain’s stated.
Palace Sports & Entertainment terminated the Michigan First deal in August 2017, the lawsuit states. The credit union then sued for breach of contract and other issues.
Crain’s reported the trial court's injunction said a new sponsorship deal couldn't possibly be negotiated effectively because the Pistons signed a "competing, exclusive" agreement with Flagstar before renegotiating with MFCU.
The Pistons announced a sponsorship deal with Flagstar in July 2017, which included putting the Flagstar logo on the front left strap of the team’s jerseys. The deal also called for the credit union to have static and digital signage at the Little Caesars Arena, be part of Pistons broadcast and social media plans and offer co-branded credit and debit cards, Crain’s reported.