For the past four years, while LeBron James chased championships and glory in Miami, Dan Gilbert has been buying buildings in downtown Detroit. This may seem unremarkable, a billionaire gobbling real estate. But this is different, because it is Detroit. The city has struggled for decades to get anybody to invest in it. In Detroit, some of the most beautiful buildings in America are empty, and some very wealthy people who own them refuse to fix them because that would be expensive, or sell them because they won’t fetch much. So what usually happens is nothing. Detroit can seem like a city in financial handcuffs.
Gilbert, a Michigan native and resident, surely knows there are safer bets than Detroit. But his investments there are not just about return on capital. They are about how he sees the world and his role in it.
Gilbert is a Midwest guy, a true believer in the ethos of the area. These days, most owners buy a team just to buy a team, like the financial whizzes from New York who just bought the Bucks, or Seattle’s Steve Ballmer, who is working to buy the Clippers. If the city is great, that’s a bonus. But Gilbert would rather own a team in Cleveland than Miami, Los Angeles or New York. Everyone from economists to college football experts seem to think the Rust Belt peaked in the 20th century, and warmer states in the south and west will thrive. This ticks Gilbert off.