Oakland University is in serious talks to buy the Palace of Auburn Hills, according to multiple sources with knowledge of the talks.

Nothing has been finalized in talks between the university and Tom Gores' organization that owns the arena in Oakland County, according to those sources, who requested anonymity because they were not authorized to speak on the negotiations.

The Palace has not hosted a major event since a fall 2017 Bob Seger concert closed the 29-year run of the venue. It had been the home of the Detroit Pistons until the team moved to downtown Detroit and into Little Caesars Arena. The 20,000-seat Palace opened in 1988, built by then-Pistons owner William Davidson for $90 million.

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The Palace is located about five miles from the university's campus.

The university did not confirm the talks.

"It is an interesting rumor, but I am not aware of any serious talks by Oakland University to purchase the Palace of Auburn Hills," university spokesman Brian Bierley told the Free Press on Friday morning.

If Oakland is successful in purchasing the arena, it could use the facilities for its basketball teams — both for competition and for practice areas. The teams currently play in the 4,000-seat Athletics Center O'rena, and the men's team averaged 3,163 in attendance last season, per the NCAA.

The Palace also would be the second concert venue to be owned by the school. Oakland already owns Meadow Brook Amphitheatre, a 7,700-seat venue on the school's campus.

Meadow Brook is managed by 313 Presents, a joint-venture company owned by the Ilitch family and Tom Gores, the current owner of the Pistons and the Palace.

Before the creation of 313 Presents in 2017, Meadow Brook had been under the management of Palace Sports & Entertainment since 1996. It signed a 10-year agreement in 2014 with Oakland that included a $500,000 upfront payment, a $165,000 annual license agreement and $1.5 million in improvements to the facility.

PS&E no longer exists under the 313 presents agreement.

313 Presents also manages Little Caesars Arena, Fox Theatre, Comerica Park, DTE Energy Music Theatre and Michigan Lottery Amphitheatre at Freedom Hill.

More:313 Presents: What this Palace-Olympia deal means for metro Detroit entertainment

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It was created when the Pistons moved downtown to play at Little Caesars Arena in 2017 in an agreement reached with Ilitch Holdings, Inc., and the city of Detroit.

The Palace has been closed for events since the Pistons moved and the last concert was played. Pistons employees are still housed at the Palace until the franchise's new performance center for players and corporate headquarters is completed in time for a full move next fall.

The Pistons still practice at a facility located behind the Palace.

Detroit Pistons spokesman Kevin Grigg on Friday would not confirm that negotiations were taking place, and said the organization would have no comment.

There has been speculation that Gores would sell the Palace to a developer who would tear it down and redevelop the site.

Two sources told the Free Press that an agreement to turn the property into an Amazon distribution center fell through within the past year.

The Palace has been around since the mid-1980s.

In late 1985, a group led by then-Pistons owner Bill Davidson decided to build a new arena in Auburn Hills. Groundbreaking for the arena took place in June 1986. Using entirely private funding, the Palace cost $90 million.

It opened in 1988 and was considered one of the first modern NBA arenas, with a large number of luxury suites. It's known for changing its address each time one of the teams playing in it won a championship. It's now residing at 6 Championship Drive.

The arena's first concert was performed by Sting. Other notable acts to play there include Michael Jackson, who played three shows in its first year; Madonna, Aerosmith and Pink Floyd.

READ MORE ABOUT THE PALACE:

Top moments in Palace of Auburn Hills history: No. 1

Watch: Ben Wallace shares look inside closed Palace of Auburn Hills

Contact David Jesse: 313-222-8851 or djesse@freepress.com. Follow him on Twitter: @reporterdavidj. Follow Vince Ellis on Twitter: @vincent_ellis56.