He was President, Chairman and CEO of Guardian Industries, one of the world's largest manufacturers of architectural and automotive glass. He was also owner of several North American professional sports teams and a member of the Naismith Memorial Basketball Hall of Fame.

The chairman of Palace Sports and Entertainment, Davidson was principal owner of the Detroit Pistons of the National Basketball Association, the Detroit Shock of the Women's National Basketball Association, and the co-owner of the Detroit Fury of the Arena Football League. Davidson also owned the Tampa Bay Lightning of the National Hockey League and Detroit Vipers of the International Hockey League. His Pistons won the NBA Finals in 1989, 1990, and 2004; his Shock won the WNBA Finals in 2003, 2006 and 2008; his Vipers won the 1997 Turner Cup; and his Tampa Bay Lightning won the 2004 Stanley Cup.