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12-26-2012, 12:44 AM
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LadyStanley
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Detroit Red Wings owe city tens of millions from cable rights and other items?

http://www.detroitnews.com/article/2...346/1128/rss16

Quote:
A little-known provision in Olympia Entertainment's lease of city-owned Joe Louis Arena and Cobo Arena promises Detroit a 25 percent share of cable television rights for live events. That's been the deal since 1980, but Detroit hasn't been able to collect a dime, according to city documents obtained by The Detroit News.

One rough estimate from finance staffers last year estimated the city is owed $70 million, but a national sports economist cautioned it's likely much lower.
...
Since its lease expired in 2010, the company hasn't paid millions of dollars for items such as rent, concessions and other revenue and property taxes, according to city documents obtained by The News.

In 2011, officials claimed the unpaid debt was $6 million that year, according to one city document.
...
[2007 statement:] A company vice president denied it owed any money and appeared to make a distinction between Olympia events and Red Wings games.

"It is our view that the provision in the Lease applies to Olympia events and revenue derived by Olympia from the sale of such rights," Robert Carr wrote in a letter to Monroe.

"Olympia has neither sold any such rights nor has it received any money for the sale of such rights."

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