Detroit Red Wings owe city tens of millions from cable rights and other items?
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12-27-2012, 01:05 AM
Join Date: Nov 2005
I don't think the Red Wings owe the city any money for cable rights.
Here's a statement from Olympia:
"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.
How is that possible? Olympia is an affiliate company, under Ilitch Holdings-- as are the Red Wings. Any TV money is contracted and paid to the Wings directly.
Located in the heart of Detroit, one of the leading entertainment markets in the country, Olympia Entertainment is one of the industry's most diverse sports and entertainment companies, owning and operating Detroit's fabulous Fox Theatre,
as well as booking and operating Joe Louis Arena
, Comerica Park and Cobo Arena. A division of Ilitch Holdings, Olympia Entertainment is owned by Detroit entrepreneurs Mike and Marian Ilitch
with the Detroit Red Wings
, Detroit Tigers, Little Caesars Pizza, Blue Line Distributing, Little Caesars Pizza Kits and Uptown Entertainment. Visit us at
The Red Wings are owned by Mike & Marian Ilitch; and furthermore are NOT managed by OE.
The Ilitches own Ilitch Holdings Inc. (son, Christopher Ilitch, is the President & CEO).
In 1982, Michael and Marian Ilitch purchased the Olympia Stadium Corporation, the management company for Olympia Stadium and renamed it Olympia Arenas, Inc.
The newly purchased business was responsible for managing events at Joe Louis Arena
(which had been completed in 1979 as the home of the Detroit Red Wings), Cobo Arena and the Glens Falls Civic Center.
That same year, Mr. and Mrs. Ilitch purchased the Detroit Red Wings.
In 1987, the Ilitches purchased Detroitís iconic Fox Theatre (built in 1928) and renovated the 4,800+ seat venue, saving 80% of the original surfaces. In 1988, the Ilitches re-opened the Fox as the hub of the Foxtown Entertainment District and the building now houses the offices of Olympia Entertainment and Little Caesars Pizza. In 1989, the National Parks Service designated the Fox Theatre as a National Landmark.
The Olympia Stadium Corporation was renamed Olympia Entertainment in 1996 to reflect the management companyís expanded operations and venues.
Ilitch Holdings Inc,
Ilitch Holdings, Inc.
was established in 1999 to provide all companies owned by
with professional and technical services.
Ilitch Holdings, Inc.
Yesterday, Today, Tomorrow
Ilitch Holdings, Inc., was established in 1999 to provide the companies owned by Michael and/or Marian Ilitch with professional services. The Ilitch companies represent leading brands in the food, sports and entertainment industries and include Little Caesars, the Detroit Red Wings, the Detroit Tigers, Olympia Entertainment, Uptown Entertainment, Blue Line Foodservice Distribution, Champion Foods, Little Caesars Pizza Kit Fundraising Program, Olympia Development and MotorCity Casino Hotel.
Ilitch Holdings is comprised of skilled professionals providing expertise in the areas of finance, human resources, communications, legal, architecture, government relations, and information technology. Ultimately, we contribute to the success of Ilitch companies by providing streamlined processes and procedures that result in improved productivity, increased efficiencies and lower costs.
It seems fairly clear to me that Olympia Entertainment and the Red Wings are separate Ilitch companies. Any cable money the Wings receive is negotiated by the Wings, and not by Olympia Entertainment. OE is basically the
in this case (among its other activities), but they are not involved in the management of the Wings. Ken Holland reports directly to Mike Ilitch, but as the health of the senior Ilitch has failed, more of the subsidiary management has fallen to their son, Christopher Ilitch, who is head of Ilitch Holdings.
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