Detroit Red Wings owe city tens of millions from cable rights and other items?
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12-27-2012, 10:05 AM
Join Date: Nov 2004
Originally Posted by
Uhh you've got to think that the intention of the lease was that any cable money from events in the arena was shared with the city, regardless of the ownership structures of the relevant organizations. Or else why bother putting the clause in there?
You can't put dibs one business entity's money (which is negotiated in a different mgt structure) and promise it to someone else.
Consider if OE, which originally was purchased as a separate company by the Ilitches, had been bought by someone else. That company leases The Joe out to the Wings. They could still have a clause that anything that they produce/negotiate for TV would be subject to this type of clause, but since they neither produce, contract nor own the rights to the Wings broadcasts, they still wouldn't get any money for it.
This isn't unusual for a set up either, whether a team owns its own arena or leases one and are the Arena Operator, the businesses are set up as separate entities (incorporated or LLCs).
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