Detroit Red Wings owe city tens of millions from cable rights and other items?
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12-31-2012, 12:52 AM
Join Date: Aug 2004
Originally Posted by
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).
Sure, maybe that's how things are structured now, but in 1980? If the intention was that Detroit would get 25% of any cable deals for events in the stadium, Illitch surely can't wiggle out of it buy changing the business structure.
The city will probably use this as leverage to get a better stadium deal, so I doubt that you'd see $70m change hands.
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