June 25, 2009

Red Wings face Tuesday deadline on new arena (no, really this time)

Detroit has barely buried one sports facility controversy, when another is set to rear its head: Detroit Red Wings owner Mike Ilitch (who also owns the Tigers, Little Caesar's Pizza, and a large chunk of what's left of downtown Detroit) has until Tuesday to inform the city whether he's opting out of his lease on Joe Louis Arena, or allowing it to be automatically renewed for another 20 years.

Either way, Ilitch is sitting pretty: If he renews, he loses $1 million a year in tax breaks, but gains millions more in concessions, suite rentals, and ticket taxes that he no longer has to share with the city. If he tries to move or demand renovations to Joe Louis, he gets a shot at a building with more revenue-generating options — though that would likely only make sense if he can get the city and county to help pay for it, since otherwise the construction debt would almost certainly swamp any new revenue streams from a snazzier arena. Of course, given Ilitch's track record with the Tigers and that Wayne County Executive Robert Ficano told the Detroit News regarding financing help for a new arena, "We want to do everything we can to keep the Red Wings here," he has to figure he has a pretty good shot at taxpayer help, even as the local economy collapses around his ears.

By the way, if you're wondering whether we didn't just go through all this two years ago: Apparently everybody was confused that time about when the lease expired.