Ilitches consolidate Olympia, Red Wings operations amid management shakeup

[Fugu]

http://www.crainsdetroit.com/articl...olympia-red-wings-operations-amid-management#

The business operations of Detroit-based Olympia Entertainment Inc. and the Detroit Red Wings — both owned by the Ilitch family — have been rolled into a single entity in a move announced today.

"The business operations of Olympia Entertainment and the business operations of the Detroit Red Wings will be streamlined to enable the organization to improve sales and marketing collaboration and customer service," Olympia said in a statement.

There also was a management shakeup that included the departure this week of Steve Violetta, the Red Wings' senior vice president of business affairs, said Tom Wilson, Olympia's CEO and president. "He's not with us anymore. It's part of the reorganization," he said, declining further comment. He said there were two other staff reductions, but Violetta was the most senior staffer to go. Violetta was hired away from the Nashville Predators in December 2007.
.......

The unified business staff will provide tickets sales, promotion and marketing for the Red Wings and Olympia, which is the venue management arm of Ilitch Holdings Inc., the umbrella management company founded by Little Caesars Enterprises Inc. founders Mike and Marian Ilitch. Olympia owns or operates Joe Louis Arena, Cobo Arena, Fox Theatre and City Theatre.

The Ilitch-owned Detroit Tigers will maintain their own business functions, Wilson said, but the team and Olympia will collaborate on events and services for each other via packages and events.
...

The senior management lines of command haven't changed:
• Wilson reports to Chris Ilitch, president and CEO of Ilitch Holdings Inc.
• Ken Holland remains executive vice president and general manager of the Red Wings and reports to Mike Ilitch.
• Dave Dombrowski remains president, CEO and general manager of the Tigers and reports to Mike Ilitch.

Sounds like Mr. I is letting someone else worry about all the contracts, $$, and business matters while he tends to the team product side of things.


They may also be setting up things for the potential acquisition of the Pistons.

Click to read more...

 

[danishh]

wonder why he's not including the tigers.

you'd think that if he's successful in his pistons bid, one company managing the three major sports facilities and the three teams would make sense.

 

[Fugu]

wonder why he's not including the tigers.

you'd think that if he's successful in his pistons bid, one company managing the three major sports facilities and the three teams would make sense.

Olympia and LC are owned by both the husband and wife. Due to MLB's rules on gambling, the Tigers are solely owned by Mike Ilitch, while their casino is owned by Marian Ilitch.

I wonder what they'll do when one of the Ilitches passes? They're getting fairly old. I think Mike Ilitch is about 81 now. They have a son and daughter who were involved in the businesses (not sure what the other kids do), but the Tigers property has to be kept separated from Olympia.

Mike Ilitch does claim that baseball is his first love, but he 'seemed' much more involved with the Wings side of things. In fact, there was some criticism that he'd neglected the Tigers. During the lockout, he put more time into it, and they had a bit of turnaround. He's the biggest fan either team has though.

 

[danishh]

ahh... didnt know about the casino. Thanks.


the article you posted mentions that chris ilitch (assuming that's the son?) is involved with the business, so i'd assume that's where it goes, with either the sister or chris' spouse taking control of the tigers.

 

[He Lied to Mario]

Olympia and LC are owned by both the husband and wife. Due to MLB's rules on gambling, the Tigers are solely owned by Mike Ilitch, while their casino is owned by Marian Ilitch.

I wonder what they'll do when one of the Ilitches passes? They're getting fairly old. I think Mike Ilitch is about 81 now. They have a son and daughter who were involved in the businesses (not sure what the other kids do), but the Tigers property has to be kept separated from Olympia.

Mike Ilitch does claim that baseball is his first love, but he 'seemed' much more involved with the Wings side of things. In fact, there was some criticism that he'd neglected the Tigers. During the lockout, he put more time into it, and they had a bit of turnaround. He's the biggest fan either team has though.

Yes, baseball is his first love as he was a minor league baseball player in the Tigers organization before he started Little Caesar's. But he has been heavily involved in hockey since at least the late 60s. It's funny that people said he neglected the Tigers, I don't think he did, he just picked the wrong people to run them, while he had Devellano turning around the Red Wings. He signed a lot of bad free agents to big money with the Tigers but it took a long time for the team to become halfway decent.

 

[Brodie]

All of their kids are involved to varying levels (Atanas was in the Chris role before he was diagnosed with brain cancer, he's now returned in another job)... I imagine one of the other kids will inherit the casino.

 

[Fugu]

Yes, baseball is his first love as he was a minor league baseball player in the Tigers organization before he started Little Caesar's. But he has been heavily involved in hockey since at least the late 60s. It's funny that people said he neglected the Tigers, I don't think he did, he just picked the wrong people to run them, while he had Devellano turning around the Red Wings. He signed a lot of bad free agents to big money with the Tigers but it took a long time for the team to become halfway decent.

I don't follow the Tigers, but I don't know if they have the same family kind of feel with the players or management. Yzerman was treated like a son basically. When it came time for him to consider GM jobs away from Detroit, the Wild came calling first. Marian said she didn't even come to the room and just cried in the back somewhere when he came to talk it over with them. Then when he called to tell them about Tampa, she at least sat in the room, but still cried.

 

[Killion]

If his kids' dont wish to assume ownership & or wish to divest themselves of the Wings, I'd really have to wonder if Karmanos's mechanizations' with the Canes ownership situation in seeking a minority partner could change to majority; he & Rutherford returning to Michigan?... Far fetched perhaps, but.....

 

[FissionFire]

Don't be suprised if the Tigers are sold fairly quickly once Mike passes. My family has worked very closely with Mike over the years and it's no real secret that none of his children are really baseball fans. From a business standpoint, the Tigers are easily the least profitable asset of the bunch and there have been rumors that Chris would gladly have sold them already if his father would allow it.

 

[Fugu]

Don't be suprised if the Tigers are sold fairly quickly once Mike passes. My family has worked very closely with Mike over the years and it's no real secret that none of his children are really baseball fans. From a business standpoint, the Tigers are easily the least profitable asset of the bunch and there have been rumors that Chris would gladly have sold them already if his father would allow it.

That's interesting that none of the kids like baseball. With the team being in the family, you'd think someone would have enjoyed it. Are they all Wings fans, btw?

 

[macavoy]

Don't be suprised if the Tigers are sold fairly quickly once Mike passes. My family has worked very closely with Mike over the years and it's no real secret that none of his children are really baseball fans. From a business standpoint, the Tigers are easily the least profitable asset of the bunch and there have been rumors that Chris would gladly have sold them already if his father would allow it.

Would selling the Tigers make them more viable to buy the Lions? Is that something they would want to do, or something that Ford would be willing to do?

 

[Motown Beatdown]

Would selling the Tigers make them more viable to buy the Lions? Is that something they would want to do, or something that Ford would be willing to do?

Lions aren't for sale. Dan Gilbert (before buying the Cavs) supposedly told the Ford Family to name their price for the team, they never got back to him.

 

[FissionFire]

That's interesting that none of the kids like baseball. With the team being in the family, you'd think someone would have enjoyed it. Are they all Wings fans, btw?

Yes, very big ones too. The Wings were successful when they were growing up so naturally they gravitated towards a winner. The Tigers.....not so much lol. It's very similar to the Davidson situation where none of his children are Pistons fans (or even basketball fans really) despite their father owning the team.

Would selling the Tigers make them more viable to buy the Lions? Is that something they would want to do, or something that Ford would be willing to do?

The Fords won't be selling the Lions anytime in the forseeable future. NFL teams are just a license to print money essentially. Seems the only time you see one sold is when the old owner dies because the inheritence tax on their kids getting the team would be in the hundreds of millions I'd guess.

 

[Fugu]

Would selling the Tigers make them more viable to buy the Lions? Is that something they would want to do, or something that Ford would be willing to do?

Never heard that Ilitch had any interest in football. NFL teams are so expensive too that it's getting to the point of only being an option for multibillionires. Ilitch is worth between $1-2b, so not in that league.

 

[DreamBeaut]

I believe there is a clause stating that an owner such as Ilitch cannot own the Lions or any other NFL team for whatever reason.

 

[DreamBeaut]

I should clarify; not simply ilitch, but multi-sport owners

 

[kdb209]

I believe there is a clause stating that an owner such as Ilitch cannot own the Lions or any other NFL team for whatever reason.

The only league with cross-ownership rules is the NFL.

An NFL owner is prohibited from owning another pro franchise (*) in another NFL city.

- He can another team in the same city.
- He can another team in a different city which does not have an NFL team.
- He can NOT own another team in a different city which has an NFL team.

Ilitch would be permitted to own both the Lions and Wings since they both are in Detroit.

(*) Soccer teams are exempt from the NFL cross ownership restrictions - thanks to lobbying by Lamar Hunt back in NASL times.

 

[Brodie]

I have a hard time believing the Tigers are less profitable than the Red Wings.

 

[Fugu]

I have a hard time believing the Tigers are less profitable than the Red Wings.

I would have agreed, but look at this from Forbes:

http://blogs.forbes.com/kurtbadenhausen/2010/08/23/the-business-of-baseball-is-very-good/

Forbes has been tracking the finances of major league baseball teams since 1998 and in recent years has written about the success of MLB and its record revenues and profits. Last season baseball teams posted a collective $522 million in operating profit (earnings before interest, taxes, depreciation and amortization) by our count. Only two teams lost money on an operating basis: the Detroit Tigers (-$29.5 million) and Arizona Diamondbacks (-$0.6).

Owner Michael Ilitch is using his $1.5 billion net worth to finance an under-achieving team with a big-market payroll and small-market attendance. Last season the Tigers collapsed down the stretch and missed the postseason despite a $134 million payroll, third-highest in the American League. The Tigers had sold out advance ticket sales for the first round of the postseason, but lost a one-game tiebreaker to the Minnesota Twins that determined the AL Central champion. Season ticket sales fell to 15,500 in 2009 from 27,000 the prior season. Average attendance fell 20% versus 2008 to 31,693 at Comerica Park. Ilitch is still spending though as he recently locked up hurler Justin Verlander with a five-year, $80 million contract.

Revenue $188 mil
Operating Inc. $-29.5 mil
Player Expenses $151 mil
Gate Receipts $65 mil