Wings Will not renew its lease, Could they move to Hamilton?

Discussion in 'EAST: Atlantic Division' started by Big Frame, Jun 28, 2009.

  1. Big Frame

    Big Frame Well-Known Member

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    Olympia Entertainment's decision to inform the city of Detroit on Friday that it will not renew its lease for both Joe Louis and Cobo arenas leaves open the question of the future home of the Detroit Red Wings.

    The Wings have called Joe Louis Arena home for 30 years, but the aging rink is the fourth oldest in the NHL and will soon drop to third with the opening of Pittsburgh's new arena in a little more than a year.

    "The existing lease was crafted more than three decades ago by individuals no longer associated with either Olympia Entertainment or the city," said Christopher Ilitch, president and CEO of Ilitch Holdings, Inc.

    "It does not fully contemplate one: the evolution of the sports and entertainment industry; two: the current economic environment in which both the city and Olympia Entertainment are operating and; three: the infrastructure replacement and repair needs of a 30-year-old building in order to meet the competitive industry standards of today."

    Olympia Entertainment has been negotiating a new lease for about a year with the city, but it's unclear whether the new deal would be for the short term while the team pursues a new building or a revised long-term lease.

    Friday's decision allows Detroit officials to regain control of Cobo Arena and move forward with plans to expand Cobo Hall to accommodate the growing needs of the North American Auto Show.

    "We have been and continue to be very supportive of keeping the Auto Show in Detroit and this is one way we think our organization can help meet that objective," Ilitch said.

    "We believe that any economic benefit to Olympia Entertainment by continuing to operate Cobo Arena in the future is outweighed by the potential that a positive resolution on the Cobo issue will have for the region and state."

    The Wings have been studying for some time the pros and cons of building a new rink versus a major renovation of the JLA.

    To hedge their bets, Ilitch Holdings has been acquiring real estate in downtown Detroit around the company's Fox Theatre headquarters and the MGM Grand Casino, which is also part of the Ilitch empire.

    The cost of a new rink is expected to be about $300 million US while a renovation could cost as much as half that amount.

    It's been reported by Crain's Business Magazine that the Wings have approached Wayne County executive Robert Ficano about helping finance a new hockey rink.

    Public monies were used to help build both Ford Field and Comerica Park. The Detroit-Wayne County Stadium Authority owns the facilities and leases the stadiums to the NFL's Detroit Lions and MLB's Detroit Tigers, respectively.

    "Detroit is our hometown and we have a strong desire to stay here," Ilitch said.

    "We remain confident that we can reach a satisfactory agreement that should not only enhance the sporting and entertainment experience for patrons of the facility, but will lead to additional economic benefit for the region and the potential for additional job creation as the facility attracts more events and performances."

    However, in the NHL's salary cap era, where team's need to squeeze every dollar out of their buildings, there's far more potential for new revenue streams in a new building.

    The decision of which way to go is complicated by the fact the Wings had a very favourable lease with the city and a stadium that isn't quite obsolete.

    "Joe Louis Arena has one foot in the past and one in the present," Wings senior vice-president Jimmy Devellano said of the team's analysis. "It has enough suites and it's paid for, but it has other shortcomings.

    "It makes it a tough decision."





    If the city wont help them build a new Arena they could move to a place where they could sell out, not only for regular season games, but the playoffs to. ;) [/Sarcasm, if you didnt catch my smily face]

    Really, havnt been to the Joe but I heard the place is a dump/death trap (Insert joke about Detroit) And, really Cobo needs to be expanded, for the times ive been to the Auto Show it was cramped and croweded. And it would be nice to give people some jobs down there, becouse it wont build itself.
     
  2. knicksfan3

    knicksfan3 Nets Season Ticket Holder - Section 225

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    Well the problem is Detriot is getting hit so hard with the economy that nobody can afford to go to a Wings game and the city is hesitant to commit to any expense projects. I don't see the Wings ever leaving the city because they really do mean a lot to the people there but I think its going to take a lot of work between the city and team to develop a plan for a new arena.

    Plus as a big hockey fan I'd be disappointed to see a team not play in Detriot since its an original 6 city, though I can't see the NHL letting that happen. They'll definitely move a team like Phoenix, Tampa, Florida, Atlanta to Hamilton/Winnepeg/etc. before they'd even think of moving an established team.
     
  3. Big Frame

    Big Frame Well-Known Member

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    I thught the wink, and the sarcasm joke told ya's I was joking about moving to Hamilton...Becouse whats his face is trying to get a team up there.

    Or did you not read any part of my post?
     
  4. Chutney

    Chutney MON-STRAWRRR!!1!

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    Seems like posturing more than anything, to me. I think there's no doubt the Red Wings need a more competitive lease to remain profitable in a weak economic market. And I suppose the NHL's willingness to invest vast amounts of money in its own franchises (eg: Phoenix) is a consolation for fans afraid that a break in negotiations might necessitate a move.
     
  5. speeds

    speeds $2.50 highball, $1.50 beer Staff Member Administrator GFX Team

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    Detroit sucks, but the Wings are a staple of that city and they'll need a new arena sooner or later. I'm sure something will get done.

    Also, it seems Bettman is going to do his best to keep a team out of Hamilton no matter what.
     
  6. knicksfan3

    knicksfan3 Nets Season Ticket Holder - Section 225

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    I read your post buddy don't worry...I was just stating my overall opinion about the situation in Detroit.

    Jim Balsillie does want a team badly in Hamilton, but I don't think that Bettman doesn't want a team there...I just don't think he wants Basillie running a team in his league. There's no doubt the NHL could use another team or 2 in Canada (Phoenix and Florida should move North) but who knows what's in the cards the next couple of years for the NHL. At least they had the good news that the Salary Cap practically stayed constant after rumors it was going to drop a couple million.
     

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