Ilitch has own plans for ticket price increases and taxpayer subsidies

Mike Ilitch doesn't want the state to impose a luxury tax or an entertainment surcharge proposed by Gov. Jennifer Granholm and Lansing lawmakers. The new revenue would be used to support a shortfall in education funding and other public services across the state. The state's other option is to raise income taxes for all residents of Michigan.

The 78-year old Ilitch plans his own increase in ticket prices so he can continue to expand his family's vast sports, entertainment, restaurant and gambling empire; and so he can lock in his position on the list of the "400 Richest Americans." The proposal for a luxury tax/entertainment surcharge could mean he might not be able to hike up his own ticket price increases as much as he wants.

Mike Ilitch's grandkids can afford to go to the best private academies. He can pay for their individual education needs. He's more concerned with expanding his Foxtown playground in downtown Detroit than with addressing the shortfall in statewide education funding. It appears he'd rather see an increase in the state's income tax for all working people in Michigan.

According to Forbes magazine, Mike Ilitch is worth $1.5 billion; making him one of the "400 Richest Americans" -- in fact, he ranks at #242 out of 301 million Americans (tied with Oprah Winfrey and several others). Mike Ilitch is the sixth richest person in Michigan, a state of nearly 10 million people.

As the owner of the Detroit Tigers, Detroit Red Wings and numerous other sporting and theater venues; "of course," you might say, "he's opposed to a so-called ticket tax."

It shouldn't be any surprise that Mike Ilitch is behind a so-called "grassroots" campaign and web site to block the proposed luxury tax/entertainment surcharge. Although the bulk of the Ilitch Family's annual income comes from pizza and gambling ventures; the sports and entertainment operations contribute significantly to Ilitch's net worth and personal image. Besides such a "grassroots" campaign is a great way to collect email addresses and other contact data from fans that can be used for future marketing schemes.

But take a closer look. Ticket prices will go up regardless and Ilitch will have benefited from millions in taxpayer subsidies and tax breaks, not Michigan's kids.

So why is Mike Ilitch opposed to an entertainment surcharge at this time?

1. Because the Ilitch organization has its own ticket price hikes planned, and the market can only take so much. For the 2007 Baseball season the Sports Business News blog indicates Ilitch already hiked up prices 5.2%; and he inflated ticket prices so high during the NHL Playoffs this spring that the Red Wings didn't even sell out their home games in the playoff rounds.
   
   From Anser Khan's blog Red Wings Bulletin: "Obviously, they miscalculated in setting ticket prices for the playoffs. There’s nothing they can do about it now, but, unless the Wings win the Stanley Cup, they’re going to have to lower ticket prices next season, especially in the playoffs."



2. Because Ilitch has his own plans for taxpayer dollars. Ilitch wants taxpayers to support a move to abandon Joe Louis Arena and build a new Ilitch Hockey Arena in Foxtown on land Ilitch owns or contrals that will certainly call for taxpayers subsidies and maybe even some new tax. And then, when there's a new fancier, state of the art hockey arena in Detroit he can jack up ticket prices again.
   
   Shortly after Comerica Park opened, CNN/Sports Illustrated posted an article, New Ballparks lead wave of higher ticket prices, that said:



"The average at Comerica Park is $24.83, the fourth-highest in baseball and a 103 percent jump from the $12.23 average at Tiger Stadium last season, according to the annual survey by the Team Marketing Report." April 4, 2000

A 2006 study by Economics Research Associates (ERA), an often quoted source, notes:

"Of 14 teams analyzed, the Detroit Tigers experienced the greatest increase in average ticket price (103 percent)," when Comerica Park opened.

And as the Detroit News reported last fall when the Tigers won the American League Pennant, "Ticket prices soaring" and the Ilitch organization, not the taxpayers, are benefiting.

It is highly rumored and quite likely Mike Ilitch has plans to build a new hockey arena on property he controls in Foxtown -- an area of Downtown Detroit controlled primarily by Ilitch and various city related agencies and authorities -- where:

• Ilitch Holdings, Inc. has it's corporate headquarters;
• Ilitch owns/controls venues like the Fox Theater, City Theater and Comerica Park;
• Ilitch owns restaurants like HockeyTown Cafe, Johnny Rockets, &
  Foxtown Grille;
• Ilitch owns or controls acres of paid-parking lots; and where,
• Ilitch, in recent years, has methodically acquired more than 75 properties and often boarded up and then demolished historic buildings to make way for parking lots and future expansions using millions in taxpayer subsidies.

And when the new Ilitch Hockey Arena is built, you can bet Mike Ilitch will raise the price of tickets, parking and a beer -- because cand and he will.Mike Ilitch has used taxpayer subsidies and tax breaks to build his business empire many times over -- at least $90 million on Comerica Park alone; if the state legislature enacts an entertainment surcharge it will be his responsibility and he'll decide whether or not to pass the cost on to fans.

Mike Ilitch doesn't want the state to impose a luxury tax on him; nor does he support an entertainment surcharge to fund education and other services for the taxpayers of Michigan. Ilitch wants to increase ticket prices so he can continue to expand his family's vast sports, entertainment, restaurant and gambling empire and guarantee his position on the list of the "400 Richest Americans."

He's asked the general taxpayers to help pay for his Foxtown playground expansions (and increased traffic cops needed to support his game days) before, isn't it time he started delivering on his promises to have the playground pay back the citizens of Michigan.

Congressional Testimony on Ilitch Taxpayer Subsidies