A-Rod Gambling Investigation Raises Questions About Tiger's Baseball & Ilitch Casinos

With rumors circulating Alex Rodriguez took part in high-stakes underground poker games at a Beverly Hills mansion, Major League Baseball reportedly has him under investigation.  So, blogger Maury Brown (bizofbaseball.com) gives us a quick history lesson on MLB and gambling:  From A-Rod to the MLB Itself: A Brief History of Gambling and Casinos in Baseball. 

Here’s how Brown explains Detroit Tigers owner Mike Iltich’s gambling ties:

Illitch and the Wink-Wink Relationship to Casinos

MLB does not allow owners to be involved in direct ownership of casinos, but that doesn’t mean that there aren’t nepotistic ways to get around it.

Case in point, Mike Illitch, the owner of the Detroit Tigers. While he’s not a casino owner, his wife Marian, is. In 2005, she became the owner of Detroit's MotorCity Casino. Since then, Mike Illitch’s wife has made minority investments in casinos across the country including the Little River Band of Ottawa Indians and Little River Casino Resort in Manistee, MI. Ilitch has partnered with the Shinnecock Indian Nation in Hampton Bays, New York to develop a recent casino in New York. Ilitch also a partnered with Barwest, LLC and Los Coyotes Band of Cahuilla and Cupeno Indians to develop casinos in Barstow, California.

Ilitch has long-standing conflict of interest, Selig looks the other way

An article on SportsColumn.com, "MLB Ramps Up Casino Partnerships," by writer Diane M. Grassi asks:

How does MLB oversee those sponsorships between MLB teams and casino operations which allow legal sports betting on their premises?...

...In Detroit there appears to be a long-standing conflict of interest with respect to the ownership of the Detroit Tigers as well as the MotorCity Casino, purchased by Ilitch Holdings, Inc. in 2005, which purportedly owns both entities simultaneously.

Michael Ilitch and his wife, Marion Ilitch [Marian Ilitch], are listed as the Tigers’ owner and the MotorCity Casino owner, respectively. The question arose when it was revealed that Marian Ilitch is Vice Chairman of Ilitch Holdings, Inc. which also owns the Detroit Tigers. But Ilitch friend and Commissioner Bud Selig overlooked the proprietary conflict and asked his staff to stand-down...

Relationship betwen Ilitch owned baseball and gambling operations revealed

A press release issued by Ilitch Holdings, Inc. announcing the creation and hiring of a new VP of Government Relations suggests that Ilitch Holdings, Inc. is in fact the parent company of both the Detroit Tigers and MotorCity Casino among other Ilitch owned entities.

In the release, Ilitch Holdings CEO Christoper Ilitch says, the new VP Mike McLauchlan is "suited to interact with key governmental officials and community representatives in addressing the various legislative and civic issues that impact Ilitch-owned businesses."

It certainly sounds like this new exec will handle lobbying needs of both the Ilitch owned MLB team and the Ilitch owned gambling hall; as well as any other Ilitch owned business. This is yet another indication that the separation between baseball and gambling at Ilitch Holdings is paper thin, at best.

The press release is sure to point out that baseball team is owned by Mike Ilitch and MotorCity Casino is owned by Marian Ilitch. Somehow they seem to miss the point that both entities fall under the umbrella of parent Ilitch Holdings, Inc. As such, the press release fails to detail that:

• Mike Ilitch, owner of the baseball team, is Chairman of Ilitch Holdings, the parent of MotorCity Casino; and


• Marian Ilitch, owner of MotorCity Casino, serves as Vice Chairwoman of Ilitch Holdings, the parent of the Detroit Tigers baseball team.

Two years ago, Ilitch Holdings, Inc. purged most references to MotorCity Casino from its Web site attempting to suggest to outsiders that the gambling hall was a completely separate entity with no ties to Ilitch Holdings, Inc. or its other brands. This new press release clearly indicates otherwise. Is Bud Selig watching?

Blurred lines between Ilitch Holdings, Inc. and Ilitch owned gambling entities

A story in Crain's Detroit Business published 12.03.07 suggests that Detroit Entertainment LLC is "a distinct corporate venture from Ilitch Holdings Inc."

TVT's not buying that attempt to pull the wool over Bud Selig's eyes. Consider the following:

• Official press releases posted on the Ilitch Holdings, Inc. Web site indicate something different:
  
  http://www.ilitchholdings.com/Portals/0/Little-Caesars-Pizza-plans-growth.pdf
  "Part of the Ilitch Holdings’ family of businesses, the company’s primary business interests in the food, sports and entertainment industries include – Little Caesars Pizza, the Detroit Red Wings, Detroit Tigers, Olympia Entertainment, Olympia Development, Blue Line Foodservice Distribution, Champion Foods, Uptown Entertainment, Little Caesars Pizza Kit Fundraising Program, MotorCity Casino and a variety of venues within these entities."



• Official Press Releases available in the "Media Room" on the Ilitch Holdings, Inc.. Web site (there are several) even have the MotorCity Casino logo among the various Ilitch brands incorporated into the Ilitch Holdings, Inc. masthead (see graphic above) including an official press release issued on behalf of Ilitch Childrens Chairities.
  http://www.ilitchholdings.com/Portals/0/ILITCH_HOLDINGS_TO_EXPAND_DEVELOPMENT_EFFORTS.pdf
  http://www.ilitchholdings.com/Portals/0/icc.pdf
  


• Then there's the matter of IH Gaming, Inc. formed in 1997 and apparently still active which would appear to stand for Ilitch Holdings Gaming.
  


• John Kotlar, both resident agent and Vice President of Tax Affairs for Ilitch Holdings, Inc., and also resident agent for Detroit Tigers, Inc., is also the resident agent for IH Gaming, Inc.; CCM Merger, Inc. (parent of Detroit Entertainment LLC of which MotorCity Casino is a d/b/a), Atwater Casino Group LLC; Z.R.X. LLC; and various other entities formed or aquired as part of the Ilitch ownership in casino ventures over the years. And it is noted that those entities have registered official addresses with the Michigan Department of Labor & Economic Growth at the headquarters of Ilitch Holdings, Inc., 2211 WOODWARD AVE, DETROIT MI 48201. Kotlar's official bio on the Ilitch Holdings Web site fails to mention his involvement with these Ilitch owned gambling entities.
  


• Marian Ilitch, reportedly the sole owner and perhaps Chairwoman of MotorCity Casino which is a d/b/a for Detroit Entertainment LLC is also the Vice Chairwoman of Ilitch Holdings, Inc. She and her husband Mike Ilitch co-founded Little Caesars Pizza and co-own the Detroit Red Wings.
  


• And finally a recent Free Press story indicated that Ilitch Holdings, Inc. CEO and President Christopher Ilitch is a member of the MotorCity Casino Management Committee. Christopher Ilitch's official bio on the Ilitch Holdings, Inc. Web site fails to mention his official involvement with MotorCity Casino.

They can say all they want that there's no mingling of business interests -- that the Casino operations are distinct and separate from Ilitch Holdings, Inc. -- but there are red flags all over the place that suggest something different.

Just because an Ilitch or an Ilitch representative says something doesn't mean it's so. What it means is that's what they want you to -- or need you to -- believe.
To suggest that MotorCity Casino (Detroit Entertainment LLC/CCM Merger Inc) is distinct from and not a part of Ilitch Holdings, Inc. is questionable at best.

Tigers running lottery at Comerica Park

12.02.07

Tigers lottery? MLB eases up, a bit, on gambling

By Bill Shea
Crain's Detroit

Feeling like a little game of chance at Comerica Park?

Two kiosks at the stadium this past season sold $5 scratch-off Michigan Lottery tickets emblazoned with the Detroit Tigers logo. Prizes varied up to $100,000, and included team merchandise and even season tickets.

Legalized gambling, once unthinkable in relation to Major League Baseball, has gradually gained limited acceptance in the game as a source of revenue. The same Major League Baseball that once banned Willie Mays and Mickey Mantle for being associated with casinos has cautiously embraced advertising and sponsorships from various legalized gambling outlets — provided the casinos or lotteries don't permit betting on games.

Betting at games and betting on games is the crucial difference.

But those who keep tabs on the business side of the game agree that baseball is more tolerant of some forms of legalized gambling, especially when there is money to be made for teams and American culture has come to increasingly accept casinos and lotteries.

"Baseball will continue to change the configuration of its rules as their business practices shift and change. Their views on things that may have been taboo in the past change," said Maury Brown, president of Portland, Ore.-based Business of Sports Network, which includes a Web site devoted to the business side of baseball. "There's definitely a softening of (prohibitions against legalized gambling) in baseball."

New York-based lottery ticket maker Scientific Games Inc. spent more than six years trying to persuade baseball to sign a deal to allow team logos on state lottery scratch-offs, said Steve Saferin, vice president and president of properties. The company has licensing deals with Ford Motor Co., Chrysler L.L.C. and a variety of popular culture icons such as the TV show "American Idol."

"Lotteries now are in all but seven states and are viewed by a lot of people as a legitimate way to raise money for good causes," he said.

Finally, in 2006 the team owners unanimously approved a five-year deal.

The commissioner's office and the team owners' primary concern was the question of permitting any form of gambling in connection with the game, Saferin said. The memory of Pete Rose's lifetime banishment in 1989 for betting on games while managing the Cincinnati Reds is still very much alive.

"A scratch-off lottery ticket is about as far from betting on teams as you could get," Saferin said, noting that the National Basketball Association and National Hockey Association already had deals with Scientific Games.

"The league decided this is a legitimate way for teams to generate incremental revenue. It got easier the past three years because a lot of other people had embraced the lottery category, including sports. It was difficult. They've come to the realization that their position needs to be more finely tuned. The real problem is sports betting. This is not sports betting."

Commissioner Bud Selig wanted a unanimous vote from the owners to OK the lottery tickets deal, Saferin said. The approval from owners was also to change MLB's bylaws that forbid team logos on lottery tickets.

Scientific Games rolled out the MLB tickets last year with a Boston Red Sox instant game. This year, 22 teams participated and Scientific Games printed about 175 million tickets since games began.

The Tigers-themed scratch-off tickets were a success this year, lottery officials said.

Since going on sale April 2, about $10 million worth of the scratch-off Tigers lottery tickets have been sold, the state said, which is about 10 percent higher than average $5 tickets sales. Detroit Red Wings and Detroit Pistons scratch-offs have also been sold in the past.

The lottery reported fiscal year 2007 annual sales of $2.3 billion.

Each team receives a cut of the money that Scientific Games paid MLB for the rights to the team logos. Neither MLB nor Scientific Games would say how much the deal is worth, but it's believed to be in the millions of dollars. Teams also got money from local marketing Scientific Games did in each market, Saferin said.

Susan Goodenow, Major League Baseball's vice president of business public relations, declined to comment on the lottery tickets.

Rob Matwick, Tigers vice president of communications, said the team has had an advertising relationship with the lottery for several years, but the scratch-off promotion was through Major League Baseball.

A veteran of more than 20 years in baseball, Matwick said he's seen a shift in attitude about some forms of gambling.

"From an advertising and sponsorship standpoint, it's less restrictive than it used to be," he said. MotorCity Casino and MGM Grand Casino each advertise at Comerica Park. That's allowed because neither offers sports wagering.

"There are still prohibitions that are still in place that have to do with casinos," Matwick said, noting casinos are not permitted to show such things as playing cards or slot machines in stadium advertising.

MotorCity Casino is owned by Marian Ilitch, wife of Tigers owner Mike Ilitch. Baseball forbids its team owners from having a stake in casinos, but the Ilitches say she was never an owner, and baseball agrees — a position with its share of critics, including ex-Commissioner Fay Vincent.

Mike Dietz, president and director of Dietz Trott Sports & Entertainment in Bingham Farms, spent 17 years with Ilitch Holdings Inc., which includes the Tigers and Red Wings. He believes money from legal gambling is a natural source of revenue for sports leagues. Baseball reached a record $6 billion in revenue last year, thanks in part to gambling-related advertising and sponsorships.

"Everything costs more — to field a team, to give fans what they want. There are a lot of bills to pay and a lot of reasons to be open-minded about new sources of revenue," he said. There's only so many (sponsors) and so many are cutting back."

So what does the future hold for baseball and legalized gambling?

Business of Sports Network's Brown thinks it will be driven by profits.

"Are we going to see video poker at the ball park? I don't know. In 20 years, it wouldn't surprise me," he said. "Baseball has gotten wise and smart about how to extract revenue out of things other than baseball. It's a much more sophisticated league."

And perhaps another sign of shifting attitudes: Baseball's 2008 winter meeting will be held in Las Vegas.

Bill Shea: (313) 446-1626, bshea@crain.com

Tiger lottery facts:

• New York-based Scientific Games Inc. spent more than six years persuading Major League Baseball to allow team logos on state lottery scratch-off tickets. Other lottery games from Scientific include scratch-offs featuring Chevy, Dodge, Jeep, Lincoln, NASCAR, NBA, NHL, "American Idol," Hershey's and TV Guide.



• Point-of-sale and broadcast advertising for the Detroit Tigers instant game was done by Troy-based ad agency Simons Michelson Zieve Inc., which has done lottery work since 2005.
  

MLB's Rule 21: Misconduct; gambling prohibitions

MAJOR LEAGUE RULES

Rule 21
MISCONDUCT

(a) MISCONDUCT IN PLAYING BASEBALL. Any player or person onnected with a club who shall promise or agree to lose, or to attempt to lose, or to fail to give his best efforts towards the winning of any baseball game with which he is or may be in any way concerned; or who shall intentionally fail to give his best efforts towards the winning of any such baseball game, or who shall solicit or attempt to induce any player or person connected with a club to lose, or attempt to lose, or to fail to give his best efforts towards the winning of any baseball game with which such other player or person is or may be in any way connected; or who, being solicited by any person, shall fail to inform his Major League President and the Commissioner.

(b) GIFT FOR DEFEATING COMPETING CLUB. Any player or person connected with a club who shall offer or give any gift or reward to a player or person connected with another club for services rendered or supposed to be or to have been rendered in defeating or attempting to defeat a competing club, and any player or person connected with a club who shall solicit or accept from a player connected with another club any gifts or reward for any such services rendered, or supposed to have been rendered, or who having been offered any such gift or reward, shall fail to inform his League President or the Commissioner immediately of such offer, and of all facts and circumstances therewith, shall be declared ineligible for not less than three (3) years.

(c) GIFTS TO UMPIRES. Any player or person connected with a club, who shall give, or offer to give, any gift or reward to an umpire for services rendered, or supposed to be or to have been rendered, in defeating or attempting to defeat a competing club, or for the umpire's decision on anything connected with the playing of a baseball game; and any umpire who shall render, or promise or agree to render, any such decision otherwise than on its merits, or who shall solicit or accept such gifts or reward, or having been solicited to render any such decision otherwise than on its merits, shall fail to inform the League President or the Commissioner immediately of such offer or solicitation, and all facts and circumstances therewith, shall be declared permanently ineligible.

(d) BETTING ON BALL GAMES. Any player, umpire, or club official or employee, who shall bet any sum whatsoever upon any baseball game in connection with which the bettor has no duty to perform shall be declared ineligible for one year.

Any player, umpire, or club or league official or employee, who shall bet any sum whatsoever upon any baseball game in connection with which the bettor has a duty to perform shall be declared permanently ineligible.

(e) VIOLENCE OR MISCONDUCT IN INTERLEAGUE GAMES. In case of any physical attack or other violence upon an umpire by a player, or by an umpire upon a player, or of other misconduct by an umpire or a player, during or in connection with any interleague Major League game or any exhibition game of a Major League Club with a club or team not a member of the same league, the Commissioner shall impose upon the offender or offenders such fine, suspension, ineligibility or other penalty, as the facts may warrant in the judgement of the Commissioner.

(f) OTHER MISCONDUCT. Nothing herein contained shall be construed as exclusively defining or otherwise limiting acts, transactions, practices or conduct not to be in the best interests of Baseball; and any and all other acts, transactions, practices or conduct not to be in the best interests of Baseball are prohibited and shall be subject to such penalties, including permanent ineligibility, as the facts in the particular case may warrant.

(g) RULE TO BE KEPT POSTED. A printed copy of this Rule shall be kept posted in each clubhouse.

Long Island bloggers question link between Detroit Tigers and MotorCity Casino

as posted at SaveTheEastEnd.org, a committee monitoring the progress of a proposed Shinnecock Indian casino resort on Long Island in The Hamptons:

A Gambling Double Standard?

"Pete Rose cannot enter the Baseball Hall of Fame since he bet on baseball games. In retirement, Mickey Mantle and Willie Mays couldn't associate with their ex-teams while working for casinos. Yet, baseball permits Michael Ilitch to own the Detroit Tigers and his wife, Marian, to own a 25 percent stake in the MotorCity Casino. What's wrong with this picture? The incongruity surfaces again in light of revelations last week that Marian Ilitch tried to buy a controlling interest in MotorCity, according to a new lawsuit filed against Ilitch by minority partners in the casino. Major League Baseball apparently couldn't care less. The fantasy is that Mike Ilitch bought the Tigers alone in 1992, even though he and Marian have been partners in their other business dealings, from their pizza business four decades ago to their joint ownership of the Detroit Red Wings. Apparently, nobody but Commissioner Bud Selig accepts an Ilitch rewriting of history that insists Marian never had a thing to do with the Tigers. But it's hard to sound credible when she was listed as an owner with Mike in Tigers media guides between 1993 and 1996." (Crain's Detroit Business, 2.21.05)

With Mike Ilitch's blessing, Tigers management rattles Bud Selig's office

posted 8.16.07 at SI.com:

Marching to their own beat
Tigers rattle commish's office with draft signing

Bud Selig is said to be livid over the Tigers' record $7.3 million deal for prep pitcher Rick Porcello. Yet the commissioner's well-known sentiments on the subject weren't about to stop the Tigers from doing what they do best, which is to spend for talent and take chances, especially in the draft.

With the blessing of their pizza king owner Mike Ilitch, the Tigers' front office has done what it took to quickly rise from an all-time dregs team with 119 defeats to rank among baseball's elite teams and it isn't about to stop now. The way they have engineered the turnaround is to identify young talent and pay for it. Good for them.

Porcello's four-year, major-league deal surpassed Josh Beckett's $7 million contract eight years ago as the biggest ever for a drafted high school pitcher and rankled Selig and other MLB powers who have worked hard and instituted new rules designed to scale back bonuses for amateur draftees, one area where they retain some fiscal control. Porcello's contract also shattered the $1.17 million slot figure MLB people had assigned to the 27th spot in the first round and was the latest coup for superagent Scott Boras.

Selig tried to discourage both Ilitch and Tigers GM Dave Dombrowski in separate conversations in which he spelled out the risks. "It's an opportunity he didn't necessarily believe in," Dombrowski conceded by phone of Selig. "We support the commissioner's program and have adhered to it in almost every single case .... You never like to do anything that may hurt another organization. But we're in a spot where we feel we have to do what's best for the organization." (Complete Story)

Detroit Tigers owner Mike Ilitch defied MLB Commissioner; Selig reportedly not pleased

8.16.07

Tigers put future first

By Jim Hawkins
Journal Register News Service

Mike Ilitch has no doubt already gotten an angry phone call -- or 10 -- from Bud Selig. Wednesday's good news that the Tigers have signed their hotshot No. 1 draft pick, Rick Porcello, did not exactly meet with resounding applause in the commissioner's office.

That's putting it mildly. Suffice to say, Ilitch and Selig will probably not be sitting down together for a quiet dinner anytime soon.

In fact, if the Tigers should be fortunate enough to win the World Series this fall, the trophy presentation might be Selig's most awkward moment since Barry Bonds belted No. 756.

Once again, to their credit, Ilitch and Dave Dombrowski have refused to follow baseball's party line, choosing instead to behave in what they believe to be the best interest of the Detroit Baseball Club. (Complete Story)

* * *

Perhaps this will cause Major League Baseball to revisit the Ilitch Family's casino ownership and gambling interests; and their use of MLB venues and events for political fundraisers tied to the Ilitch Family's gambling interests.

Like Ilitch, Atlanta Braves owner wants to retain MLB Team & gambling enterprise; an on line sports betting information Website.

Published on: 02/23/07

MLB looking into Liberty betting site

By TIM TUCKER
The Atlanta Journal-Constitution

Prospective Braves buyer Liberty Media's ownership of a sports betting-information Web site has drawn the attention of Major League Baseball.

"Our people are looking into it," MLB spokesman Rich Levin told The Journal-Constitution on Thursday. "They are aware of it and are reviewing it."

Liberty last year bought a 51 percent stake in Toronto-based Fun Technologies, whose holdings include a Web site called DonBest.com. The site, which doesn't accept or make wagers, provides gambling lines and extensive picks from "expert" handicappers.

Levin said MLB's "basic rule is that an owner or anybody can't have any direct involvement in any kind of gambling enterprise." He said he did not want to "make a judgment" about whether Liberty's Web site would be found to violate that rule.

If MLB does deem the Web site a problem, it could ask Liberty to divest that business, which is a tiny part of the company's overall holdings, as a condition of being approved as Braves owner.

Liberty Media CEO Greg Maffei said at an investment conference in Colorado that the Web site should not present a problem with MLB.

"It does no more, no less than USA Today or lots of other people who provide much more information in much more detail," Maffei told The Rocky Mountain News after a speech at the "Venture Capital in the Rockies" conference in Beaver Creek, Colo. "I don't see it as an issue."

Steve Greenberg, the investment banker representing Time Warner on the Braves deal, declined comment when asked if he expects the Web site to be an issue with MLB.

Time Warner and Colorado-based Liberty last week agreed on a tax-free stock swap under which Liberty would acquire the Braves. The deal was forwarded to MLB for what is expected to be a lengthy examination; the process typically includes looking at a buyer's businesses. Approval is required from 75 percent of owners.

Issues of ownership ties to gambling-related entities have surfaced twice recently in baseball. MLB blessed an arrangement under which Marian Ilitch, wife of Detroit Tigers owner Michael Ilitch, owns MotorCity Casino in Detroit. And Steve Swindal, a managing general partner of the New York Yankees and son-in-law of principal owner George Steinbrenner, was quoted by the New York Times in December as saying he got permission from baseball commissioner Bud Selig to participate in a group bidding for three New York horse racing tracks, one of which would operate slot machines.

According to a recent press release, the Don Best site "provides subscription services for live odds, major line-move alerts, injury reports, statistical reports and offers customized information-

delivery services."

At the conference, Maffei also addressed speculation Liberty would quickly re-sell the Braves, saying, according to the Rocky Mountain News, that the company intends to be "long-term owners."

The paper reported that he told the gathering of venture capitalists that there are "lots of reasons" to hold on to the team, one being that "you're not going to make a lot of friends" in MLB by quickly flipping it. Also, he noted the IRS would treat the deal more favorably if Liberty keeps the team.

But it was not clear what Maffei meant by "long-term" — the two or three years experts have said Liberty must hold the Braves to preserve the deal's tax-free status, or something significantly longer. He could not be reached for further comment.

Ilitch pulls MotorCity Casino from brand line up, website: isolates it from Little Caesars, Tigers, Red Wings

One year ago, the Ilitch Holdings, Inc. web site featured a newly modified banner a top its pages that included the logos of 10 of its most recognizeable brands. The site had proudly been overhauled following the acquisition of Detroit's MotorCity Casino. The golden goose was given a place next to Little Caesars. But ...

Today there are all of two minor mentions of MotorCity Casino and those are buried on their respective webpages only to be found after scrolling nearly to the bottom of the page. There is no mention nor representation of MotorCity Casino on the website's home page.

History
Late in 2005, Ilitch Holdings, Inc. added MotorCity Casino to its line up of recognizeable name brands. Detroit's expanding gambling hall took its place on the corporate website to the right of brands like Little Caesars Pizza, Tigers Baseball, Red Wings Hockey; and a few lessor known brands that service the standards. MotorCity Casino, just another offering in the Ilitch's entertainment portfolio, was added to nearly every page on the website.

MotorCity Casino even became a sponsor of the Red Wings hockey franchise.

But, sometime last summer (2006), the Ilitch Holdings, Inc. corporate website was nearly purged of any reference to "MotorCity Casino" (words or graphics). And where it is mentioned, it's got "stand alone" status, isolated/buried at the bottom of the page; as if it's the bastard step-child no one wants to acknowledge except that it is the goose that is laying golden eggs for Ilitch Holdings. Inc.

While they have exiled MotorCity Casino from its place next to the other brands, they still lump its annual revenue or value into figures they publicly disclose for Ilitch Holdings, Inc. as a way to pump up their pizza dough!

Before (Late 2005 - Early 2006)

click graphic below to enlarge for viewing

"Their primary business interests include – Little Caesars Pizza, the Detroit Red Wings, Detroit Tigers, Olympia Entertainment, Olympia Development, Blue Line Foodservice Distribution, Champion Foods, Uptown Entertainment, Little Caesars Pizza Kit Fundraising Program, MotorCity Casino and a variety of venues within these entities. The holding company’s 2005 total combined revenues exceeded $1.5 billion."

After (as of December 2006)
click graphic below to enlarge for viewing

"Ilitch Holdings was established in 1999 to provide all companies owned by Michael and/or Marian Ilitch with professional and technical services. These services are provided to all of our businesses -- Little Caesars Pizza, the Detroit Red Wings, Detroit Tigers, Olympia Entertainment, Olympia Development, Blue Line Foodservice Distribution, Champion Foods, Uptown Entertainment, Little Caesars Pizza Kit Fundraising Program, and a variety of venues within these entities. In 2006, combined revenues of Ilitch-owned businesses totaled $1.5 billion."

.

It's not clear what prompted this purge of any reference to the casino. Was it the call for a boycott of other Ilitch Holdings brands? Was it Major League Baseball? What happened?

The purge was nothing short of a cut and past activity as can be seen by comparing the past and present banners. MotorCity Casino was cut out of the banner and the spot it held on the far right side of the logo line up is obviously left "empty."

Focus on the Family Called for Boycott

In late 2005 Focus on the Family started calling for a boycott of Ilitch Holdings, Inc. brands in light of the casino ownership. On the web pages of its family.org Citizen's Link Focus on Social Issues November 14, 2005, Focus on the Family's Chad Hill wrote:

"Michigan Take Action

"Pizza! Pizza! Casino! Casino!
Before you order another pizza from Little Caesar's, consider the following: Marian Ilitch and her husband, Michael Malik — Michigan residents — are the founders and owners of Little Caesar's Pizza chain. They also own the Detroit Red Wings and the Detroit Tigers (see Ilitch Holdings). Nothing wrong here, as eating pizza and attending sports events are great family activities.

"Unfortunately, the Ilitch's are also partners in putting up the money for a casino bid by New York's Shinnecock tribe, and Marian Ilitch recently won state approval to become sole owner of Motorcity Casino in Detroit. Something is wrong here.

"Gambling exploits children and adults, ultimately destroying families.

"The Ilitch's are sending a mixed message: they are supporting family-friendly activities while investing in an industry that exploits people and ruins families.
Maybe Michigan citizens should send them a clear message: 'We don't fund gambling ventures through family-oriented activities.'"

Heading into the 2006 SuperBowl (spotlight on Detroit), Focus on the Family raised the volume. Then suddently Focus on the Family went quiet (nearly every mention gaming in Michigan was removed from its website); MotorCity Casino was removed from the Ilitch corporate website; and a month or so later, it was announced that Mike Ilitch (a Catholic) was going to fund some new evangelical-centered million dollar reality TV program pitting church choirs across the country against each other in some sort of "battle of the bands" type competition. One announcement for "Voices of Joy" included:

"...Michael Ilitch, the man who came up with the idea of "Voices of Joy" and also the founder of Ilitch Holdings, a family of companies dedicated to creating extraordinary and memorable entertainment and sporting experiences."

Numerous websites noted "Voices of Joy" was the "brainchild" of Mike Ilitch. However, there's no record of any hype on the project coming out of the Ilitch Holdings, Inc. headquarters.

Had Ilitch bought his way out of a boycott? Did the threat of a national boycott raise concern with Major League Baseball? Was this another chapter in the Abramoff scandal? Wouldn't the winning Choir be receiving a million dollar jackpot gleaned from Detroit slot machines? How would that be different than Ralph Reed and other evangelicals secretly taking Indian Casino money from Abramoff's team in exchange for supporting political activities that would benefit Abramoff's clients?

Boston Globe weighs in on Baseball and Slot Machines

02.04.07
Hill Climber in Chicago



Don't bet on Swindal's inclusion


Pull the lever, line up three A-Rods, and you win $252 million.

Far-fetched? Of course it is, but if commissioner Bud Selig doesn't rule against Yankees president Steve Swindal's interest in Excelsior, which is vying for control of three New York racetracks and eyeing the inclusion of video slot machines, you might as well allow slots at the new Yankee Stadium...

...Baseball doesn't mind its owners having stakes in horses or racetracks, and we're well aware of [Steve] Swindal's father-in-law, George Steinbrenner, and his love of horses. Gambling is the problem.

The commissioner's office has long indicated it will evaluate potential ties to gambling on a case-by-case basis, but as of Friday Major League Baseball spokesman Patrick Courtney said Selig had not yet ruled.

In October, Robert Nutting, a Pittsburgh Pirates partner, removed slots from consideration at his Seven Springs Mountain resort in the Catskills when told Selig would not have approved. But apparently there is a way around it, and Detroit Tigers owner Mike Ilitch has learned it -- have your wife own the casino. In that case, Marian Ilitch is owner of the Motor City Casino. Nutting, however, wasn't able to pull it off because it would have created a major structural change in his stake of the Pirates.


Our most educated guess is that Swindal doesn't have a chance of being part of this. But who knows?

New York Times sports writer recognizes conflicts in Ilitch casino ownership

December 26, 2006

On Baseball
A Marriage Is a Partnership, Except in Baseball



By MURRAY CHASS

On the Ilitch Holdings Web site, Marian Ilitch is listed as the company’s vice chairwoman. Among the 15 “companies and venues” listed and described are the Detroit Tigers. A visitor to the site could easily conclude that Marian Ilitch is an officer, if not an owner, of the Tigers and the other 14 ”companies and venues” listed under her name and that of her husband, Michael.

MotorCity Casino is not among those companies and venues. Marian Ilitch owns and operates MotorCity Casino. Under Major League Baseball rules, an owner or officer of a club cannot own or operate a casino. So why does M.L.B. allow Marian Ilitch to own and operate the Detroit casino? Because the Ilitches have assured M.L.B. that Marian Ilitch is not an owner or an officer of the Tigers, the Ilitch Web site notwithstanding.

Michael owns the Tigers; Marian owns the casino. That’s their story, and they’re sticking to it.

The Ilitches don’t talk to reporters. They have not returned telephone calls seeking comment on their baseball and gambling ownership status, nor has the vice president for communications at Ilitch Holdings Inc., Karen Cullen.

Baseball officials, on the other hand, have recently addressed the issue.

“Mike has no ownership interest in the casino, and Marian has no ownership interest in the club,” Bob DuPuy, baseball’s chief operating officer, said Friday. “We don’t have a rule that covers spouses. Since these entities are separate, we don’t deem it a violation.”

DuPuy said that when Marian Ilitch was listed as a director and an officer of the Tigers, “we asked that it be modified and it was.”

What about the Web site listing? “I don’t think she has any direct involvement with the Tigers,” DuPuy said. “My recollection is she divorced herself of any involvement with the Tigers, and we were satisfied with that.”

Tom Ostertag, baseball’s general counsel, echoed DuPuy’s view.

“The annual ownership reports filed by the Tigers clearly indicate that Michael Ilitch owns 100 percent of the club and that Marian Ilitch is not among the club’s officers, directors or employees,” Ostertag said.

The subject of baseball and casinos has arisen because Steve Swindal, a managing general partner of the Yankees, is a partner in a group that may operate three racetracks in New York State and have slot machines at one of them. Bob Nutting, chairman and plurality owner of the Pittsburgh Pirates, had also wanted to install slot machines at a Pennsylvania ski resort he owns.

Nutting abandoned his plan because he did not think he would be able to find a way around baseball’s rules.

Swindal’s and Nutting’s efforts prompted another look at the Ilitch operation. Technically and legally it may be free of any casino smell, but signs remain that a link exists, including the listing of Marian Ilitch as second in command of Ilitch Holdings.

If she is vice chairwoman of the company, and the Tigers are part of the company, how is she not part of the Tigers ownership or at least their executive group?

Michael Ilitch is chairman of Ilitch Holdings, and he is the owner of the Tigers. Christopher Ilitch is president and chief executive of Ilitch Holdings, and his page in the Tigers’ media guide is second only after his father’s. His biography mentions some of the entities included in the company.

Christopher was involved in a casino matter last year when he and Mike Malik, a partner with Marian Ilitch in a casino venture, were the hosts for a $5,000-a-head fund-raiser in the owner’s box at Comerica Park. The event was for Representative Richard Pombo, Republican of California, whose House Resources Committee was scheduled to take up a bill affecting her casino project.

Marian Ilitch is not considered an owner or officer of the Tigers, yet she is an owner or officer of other Ilitch entities like Little Caesars Pizza, the Detroit Red Wings, Olympia Entertainment, Uptown Entertainment and the Fox Theater.

In the first five years of Michael Ilitch’s ownership of the Tigers, the team’s media guides listed his wife as an owner as well. In 1997, Dun & Bradstreet listed her as a team executive, secretary and treasurer. But when she became involved in the casino project that year, she denied having been an owner. Commissioner Bud Selig supported her position.

In April 2005, Westlake Securities of Austin, Tex., announced the $106.4 million sale of Atwater Entertainment Associates’ minority interest in MotorCity Casino to Ilitch Holdings. Westlake said Ilitch Holdings “also bought the remaining equity in the holding company including the controlling interest owned by Mandalay Bay Group prior to its merger with MGM Mirage Resorts.”

Westlake’s release later referred to Ilitch Holdings as “another minority interest shareholder of MotorCity Casino.” The release didn’t say that Marian Ilitch bought the casino or was a minority shareholder in the casino. It said Ilitch Holdings was a shareholder and bought the casino. Where was baseball then?

Yet her biography on the Ilitch Holdings Web site says “Marian purchased the MotorCity Casino in Detroit in April 2005.” Westlake evidently wasn’t in on that deal.

Baseball seems to have ignored the casino transaction the way it has ignored other Tigers transgressions. The Tigers seem to get a pass from Selig. In 1990, he issued guidelines dealing with interviews of minority candidates for decision-making positions. But when the Tigers hired Phil Garner as manager in 1999, they interviewed no minority prospects and Selig did not discipline them.

The Tigers bought their way out of a penalty by establishing a community program involving minorities. The fact that the Tigers repeated the act last year when they hired Jim Leyland, this time conducting sham interviews with two minority candidates knowing they were going to hire Leyland, showed their disregard for Selig’s rules.

Just as the Tigers won the American League pennant under Leyland, Michael Ilitch has also done well — financially — this year. After a year’s absence, he returned to the Forbes list of America’s 400 richest people, his estimated net worth doubling to $1.5 billion from $750 million in 2004.

Matthew Miller, who compiles the Forbes list, declined to provide details of the $1.5 billion estimate but said: “I can tell you the casino holdings are not tremendously significant to the 1.5 number. We have heeded what he has said to a degree that he doesn’t own it.”

Forbes, however, does not have to oversee the enforcement of baseball’s rules. It can accept “to a degree” Ilitch’s story without concern for its absolute veracity. Baseball cannot afford that latitude.

Home
Copyright 2006 The New York Times Company

http://www.nytimes.com/2006/12/26/sports/baseball/26chass.html?_r=1&oref=slogin&ref=sports&pagewanted=print

http://www.nytimes.com/2006/12/26/sports/baseball/26chass.html?_r=1&ref=sports&oref=slogin

You may also want to review these posts:

The Verifiable Truth: Detroit Tigers owner doubled his net worth gambling on casinos
The Verifiable Truth: Notice of $625 million MotorCity offering lead by Deutsche Bank and Merrill Lynch states, Marian Ilitch is co-owner of the Detroit Tigers
The Verifiable Truth: Baseball and Casinos Don’t Mix, or Do They?

Baseball and Casinos Don’t Mix, or Do They?

What’s good for the goose is supposed to be good for the gander, but in this case, who is the goose and who is the gander?

12.19.09
The New York Times

by MURRAY CHASS

Steve Swindal, a managing general partner of the Yankees, has other business interests outside of baseball. That’s where the slot machines come in... Swindal...George Steinbrenner’s son-in-law...Marian Ilitch...listed as an owner in the team’s media guide...first five years of the family’s ownership...name disappeared from the guide when the Ilitch casino was on the horizon... arrangement has raised some eyebrows among some baseball people, but Selig has sanctioned it. (FULL STORY)

You may also want to review these posts:

The Verifiable Truth: Detroit Tigers owner doubled his net worth gambling on casinos
The Verifiable Truth: New York Times sports writer recognizes conflicts in Ilitch casino ownership