Forbes magazine is out with its 2008 "400 Richest Americans" rankings. Detroit's Michael Ilitch dropped to #301 on this years list and Forbes estimates the combined net worth of Mike Ilitch's family at $1.6 billion which is unchanged over 2007.
The primary reason: Forbes reports that MotorCity Casino, technically owned 100% by Mrs. Marian Ilitch is "facing new competition from MGM Mirage" as well as an "economic downturn depressing casino valuations."
Ilitch Holdings, Inc. is the parent company of such privately held brands as Little Caesars Pizza, Detroit Tigers (MLB), Detroit Red Wings (NHL), MotorCity Casino, Detroit's Fox Theater. Other Ilitch owned-ventures manage many of Detroit's sports facilities and theater venues.
The Ilitch family is extremely guarded about releasing any detailed financial data for these entities.
MotorCity Casino, however, must publicly disclose its total monthly gross revenue figure to the Michigan Gaming Control Board (MGCB). Those figures are disclosed to the public regularly by the MGCB.
During the summer months (Jun - Aug), combined gross revenues at the gambling hall fell 6.5% over the same period in 2007; despite the additions of a 400-room luxury hotel (Fall 2007) and opening of an expanded gaming floor (June 2007).
MotorCity Casino is a d/b/a for Detroit Entertainment LLC which is owned entirely by another entity, CCM Merger Inc. Marian Ilitch reportedly assumed 100% control of MotorCity Casino in 2005 when she bought outstanding shares in the property from Mirage Resort Group (MRG) and various minor investors. Her buyout of MRG helped pave the way for the merger of MGM and MRG. Subsequently MGM Mirage built an entirely new $800 million casino resort in Detroit.
Since Marian Ilitch acquired control of MotorCity Casino, both Moody's and Standard & Poor's have been forced to put the casino's parent, CCM Merger, on negative watch and subsequently downgraded the entity's credit ratings. Ilitch has borrowed somewhere in the neighborhood of $1 billion from investors and creditors to acquire and remodel MotorCity Casino. Among other things, the credit ratings agencies site concerns that MotorCity Casino is leveraged beyond what investors were originally told to anticipate during the remodeling and construction phase.
Forbes: Michael Ilitch - ranked #301
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