Red Wings leasehold estates to be sold for $5 million
Red Wings general manager Ken Holland has decided to sell the team’s leases for $1.1 million each to four properties owned by the team.
The deals are the latest sign that the team has become more focused on its business and is willing to do business with the public.
The leaseholds include:The Red Wings also lease two suites on the Red Wings IcePlex and two luxury suites on Lake Michigan near the airport.
The team is also in the process of negotiating leases for a third suite.
“We’re working very hard to get this team back on track,” Holland said Tuesday.
“I think we can be back to the NHL and make a lot of money.
The way I look at it, this is the way we want to play.
If we can get the team back to where it was before, we’ll make money and we’ll win a lot.”
Including the team, the five properties are valued at $6.2 million, according to a report from SportsBusiness Daily.
The teams luxury suites are valued between $10 million and $15 million.
Holland said the team would also lease the team arena and related properties for $2 million each, with an option to increase that to $3 million.
The Red Wing leasehold deals will include a 30-year option to purchase the arena for $750 million.
The sale price would be determined by an offer from the team and city of Red Wings owner Mike Ilitch.
Holls team is not yet known if the teams ownership group would be able to reach an agreement with Ilitch on a lease with the city.
The team is one of the most profitable in the NHL.
The Detroit Red Wings have a record of more than $7 billion, with a profit of $5.4 million last year.