Mike Ilitch has died

[ABetterDetroit]

My condolences to his family in their time of loss. He lived a long full very successful life and I hope that can give them peace and comfort.

[Gistok]

Yes very sad indeed.... he never got the chance to see his dreams and developments finished. It is very likely that nothing will be sold off.

Marion Ilitch is now the power behind the throne, while son Chris continues to run the sports and entertainment empire. Marion will have clout [[or possibly even veto power) on any part of the business, except for baseball, which as a casino owner, she is forbidden from any contact.

My hope now is that Marion stays healthy and active. Once she is gone things could get complicated. Chris may run the family business, but he has 6 siblings that are likely part owners of the Ilitch empire. Marion will have to groom someone as a future successor for MotorCity Casino. Should she pass away, Chris is forbidden from controlling it and the Tigers both.

Mike.... RIP

[emu steve]

Really too bad he didn't get a World Series, wasn't because he didn't want to spend money.

That is one thing I'll never forget: He tried. Oh, did he try.

I was in Detroit [[and at the game) when the Tigers clinched the ALCS [[2012) with their win over the N.Y. Yankees and how Comerica was heaven on earth.

I hope Chris continues what his father had done for Detroit.

[emu steve]

One thing about mourning:

It is always very, very sad for the widow [[as in a majority of cases the surviving spouse is a woman). The children have grown up and have their families.

It is the widow who lost 'her family' that day...

Beside Mrs. Ilitch I think of Beau Biden's widow. Or maybe Antonin Scalia's widow.

In many cases it is like their lifes have ended too.

[renf]

The decisions by the Ilitch organization to refurbish the Fox Theater, to move their firm's headquarters there and their efforts to upgrade the Woodward from Jefferson to Brush Park were key ones for the revitalization of Detroit. Individuals can, and do, have a great deal of influence about a city's trajectory. Thank you, Mr. Ilitch.

[DetroitSoldier]

22 years ago I was a 10 year old playing in a youth hockey tournament at The Joe. It was hosted by the Little Caesars amateur hockey league. Our small club from Lansing won the whole thing. Mr. Illitch showed up on our team bus after the game and congratulated us, and delivering a whole stack of pizzas.

I told him one day I was going to play for him and the Red Wings. He said he looked forward to signing me someday. I fell short of that goal, but I never forgot his down to earth generosity. Even as a young kid I could tell he was genuinely interested in seeing us happy--amateur hockey was not as much of a business for him as much as a hobby. His passion for youth hockey is felt all across the region from the youngest levels up through the college ranks.

[p69rrh51]

I hope Chris continues what his father had done for Detroit.

Are you kidding? If the children continue what he has done there would be nothing left but one big surface parking lot. I for one hoisted to drink saying good riddance for all the small business he fucked over and will continue to do so even though he is gone.

[Lowell]

Regarding the above discussions as to who is running the empire, this is from last May...

Ilitches make it official: Chris in line to lead family business empire

The announcement contained few surprise, as Christopher Ilitch, the sixth of Mike and Marian's seven children, has been at the helm of the family's holding corporation — Ilitch Holdings — for more than a decade. He and his sister, Denise Ilitch, were once copresidents of Ilitch Holdings until she resigned from the family business in 2004 after a chilly estrangement with her brother and mother.

http://www.freep.com/story/money/bus...sars/83992742/

[Cincinnati_Kid]

Are you kidding? If the children continue what he has done there would be nothing left but one big surface parking lot. I for one hoisted to drink saying good riddance for all the small business he fucked over and will continue to do so even though he is gone.

He's done some good things for Downtown Detroit and was a major part of the city's revival, but Detroit is being rebuilt inside out, instead of outside in. He also "strongarmed" a lot of people as well, like the aforementioned small business and property owners. What I find amazing is all the money put into Midtown, and Downtown, but none of these 3 billionaire owners are investing in the areas that need it the most, the neighborhoods. May he R.I.P.

[Honky Tonk]

I wonder if the tax payers will be on the hook for an elaborate funeral?

[emu steve]

He's done some good things for Downtown Detroit and was a major part of the city's revival, but Detroit is being rebuilt inside out, instead of outside in. He also "strongarmed" a lot of people as well, like the aforementioned small business and property owners. What I find amazing is all the money put into Midtown, and Downtown, but none of these 3 billionaire owners are investing in the areas that need it the most, the neighborhoods. May he R.I.P.

I do not believe cities are built from the outside in.

To imply 'outside in' would be to imply that folks come to the neighborhoods, etc. and then business come downtown to employ them [[or a manufacturer builds a plant in say Detroit 'where the people are'.)

I think it is the opposite: Business come downtown, CBD, etc. and then folks make housing and journey to work decisions which lead to the 'inside out' effect esp. in Midtown and Brush Park where residential decision are following what is happening downtown with employment, sports, entertainment, etc.

Isn't the more hypothetical scenario [[assume a recent college grad):

Person A: "I just accepted a job with Quicken Loans downtown"

Person B: "Where are you going to live? Detroit? A suburb? If Detroit, where?"

Person A: "Don't know. I'm still looking at neighborhoods, the commute, parking, etc."

Person B: "Tough decisions."

Person A: "I read on the DetroitYes forum about new apartments on Woodward north of the new arena. I hear they have a streetcar like line opening this year..."

Person B: "Sounds very interesting. Do you like living in the city or in the 'burbs?"

BTW, my whole thesis is that most new jobs in Detroit are probably being created downtown, Midtown, etc. Don't think we are seeing new factories, new grocery stores, medical clinics, etc. being built throughout the city.

[Wesley Mouch]

When Mr. I announced the move to Detroit's then depressing downtown, he said that he let his kids make the decision, because it would be their future. He could have built his HQ in Novi. His employees would have been happier. A non-trivial number didn't move downtown. Some because the commute would be too much. Some because they were afraid of the city. At that time, a lot of people just would never go downtown. After all, except for the Red Wings, why would you? Most suburbanites didn't go downtown ever.

Today, baseball games -- Sesame Street live at the Fox -- General Motors in the Red Can -- Campus Martius -- Gilbertville -- Quicken Loans -- Greektown Casino -- Slows BBQ.

One man let his kids decide whether the sure future in Novi or a risky bet on a dead downtown was the future. Thanks, Mr. I.

[401don]

I'm curious if someone can explain in very basic terms what will happen with the "empire" when Marion Ilitch passes. Little Caesars is a very large privately-held company, along with the sports teams. How do they divide assets among several children, while allowing Christopher to maintain control of the business, while avoiding paying about 40% [[2-3 billion) in estate and inheritance taxes? I'm sure the planning for this must make a lot of lawyers very wealthy.

[emu steve]

I'm curious if someone can explain in very basic terms what will happen with the "empire" when Marion Ilitch passes. Little Caesars is a very large privately-held company, along with the sports teams. How do they divide assets among several children, while allowing Christopher to maintain control of the business, while avoiding paying about 40% [[2-3 billion) in estate and inheritance taxes? I'm sure the planning for this must make a lot of lawyers very wealthy.

I was thinking the same.

I doubt Chris gets and runs everything and the other siblings get free pizza, pizza.

[Scottathew]

Mr. Ilitch will leave a legacy somewhere between that of Gilbert and Maroun. His portfolio of gravel lots didn't do much to help out Detroit. However, the man has done a tremendous amount of good things for Detroit, the region, and even the country. He built an empire and revolutionized pizza by making it an impulse item instead of a 30 minute weight.

He's a man that no doubt loved Detroit, and Detroit loved him back. Thank you Mr. Ilitch.

[Wesley Mouch]

I'm curious if someone can explain in very basic terms what will happen with the "empire" when Marion Ilitch passes. Little Caesars is a very large privately-held company, along with the sports teams. How do they divide assets among several children, while allowing Christopher to maintain control of the business, while avoiding paying about 40% [[2-3 billion) in estate and inheritance taxes? I'm sure the planning for this must make a lot of lawyers very wealthy.

I too wonder about how this gets done. There are some very smart people here who probably understand much better than I do.

Ilitch Holdings, well, sounds like a holding company. While not publicly traded, I assume there are 'shares' of the company that the kids own. There's also a voting structure -- which may be more like the Electoral College -- with different classes of control. Those shareholders probably receive value from dividends [[distribution of income to shareholders) and capital appreciation [[rising value of that presumably rising income stream). The shareholders may be restricted as to selling shares -- so shares stay in a controlled group -- the family and probably some long-time investors going back to the early days. They no doubt needed some money to building store #2, and #3, etc. For a family business, they are probably old friends -- but maybe as the business grew there were some relative outsiders -- who probably keep their mouths shut so long as the business is sharing its profits.

The interesting part is probably how the business is governed. Mrs. I probably has majority control now, but that's going to change someday. Chris is in charge -- and if he can keep money flowing, will stay in charge. If he doesn't, then it will get interesting.

As to inheritance taxes, I'm sure they are smart enough to have planned well. It won't be taxable cash being inherited, but shares in a cash machine -- the holding company.

If any family is prepared for this, the Ilitch Family is.

[emu steve]

Yes, Wesley, I was thinking the same.

No problem with Chris, in time, being the CEO and it be a family enterprise.

We just need to hope that the family enterprise runs smoothly and decisions do not need to be made such as selling off part of the enterprise to satisfy a family member, etc.

That would be scary. Say if a sibling said [[after Mrs. I passes): Chris, I want my share now. And Chris has to sell an asset or borrow money, etc. to satisfy a sibling.

Well maybe the casino? Well maybe the Tigers? Well maybe the Wings and if the Wings, why not the arena, too?

What makes District Detroit so yuge is that it entails Comerica Park surrounds, LC headquarters and Fox, LCA, the Casino area.

It's not like they are separate pieces scattered all over Detroit.

So there is the hope that the entire holding stays together.

[DetBill]

??? You should have lived here in 1984 when I started living here,, If it wasnt for Illitch and family the entertainment district wouldnt have happened, as NOBODY wanted to touch Downtown Detroit ,,, finally in subsequent years the likes of Karmanos, and Gilbert appeared who all stated if it wasnt for Ilitch starting this whole thing they probably wouldn't have been involved...I fully realize some people were furious with some parking lot situations and a few older buildings being demolished but I always thought the positives outweighed the negatives materially... This towns downtown was awful, and dangerous and had no hope of return until Mike Ilitch came in with his vision with the Fox and moving Little Ceasers downtown,, it was a long , slow process, but they made money, did some great things , a few questionable decisions and were a catalyst for other investors, finally 33 years later we will have the Detroit District.. I can hardly fault them for making money, they are business people,, who had a vision for renewal and made money at it, and most people I know are very thankful..
Thankyou Mr. Ilitch and family, i raise a glass to you in appreciation for doing something no one else would even consider in 1984 and beyond.

[Cincinnati_Kid]

I do not believe cities are built from the outside in.

To imply 'outside in' would be to imply that folks come to the neighborhoods, etc. and then business come downtown to employ them [[or a manufacturer builds a plant in say Detroit 'where the people are'.)

I think it is the opposite: Business come downtown, CBD, etc. and then folks make housing and journey to work decisions which lead to the 'inside out' effect esp. in Midtown and Brush Park where residential decision are following what is happening downtown with employment, sports, entertainment, etc.

Isn't the more hypothetical scenario [[assume a recent college grad):

Person A: "I just accepted a job with Quicken Loans downtown"

Person B: "Where are you going to live? Detroit? A suburb? If Detroit, where?"

Person A: "Don't know. I'm still looking at neighborhoods, the commute, parking, etc."

Person B: "Tough decisions."

Person A: "I read on the DetroitYes forum about new apartments on Woodward north of the new arena. I hear they have a streetcar like line opening this year..."

Person B: "Sounds very interesting. Do you like living in the city or in the 'burbs?"

BTW, my whole thesis is that most new jobs in Detroit are probably being created downtown, Midtown, etc. Don't think we are seeing new factories, new grocery stores, medical clinics, etc. being built throughout the city.

Good points. But my main synopsis was the neighborhoods are still being neglected, with the exception of the historic ones like Palmer Woods, Bos Ed, University District, Rosedale Park, etc..

[EGrant]

I've never understood why people think the neighborhoods are somehow the responsibility of the businessmen in Detroit. They will go where they can remain profitable, and can choose where they invest their dollars.

[Enduro]

They will not sell. It was made clear to the kids that they are to keep the companies under family control... all of them. They announced this last year. And don't forget Mrs. I is still very much alive.

Well, Mr. Davidson had the same wishes. One good thing is the payroll of the Tigers is so high it would make it a tough sell to anyone who isn't passionate about the team so the good news is we either we have a family member running it or someone else who has a passion for the team. With the new arena the Red Wings would be red hot on the resale market right now.

[Wesley Mouch]

I've never understood why people think the neighborhoods are somehow the responsibility of the businessmen in Detroit. They will go where they can remain profitable, and can choose where they invest their dollars.

Yes! Ilitch didn't contribute to Detroit's renaissance.... he profited by making a good investment. He saw the future of Detroit, and was wise enough to invest. [[Sure, he was helped by the City.)

The City's willingness to help was a credit to CAY. He struck the deal with Mr. I -- the white, suburban immigrant -- and Mr. I was willing to deal with a black-nationalist communist. We can all learn from that.

Regrant... yes. Mr. I's investment in Detroit for profit has done more for the neighborhoods than decades of community programs at the hands of taxpayers. Invest in business. Jobs, and revitalization can follow.

btw, one of the big things the City promised Mr. I was that there would be good police presence. There was a 'Fox Beat' established. They had a precinct office across the street somewhere. There were dozens of officers on that beat at one point -- it was slowly gutted as desk-bound officers filled the ranks there until there was probably only one officer who wasn't pushing paper. But my point is that the City provided public safety. That's the biggest single thing the City can do for the neighborhoods. Public Safety. It was critical to Foxtown.

[Gistok]

While much of the credit for turning the north end of downtown into an entertainment center goes to the Ilitch clan, if it were not for Chuck Forbes [[and his tendency never to demolish), the Ilitch's may never have come to Detroit. Starting in the early 1980s Forbes [[still alive and in semi retirement) started buying up buildings in the Foxtown area for pennies on the dollar, and he bought the Fox in 1984.... and assured its' survival.

[Cincinnati_Kid]

I've never understood why people think the neighborhoods are somehow the responsibility of the businessmen in Detroit. They will go where they can remain profitable, and can choose where they invest their dollars.

Right... It's all about making money and expanding those portfolios. The residents are responsible for maintaining the neighborhoods, whether they are able to or not. It shouldn't fall solely on them.

[davewindsor]

I'm curious if someone can explain in very basic terms what will happen with the "empire" when Marion Ilitch passes. Little Caesars is a very large privately-held company, along with the sports teams. How do they divide assets among several children, while allowing Christopher to maintain control of the business, while avoiding paying about 40% [[2-3 billion) in estate and inheritance taxes? I'm sure the planning for this must make a lot of lawyers very wealthy.

Using an analogy, how did the Ford Motor Company survive? When Henry and Edsel Ford passed away, they left 90% of the shares of the Ford Motor Company to charity. The charity then sold off the shares on the public stock exchange. But, FoMoCo had a two tier share structure where the remaining 10% had majority control of the company as long as they were held by his descendants. Henry Ford's descendents still control the Ford Motor Company.

I suspect there's some kind of two tiered share structure where the siblings will still control Illitch Holdings and Entertainment after selling off a good chunk of the corporate shares to pay that 40% in death taxes.

But, it doesn't always work though. Bombardier has a two tier share structure with minority ownership and majority control by the Bombardier family descendants and it's a mess getting too many government bailouts. Not sure why the federal government doesn't make Bombardier do away with the two-tiered share structure as a condition of their interest free loans because the descendants won't let more competent non-relatives run the company. I'm sure a CEO like Alan Mulally would do wonders for making them successful again instead of burning holes in the taxpayer's wallet with poor leadership choices.