Gores and Ilitch to partner on entertrainment operations

"The team's announced move to the Red Wings' Little Caesars Arena, opening in fall 2017, also brought word of a joint venture between the Ilitches' Olympia Entertainment and Tom Gores' Palace Sports & Entertainment [[PS&E) to manage their entertainment empires.

It will unite two longtime competitors under a single banner, placing considerable buying power into the hands of a single entity. The new venture will likely be given its own distinct name, said Olympia president and CEO Tom Wilson.

The combined operation will be overseeing seven of the market's most significant venues: Little Caesars Arena, the Fox Theatre and Comerica Park — now overseen by Olympia — along with PS&E's Palace of Auburn Hills, DTE Energy Music Theatre, Meadow Brook Amphitheatre and the Michigan Lottery Theater at Freedom Hill.

That amounts to more than 105,000 of entertainment seating capacity."
http://www.freep.com/story/money/bus...ghts/94268498/

And people were wondering why Gores would ever leave the Palace I'd say this has something to do with it.

It was pretty obvious they wouldn't maintain separate Booking companies when they are joining together in the highest revenue venue. That freep story includes the Palace but the news release specifically left out the Palace indicating they don't view it as a venue in the future.

Win-Win for both companies and fans...

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Originally Posted by detroitbob

Win-Win for both companies and fans...

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How does this help the fans? Monopolies aren't usually good for the customers, but I do see that entertainment isn't a normal market.

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Originally Posted by Wesley Mouch

How does this help the fans? Monopolies aren't usually good for the customers, but I do see that entertainment isn't a normal market.

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Less staff, marketing, overhead, etc. You don't think they'll pass on those savings to their loyal customers?:rolleyes:

It's terriblefor theconsumer. This just means higher ticket prices. Without competition the venues can charge acts inflated rental prices. The acts then inflate the ticket prices to cover the added fees.

Exciting news, or just another billionaire with hat in hand reaching out to the public tit?

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"The agreement, which was tentatively approved by the Downtown Development Authority board and still requires financing and other approvals from the Michigan Strategic Fund, DDA and Detroit City Council, is made possible in part by $34.5 million in public financing from refinancing DDA bonds and up to $55 million more in DDA-backed bonds to be repaid by Palace Sports & Entertainment.

A DDA spokesman said neither the city nor the state would be responsible for repaying the bonds, even if Olympia or Palace Sports failed to pay their obligations.

The DDA has touted that the move will bring hundreds of millions of dollars in economic benefits, making the costs of the public bonds, which are paid out of taxes captured in the DDA district, a cheap price to pay.

But the deal has already drawn fire for why any public financing is needed with so many billionaires involved. And public financing for pro sports teams has long been criticized by many economists and others who question its actual economic payoff."

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http://www.crainsdetroit.com/article...threes-company

All the familiar themes? Give us money for a monopoly enterprise, it will pay for itself, you won't be on the hook and it will create millions of jobs.

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Originally Posted by 401don

Less staff, marketing, overhead, etc. You don't think they'll pass on those savings to their loyal customers?:rolleyes:

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NHL/NBA prices could drop. The teams have an incentive to keep those prices low -- and most important they have the ability to control prices.

For concerts, pricing is nearly 100% set by the acts. Detroit's a 1st-tier market, so I don't think you'll see much savings nor premium on entertainment tickets. What'll become interesting is whether there are enough calendar dates for one arena venue. I wonder if the Joe might be retained as a #2 facility. Remember that tour routing doesn't always allow major tours to avoid each other. So sometimes you either have Feb 31st open, or you don't. If you don't ---- they the tour goes elsewhere.

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Originally Posted by Wesley Mouch

I wonder if the Joe might be retained as a #2 facility.

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No, it won't be. I has already been decided that it will be torn down as soon as the Wings move out. There will be a hotel/retail project built in its place.

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Originally Posted by Wesley Mouch

So sometimes you either have Feb 31st open, or you don't.

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I think you might need a new calendar.

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Originally Posted by Wesley Mouch

NHL/NBA prices could drop. The teams have an incentive to keep those prices low -- and most important they have the ability to control prices.

For concerts, pricing is nearly 100% set by the acts. Detroit's a 1st-tier market, so I don't think you'll see much savings nor premium on entertainment tickets. What'll become interesting is whether there are enough calendar dates for one arena venue. I wonder if the Joe might be retained as a #2 facility. Remember that tour routing doesn't always allow major tours to avoid each other. So sometimes you either have Feb 31st open, or you don't. If you don't ---- they the tour goes elsewhere.

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Prices in sports and entertainment are at what the market will bear. Yes, I've noticed that prices for concert acts are set by the performer. I checked Andrea Boccelli tickets in a number of cities and they are similar.

Sadly, tickets, like housing prices, are inflated because the market supports it.

If Lions' tickets were $25 Thursday folks would have snapped them up and resold them at a huge profit at prices the market will bear.

This is especially true of the World Series, Super Bowl, etc.

Ditto new houses. If they are sold too cheap they will get resold at the market rate and the first owner, not the developer, makes the money.

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Originally Posted by Wesley Mouch

NHL/NBA prices could drop. The teams have an incentive to keep those prices low -- and most important they have the ability to control prices.

For concerts, pricing is nearly 100% set by the acts. Detroit's a 1st-tier market, so I don't think you'll see much savings nor premium on entertainment tickets. What'll become interesting is whether there are enough calendar dates for one arena venue. I wonder if the Joe might be retained as a #2 facility. Remember that tour routing doesn't always allow major tours to avoid each other. So sometimes you either have Feb 31st open, or you don't. If you don't ---- they the tour goes elsewhere.

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Teams have an incentive to keep prices low? Tell that to NHL teams in NY or Toronto. As Steve said, you charge what the market will bear. If Gores didn't think there would be increased demand downtown, allowing him to raise prices to more normal NBA levels, he wouldn't be moving. What's interesting is how all teams use Stubhub to dump their own extra tickets at lower prices in order to maintain the "integrity" of their face value on Ticketmaster.

so when is a movie theater going to be announced? Oh well...

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Originally Posted by 401don

Teams have an incentive to keep prices low? Tell that to NHL teams in NY or Toronto. As Steve said, you charge what the market will bear. If Gores didn't think there would be increased demand downtown, allowing him to raise prices to more normal NBA levels, he wouldn't be moving. What's interesting is how all teams use Stubhub to dump their own extra tickets at lower prices in order to maintain the "integrity" of their face value on Ticketmaster.

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I stand corrected. I was ignoring that many sports teams are operating at capacity, so supply and demand are not in balance. There's more demand than supply.

As to Gores increased demand assumption, maybe not. Back on concerts, there is a supply/demand balance not just between promoter and fan, but also between promoter and act. So if there are fewer promoters to host an event, the remaining promoter has an advantage against the act.

As above, the acts set the prices to the fans. But they negotiate the price to the venue. If you want the Beatles on February 31st, Mr. Gores, you'll agree to my $2m price -- or I'll take my act to the Joe. That game will change.

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Originally Posted by Wesley Mouch

As above, the acts set the prices to the fans. But they negotiate the price to the venue. If you want the Beatles on February 31st, Mr. Gores, you'll agree to my $2m price -- or I'll take my act to the Joe. That game will change.

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Again, what friggen calendar are you using that has a February 31st? Plus they are not keeping the Joe.

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Originally Posted by gumby

Again, what friggen calendar are you using that has a February 31st? Plus they are not keeping the Joe.

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Before joint operations, good bye Joey. Now, why? Just because it was said. That's like holding Sessions accountable for what he said in the 80s.

Maybe the Joe will still go away, but with this 'merger', it suddenly changes the math.

The Joe, the land the Joe sits on and the huge parking deck were given away as part of the bankruptcy settlement. The city will no longer control the Joe or that piece of land after the Wings move out.

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Originally Posted by ndavies

The Joe, the land the Joe sits on and the huge parking deck were given away as part of the bankruptcy settlement. The city will no longer control the Joe or that piece of land after the Wings move out.

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Thanks, it is like talking to a brick wall sometimes.

Still not sure where he keeps coming up with Feb 31st.

I can't think of any instance in all of capitalism where the two biggest competitors merged and prices went down.

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Originally Posted by gumby

Again, what friggen calendar are you using that has a February 31st?.

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Every fourth year a few days are added to the February calendar, in order to correct an imbalance in the space/time continuum. They are called "Bonus Days".

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Originally Posted by gumby

Again, what friggen calendar are you using that has a February 31st?

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I don't think there was or will be a February 31st but there actually was a February 30th a few times in history in some parts of the world. http://www.timeanddate.com/date/february-30.html

Ha, I read the title as "entrapment" operations, which actually isn't too far from the truth.