Wow, this is rather startling in light of the Ititch Organization's request for up to $12.8 million a year in tax dollars to help fund a new downtown arena.

I am sure there are some legal mumbo jumbo arguments but, on the surface, it doesn't have a good smell. Could it be that the City of Detroit doesn't have a revenue problem, but that it has a revenue collection problem? Probably both.

The City may not need an EFM; instead a EFA [Emergency Financial Auditor] may be more in order.

A little-known provision in Olympia Entertainment's lease of city-owned Joe Louis Arena and Cobo Arena promises Detroit a 25 percent share of cable television rights for live events. That's been the deal since 1980, but Detroit hasn't been able to collect a dime, according to city documents obtained by The Detroit News.

One rough estimate from finance staffers last year estimated the city is owed $70 million, but a national sports economist cautioned it's likely much lower.

The revelation comes as Olympia — led by Red Wings and Detroit Tigers owner Mike Ilitch — wants to use up to $12.8 million a year in tax dollars to help fund a new downtown arena. Critics say it's time to pay up.

"The Ilitches are a multibillion-dollar operation, and they are inside a city that is sinking," said City Councilman Kwame Kenyatta. "[[Mike Ilitch), I am sure, knows about this and should be forthcoming to help the city. Help us by writing a check, not by negotiating a new lease."

The debt is among many bills Olympia could owe the city.

Since its lease expired in 2010, the company hasn't paid millions of dollars for items such as rent, concessions and other revenue and property taxes, according to city documents obtained by The News.

In 2011, officials claimed the unpaid debt was $6 million that year, according to one city document.
From The Detroit News