Could Chris Ilitch's ownership of the Red Wings and Tigers be affected?
Could the impending divorce of Red Wings CEO and owner Chris Ilitch have an impact on his stake in the teams he oversees?
Earlier today, news broke that Detroit Red Wings owner and CEO Chris Ilitch is in the midst of a divorce from his spouse Kelle.
Per a statement from the couple by attorney David Mendelson:
After thoughtful consideration, we will be transitioning into separate lives and do so with love, friendship, and a commitment to our children. We have settled this matter and it will have no impact on the ownership or operation of the Ilitch businesses.
But could the unfortunate personal update potentially affect the pair of professional sports franchises that Ilitch oversees?
James Quigley of Chicago-based Beermann LLP, a firm handling high-asset divorces, said that the Ilitch's divorce could potentially affect his ownership of both franchises or at the very least, prevent them from spending more money - though that isn't a likely scenario given the protections that are likely in place.
Could (Chris Ilitch) be forced to sell his interest if he needed cash in the event of a huge divorce settlement or obligation? Could it strip the franchises of their cash flow and prevent them from signing players? It could, but not likely. These franchises are so valuable and the ownership or transfer of them in the family is going to be so closely guarded that even a loving spouse of 20-something years is going to be kept out of that.
The Red Wings are officially owned by Ilitch Holdings, while the Detroit Tigers are in a family trust.
Per Lowell Friedman, a family lawyer with Friedman Law Firm in the Detroit suburb of Royal Oak, said that Kelle Ilitch may have a stake in both franchises.
Should anyone be concerned about how the company or teams are going to be run? The answer is sure. In a long-term marriage, everything is going to generally be considered as marital property, until and unless a party can demonstrate why a particular asset should not be considered a marital asset.
| POLL |
6 HOURS AGO | 31 ANSWERS Could Chris Ilitch's ownership of the Red Wings and Tigers be affected? If Chris Ilitch won't commit to following his promises on District Detroit, should he sell? |
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