Detroit Red Wings Valuation

The 2017 estimated value of the team is $775 million.

The estimated team worth in 2016 is $625 million.

In 1982, Mike Ilitch acquired the Detroit Red Wings for a purchase price of $8.5 million.

The Red Wings currently rank as the NHL’s eighth-most valuable team, trailing behind:

Per Game Revenue

The Red Wings, similar to all other NHL teams, play a total of 41 home games per year.

The annual gate receipts for the 2013-14 season rebounded to $55 million, returning to pre-lockout levels. This came after the numbers were nearly halved during the shortened 2012-13 season.

Over the next three years, as the team faced difficulties both on the ice and attracting spectators, the average gate receipts amounted to $44 million.

The Red Wings relocated to their new residence, Little Caesars Arena, and have consistently filled up the venue for their home games, resulting in gate receipts totaling $66 million during the 2017-18 season.

The gate receipts for the 2018-19 season amounted to a total of $68 million.

Ticket sales per home game amount to over $1.65 million when divided by 41 games.

In 2019, the Red Wings reported a total revenue of $183 million, which encompasses various sources such as the team’s Club Sponsorship deal with MGM Resorts, marketing agreement with Chevrolet, and presenting sponsorships from companies like Coca-Cola and Amway.

The estimated total revenue per home game is $4.46 million.

TV Deal

The NHL and the NBC Sports Group signed a media rights deal in 2011 for a duration of 10 years. This agreement is set to expire after the 2020-21 season. NBC holds the exclusive broadcasting rights for NHL games, while NBC Sports Network (formerly known as Versus) serves as the designated cable network for the league.

The media rights deal signed in 2011 had a value of $200 million.

It is reported that FOX Sports Detroit pays the team $30 million annually for broadcast rights. The Detroit Red Wings’ games are aired on FOX Sports Detroit in the Detroit area. Additionally, in Michigan, FOX Bet sportsbook allows betting on Red Wings games.

Red Wings Ticket Prices

The ticket prices for the team’s last season at Joe Louis Arena ranged from $33 to $120.

The price range of tickets in the previous season, excluding the last season, is between $30 and $109.

The team experienced a significant increase in prices when they relocated to Little Caesars Arena in the 2017-18 season. Center ice lower bowl tickets were rebranded as premium club seats and were priced between $240 and $330 per ticket.

The price range for lower bowl tickets, excluding the center ice area, was between $100 and $130 in 2017/18.

The price of lower bowl tickets in the previous season was $33 less than $95.

The price range for mezzanine tickets increased from $65 to $98 in the 2017/18 season.

The cost for tickets in the newly added club level, which includes parking, is $126.

The price range for private suites at Little Caesars Arena for Red Wings games is $3,500 to $8,500.

The prices for NHL tickets of the Red Wings are considered average, as they do not rank within the top 10 for either the highest or lowest priced tickets on the secondary market.

Despite the Red Wings having the worst record in the league in the 2019-20 season, ticket prices for the 2020-21 season are expected to increase once fans are permitted to return to the arena.

Red Wings Salaries

According to CapFriendly.com, the Red Wings expended a total of $79,969,005 in player salaries for the 2019-20 season.

The sum of $10 million was allocated to players who were not involved in the game.

Henrik Zetterberg, despite being forced to nearly retire in 2018 due to a back injury, received a salary of $6,083,333 from the team.

The amount of $3,954,545 was paid to Johan Franzen as his salary, despite his departure from the team during the 2015-16 season due to post-concussion syndrome.

Franzen’s contract with the team expired after the 2019-20 season, whereas Zetterberg will receive his salary of $6,083,333 for an additional year.

Dylan Larkin, the highest-paid player for the Wings, inked a contract for a duration of five years in 2018.

Larkin earns an average salary of $6.1 million per year.

Larkin’s player rating in the NHL2020 video game is 87.

Tyler Bertuzzi earned $1.4 million during the 2019-20 season as the second-leading scorer. As a restricted free agent, Bertuzzi is expected to receive a substantial increase in salary for the upcoming 2020-21 season.

 

Arena Deals + Timeline

Detroit Olympia

The Detroit Falcons embarked on their journey at the Detroit Olympia arena in the year 1927.

The Detroit Olympia, which was inaugurated on October 15, 1927, came with a construction price tag of $2.5 million.

The year 1932 marked the transformation of the Falcons into the Red Wings.

They played until 1979 at what was also referred to as Olympia Stadium and The Old Red Barn.

The closure of Detroit Olympia took place in February of the year 1980.

In September of 1987, the Detroit Olympia was demolished.

Joe Louis Arena

In 1979, the Red Wings made their move to Joe Louis Arena, situated on the shores of the Detroit River in Downtown Detroit.

The construction of Joe Louis arena incurred a cost of $57 million. Although the facility was owned by the city of Detroit, it was operated by Olympia Entertainment, a subsidiary of Ilitch Holdings, which is owned by Mike Illitch, the owner of the Red Wings.

In 2017, the Red Wings’ tenure at Joe Louis Arena came to an end with the conclusion of the 2017-18 NHL season. The arena officially shut its doors in July 2017.

The final game at Joe Louis witnessed 35 octopuses being thrown onto the ice.

The Joe Louis arena was demolished during the summer of 2020.

Little Caesars Arena

Construction for Little Caesars Arena commenced in April of 2015.

In September 2017, the Arena officially opened its doors, coinciding with the beginning of the 2017-18 NHL season. Little Caesars Arena serves as the focal point of The District Detroit, a dynamic sports and entertainment district that also encompasses Ford Field and Comerica Park. The ownership of the arena falls under the jurisdiction of Detroit’s Downtown Development Authority, while Olympia Entertainment holds operational control through a lease agreement without any cost. As per the revenue sharing arrangement, both Olympia Entertainment and the City of Detroit benefit from the generated profits.

The cost of constructing Little Caesars Arena amounted to $862.9 million.

Approximately 60% of the cost is funded by tax dollars from the public.

In 2017, the Detroit Pistons relocated to Little Caesars Arena for the 2017-18 NBA season. As part of this move, Olympia Entertainment and Palace Sports & Entertainment collaborated to establish an entertainment bookings and event management company, responsible for organizing events at both Little Caesars Arena and The Palace at Auburn Hills.

The Little Caesars Arena has a hockey capacity of 19,515 and the Red Wings have consistently sold out games since relocating to the venue.

The team generated a total of $40 million in new revenue during their inaugural year at Little Caesars Arena for the 2017-18 NHL season.

Sections 108-110 have been exclusively designated for the MotorCity Casino Club, which proudly stands as the biggest private club within Little Caesars Arena.

The address for Little Caesars Arena in Detroit is 2645 Woodward Avenue.

Little Caesars Pizza, which is owned by the Ilitch family, secured the naming rights for the arena in 2016, prior to its opening. The announcement was made in April 2016, revealing that the arena would be named Little Caesars Arena and would feature the iconic Little Caesars logo on its roof.

The naming-rights deal has a value of $120 million.

Little Caesars Pizza, the pizza chain founded by Ilitch and his wife Marian in Garden City in 1959, has an impressive annual revenue of $3 billion. Currently, it holds the position of being the third-largest pizza chain in the US, trailing behind Pizza Hut and Dominos.

Practice Facilities And Other Expenses

The Red Wings have become financially stable with zero debt after constructing the new Little Caesars Arena through a public-private partnership. Moreover, they cleverly saved expenses by incorporating a practice and training facility within the arena, eliminating the need for an additional facility and its maintenance costs.

While many professional sports teams rely on chartering or leasing planes from airlines, the Red Wings have their exclusive aircraft, known as Red Bird III, for traveling to away games. This airplane is privately owned by the Ilitch family, who also own the Detroit Tigers MLB team. Hence, both teams share the same plane for their respective journeys.

 

On-Ice Performance

The Red Wings suffered 49 losses during the 2019-20 season, which spanned over 71 games before the global COVID-19 pandemic brought it to a halt.

5. Quantity of losses in overtime.

17 wins recorded during the 2019-20 season.

The Red Wings secured the last position in the 2019-2020 NHL standings.

Red Wings’ ultimate placement in the previous season

The franchise has won the Stanley Cup 11 times, making them the most successful US-based NHL team in terms of championships. They trail only the Montreal Canadiens (24) and Toronto Maple Leafs (13) in total titles.

In 2008, the Red Wings celebrated their most recent Stanley Cup victory after an impressive performance during the 2007-08 season. It was in Game 6 against the Pittsburgh Penguins when their star player, Henrik Zetterberg, sealed the win with a remarkable goal. Zetterberg’s outstanding contributions throughout the NHL Playoffs earned him the prestigious Conn Smythe Trophy, solidifying his title as the Most Valuable Player.

Zetterberg’s NHL career came to an end years later due to a back injury.

During the Gordie Howe era (1950-1955), the team won a total of 4 Stanley Cups.

The total number of Stanley Cups won during the Steve Yzerman era, specifically between 1997 and 2002, was 3.

Who Owns the Detroit Red Wings?

In 1932, James E. Norris acquired the Detroit Falcons and the Detroit Olympia arena from receivership. The precise amount of the purchase remains undisclosed. Subsequently, he decided to rebrand the team as the Detroit Red Wings.

In 1952, James passed away, leaving behind his legacy to his children Bruce and Marguerite, who inherited the Red Wings.

In 1955, Bruce acquired full ownership by purchasing Marguerite’s share for an undisclosed amount.

In 1982, Mike Ilitch purchased the team from Norris for a sum of $8.5 million.

In the year 2017, Ilitch’s demise marked a significant turning point. Christopher, his son, assumed the role of CEO, while Marian, his wife, continued to hold ownership of Ilitch Holdings.

Read more:

• Detroit sports franchises are eager to profit significantly from the betting industry as they open up their books.