Given the bad and uncertain economy, the Detroit Red Wings are negotiating an extension to their Joe Louis Arena lease and suspending planning on a new arena.
Given the bad and uncertain economy, the Detroit Red Wings are negotiating an extension to their Joe Louis Arena lease and suspending planning on a new arena.
The Wings and Olympia Entertainment on Friday declined the 20-year renewal on the Joe Louis Arena lease, which expires on June 30, 2010. Instead, the team wants to look at a shorter-term lease for the aging facility while looking at future arena options. We are told the team is still planning a new arena as opposed to a $180 million renovation of Joe Louis, but doesn't see the credit markets set up for a financially lucrative plan. And Detroit's economic doldrums makes it unlikely the city can meaningfully participate in a $300-million financing deal.
While Joe Louis Arena has many charms, it lacks the modern revenue-generating found in new NHL arenas.
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