I don’t want to post this story, but I would be remiss if I did not share it with you. The Free Press’s Violet Ikonomova reports that Red Wings/Tigers owner Christopher Ilitch is divorcing his wife, Kelle, and there are some concerns among the public that the Red Wings or Tigers’ ownership may be affected by said divorce:
Whether the Ilitch couple’s separation will have bearing on the hockey club or the baseball operation will largely depend on Chris’ ownership stake and whether legal documents are in place to prevent their being considered marital assets, such as a pre- or post-nuptial agreement, experts said.
The Red Wings are owned by Ilitch Holdings and the Tigers – according to Forbes and Crain’s Detroit Business – are in a family trust. Chris Ilitch is listed as Tigers CEO and chair and Red Wings governor, president and CEO.
Experts said a family with the wealth and business savvy of the Ilitches would likely have protections in place preventing their teams and other major assets from being subject to split.
“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,” said James Quigley of Chicago-based Beermann LLP, a firm handling high-asset divorces. “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 valued at $2.1 billion and the Tigers at $1.45 billion, according to the latest calculations by Forbes.
Lowell Friedman, a family lawyer and founding member of Friedman Law Firm in Royal Oak, agreed it’s unlikely either team would be affected, but said it’s possible Kelle Ilitch was given a stake.
“Should anyone be concerned about how the company or teams are going to be run? The answer is sure,” said Friedman. “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.”
Continued; long story long, there is nothing to worry about, Red Wings or Tigers fans. I just hope that their divorce is relatively amicable, and that the two parties continue on their respective ways.
Update: From MLive’s Evan Woodbury:
Attorney David Mendelson issued a joint statement from the couple that said the divorce would not impact any of the businesses.
“After thoughtful consideration, we will be transitioning into separate lives and do so with love, friendship, and a commitment to our children,” the statement read. “We have settled this matter and it will have no impact on the ownership or operation of the Ilitch businesses.”
Times two from the Detroit News’s Kara Berg and Breana Noble:
Ilitch, 59, the CEO of Ilitch Companies, filed paperwork to dissolve his 23-year marriage to his wife, Kelle, on Aug. 29, according to Oakland County court records. Court records show the divorce remains pending, but Chris’s lawyer, David Mendelson, said the matter has been settled.
“After thoughtful consideration, we will be transitioning into separate lives and do so with love, friendship, and a commitment to our children,” Chris and Kelle Ilitch said in a joint statement provided by Mendelson on Tuesday. “We will support each other in our new journey and continue to focus on family, friends, and community. We have settled this matter, and it will have no impact on the ownership or operation of the Ilitch businesses. We ask that you respect our privacy during this time.”
John Schaefer, Kelle’s attorney, declined to comment on the divorce, but confirmed that it was settled out of court.
