Rendering of the Little Ceasars Arena, which opens in 2017.

A new naming rights deal for Detroit’s Little Caesars Arena could help Detroit Red Wings and Little Caesars’ owner Mike Ilitch pay off $250 million in construction bonds that were sold by Michigan to build the venue. The contract has Ilitch paying $120 million over 20 years.

Detroit’s Downtown Development Authority owns the facility, which will be run by Ilitch’s Olympia Entertainment division. The 21,...


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