The Ilitch family's interest in forming its own RSN could be "designed in part to create leverage" for future Tigers and Red Wings rights, according to a source cited by Katie Strang of THE ATHLETIC. FS Detroit has several more years on its current agreements with the two teams, and the RSN is "obviously more valuable if they have a longer rights deal that’s been extended.” The net is one of 22 Fox-owned RSNs that are being sold to Disney as part of pending deal between the media giants. The source said the Ilitch's plan makes FS Detroit "perhaps a little more anxious" to do a new deal for the Tigers and Red Wings before the Disney-Fox deal closes and Disney is forced to unload the newly acquired RSNs. Media research firm Kagan analyst Adam Gajo said whoever ends up purchasing FS Detroit, “whether it’s part of the bigger RSN portfolio or a section of RSN’s,” is going to “want to know: Am I getting the Tigers and Red Wings? When do the contracts expire? That is definitely going to have an impact on the value and is a big question mark moving forward” (THEATHLETIC.com, 10/25).
DETROIT ROCK CITY: In Detroit, Lynn Henning reports any Ilitch-backed network would "need space for at least two, and probably three, new studios." It also would "need to hire staff, announcers, technicians, and camera people, not to mention sales staff -- with no assurance FSD personnel would simply shift employers." Gains would be "significant beyond cutting out a partner that today shares with the Tigers and Red Wings its cut from an estimated several hundred million in annual revenue." It is conceivable an Ilitch RSN would "simply replace FSD as the local cable carriers’ Tigers-Red Wings venue." It is understood the Ilitches and their allies are "thinking expansively, perhaps to televising concerts, as the MSG Network has done, which would mesh with the Ilitches’ ownership of two concert/show sites: Little Caesars Arena and Fox Theater" (DETROIT NEWS, 10/26).
