Ilitch Getting Own Sports Network?

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https://www.google.com/amp/s/amp.freep.com/amp/1760089002

The Ilitch-owned conglomerate, Ilitch Holdings, Inc., announced Tuesday it has entered into an "extensive exploratory process" to acquire the TV networks. The Ilitches also own the Detroit Tigers and Detroit Red Wings.

“FOX Sports Detroit is a great partner and we look forward to discussing renewal and extension possibilities,” Chris Granger, group president, sports and entertainment for Ilitch Holdings Inc., said in a statement.

No deadline has been set to complete the process.

The Ilitch organization consists of 10 operating companies across sports, food and entertainment. In part because the Tigers and Red Wings rank No. 1 and No. 2 in terms of Detroit prime-time TV consumption, according to the release, the Ilitches could be uniquely positioned to start the network.

Both teams, along with the Detroit Pistons, have contracts with FSD to show their games regionally, and those contracts are believed to run into the next decade.

For more than the past 10 years, the Tigers have been one of the highest-rated games regionally. But, according to Forbes ratings dipped 42 percent in 2018 as the Tigers struggled to win.

Still, Forbes reports the Tigers' 2018 cable TV ratings led the region this past summer. In 2017, Sports business journal reportee the Red Wings we’re experiencing a dip in ratings, too. And it would follow that those ratings likely won't jump up anytime soon as the team is in the early stages of their own rebuild.

Perhaps the most popular team-run TV network is the YES Network. News Corp. bought controlling interest of the network in a pair of deals totaling about $3.8 billion in 2012 and 2014.

Forbes reports the Yankees plan to buy back the controlling interest of YES as a part of Disney's purchase of 21st Century Fox that calls for Disney to sell off the regional sports networks that Fox owns. 

Ownership of a TV network would allow for revenue from carrier fees and advertising to go to the Ilitch organization, effectively cutting out the middle man. 

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So if the TV network revenue is tied to ratings, and ratings are affected by the success of the team, then doesn't this encourage them to actually put a good product on the ice and actually win games?

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"Oh no, Chris is cutting out middlemen so that his teams make him more money, fans are screwed" - Someone