FIVE FOR FRIDAY

by Holly Horning

This week, Bally Sports Detroit announced that they had inked a new multi-year deal to broadcast Tiger games.  These contracts tend to be kept tightly under wraps with years and (esp.) dollar amounts generally not divulged.

Nevertheless, this development gives us more information about the direction of the Tigers.  Here are my 5 biggest takeaways…….

• The Tigers have decided not to establish their own tv network despite having trademarked a number of names and explored the potential.  Part of the reason could be the current complications and limitations that surround cable/satellite and streaming services.  They are impacted by different pricing and the age of the fan base.  It’s an older age group of fans who tend to prefer cord options while younger fans tend to choose streaming.

• Tied in with #1, MLB is currently battling broadcasters who want to offer streaming services of ball games.  MLB is looking to own and control those streaming rights, which means that Ilitch, as an owner, would get a cut of those broadcast rights in addition to the broadcast contract he signed with BSD.  Two streams of broadcast revenue without having to pay to establish his own network.  The best of both worlds.

• The start-up costs for a regional sports network are astronomical, especially when you factor in all the equipment and technology that need to be purchased.  Chris Ilitch presumably has other plans for that money.  Either continuing to purchase casinos but hopefully, spending more on the Tigers’ payroll with some free agents and improving the product.  He’s already putting more money into the operations end of the Tigers in the departments, like analytics.

• A potential owner’s health problems, combined with Covid and the uncertainty of attendance, appear to have put the kibosh on the early efforts of exploring a team sale.  Should a decision to move on be made in the future, not having a broadcast network makes a sale much easier.  Also, having a massive new contract with BSD, significantly enhances the value of the Tigers.

• Speaking of contracts, it was reported that the Tigers were earning $50 mill/year from BSD.  The Royals rank 32^nd in viewership and recently signed a contract for $52 mill/year.  The Tigers rank 14^th and it’s conceivable that they could be raking in over $70 mill/year in revenue without having to spend a dime establishing a network.  And considering that viewership is expected to go up once again, there are additional venues for revenue impacted by having more eyeballs.

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What did you miss on our Twitter feed yesterday?

• Your chance to tell Bally Sports Detroit if you wanted to keep or change their current tv broadcast team.

• Two teams went to the playoffs this year and lost. Now both are brooming managers and coaches because they didn’t win. What do they have in common?

• If the Tigers practiced the habits of these 2 teams listed above, would they have won a ring or two between 2006 – 2016?

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