NHL to Expand 2 teams in Canada - THN
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10-24-2012, 09:30 AM
Join Date: Nov 2009
Originally Posted by
Because unlike one-time payments, it ensures that the success of the new team doesn't come at the expense of the existing one.
The Sabres TV situation was thrown into upheaval when their cable rights holder suddenly went bankrupt and to jail. MSG threw them a bone to try and get their network on in the western part of the state. But they make between $8 million and $10 million annually. So we'll see what they do after 2016-17 when their MSG contract expires.
I'm sure given what happened to Empire Sports, the Sabres would be highly reluctant to start their own RSN, but with Buffalo, Hamilton and Markham sharing a RSN? Low risk, high reward.
There's no precedent of such compensation though, especially across a national border.
In the case of the Nationals and Orioles, the former was clearly cutting into the latter's broadcast potential in a significant way. The Orioles had long been broadcasting games in the D.C. area as the lone team in the region and a second team in the region immediately would have taken a large cut of their broadcast revenue.
If anything, that situation may be more comparable to the Leafs-Hamilton/Markham than Buffalo. The Sabres haven't broadcasted in the Niagara Peninsula, let alone up to the GTA, in more than a decade and have done so only sporadically during their 42-year tenure in the NHL. I see no reason why they should be entitled to any split in TV revenue when they clearly have had no interest in the region for much of the last 42 years.
If a team is placed in Hamilton, they'll get their lump sum payment and should be happy they're getting that, as quite frankly they've never had any presence in the city. If a team in placed in Markham, they deserve squat and will get squat.
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