Phoenix LXVI: Get Your Kicks On Thread LXVI
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12-10-2012, 11:05 AM
Join Date: Nov 2012
Originally Posted by
Not to derail the thread yet again, but a few things need to be cleaned up here....
Of course we all realize that low payrolls have absolutely nothing to do with contributions to revenue sharing. Revenue sharing is exactly what it sounds like, sharing revenue. Payroll, expenses, average daytime winter high, none of it factors into the equation. So Winnipeg will or won't contribute to revenue sharing based on how much revenue they rake in. Payroll doesn't matter at all.
And if you're concerned about how Winnipeg will do when player salaries continue to climb, you better be awfully concerned how Phoenix will do when player salaries continue to climb. One thing's for certain, there will still be a salary cap, and it will still be tied to HRR. So not only do the Coyotes have to find a bunch more fans and charge a bunch more money for tickets, they will then have to raise ticket prices (and all other revenue streams) by 5% to 7%, pick your number, just to keep up with madated rises in the salary cap and floor. Good luck with that.
It is quite noble for you to mock the Canadian national TV contract in an attempt to show how awesome the Phoenix market is and how important it is for growth in TV revenue in the future, but let's put some facts into it.
US National TV Deal = $2 billion for 10 years (with 9 years left on the contract), so $200 million a year, and it's fixed until about 2021. That means, with or without Phoenix, the annual amount won't change for 8 more years. At least. Want to laugh at the Canadian TV contract and how it stacks up with the Dodgers? The US contract is peanuts. It's pathetic, by any standard.
Canadian National TV Deals:
(1) CBC = $100 to $110 million annually
(2) TSN = $33.5 to $40 million annually
(3) RDS = $15 million annually to the NHL (plus another $20 million to the Montreal Canadiens)
So, at the high end of the range, 3 networks paying for national TV rights in Canada add up to $165 million a year. Both the CBC and TSN contracts expire within the next 2 years, and both will see rights fees go up substantially at that time.
So if you want to laugh at how small Canada is, when they provide $165 million of the $365 million a year that goes into the shared TV pool, go right ahead. I'll repeat - Canada generates 45% of the total money from shared TV contracts. But Canada, with about 1/10 of the population of North America, and only 7 of 30 NHL teams, will soon generate more national TV money that the US. Arguments that having unsuccessful teams that no one watches in the middle of a desert somehow turning into billions in US TV money have been debunked long ago.
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