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12-01-2013, 11:18 AM
Dr Robot
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Originally Posted by mouser View Post
Few things to consider with your math:
- There is already an existing Canadian TV deal, so it's not all "new" money.
- The contract probably escalates over the course of the deal, though that may not be the case.
- The cap floor is 85% of the midpoint average. So if it were a $7m increase that only ups the floor $5.95m.
All very legitimate points I didn't think of when I wrote this up. I guess that would change the situation and not the math so much though, the cap wouldn't just jump dramatically into an extra 7mil a year. Weren't the combined Canadian TV contracts already paying something like 200mil a year? So this really just boosts the numbers up by about half what I calculated for 6mil increased average revenue and 3mil increased average cap hit for the american teams. If the previous contract didn't have the 65/35 split and thats a new addition then the US teams would barely be making a profit off this whole thing.

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