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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, and NHL revenues.

NBC/VS WIN new NHL TV Deal: $200MM/yr x 10 yrs, Exclusive Rights

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Old
04-19-2011, 08:57 AM
  #1
King Woodballs
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NBC/VS WIN new NHL TV Deal: $200MM/yr x 10 yrs, Exclusive Rights

NBC got it
200 million a year for 10 years

DarrenDreger Darren Dreger @
@wyshynski. I've heard $200 mil per year x 10 yrs as well.

mod editing:

http://www.sportsbusinessdaily.com/D...9/NBC-NHL.aspx

Quote:
NBC and Versus have agreed to a deal to renew the NHL’s TV rights, according to execs close to the deal. A formal announcement is expected to come this afternoon. Specific deal terms are not known, but the bidding had gone above $200M per year.

The NHL’s rights fee is believed to exceed – by far – the $120M per-year average that ESPN paid from '99-'04, which marked the NHL’s largest contract to date. The league’s current deal with Versus is for $77.5M per year, while NBC has a revenue-sharing deal that does not involve a rights fee. Many execs inside the NHL favored ESPN, believing a deal with the network would guarantee more coverage on popular shows like “SportsCenter.” But NBC and Versus determined that the package was too important for Versus to lose. This marks the first big media rights negotiation since Comcast acquired NBC.


Last edited by GKJ: 04-19-2011 at 09:08 AM.
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04-19-2011, 09:03 AM
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Hamilton Tigers
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Good. I enjoy NBC's coverage, and especially Mike Emrick. Hope he stays.

Quote:
The league sent out an email Tuesday morning saying NHL Commissioner Gary Bettman will hold a conference call at 1pm ET with NBC Sports Group chairman Dick Ebersol and other executives.
http://www.hollywoodreporter.com/new...ach-new-179799

Wonder if the 10 year duration has any affect on the notion that it's more difficult to locate teams in Canada because of pressures for a US TV deal. Is that pressure off, lessened, or did it even really exist?

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04-19-2011, 09:08 AM
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King Woodballs
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I started a thread? neat hahahah

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04-19-2011, 09:09 AM
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GKJ
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Certainly new thread worthy.

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04-19-2011, 09:09 AM
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Quote:
Originally Posted by King Woodballs View Post
I started a thread? neat hahahah
Nah, I just moved it over.

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04-19-2011, 09:10 AM
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What would be great is if NBC did like a friday night network game....

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04-19-2011, 09:19 AM
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So do we know any details of the deal yet? Will there be more games on NBC? Maybe weekday games?

It doesn't really affect me much as I live in Canada, but we usually get NBC on basic cable everywhere. Maybe we get a few more games to watch, or will it just remain the same?

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04-19-2011, 09:21 AM
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Seems fitting that King W should get his own BOHB thread. He spends a lot of time here.


Kind of disappointing given the term. Ten years is a long time where all sorts of growing the game should have happened and increased the brand value by billions.....

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Originally Posted by Hamilton Tigers View Post
Good. I enjoy NBC's coverage, and especially Mike Emrick. Hope he stays.

Emerick is fine. It's the other dimwits they put in the box with him.

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04-19-2011, 09:21 AM
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Good. I think ESPN wanted the NHL rights just to kill Versus and as a plan B in case of an NBA/NFL lockout. Once the NBA and NFL started playing again, the NHL would be buried.

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04-19-2011, 09:22 AM
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Quote:
Originally Posted by heutZe View Post
Good. I think ESPN wanted the NHL rights just to kill Versus and as a plan B in case of an NBA/NFL lockout. Once the NBA and NFL started playing again, the NHL would be buried.

This kind of talk is just silly, imo. If ESPN had paid "real" money and committed for a long period too, I doubt they'd bury the asset. They might actually make money off of it, the entire point of bidding.

Also from the article above:

Quote:
The NHL never came back to ESPN with a final bid, sources said. ESPN’s interest in picking up the package stayed until the end of the bidding process. But sources said it was too difficult for the NHL and ESPN to work around NBC and Versus’ matching rights.
Smart of NBC/VS to have worked matching rights into their earlier deals, eh? Someone got schooled.

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04-19-2011, 09:23 AM
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great so we are now in with vs for the longhaul- i hope comcast puts out some more bucks to get some other licenses so vs can become as easy to find as espn (ie in hotels, on basic cable)

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04-19-2011, 09:24 AM
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Quote:
Originally Posted by King Woodballs View Post
NBC got it
200 million a year for 10 years

http://www.sportsbusinessdaily.com/D...9/NBC-NHL.aspx
Wonder if we'll here more about his, or if there's anything to this:

Quote:
Many execs inside the NHL favored ESPN, believing a deal with the network would guarantee more coverage on popular shows like “SportsCenter.”

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04-19-2011, 09:25 AM
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Quote:
Originally Posted by Fugu View Post
This kind of talk is just silly, imo. If ESPN had paid "real" money and committed for a long period too, I doubt they'd bury the asset. They might actually make money off of it, the entire point of bidding.

Also from the article above:

Quote:
The NHL never came back to ESPN with a final bid, sources said. ESPN’s interest in picking up the package stayed until the end of the bidding process. But sources said it was too difficult for the NHL and ESPN to work around NBC and Versus’ matching rights.
Smart of NBC/VS to have worked matching rights into their earlier deals, eh? Someone got schooled.
Yeah, they're going to find a way to make money off of it.

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04-19-2011, 09:30 AM
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I wish they could steal/hire/buyout Gary Thorne from ESPN.

A lot of people, not just hockey fans are tired of ESPN and they're obsessive coverage of single athletes. If Versus plays their cards right they should be able to put a dent in the ESPN's market share of sports coverage over the next ten years.

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04-19-2011, 09:32 AM
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NBC is not going to show weeknight games. No sports has weeknight games other than NFL's opening night.

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04-19-2011, 09:33 AM
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Quote:
Originally Posted by go kim johnsson 514 View Post
NBC is not going to show weeknight games. No sports has weeknight games other than NFL's opening night.

Are you stating this as an opinion or fact? I agree that it's unlikely for a network to put on weekly games.

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04-19-2011, 09:33 AM
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King Woodballs
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Quote:
Originally Posted by Fugu View Post
Seems fitting that King W should get his own BOHB thread. He spends a lot of time here.


Kind of disappointing given the term. Ten years is a long time where all sorts of growing the game should have happened and increased the brand value by billions.....




Emerick is fine. It's the other dimwits they put in the box with him.
Why thank you
Gotta cause troubule some where

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Old
04-19-2011, 09:34 AM
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that's either 8.333 MN per team/per year (24 US Teams) OR
almost 8.7 per team (23 US Teams)

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04-19-2011, 09:36 AM
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Quote:
Originally Posted by Dave is a killer View Post
that's either 8.333 MN per team/per year (24 US Teams) OR
almost 8.7 per team (23 US Teams)
No, the TV money is shared equally among the 30 NHL teams. I know they have some arrangements in Canada due to the Leafs and Habs giving up a lot of their games to the national spots, etc.

kdb will find the CBA section that discusses if a threshold is surpassed that it goes to revenue transfer program firstly, but I think that's above the $200MM mark here.

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04-19-2011, 09:37 AM
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Im kind of shocked i figured Espn would go all out as a plan b for nfl/nba lockouts

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04-19-2011, 09:38 AM
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Anybody know how much NBC ended up paying the NHL each year under its revenue sharing deal, if anything?

I'm assuming this is probably an increase of at least $100 million / season, which means you can expect the salary cap to go up by about $2 million just as a result of this, no?

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04-19-2011, 09:40 AM
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Quote:
Originally Posted by Crossfire View Post
Im kind of shocked i figured Espn would go all out as a plan b for nfl/nba lockouts

They tried by NBC/VS apparently had some kind of matching rights.

Quote:
Originally Posted by PensFanSince1989 View Post
Anybody know how much NBC ended up paying the NHL each year under its revenue sharing deal, if anything?

I'm assuming this is probably an increase of at least $100 million / season, which means you can expect the salary cap to go up by about $2 million just as a result of this, no?

No, it was peanuts last we heard. The deal was to share revenue after all production costs were covered. About 3 yrs back, one figure that had surfaced (maybe during the BK trial). Will have to hunt for it.


Edit1:
http://www.sportsbusinessjournal.com/article/62192

Quote:
Under their current agreement, NBC pays for production costs of NHL games and both parties sell advertising for those broadcasts. The advertising revenue covers production costs first and the remaining profits are split 80-20 between the NHL and NBC, respectively.
Edit2:

1) NBC:
-->2007-08: <$5 MM each ($3 MM per Brooks)

http://www.kuklaskorner.com/index.ph...n_next_season/

Quote:
Looks Like NBC & The NHL Again Next Season
by Paul on 12/10/08 at 09:01 AM ET

via William Houston of the Globe and Mail,

The NHL is expected to extend its TV deal with NBC through the 2009-10 season. The profit-sharing arrangement has made money for both sides, but not a great deal. The NHL and NBC each earned a profit of less than $5-million (U.S.) from the 2007-08 season, according to sources.

The extension makes sense for the NHL, which would have games airing on NBC, the U.S. Olympic network, in January of 2010 before the hockey tournament in February.

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Old
04-19-2011, 09:40 AM
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So basically, the NHL will get an additional 123 M per year out of this?

If my formula is right, just this could increase the cap by 2.2 M.

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04-19-2011, 09:41 AM
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Cap/Escalator Question

Does this mean the escalator might be more than 5% for this year?

50.5 b i

Quote:
Preliminary HRR for the prior League Year multiplied by [x] the Applicable
Percentage (as defined in Section 50.4(b) of this Agreement), minus [-]
Preliminary Benefits, divided [/] by the number of Clubs then playing in the NHL
(e.g., 30), shall equal [=] the Midpoint of the Payroll Range, which shall be
adjusted upward by a factor of five (5) percent in each League Year (yielding the
Adjusted Midpoint) until League-wide Actual HRR equals or exceeds $2.1
billion, at which point the five (5) percent growth factor shall continue unless or
until either party to this Agreement proposes a different growth factor based on
actual revenue experience and/or projections, in which case the parties shall
discuss and agree upon a new factor.If a significant (i.e., $20 million or more)
one-time increase or decrease to League-wide revenues (e.g., by reason of the
addition or loss of a national television contract or the scheduled opening of one
or more new arenas which is expected to result in a significant increase in
League-wide revenues) is anticipated in the next League Year, the parties will
endeavor to estimate the expected increase or decrease and incorporate that
estimate into the above-stated formula for calculating the Adjusted Midpoint

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04-19-2011, 09:45 AM
  #25
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It won't affect the 2011-12 cap as that is based off revenues from this season.

The effect of this deal should be felt on the 2012-13 cap.

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