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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, NHL revenues, relocation and expansion.

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

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Old
04-19-2011, 10:41 AM
  #51
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04-19-2011, 10:41 AM
  #52
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Quote:
Originally Posted by seanlinden View Post
I don't think anyone can view this as anything but a major win for the NHL... getting $200m in guaranteed revenue is huge, and apparently a substantial increase over what they are/were getting this year.

The question is -- does it include more games as part of the package?
It's very nice when they can double (or more) their US national TV money. We both know that what this will be compared to is:

1) The NHL receives $140-150MM from Canada, with only six NHL teams base there,

2) The NBA receives $900MM for their national broadcast & digital media rights.

Quote:
Originally Posted by ixcuincle View Post
Yeah let's see how many games are in the package

Never had a problem with Doc so I'm pleased. Would like all NHL playoff games on TV though instead of some regions getting one game and others getting another. Kind of like what March Madness did this year.

Since many of the bigger market teams in the US have their own, local packages, it does make me wonder how many games per year the NHL can 'grab' from them as I'm sure NBC/VS would want to get the ratings these bigger markets get, especially if we're talking about more games per week. The individual deals were predicated on [usually] the rights to all home & away games. (Fox Sports Detroit also gets the Wings local first round playoff games, for example, much to my chagrin that I have to watch on VS thereafter.)

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04-19-2011, 10:42 AM
  #53
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Originally Posted by IceAce View Post
Howard Cossell's corpse would like a word with you...

That moved to ESPN remember

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04-19-2011, 10:44 AM
  #54
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Originally Posted by IceAce View Post
Howard Cossell's corpse would like a word with you...
You're aware that even Monday Night Football is no longer on network television, right? And that you're kinda proving his point.

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04-19-2011, 10:44 AM
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Howard Cossell's corpse would like a word with you...

Mike Tirico begs to differ.

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04-19-2011, 10:59 AM
  #56
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good job guys. This is growth

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04-19-2011, 11:00 AM
  #57
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Quote:
Originally Posted by Mwd711 View Post
As of January, it was reported that ESPN and the NFL were working on an extension until 2020. Obviously, with the lockout, that may have changed some things. But it does sound to me, from that report, that ESPN is opening up their vault, and any other cable net will be left out in the cold unless you are the NFL Network.
I was referring to the package of games that the NFL put on its own network and if you remember Versus, OLN at the time, was in the running for the package. Recent reports suggest that Turner will be making a big offer for these Thursday night games and put them on TruTv. I can't imagine NBC/Vs not making an effort to getting the NFL in a couple years.

By the way, you mentioned the Pac 10 package, have you read anything recent on that? That would be a nice pickup for Vs.

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04-19-2011, 11:04 AM
  #58
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Just heard the news...perfect, just perfect. Another DECADE of NBC only showing the same handful of teams during the regular season.



I am glad to see that the NHL is getting a rights fee, but I hope that they didn't just succomb to NBC/Comcast's wishes. The NHL needed to demand that NBC bring back regional games of the week, but somehow I think the NHL is so happy with $200M a year, they'll do anything NBC says.

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04-19-2011, 11:06 AM
  #59
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Quote:
Originally Posted by ChompChomp View Post
Just heard the news...perfect, just perfect. Another DECADE of NBC only showing the same handful of teams during the regular season.



I am glad to see that the NHL is getting a rights fee, but I hope that they didn't just succomb to NBC/Comcast's wishes. The NHL needed to demand that NBC bring back regional games of the week, but somehow I think the NHL is so happy with $200M a year, they'll do anything NBC says.
You act like it would have been any different on ABC.

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04-19-2011, 11:06 AM
  #60
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Comparison to other leagues from what I could find:

MLB
Signed 2006, 7 years, $670 million per (Fox, Turner, ESPN)

NBA
Signed 2007, 8 years, $930 million per (ABC, ESPN, TNT)

MLS
Signed 2011, 1 year, $6.25 million per (FSC)
Signed 2006, 8 years, $8 million per (ESPN)

NASCAR
Signed 2007, 8 years, $531 million per (FOX, ABC/ESPN, Turner, Speed)
(No local television contracts)

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04-19-2011, 11:09 AM
  #61
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Quote:
Originally Posted by go kim johnsson 514 View Post
You act like it would have been any different on ABC.
It was when the NHL was last on ABC (w/regional games of the week). But I do know that NBC scrapped regional games and haven't given one iota of suggestion that they might come back.

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04-19-2011, 11:11 AM
  #62
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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.

I think the phrase "burying the asset" is a bit strong, but I can see where the poster you quoted is coming from. I really don't believe that ESPN was bidding with the intent of making hockey an important priority for their network. I think there's something to the idea of ESPN being attracted to the NHL as a means of 'blocking out' a competitor. Look at how ESPN treated their NHL asset during the pre-lockout contract. They didn't really do much to maximize that asset back then, so it's not unreasonable to suspect that they might have treated it in a similar fashion again.

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Old
04-19-2011, 11:15 AM
  #63
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Quote:
Originally Posted by Fugu View Post
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.
There's no threshold on the amount of centrally generated league revenue that would trigger part of it going to revenue sharing. The key figures are:

- The minimum revenue sharing pool is set each year at 4.5% of league HRR.
- Up to 25% of that pool will be sourced from "excess centrally generated league revenues, if any". So the target would be 1.125% of HRR.

For league revenues projected around $2.8B or so with the new TV deal that's around $31m per year of the TV deal that would go into the revenue sharing pool.

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04-19-2011, 11:17 AM
  #64
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MattBarnabyESPN 8:32am via ÜberSocial No RT @DougAnderson9: @Buccigross In regards to TV contract, could ESPN still get a "game of the week" or something like that?




Just to put an end to that speculation.

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04-19-2011, 11:21 AM
  #65
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Quote:
Originally Posted by ChompChomp View Post
Just heard the news...perfect, just perfect. Another DECADE of NBC only showing the same handful of teams during the regular season.



I am glad to see that the NHL is getting a rights fee, but I hope that they didn't just succomb to NBC/Comcast's wishes. The NHL needed to demand that NBC bring back regional games of the week, but somehow I think the NHL is so happy with $200M a year, they'll do anything NBC says.
Shouldn't we wait to see the details of the new deal before assuming it's more of the same coverage?

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04-19-2011, 11:22 AM
  #66
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I know that in the short term, this deal looks great but most of the sports deals don't go 10 years. So for you business guys, is $200 M gonna be good in 10 years from now or will the length of the deal be a bad thing?

The one positive though is that 10 years from now, hopefully there will be a better commentator than Emmerick.

Hoping to get more games on NBC as well because it's broadcast in most of Canada.

NBC should at least show games on some weeknights during the playoffs. They usually don't atm.

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04-19-2011, 11:25 AM
  #67
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Originally Posted by Nettles View Post

The one positive though is that 10 years from now, hopefully there will be a better commentator than Emmerick.

Hoping to get more games on NBC as well because it's broadcast in most of Canada.
I'll take Doc Emrick over Bob Cole anyday! I love Emrick's hockey play by play!

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04-19-2011, 11:29 AM
  #68
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Originally Posted by ChompChomp View Post
It was when the NHL was last on ABC (w/regional games of the week). But I do know that NBC scrapped regional games and haven't given one iota of suggestion that they might come back.
because they didn't make money might be the reason....

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04-19-2011, 11:30 AM
  #69
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I think this says as much about Versus' growth as a viable sports network as it does about the NHL's growth.

Now I wish there was a Foxsportsnet package where you can buy a package to get all of foxsportsnet.

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04-19-2011, 11:31 AM
  #70
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Quote:
Originally Posted by ChompChomp View Post
It was when the NHL was last on ABC (w/regional games of the week). But I do know that NBC scrapped regional games and haven't given one iota of suggestion that they might come back.
That was then. This is now.


The NBA doesn't do regional games. The NHL holds themselves to their standards in those regards. They feel entitled to everything the NBA has.

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04-19-2011, 11:33 AM
  #71
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I was full in the ESPN camp about 2 years ago. Except now VS has the UFC. This is great for the NHL. The UFC will likely try and get on VS more, which will bring in more viewers and more chances for advertising NHL games. This is a great move on a growing channel.

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04-19-2011, 11:34 AM
  #72
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One thing to point out: the articles I've read don't say the deal pays the NHL $200m each season, just that it averages $200m per season. It very well could be escalating year to year payments.

If someone's found an article stating otherwise by all means post it.

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Old
04-19-2011, 11:42 AM
  #73
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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 $2 million just as a result of this, no?
A 2M per year increase on the cap would mean that in 10 years we would have an
80$ cap

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04-19-2011, 11:47 AM
  #74
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I'm just happy ESPN didn't get this for the announcers. Maybe I'm in a minority, but the less Gary Thorne the better. Sorry, but I just think he's a terrible announcer. Too much and mis-timed inflection, too much mis-pronunciation; that far outweighs a good broadcast voice. But I digress...

Don't think it matters who got this contract. If you're paying $2B, you can bet that broadcaster would take care of that investment and do a ton so they could actually see a return on it. I just don't think that ESPN would have been the best caretaker.

Possible lockouts/strikes in MLB and the NBA play a part, but only in the short term. If ESPN got this contract, they would have parts of the four major sports. And unless my math and history are terribly off, the NHL would rank at best as the third priority of these four (and yes, I know they wouldn't be that high on the list).
Even if it hasn't be explicitely said, seems fairly obvious that they would love to keep VS from becoming a rival. If this could help keep VS from gaining a real foothold, that $2B might not seem like too high a price. Any company wanting what is essentially a monopoly have made crazier purchases.

I'd rather have a middling sports broadcaster have this as their flagship, than a huge broadcaster having it as one of many. Who is going to put more effort into growing and maintaining it's relevance?

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04-19-2011, 11:53 AM
  #75
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I was full in the ESPN camp about 2 years ago. Except now VS has the UFC. This is great for the NHL. The UFC will likely try and get on VS more, which will bring in more viewers and more chances for advertising NHL games. This is a great move on a growing channel.
This. Being on the same network as one of the fastest growing sports in the world definitely won't hurt, especially given the UFC's demographics.

Also, does anyone know what the NHL is getting from CBC and TSN? There's been a lot of numbers thrown around in here, so I apologize if it's already been listed.

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