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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, expansion and relocation, and NHL revenues.

Canadian teams to get $28MM before selling a single ticket? (Forbes 65/35 split)

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Old
12-02-2013, 11:30 PM
  #26
Fugu
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Quote:
Originally Posted by nye View Post
Is that the first year?

Presumably yes, as the annual payout increases over the term, from a starting point of $300 million up to $500 million towards the end, approximately.

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12-03-2013, 07:16 AM
  #27
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Originally Posted by Fugu View Post
Using TVA as an example, you now have to subscribe to TVA to watch up to 22 of the Habs' games (Sat, Sun, Wed), and any playoff games. Do you think most fans will add that channel considering that subscription rates for RDS were 3.6 million vs 1.6 million for TVA in the target market?
We're not sure yet. TVA has French language rights, and presumably those 22 games will be the nationally televised games on Sat, Sun and Wed nights. Those games might also be available in English (Sportsnet, CBC, City). So you could potentially get all games without TVA.

TVA will also bid for the regional rights as well, since those with RDS are expiring.

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Originally Posted by Kimota View Post
RDS paid 35 million for the Habs regional games last time, it is expected it will double that for the new deal. (with whomever it is)
Of the $35 million though, $15 million went to the league as the rights fees for "national" French broadcast rights. Only $20 million went to the Habs. The Rogers deal wipes away that $15 million, so what they're bidding for now is only the $20 million piece. Truth be told though, RDS probably didn't view it as a 20/15 split for Habs/National rights. The Habs rights were probably worth closer to $35 million alone.

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12-03-2013, 07:18 AM
  #28
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But bottom line, financially this deal helps Winnipeg the most, adding another 20-25M in revenues sure as heck doesn't hurt. I hope it helps translate into improvements to the roster, because that team is already making a profit.


I'd be interested to see how this plays out if PK Peladeau and Quebec City get a franchise (likely via expansion) during this 12 year deal.


Also, if this deal makes teams more financially viable, and using a small market like Winnipeg as an example, can this make Saskatchewan a more viable option for the NHL? Just looking at the Roughriders, you know they can support a team (actually live and breathe it)

Basically, using this to help with the ultimate NHL cash grab....expansion fees.

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12-03-2013, 07:19 AM
  #29
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Originally Posted by CGG View Post
We're not sure yet. TVA has French language rights, and presumably those 22 games will be the nationally televised games on Sat, Sun and Wed nights. Those games might also be available in English (Sportsnet, CBC, City). So you could potentially get all games without TVA.

TVA will also bid for the regional rights as well, since those with RDS are expiring.



Of the $35 million though, $15 million went to the league as the rights fees for "national" French broadcast rights. Only $20 million went to the Habs. The Rogers deal wipes away that $15 million, so what they're bidding for now is only the $20 million piece. Truth be told though, RDS probably didn't view it as a 20/15 split for Habs/National rights. The Habs rights were probably worth closer to $35 million alone.
there are still 60 Habs games up for grabs. I'd imagine RDS would pay a heavy fee for them

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12-03-2013, 07:23 AM
  #30
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Quote:
Originally Posted by Fugu View Post
Presumably yes, as the annual payout increases over the term, from a starting point of $300 million up to $500 million towards the end, approximately.
There is a $150M up front payment or is that factored into this season's HRR?

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12-03-2013, 07:54 AM
  #31
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Originally Posted by Jack Bauer View Post
umm most Canadians get every Sportsnet.

If that's all we needed to view the games none of us would buy NHL Center Ice or its equivalents.

They are not denying you, they are denying their own broadcasters that they partner with to show the games in their own region. So only 1 or 2 teams is denying you more games depending on where you live.
Which, again is asinine: Why are you restricting my access to the NHL.

People would still buy Centre Ice: I'm not able to watch my team often now, nor was I before the deal. Centre Ice would change that.


Quote:
It's a simple process to comprehend. If today your team had 60 regional games then next year they only have 50 so are requesting additional compensation for those 10 games. Sounds logical to me.
Why should you receive more compensation for games that offer you and your team more visibility?

Something the Leafs should already know is if you're consistently on TV, you'll establish a strong and loyal fan base which leads to more revenue through jersey sales, hat sales, etc.

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12-03-2013, 09:14 AM
  #32
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Quote:
Originally Posted by Halifaxhab View Post
But bottom line, financially this deal helps Winnipeg the most, adding another 20-25M in revenues sure as heck doesn't hurt. I hope it helps translate into improvements to the roster, because that team is already making a profit.


I'd be interested to see how this plays out if PK Peladeau and Quebec City get a franchise (likely via expansion) during this 12 year deal.


Also, if this deal makes teams more financially viable, and using a small market like Winnipeg as an example, can this make Saskatchewan a more viable option for the NHL? Just looking at the Roughriders, you know they can support a team (actually live and breathe it)

Basically, using this to help with the ultimate NHL cash grab....expansion fees.
No chance based on population alone. Now if Regina and Saskatoon could somehow morph into one city, then we could start talking.

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12-03-2013, 11:11 AM
  #33
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Quote:
Originally Posted by DyerMaker66 View Post


Why should you receive more compensation for games that offer you and your team more visibility?

Something the Leafs should already know is if you're consistently on TV, you'll establish a strong and loyal fan base which leads to more revenue through jersey sales, hat sales, etc.
Because national visibity doesn't increase any sort of team proft. Jersey and hat money is a centrally dvien revenue split amongst 30 teams. The Leafs don't make any more on jersey money from someone in Edmonton buying a Leafs jersey than the Cotoes do. Technically neither make any money cause the money is on the rights sold to produce the jerseys which is split 30 ways. The fact more people buy Flames hats becasue they air nationally, doesn't improve the Flames bottom line (Anymore than it improves any other team, split 30 ways). Selling regional rights does help the individual teams bottom line.

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12-03-2013, 11:33 AM
  #34
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Originally Posted by n00bxQb View Post
There is a $150M up front payment or is that factored into this season's HRR?

We're not sure. I personally think that will be considered HRR for the year in which it's paid, but that it will be omitted from the calculation for the cap range the year after it's paid out. What I mean is that the PA and NHL know it's a one-time payment of $150 million so to avoid a cap spike and then decrease potentially, the players would simply take it as a windfall for the single year via escrow working in their favor.

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12-03-2013, 12:13 PM
  #35
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Quote:
Originally Posted by Halifaxhab View Post
Also, if this deal makes teams more financially viable, and using a small market like Winnipeg as an example, can this make Saskatchewan a more viable option for the NHL? Just looking at the Roughriders, you know they can support a team (actually live and breathe it)
Wouldn't adding new Canadian teams reduce the amount the existing teams receive from the TV deal.

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12-03-2013, 12:18 PM
  #36
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Originally Posted by mouser View Post
Wouldn't adding new Canadian teams reduce the amount the existing teams receive from the TV deal.
It would. Though since the amount escalates over the 12 year term, the overall pie would grow to offset in part at least by adding more Canadian based teams.

Same function would apply by adding more US based teams and dividing the 65% remainder.

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12-03-2013, 01:44 PM
  #37
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Originally Posted by Mightygoose View Post
It would. Though since the amount escalates over the 12 year term, the overall pie would grow to offset in part at least by adding more Canadian based teams.

Same function would apply by adding more US based teams and dividing the 65% remainder.
But wouldn't adding more Canadian teams also mean more TV revenue.

Currently new teams are not part of the deal...I guess, so wouldn't a new team mean a new TV contract for 82 games for that team only.

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12-03-2013, 02:34 PM
  #38
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Quote:
Originally Posted by powerstuck View Post
But wouldn't adding more Canadian teams also mean more TV revenue.

Currently new teams are not part of the deal...I guess, so wouldn't a new team mean a new TV contract for 82 games for that team only.
It depends how the deal is structured. One would think the deal includes rights to all games regardless of how many teams are playing in the league.

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12-03-2013, 02:51 PM
  #39
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Quote:
Originally Posted by cheswick View Post
Because national visibity doesn't increase any sort of team proft. Jersey and hat money is a centrally dvien revenue split amongst 30 teams. The Leafs don't make any more on jersey money from someone in Edmonton buying a Leafs jersey than the Cotoes do. Technically neither make any money cause the money is on the rights sold to produce the jerseys which is split 30 ways. The fact more people buy Flames hats becasue they air nationally, doesn't improve the Flames bottom line (Anymore than it improves any other team, split 30 ways). Selling regional rights does help the individual teams bottom line.
I'm pretty sure that depends on the retail source. IF say I buy a Pens jersey on NHL.com, then yes it's divided up 30 ways. However if I buy it from the Pens store (I assume they have one in the rink or in town), then they get all the money. If I were to buy it from a generic sports store, I guess it would depend on where they placed the order (likely the NHL vs individual teams).

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12-03-2013, 04:01 PM
  #40
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Originally Posted by Riptide View Post
If I were to buy it from a generic sports store, I guess it would depend on where they placed the order (likely the NHL vs individual teams).
The generic sports store would pocket the full retail markup.

The NHL would have received licensing fees from the manufacturer or distributor - and the cost of those fees would have been passed onto the retailer (and ultimately you) through higher wholesale costs.

The NHL team gets squat - well just 1/30 of the League's licensing revenues.

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12-03-2013, 05:24 PM
  #41
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Originally Posted by MAROONSRoad View Post
According to this article, each Canadian team will received between $17 and $20 million per year from the new deal.

http://www.ottawasun.com/2013/11/26/...ttawa-senators
Seems odd that it would be split evenly amongst Canadian teams. The Leafs are giving up a lot more revenue than the Senators are when they shift their regional games to national games.

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12-03-2013, 05:36 PM
  #42
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Originally Posted by Ernie View Post
Seems odd that it would be split evenly amongst Canadian teams. The Leafs are giving up a lot more revenue than the Senators are when they shift their regional games to national games.
i agree, and understand that the invasion fees come right off the top before anything gets split north or south of 49.

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12-03-2013, 08:39 PM
  #43
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Doug MacLean said last week that the CBJ got less than 2 million a year from Canada national tv money in 2007. It might be up to 3 million with current deal.

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12-03-2013, 08:47 PM
  #44
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Originally Posted by Jonas1235 View Post
Doug MacLean said last week that the CBJ got less than 2 million a year from Canada national tv money in 2007. It might be up to 3 million with current deal.
Not that I don't believe you, but Doug MacLean says a lot of things.

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