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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.

TVA to pay Rogers 1.5 Billion for NHL French language rights in Canada

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Old
12-04-2013, 12:40 AM
  #51
knorthern knight
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Originally Posted by thom View Post
To the business expert I need a question explained to me.If Bell owns a percentage of habs how do they let a business rival like Quebecor get full tv rights.Also if Quebecor does get nhl club how does it make sense showing Montreal and Quebec on tva.
Bell owns a significant chunk of the Leafs via MLSE. They are allowed to have smaller investments in other teams (e.g. the Habs), but nowhere near a controlling interest. There would be obvious conflicts-of-interest. This not the "Norris House League" (or the CFL).

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12-04-2013, 12:50 AM
  #52
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Regarding the $1.5 billion TVA paid...
  • Quebec has just under 1/4 of Canada's population
  • There are quite a few Canadians outside Quebec who understand French
  • Even if you don't understand French, watching the game, plus the scoreboard display in the corner of the screen, plus the PA system audio announcing penalties, etc, you can follow the game
TVA paid just approx 1/4 of the total price, to serve approx 1/4 the population of Canada, so they're proportionally no worse off than Rogers

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12-04-2013, 01:19 AM
  #53
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Originally Posted by rojac View Post
Rogers' deal is for a little over double what NBC paid for rights in the US and includes items that are not part of that deal. $436M Canadian per year vs. $200M US per year. And I think it's safe to say that Canadian NHL rights are easily worth double the US rights.
I've seen 2 numbers displayed. 1 is the 5.2B, and one was 5.34B. I had assumed the 5.2B was USD, while the other was the Canadian equivalent. Can someone confirm if the Canadian/NHL deal is in US or Canadian dollars? I could honestly see it in either (Canadian TV companie, US sports company).

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12-04-2013, 01:31 AM
  #54
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Originally Posted by knorthern knight View Post
Regarding the $1.5 billion TVA paid...
  • Quebec has just under 1/4 of Canada's population
  • There are quite a few Canadians outside Quebec who understand French
  • Even if you don't understand French, watching the game, plus the scoreboard display in the corner of the screen, plus the PA system audio announcing penalties, etc, you can follow the game
TVA paid just approx 1/4 of the total price, to serve approx 1/4 the population of Canada, so they're proportionally no worse off than Rogers
A, it's ~23% of Rogers 5.2B that they paid.

While many understand French (I do - well enough to know what they're talking about), I ****ing hate watching my Pens games on RDS - I mean really?! It's Pens/Philly or Pens/Bruins, and it's on ****ing RDS!? And even with CI, RDS is the only channel I get the game on! That **** had better end come next season, or I'll be pissed.

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12-04-2013, 08:30 AM
  #55
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Originally Posted by Riptide View Post
A, it's ~23% of Rogers 5.2B that they paid.

While many understand French (I do - well enough to know what they're talking about), I ****ing hate watching my Pens games on RDS - I mean really?! It's Pens/Philly or Pens/Bruins, and it's on ****ing RDS!? And even with CI, RDS is the only channel I get the game on! That **** had better end come next season, or I'll be pissed.
Well...the RDS is a joke for anyone watching the hockey on TV. It's Habs 90% of the time, and all other sports and teams the other 10% of time.

People also need to note that TVA (not the Sports but the general channel) is broadcasted coast-to-coast for last 2-3 years. It is also an over-the-air channel (in Quebec at least). All the premium Saturday night games will be aired on TVA (not TVA Sports).

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12-04-2013, 08:58 AM
  #56
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Not happening the intellectuals leftist in charge of the SRC loathe everything sports related. Opium of the peoples that sort of crap. It the main reason the network did not even try to keep the NHL when RDS started pushing.
Not all of us "leftist intellectuals" hate sports. I simply don't want my taxpayer dollars being used to buy up rights to programs that will get aired anyway. The purpose of public television should be airing programs and news coverage that would not otherwise be aired in a 100% free market television schedule. If someone else is willing to pay big money to air the NHL, SRC should not be interested in it.

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12-04-2013, 10:14 AM
  #57
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^^^ Yes I agree. I dont believe broadcasters being funded through the public trough directly the way CBC is should be using those funds to bid against private for profit broadcasters, period. That being said, doing so did serve the public well over the past 60+ years in Canada along with the CBC, however, the times, the country & media landscape has changed so much just in the past 25 years alone that its become an outdated model. Unsustainable. Theres no way the CBC can even compete in trying to outbid private broadcasters for sports properties like the NHL and so here we are. Gradual fade to black.

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12-04-2013, 08:27 PM
  #58
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I admit it was rather surreal reading the CBC presser about the news, and even just by the words and tone, this was a network that almost seemed lost, the future totally uncertain not just of HNIC, but of the Network as a whole-a truly surreal moment reading.

A lot of dollars flying about....

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12-04-2013, 09:21 PM
  #59
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Originally Posted by Riptide View Post
I've seen 2 numbers displayed. 1 is the 5.2B, and one was 5.34B. I had assumed the 5.2B was USD, while the other was the Canadian equivalent. Can someone confirm if the Canadian/NHL deal is in US or Canadian dollars? I could honestly see it in either (Canadian TV companie, US sports company).
Gonna ask this again. Canadian TV deal... US or Canadian dollars?

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12-04-2013, 09:41 PM
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Originally Posted by Riptide View Post
Gonna ask this again. Canadian TV deal... US or Canadian dollars?
$5.232 billion (Canadian)

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12-04-2013, 11:49 PM
  #61
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$5.232 billion (Canadian)
So in other words, it's only 4.89B USD?

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12-04-2013, 11:53 PM
  #62
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So in other words, it's only 4.89B USD?
Who cares Riptide? Avy like that you think anyone can concentrate?

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12-05-2013, 12:12 AM
  #63
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Who cares Riptide? Avy like that you think anyone can concentrate?
Not a big deal now... but if it's 5.2B in Canadian dollars, it could have a big impact as the US economy recovers, and the US dollar goes up...

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12-05-2013, 02:30 AM
  #64
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Originally Posted by MartysBetterThanYou View Post
Not all of us "leftist intellectuals" hate sports. I simply don't want my taxpayer dollars being used to buy up rights to programs that will get aired anyway. The purpose of public television should be airing programs and news coverage that would not otherwise be aired in a 100% free market television schedule. If someone else is willing to pay big money to air the NHL, SRC should not be interested in it.
I don't mind it as long as it's not too costly. Cause I find that HINC and hockey in general is important for Canadian culture.

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12-05-2013, 01:18 PM
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Not a big deal now... but if it's 5.2B in Canadian dollars, it could have a big impact as the US economy recovers, and the US dollar goes up...
Or if the US Dollar continues to weaken due to the US governments quantitative easing policy.

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12-06-2013, 08:09 AM
  #66
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Not a big deal now... but if it's 5.2B in Canadian dollars, it could have a big impact as the US economy recovers, and the US dollar goes up...
Well, you gotta take that in chunks of $430ishM at a time.

Since it's over 12 years, in year one it can be 1US=1CAD but in year 12 it could be 1US=1.50CAD.

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12-06-2013, 09:56 AM
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Or if the US Dollar continues to weaken due to the US governments quantitative easing policy.
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Originally Posted by powerstuck View Post
Well, you gotta take that in chunks of $430ishM at a time.

Since it's over 12 years, in year one it can be 1US=1CAD but in year 12 it could be 1US=1.50CAD.
While that's certainly a possibility... historically it's more likely that the US dollar is worth more than the Canadian one. Sure there's times Canadian > USD... but it's almost always been CND < USD.

My surprise with this is that the NHL deals in USD (NHL SPCs, majority of expenses, etc). So even if the USD falls, it doesn't really impact their operations all that much. Sure some expenses in Canada is in CND, but overall it's not a major issue. However as we saw in the 90's, if the Canadian dollar falls, it really affects the Canadian teams. Having the TV deal in CND funds, just seems odd is all. Oh well.

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12-06-2013, 10:41 AM
  #68
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Originally Posted by Riptide View Post
While that's certainly a possibility... historically it's more likely that the US dollar is worth more than the Canadian one. Sure there's times Canadian > USD... but it's almost always been CND < USD.

My surprise with this is that the NHL deals in USD (NHL SPCs, majority of expenses, etc). So even if the USD falls, it doesn't really impact their operations all that much. Sure some expenses in Canada is in CND, but overall it's not a major issue. However as we saw in the 90's, if the Canadian dollar falls, it really affects the Canadian teams. Having the TV deal in CND funds, just seems odd is all. Oh well.
My guess is that the deal is actually in $US funds. I can't see the NHL being willing to be the one to deal with fluctuating values. It was most likely reported in Canadian dollars based on the current dollar value, because the deal was being reported in Canada and also, the Canadian number is larger, so it looks even more impressive.

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12-06-2013, 10:02 PM
  #69
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My guess is that the deal is actually in $US funds. I can't see the NHL being willing to be the one to deal with fluctuating values. It was most likely reported in Canadian dollars based on the current dollar value, because the deal was being reported in Canada and also, the Canadian number is larger, so it looks even more impressive.
On the other hand, Rogers (and TVA) do business in Canada. They would be foolish to take in revenue in CDN$ and pay the NHL in US$. That would be a huge risk, especially as the CDN$ is forecast to drop versus the US$ the next couple of years. Meanwhile, the NHL CBA sets the salary floor+cap based on the previous year's HRR. So the league's exposure to currency fluctuation is a lot less. And in a worst case-scenario, the salary floor+cap are adjusted appropriately.

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12-06-2013, 10:41 PM
  #70
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Well, you gotta take that in chunks of $430ishM at a time.

Since it's over 12 years, in year one it can be 1US=1CAD but in year 12 it could be 1US=1.50CAD.
Let's remember not all of the 430 million goes south. Some say as little as 35%, so now it's down to 150 million. How much went south on the old deal maybe 100 million. So the net gain down south is about 50 million per year or an increase of about 2 million per team. No big deal in the grand scheme of things.

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01-05-2014, 10:45 AM
  #71
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Originally Posted by knorthern knight View Post
Regarding the $1.5 billion TVA paid...
  • Quebec has just under 1/4 of Canada's population
  • There are quite a few Canadians outside Quebec who understand French
  • Even if you don't understand French, watching the game, plus the scoreboard display in the corner of the screen, plus the PA system audio announcing penalties, etc, you can follow the game
TVA paid just approx 1/4 of the total price, to serve approx 1/4 the population of Canada, so they're proportionally no worse off than Rogers
How big is TVA? I'm assuming that they're not in Rogers league?

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01-05-2014, 11:00 AM
  #72
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Quebec has a pop of over 8 million.85-90 percent watch french tv and movies.Quebec has a inbred hollywood industry since late 1960s.Most shows and movies in Quebec arte french canadien made.Unlike english canada where most watch american tv and movies everything is different in Quebec.Quebec tv stars and movie stars are as big as hollywood stars in Quebec.That is the reason tva or radio-canada can pay big sums because the inbred market is their.In the 1970 there were 5 newspapers covering habs but 2 english papers colapsed due to english people leaving province after separtists too over in late 70s

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01-05-2014, 11:35 AM
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Quebec has a pop of over 8 million.85-90 percent watch french tv and movies.Quebec has a inbred hollywood industry since late 1960s.Most shows and movies in Quebec arte french canadien made.Unlike english canada where most watch american tv and movies everything is different in Quebec.Quebec tv stars and movie stars are as big as hollywood stars in Quebec.That is the reason tva or radio-canada can pay big sums because the inbred market is their.In the 1970 there were 5 newspapers covering habs but 2 english papers colapsed due to english people leaving province after separtists too over in late 70s
And how is any of this relevant?

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01-05-2014, 01:46 PM
  #74
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Originally Posted by MartysBetterThanYou View Post
Not all of us "leftist intellectuals" hate sports. I simply don't want my taxpayer dollars being used to buy up rights to programs that will get aired anyway. The purpose of public television should be airing programs and news coverage that would not otherwise be aired in a 100% free market television schedule. If someone else is willing to pay big money to air the NHL, SRC should not be interested in it.
That's a very American/PBS view of public broadcasting, you might as well have said the CBC should hold telethons and give out crappy tote bags.

The BBC model, which the CBC takes inspiration from, sure as hell shows a lot of sports because the purpose of a public broadcaster is to make a country's culture available to its citizens. I find it preferable since other than Frontline, all PBS does is buy things from the BBC.

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01-05-2014, 02:08 PM
  #75
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How big is TVA? I'm assuming that they're not in Rogers league?
TVA belongs to Quebecor, the biggest media company in Quebec. I'd say they're bigger than Rogers within Quebec, by a lot.

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