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Soaring cost of sports rights squeezing CBC on to sidelines

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Old
12-29-2011, 08:28 PM
  #1
TMC1982
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Soaring cost of sports rights squeezing CBC on to sidelines

http://www.theglobeandmail.com/repor...2281408/page1/

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It is not often that an organization takes pains to publicize its failures. But as Canada’s public broadcaster lost its grip on the TV rights to yet another major sports event, the frustration was palpable.

In October, the Canadian Broadcasting Corp. put out a statement emphasizing how “disappointed” it was when FIFA, the international governing body for soccer, decided to award the rights to World Cup and other events to BCE Inc.’s Bell Media unit, starting in 2015. The communications powerhouse simply put more money on the table.

It has become a familiar tale for the CBC, which is struggling to remain a contender for televised sports events at a time when those rights are commanding stratospheric fees. Competitors have been chipping away at CBC’s sports franchise for years – TSN took the Canadian Football League and Canadian Curling Association events in 2006 and two years later snatched the nostalgic pride of the CBC, the Hockey Night in Canada theme song.

But since then, there has been a sea change in the Canadian media industry as the main private broadcasters were bought up by cable, telco, and satellite giants. TSN is now in the Bell fold, and Rogers Communications Inc. has been swiftly ramping up its investment in its Sportsnet channels to compete. This month, the two rivals teamed up to buy Maple Leaf Sports and Entertainment Ltd., owner of the Toronto Maple Leafs and Toronto Raptors, for $1.3-billion, to gain control over its lucrative TV rights.

All of which raises the question: is CBC doomed as a sports broadcaster?

The rising cost puts at risk the CBC’s control of its marquee sports property, Hockey Night in Canada. When the broadcaster renewed its deal with the NHL in 2007, the price tag was reported at $90- to $100-million, an increase of at least $20-million from its previous deal. Most observers feel that when those rights are up for grabs again in 2013, Bell Media will take a hard run at them. Rogers Media may also come to the table.

That’s bad news for the CBC, which still relies on sports events for a large chunk of its advertising revenue. The public broadcaster does not disclose what portion of its TV advertising comes from hockey alone, though reports around the industry say it could be as much as half

Former CBC president and chief executive officer Robert Rabinovitch believes the current industry trends mean that the public broadcaster may not be able to compete any longer in sports.

“It’s going to be very hard for the CBC to continue [to be relevant], if it continues to lose all sports that are of interest to the public,” he said. “To lose hockey, and to only have the amateur sports, would be devastating to their image.”

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12-29-2011, 10:03 PM
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So CBC is mad at FIFA for awarding Bell the contract because they put more money on the table?

Nothing to see here.

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12-29-2011, 10:20 PM
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Originally Posted by chasespace View Post
So CBC is mad at FIFA for awarding Bell the contract because they put more money on the table?

Nothing to see here.

Well, if thats the case then CBC will be mad at the NHL for the same reason in couple of years. But who gives a ****.

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12-30-2011, 01:20 AM
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It's also the cost of equipment. The CBC English network has 3 High Definition trucks in all of Canada, of which 2 are allocated for NHL games. There are 7 Canadian teams, possibly 8 next year. You do the math. Several Canadian cities get to watch their teams in ye olde blurry Standard Definition. I don't know if it's union stupidity or management stupidity, but CBC REFUSES to take anybody else's clean video feed, and overlay CBC graphics. Meanwhile, TSN games are in HD. There was a thread about this in the Winnipeg forum, and a lot of unhappy Winnipegers. The eastern truck spends most of its hockey time doing Hockey Night In Toronto broadcasts. The other one does the circuit of Vancouver/Calgary/Edmonton. Winnipeg and Ottawa and Montreal end up out of luck.

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12-30-2011, 01:20 AM
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the NHL will split the rights in Canada, giving Bell a game and the playoffs while keeping HNIC around as a legacy.

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12-30-2011, 01:52 AM
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Originally Posted by knorthern knight View Post
It's also the cost of equipment. The CBC English network has 3 High Definition trucks in all of Canada, of which 2 are allocated for NHL games. There are 7 Canadian teams, possibly 8 next year. You do the math. Several Canadian cities get to watch their teams in ye olde blurry Standard Definition. I don't know if it's union stupidity or management stupidity, but CBC REFUSES to take anybody else's clean video feed, and overlay CBC graphics. Meanwhile, TSN games are in HD. There was a thread about this in the Winnipeg forum, and a lot of unhappy Winnipegers. The eastern truck spends most of its hockey time doing Hockey Night In Toronto broadcasts. The other one does the circuit of Vancouver/Calgary/Edmonton. Winnipeg and Ottawa and Montreal end up out of luck.
Word.

Nearly every Ottawa HNIC broadcast is in "upscaled standard definition". It's advertised as HD, but it's not. The fact this is the reality in 2011 (soon to be 2012) is ridiculous. For this reason many a Sens fan are hoping someone else gets the Saturday night rights, or they're at least split among the broadcasters.

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12-30-2011, 03:20 AM
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It's about priorities: Gazebos or HNIC. It'd be funny watching Don Cherry cry to the "Pinkos" because no one will hire him when HNIC dies.

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12-30-2011, 03:28 AM
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It's about priorities: Gazebos or HNIC. It'd be funny watching Don Cherry cry to the "Pinkos" because no one will hire him when HNIC dies.
HNIC is a profit-making venture and does not require public subsidies for its continued existence.

Did you even bother reading the article? The CBC will have to outbid private enterprises for HNIC in 2013. Do you think Bell would bid for HNIC if it expected to lose money?

More like health care and education or little mosque on the prairie?

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12-30-2011, 03:48 AM
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Originally Posted by cpcftw View Post
HNIC is a profit-making venture and does not require public subsidies for its continued existence.

Did you even bother reading the article? The CBC will have to outbid private enterprises for HNIC in 2013. Do you think Bell would bid for HNIC if it expected to lose money?

More like health care and education or little mosque on the prairie?

according to the CBC accounting that came out over the past few years the HNIC while has the highest revenues--their spending surpassed the revenues.

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12-30-2011, 04:22 AM
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Originally Posted by Twist18 View Post
It's about priorities: Gazebos or HNIC. It'd be funny watching Don Cherry cry to the "Pinkos" because no one will hire him when HNIC dies.
if HNIC died whatever replaced it would rush to hire him for a similar role

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12-30-2011, 04:28 AM
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Oh great we'll get to hear James Duthie complain about hits and call for suspensions every intermission on Saturdays to now! Fantastic!

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12-30-2011, 06:58 AM
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There is no need for CBC anymore with TSN and Sportsnet doing games.

Shut it down.

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12-30-2011, 08:32 AM
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Quote:
Originally Posted by cpcftw View Post
HNIC is a profit-making venture and does not require public subsidies for its continued existence.

Did you even bother reading the article? The CBC will have to outbid private enterprises for HNIC in 2013. Do you think Bell would bid for HNIC if it expected to lose money?

More like health care and education or little mosque on the prairie?
I think Bell would go into the red to get HNIC away from CBC, try to starve the behemoth of cash while the government refuses to increase the subsidy and watch the Ceeb wither on the vine. Remember Bell is an integrated media company, they don't JUST compete on sports. Starve the Ceeb and it helps all of the Bell media holdings.

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Originally Posted by VelvetJones View Post
There is no need for CBC anymore with TSN and Sportsnet doing games.

Shut it down.
Word. But Sportsnet really needs to pick up their socks on their quality, huge difference in quality of regional coverage from the TSN-Regional to Sportsnet. I love the half hour pre and post game shows on the TSN-jets channel.

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12-30-2011, 08:39 AM
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please just shut cbc down and give the right to someone else

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12-30-2011, 09:04 AM
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if HNIC died whatever replaced it would rush to hire him for a similar role
If he's even interested Im sure they would, though likely in an even more limited role if in-game, possibly another "Grapevine" type magazine format show, but really, I think he's pretty much played out his string. Doesnt travel nearly as much as he used to. Ron MacLean however would very likely be offered a contract as whichever one of the two, should they secure the rights, would probably want to create some continuity in providing the familiarity of the HNIC franchise to some degree.

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I think Bell would go into the red to get HNIC away from CBC...
Oh for sure, Bell (and to a lesser extent Rogers) would definitely go beyond the mat in their bids to secure the rights, within reason of course. I guess a good analogy might be the correlation of a franchise purchase, whereby you buy a team & acquire the rights to the building. The team itself might lose a bit however including the building & other direct HRR & non-direct HRR's the ownership of those rights provides the cornerstone, the raison d' etre to a whole host of associative programming and advertising/sponsorship dollars, new media revenues via app's, live-streaming, PPV, merchandising etc.

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12-30-2011, 10:01 AM
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The vertical integration that is taking place in the realm of media, entertainment, and information transmission is going to ensure that the rights for sports properties continue to grow astronomically. Companies such as Bell, Rogers, and Verizon are determined to control both the means of distribution (wireless and high-speed, high-definition communications networks) and the products being distributed.

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12-30-2011, 10:17 AM
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The NHL should remember that HNiC built this league.

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12-30-2011, 10:17 AM
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Good. The more money CBC loses, the faster the Canadian public will demand it be privatized. $1.1 billion spent on lefty propaganda and little mosque on the prairie instead of tax cuts and health care.
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Originally Posted by VelvetJones View Post
There is no need for CBC anymore with TSN and Sportsnet doing games.

Shut it down.
I'm sure.

But wait. Who is going to start the bidding war between the for the CFL rights. Global and sportsnet want nothing to do with the CFL. TSN, after the CBC shuts down could significantly lower the price of the current TV contract. Or demand to show games for free and Since TSN is owned by CTV, whom with Rogers and co own the Leafs. Could bring an NFL team to Toronto and put the games on CTV to recover the rights, while raising rent on the Argonauts to 1.5 million. Murdering the league tomorrow.

That's one scenario that could happen

I bet you folks out west would not like that.

Maybe that would not happen, but the CBC is one of the things that gives English Canada whatever culture it claims to have.

So be careful what you wish for.

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12-30-2011, 10:22 AM
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I may be missing something but why is CBC having trouble putting up the same money as tsn or sportsnet.

Tsn and sportsnet only get money from advertizements and CBC gets it from advertizements AND tax payers. If CBC is getting a bonus from tax payers, shouldn't it have the advantage? It says CBC is worried they won't renew their hockey night in canada rights because they want the ad revenues...why don't they pay up then...if it costs too much that you wouldn't make it back in ads, then how the heck does tsn/sportsnet afford it?

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12-30-2011, 10:37 AM
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I'm sure.

But wait. Who is going to start the bidding war between the for the CFL rights. Global and sportsnet want nothing to do with the CFL. TSN, after the CBC shuts down could significantly lower the price of the current TV contract. Or demand to show games for free and Since TSN is owned by CTV, whom with Rogers and co own the Leafs. Could bring an NFL team to Toronto and put the games on CTV to recover the rights, while raising rent on the Argonauts to 1.5 million. Murdering the league tomorrow.

That's one scenario that could happen

I bet you folks out west would not like that.

Maybe that would not happen, but the CBC is one of the things that gives English Canada whatever culture it claims to have.

So be careful what you wish for.
You think the CFL would fold if toronto got an NFL team? I'm sorry but canada doesn't revolve around toronto. It would not affect any other CFL team except the argos...Sure, the League might take a tiny cut in revenue by one of its team gaining competition. Only 1 though. That would mean nothing to the western teams. Nothing to montreal. Nothing to ottawa's future team. It would affect toronto a bit, and theres a small chance it affects hamilton as well.

What i've noticed with football is, you either like the nfl or the CFL. They play with different field sizes, different ball sizes, and different rules. The people who follow the CFL will still follow the CFL. The ones who want to follow the NFL already do. In highschool all the football love was to the NFL. The ones who like the NFL can already watch it on tv. Which proves my point that anyone who's not within an hour of the toronto NFL team won't be affected.

Why does toronto always think they ARE canada.

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12-30-2011, 10:49 AM
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Originally Posted by Melrose Munch View Post
I'm sure.

But wait. Who is going to start the bidding war between the for the CFL rights. Global and sportsnet want nothing to do with the CFL. TSN, after the CBC shuts down could significantly lower the price of the current TV contract. Or demand to show games for free and Since TSN is owned by CTV, whom with Rogers and co own the Leafs. Could bring an NFL team to Toronto and put the games on CTV to recover the rights, while raising rent on the Argonauts to 1.5 million. Murdering the league tomorrow.

That's one scenario that could happen

I bet you folks out west would not like that.

Maybe that would not happen, but the CBC is one of the things that gives English Canada whatever culture it claims to have.

So be careful what you wish for.
Riiigggghhhhtttt.

This post is so far into fantasy world, T.O. is such a fickle market beyond the Leafs (who are what... the third place Canadian team at the moment) that they can't even sell out the NFL games they get now. At this point the CBC provides NOTHING that the private sector broadcasters don't provide.

Culture from the Ceeb? Well, if you mean stuff people won't pay the freight to enjoy without a subsidy from taxes fine. If you like that, pay the cost not what the commercial revenue plus money picked from someones pocket gets ya.

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12-30-2011, 10:59 AM
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If he's even interested Im sure they would, though likely in an even more limited role if in-game, possibly another "Grapevine" type magazine format show, but really, I think he's pretty much played out his string. Doesnt travel nearly as much as he used to. Ron MacLean however would very likely be offered a contract as whichever one of the two, should they secure the rights, would probably want to create some continuity in providing the familiarity of the HNIC franchise to some degree.



Oh for sure, Bell (and to a lesser extent Rogers) would definitely go beyond the mat in their bids to secure the rights, within reason of course. I guess a good analogy might be the correlation of a franchise purchase, whereby you buy a team & acquire the rights to the building. The team itself might lose a bit however including the building & other direct HRR & non-direct HRR's the ownership of those rights provides the cornerstone, the raison d' etre to a whole host of associative programming and advertising/sponsorship dollars, new media revenues via app's, live-streaming, PPV, merchandising etc.
I agree with all this. Bell obtaining the Leafs, they will really push-as now you can watch the Jets in the "TSN Jets" region, Sens and Habs in their own region, and I wonder if they might push a certain number of games in "TSN Leafs" region-all about regionalizing-and the Sat night games would be their nationwide games.

As for the idea of having CBC keep hockey for the 'heritage'/tradition-I am sorry if CBC offered 100 million for the rights, and Bell offered 200 million (throwing out numbers), the NHL is going to take the 200 million offer-they really don't care about "tradition" IMO

"Tradition" for many things is a dead idea now-it's all about money.

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12-30-2011, 11:05 AM
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You think the CFL would fold if toronto got an NFL team? I'm sorry but canada doesn't revolve around toronto. It would not affect any other CFL team except the argos...Sure, the League might take a tiny cut in revenue by one of its team gaining competition. Only 1 though. That would mean nothing to the western teams. Nothing to montreal. Nothing to ottawa's future team. It would affect toronto a bit, and theres a small chance it affects hamilton as well.

What i've noticed with football is, you either like the nfl or the CFL. They play with different field sizes, different ball sizes, and different rules. The people who follow the CFL will still follow the CFL. The ones who want to follow the NFL already do. In highschool all the football love was to the NFL. The ones who like the NFL can already watch it on tv. Which proves my point that anyone who's not within an hour of the toronto NFL team won't be affected.

Why does toronto always think they ARE canada.
I'm am not talking about style of play or bashing the CFL. I am talking about two shrewd companies taking advantage of a populace that cant see between their own nose(tax money). And yes it would affect the CFL because most of the large non oil companies are headquartered in Toronto. They would jump ship. Rogers and Bell would make sure of it. CBC sports can provide a viable alterative for CFL so in the next round of contract negotiations they can force TSN to drive up the contract money. Without CBC as a competior, TSN can give the CFL what they want to which can be 5 million instead of 25 million.

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Riiigggghhhhtttt.

This post is so far into fantasy world, T.O. is such a fickle market beyond the Leafs (who are what... the third place Canadian team at the moment) that they can't even sell out the NFL games they get now. At this point the CBC provides NOTHING that the private sector broadcasters don't provide.

Culture from the Ceeb? Well, if you mean stuff people won't pay the freight to enjoy without a subsidy from taxes fine. If you like that, pay the cost not what the commercial revenue plus money picked from someones pocket gets ya.
I'm sure it is. That's why Toronto sold out to 91% capacity this year right? and in past years for 88%-90% It's about as fantasy land as shutting down the CBC. And yes it strangely does. Because when you ask Canadians what Canadian culture they don't know.

By the way I'm from Hamilton. So we lose our only pro team if that happens because some complainers out west care about "tax money"

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12-30-2011, 11:10 AM
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The NHL should remember that HNiC built this league.
This is the NHL. We don't do things properly.

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12-30-2011, 11:17 AM
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Originally Posted by Melrose Munch View Post
I'm am not talking about style of play or bashing the CFL. I am talking about two shrewd companies taking advantage of a populace that cant see between their own nose(tax money). And yes it would affect the CFL because most of the large non oil companies are headquartered in Toronto. They would jump ship. Rogers and Bell would make sure of it. CBC sports can provide a viable alterative for CFL so in the next round of contract negotiations they can force TSN to drive up the contract money. Without CBC as a competior, TSN can give the CFL what they want to which can be 5 million instead of 25 million.



I'm sure it is. That's why Toronto sold out to 91% capacity this year right? and in past years for 88%-90% It's about as fantasy land as shutting down the CBC. And yes it strangely does. Because when you ask Canadians what Canadian culture they don't know.

By the way I'm from Hamilton. So we lose our only pro team if that happens because some complainers out west care about "tax money"
And why does shutting the CBC mean the death of the CFL? Your supposition assumes there will be nothing to fill the void in the market left by the CBC. Really???? Did the government shutter Air Canada or Petro Canada when they got out of those markets? No, they were sold off to private interests for cold hard cash and the same would happen with the Ceeb. The new management would still have the ability to go after whatever content they wanted, if TSN were to be the only apparant bidder on CFL rights and I were in charge of the new-cbc I'd be going after this product which would give TSN pause about bidding too low for this.

Hamilton still has more than one pro team from what I hear too, or is the AHL too low brow for the golden horseshoes CBC-type standards?

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