The Business of HockeyDiscuss the financial and business aspects of the NHL. Franchise sales, valuations, TV contracts, ratings, expansion, relocation, the CBA and work stoppage discussion goes here.
How does the lockout affect the TV deal? If the season is kaput does that void the contract? NBC signed a massive deal with the EPL and will broadcast every fixture in the states. Did they do this because they expect to bump their NHL coverage?
This is interesting on a couple of fronts. The NHL may be getting some money this year, but they are trading years after all. They will give NBC a free year in the future, so that shouldn't get glossed over.
Secondly, why would NBC agree to pay them for a year that is lost? It doesn't make much business sense for NBC to do it. Sure, they get that year back in ten years, but they have to be pretty certain the value in ten years in terms of advertising will be greater than what they're anticipating now. One presumes that it's always better to get the money upfront. NBC is going against that grain.
At the tail end of Friday’s call, NBC briefly addressed the impact the National Hockey League lockout is having on its NBC Sports Network operations. “I can tell you we’re pretty disappointed with regard to the lockout,” (Comcast chairman and CEO Brian) Roberts said. “I don’t think we should say a heck of a lot more. I think that we’re just hopeful that the ownership and the players can get together and get on with the season.”
Comcast owns the NHL franchise Philadelphia Flyers.
So pretty much NBC wouldn't care whatsoever if the season is canceled. In ten or so years when they get that free year, if the season wasn't canceled, they would have to pay probably around $400MM (just my guess) by then. Now they would get it for free (or really for the $180MM they are paying this year).
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"Trust me I'm an expert, I watched 13 rangers games on NHL center Ice this year through streaming." -Starburst
"I don't even understand what the point of all this arguing is. Are you guys hoping that the other side is going to have an epiphany and go 'Oh, OH! You're right, we ARE going to lose this series!'" -Crease
the NHL would likely beat out regular season college basketball not involving Duke or UNC easily... if you're talking football, still the NHL though there's very little overlap.
So pretty much NBC wouldn't care whatsoever if the season is canceled. In ten or so years when they get that free year, if the season wasn't canceled, they would have to pay probably around $400MM (just my guess) by then. Now they would get it for free (or really for the $180MM they are paying this year).
Why would you guess $400 MM?
They just said they do care, and you restate the opposite?
EPL Games come on in the morning time in the United States, and end at 3pm the latest.
The only thing that is a threat to the NHL is if they get the rights to another major pro sports league and that's not happening anytime soon.
The only thing that is a threat to the NHL is if they get NBA rights. That is it basically because it is the only sport that runs completely concurrent to the NHL. The NHL on ESPN was fine until ESPN got the NBA rights.
as other's have said, NHL on NBC isnt in jeopardy at all for the next 10 years.. but i do find that quote posted above rather interesting. And what we all have to remember is that when the deal was done, it was before NBCSN even existed. The mission/vision of NBC was to create a sports platform that would not only one day compete with ESPN but maybe be on somewhat of the same level. In doing so they signed this deal with the NHL and the NHL was to become the "big dog" as far as coverage goes. By doing this NBC was going to devote 3 (sometime's 4) channels to give exclussive coverage of the PO's. Now, this "big dog" whom NBC was relying on to grow the NBCSN (which is under a year old) now has to put MLS on. Yeah im sure this will turn out to be great for them in 10 years, but from what i understand they could careless about that now, and care more about putting hockey on there channel
Yeah, but most likely it will increase, right? You think in like nine years they will still ask for the same amount of money, even though ratings keep increasing?
Yeah, but most likely it will increase, right? You think in like nine years they will still ask for the same amount of money, even though ratings keep increasing?
I expected more money this time around given the term of the contract. Ten years is a long time.
It's hard to say. Do you expect NHL revenues to grow at more than 5-7% based on history? What do you use as the basis for predicting an NHL broadcast contract in the US in ten years?
I expected more money this time around given the term of the contract. Ten years is a long time.
It's hard to say. Do you expect NHL revenues to grow at more than 5-7% based on history? What do you use as the basis for predicting an NHL broadcast contract in the US in ten years?
Nothing at all, but with how the TV contracts in sports have been increasing.
Do you think the NHL TV contract will be worth more in nine years, yes or no?
How does the lockout affect the TV deal? If the season is kaput does that void the contract? NBC signed a massive deal with the EPL and will broadcast every fixture in the states. Did they do this because they expect to bump their NHL coverage?
Speaking of the EPL, I pay extra to get a bunch of games. I won't give the NHL one more penny.. Even still, does anyone even notice that there is no NHL games on NBC?
Nothing at all, but with how the TV contracts in sports have been increasing.
Do you think the NHL TV contract will be worth more in nine years, yes or no?
May be unfair to respond to you while Sandy is flooding NY.
I get nervous about predicting the value of something 10 yrs out. If you exclude inflation, and you assume that the NHL continues to growth at 5-7% in HRR, then yes, it's reasonable to say it should be higher.
The unknowns are things like interest in the WC. Does that continue and grow, or does it start seeming like a fad or rehash? Is there something to take its place? The NHL was willing to take a fixed sum that was generally not massive as compared to the other leagues or their Canadian contracts for the next ten years. I'm not sure why they weren't more optimistic.
The unknowns are things like interest in the WC. Does that continue and grow, or does it start seeming like a fad or rehash? Is there something to take its place? The NHL was willing to take a fixed sum that was generally not massive as compared to the other leagues or their Canadian contracts for the next ten years. I'm not sure why they weren't more optimistic.
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I think they were just more concerned about the commitment someone could make to them rather than the dollar figures. NBCU came and said "wanna be the flagship of our channel for the next 10 years?" and the NHL smartly said absolutely.
