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RDS is paying a whopping $68 million per year to Habs

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01-29-2014, 03:28 AM
  #1
Habaneros
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RDS is paying a whopping $68 million per year to Habs

http://www.ottawasun.com/2014/01/28/...ors_picks=true


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A report out of Montreal indicates RDS is paying a whopping $68 million per year for the rights to 60 games and no playoffs for the Canadiens’ local broadcasts.

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01-29-2014, 03:42 AM
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Galchenyum
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Over $1M per game, dunno how this compares to other TV contracts around the league but seems like a pretty crazy figure. I imagine they would lose a pretty significant percentage of their subscribers without any Habs games but are they really going to profit from this...? Pardon my ignorance when it comes to TV financials, I watch everything online and don't really pay attention to these types of things normally...

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01-29-2014, 05:07 AM
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The Habs can spend up to the cap on that deal alone.

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01-29-2014, 05:07 AM
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Originally Posted by Galchenyum View Post
Over $1M per game, dunno how this compares to other TV contracts around the league but seems like a pretty crazy figure. I imagine they would lose a pretty significant percentage of their subscribers without any Habs games but are they really going to profit from this...? Pardon my ignorance when it comes to TV financials, I watch everything online and don't really pay attention to these types of things normally...
It basically spend that or going back to the Mini-Put with Carl Carmoni!

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01-29-2014, 05:17 AM
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It basically spend that or going back to the Mini-Put with Carl Carmoni!
I miss the old, BIRDIE au 3em trou.

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01-29-2014, 05:57 AM
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Quote:
Originally Posted by Galchenyum View Post
Over $1M per game, dunno how this compares to other TV contracts around the league but seems like a pretty crazy figure. I imagine they would lose a pretty significant percentage of their subscribers without any Habs games but are they really going to profit from this...? Pardon my ignorance when it comes to TV financials, I watch everything online and don't really pay attention to these types of things normally...
With the deal, RDS can sell advertisment like crazy. Essentially, you have the francophones hockey fans' attention for 3-4 hours (including post game shows) 3 times a week. That's 12 hours where you can reach your potential customers for beer, cars, TVs etc.

My guess is that RDS is still making a lot of money out of that deal.

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01-29-2014, 06:03 AM
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Originally Posted by Team_Spirit View Post
The Habs can spend up to the cap on that deal alone.
But there's a clause in the contract that the money can only go on diminutive francophones

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01-29-2014, 06:35 AM
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Originally Posted by Brainiac View Post
With the deal, RDS can sell advertisment like crazy. Essentially, you have the francophones hockey fans' attention for 3-4 hours (including post game shows) 3 times a week. That's 12 hours where you can reach your potential customers for beer, cars, TVs etc.

My guess is that RDS is still making a lot of money out of that deal.
That's what I told myself at first too but, if I recall correctly, they won't be getting any weekend games which I imagine get better ratings than the weekday ones due to people working, being in class/homework etc. So I imagine the cost of advertising during these games must be cheaper. And then there's the cost of production, all the salaries that must be paid, etc.

I must be underestimating the cost of advertising to a certain extent as I'm sure RDS is familiar with their revenue from Habs games and wouldn't put themselves in a position to lose massive amounts of money. At the same time though, as one of the previous posts alluded to with the mini-putt, maybe they were just desperate not to fall behind the competition and went all in. Seems like a crazy amount of money to me!

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01-29-2014, 06:51 AM
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Quote:
Originally Posted by Galchenyum View Post
Over $1M per game, dunno how this compares to other TV contracts around the league but seems like a pretty crazy figure. I imagine they would lose a pretty significant percentage of their subscribers without any Habs games but are they really going to profit from this...? Pardon my ignorance when it comes to TV financials, I watch everything online and don't really pay attention to these types of things normally...
Do you watch mostly dramas/sitcoms online? Live sports is more of a TV viewing experience.

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01-29-2014, 06:55 AM
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This honestly doesn't seem like much. The lakers for example signed a 3 billion contract for 20 years in 2012, which comes to about 150 million per season for 70 games and no playoffs. I know they are in a larger market than the Habs but they signed the contract 2 seasons ago.

http://mobile.bloomberg.com/news/201...n-tv-deal.html

Edit: Apparently the Dodgers were negotiating a 225 million contract per season at the same time.

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01-29-2014, 07:02 AM
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Originally Posted by c3z4r View Post
This honestly doesn't seem like much. The lakers for example signed a 3 billion contract for 20 years in 2012, which comes to about 150 million per season for 70 games and no playoffs. I know they are in a larger market than the Habs but they signed the contract 2 seasons ago.
L.A. is a much larger market than Montreal. The population of the L.A. metropolitan area is over twice the population of all of Quebec.

By the way, is the Lakers deal only for the local broadcast rights? Because that is what RDS got in their deal. Plus, there is a lot more ad money to be had in a market like L.A. than in a market like Montreal.

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01-29-2014, 07:08 AM
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I'm quite sure that RDS got their numbers right. They also get a lot from subscription. A lot of guys have to get an expensive cable deal just to have RDS!

In fact, RDS was probably making a boatload of money before this deal and the Habs just brought that up in the negociations. Now maybe the pie is separated more evenly.

We know that the Habs share is 68M, I'd be curious to see the total TV revenues!

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01-29-2014, 07:10 AM
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Impressive figure... It really sucks that they only get 60 games. TVA is going to be a joke.

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01-29-2014, 07:10 AM
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That's a pretty fair deal. To be expected.

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01-29-2014, 07:15 AM
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Originally Posted by Habaneros View Post
Then some are foolish enough to ask why Habs don't rebuild? They would lose millions of dollars

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01-29-2014, 07:18 AM
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Then some are foolish enough to ask why Habs don't rebuild? They would lose millions of dollars
Or ask why they need a French speaking coach? Because the main broadcaster pays them a hefty amount to hear the coach in the language they broadcast in.

Not saying RDS dictates the coaching hire, but communication ability is key here.

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01-29-2014, 08:46 AM
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They had to do it. Without hockey, RDS is virtually a dead channel. Bell needs it to keep their RDS subscribers. TVA still gets their pick of key games though.

Bell also gets naming rights to the Bell Center for the same period so the deal does include some advertising for them. The last deal in 2002 cost $5M per year for the same.


Last edited by RealityBytes: 01-29-2014 at 08:56 AM.
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01-29-2014, 08:57 AM
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that does not include TVA which will easily be approx. 20-30 million per year for 20+ games + playoffs - thus the habs own regional deal will be worth a billion dollars over 12 years. they are their own cash cow. The Habs were worth 775 mill last year? they will be worth a billion within 2 years

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01-29-2014, 09:00 AM
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Originally Posted by Team_Spirit View Post
The Habs can spend up to the cap on that deal alone.
That's what I was thinking

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01-29-2014, 09:04 AM
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Originally Posted by Smoky Thompson View Post
Impressive figure... It really sucks that they only get 60 games. TVA is going to be a joke.
I was thinking this too. I am NOT looking forward to the xenophobic right leaning TVA spinning every game into a diatribe on how the Nordiques would be better

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01-29-2014, 09:05 AM
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The Habs will be generating more income but their $775M enterprise worth for 2013 also has 37% of that value tied up in arena debt.

Their enterprise worth will rise though but closer to $900M, not $1B.

I'd like to see their new operating income numbers.


Last edited by RealityBytes: 01-29-2014 at 09:43 AM.
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01-29-2014, 09:06 AM
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Makes sense. RDS has basically monopolized habs broadcasting, and the revenue they generate is insane. I can't watch a single game here in Toronto.

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01-29-2014, 09:28 AM
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Originally Posted by Lemons View Post
Makes sense. RDS has basically monopolized habs broadcasting, and the revenue they generate is insane. I can't watch a single game here in Toronto.
The new deal will still be restricted to "local" though. Sorry.

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01-29-2014, 09:37 AM
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Originally Posted by Ditchweed View Post
The Habs will be generating more income but their $775M enterprise worth for 2013 also has 37% of that value tied up in arena debt.

Their enterprise worth will rise though but closer to $900M.

I'd like to see their new operating income numbers.
I think you underestimate their expenses.

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01-29-2014, 09:41 AM
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I think you underestimate their expenses.
That is enterprise worth ... as I said, I would like to see their new operating income numbers.

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