Nov 27, 2013, 1:01 PM EDT
Yesterday, the NHL announced a 12-year Canadian broadcast agreement with Rogers worth almost $5 billion in U.S. dollars.
Yeah, it was a pretty big deal.
Immediately after the news broke, people started to wonder what it would mean for the league’s 30 franchises. And in particular, they wondered about the clubs that aren’t considered among the financial powerhouses of the NHL, for which finances are always a concern.
For example, Yahoo! Sports columnist Nicholas Cotsonika was thinking about the Phoenix Coyotes, a team that very nearly relocated this past summer before finally finding new ownership.
Say you’re the Coyotes. You have been at or near the bottom of the league in attendance in recent years. You want to win, draw fans and make the business work on your own. But the cap and floor are more manageable. You don’t have to hit attendance targets to receive revenue-sharing anymore. Your cut of the Canadian TV revenue now is $4.75 million a year at the current exchange rate, but it will shoot up to an average of about $13.8 million a year over the next dozen years – a $9.05 million difference per year. Now factor in revenue from the American TV deal, the outdoor games, a World Cup, other international events, et cetera.
And now consider this: If the NHL does expand – to, say, Quebec City and Seattle – the owners will split hundreds of millions of dollars in fees between them, and they won’t have to share any of that money with the players.
That’s the positive spin. But here’s the potential negative side, from the CBC’s Elliotte Friedman:
The only thing to worry about here is the salary floor, if you love a low-revenue club. Article 50.5 b (i) of the CBA states “the magnitude of the Team Payroll Range shall never be less than $16 million … or greater than $28 million.”
The promise of this new agreement allowed Bettman to stabilize his three biggest trouble spots: Florida, New Jersey and Phoenix. No doubt the owners of those teams, like Leonsis in Washington, are thrilled by the television bonanza and updated revenue-sharing formula.
The true test of the new CBA will be how many teams can’t afford to go much higher than the floor because you know the revenue powerhouses can’t wait to flex their financial-steroid muscles.
That’s the only concern I see. It’s at $44 million this season, and a $60-million base – with the upper limit approximately $20 million higher – is not out of the question in the near future.
The Globe and Mail’s James Mirtle conservatively estimates the salary floor/cap will rise as follows throughout the course of the CBA:
It’s impossible to say for sure how current low-revenue teams like the Coyotes, Panthers, Predators, and Blue Jackets will fare in the next few years. Yes, there will be more national TV money coming in, and yes, there’s more revenue sharing under the new CBA. But paid attendance will still matter greatly for individual clubs, meaning much will continue to depend on their win-loss records.
Apr 23, 2014, 9:53 AM EDT
He spent three seasons with the Flyers.
Apr 23, 2014, 9:20 AM EDT
He’s been out since April 10.
Apr 23, 2014, 8:25 AM EDT
It’s that or hit the road down 3-1.
Apr 23, 2014, 2:17 AM EDT
They’ll be facing elimination on Thursday.
Apr 23, 2014, 1:25 AM EDT
Stunner at the Staples Center.
Apr 23, 2014, 12:07 AM EDT
Impressive, but just his first marker of the series.
Apr 22, 2014, 11:50 PM EDT
Apr 22, 2014, 11:31 PM EDT
“They thrived on it.”
Apr 22, 2014, 11:06 PM EDT
Some thought he was milking an injury and even holding the wrong knee.
Apr 22, 2014, 10:53 PM EDT
Flyers fans give it right back, though.
Apr 22, 2014, 10:45 PM EDT
Get this: people will be talking about Flyers goaltending.
Apr 22, 2014, 10:40 PM EDT
Not exactly a thing of beauty, but it counts…
Apr 22, 2014, 10:25 PM EDT
Kept him out of the entire opening round.
Apr 22, 2014, 10:14 PM EDT
Boston’s first win at Joe Louis Arena in seven years.
Apr 22, 2014, 10:03 PM EDT
Not the names you’d expect, huh?
Apr 22, 2014, 9:50 PM EDT
Tampa Bay hits a wall called Montreal.
Apr 22, 2014, 9:39 PM EDT
Another blowout coming?
Apr 22, 2014, 9:03 PM EDT
And creates a little bit of controversy in the process.
Apr 22, 2014, 8:41 PM EDT
Could this be his last appearance with Tampa Bay?
Apr 22, 2014, 7:50 PM EDT
Also: Capitals Winter Classic and Islanders ownership talk.
- Sharks beat Kings in OT, take 3-0 stranglehold on series 33
- Rangers chase Emery, top Flyers for 2-1 series lead 51
- Bruins dominate Red Wings, take 2-1 series lead 37
- And then there were 15: Lightning eliminated 74
- WATCH LIVE: San Jose Sharks at Los Angeles Kings (Game 3) 2
- Bettman says shootouts are staying, gives salary cap estimate 34
- Video: Yeo asked if Cooke told to ‘target’ Avs, does not like question 45
- On Matt Cooke and whether he’s a ‘repeat offender’ 58
- Marleau, O’Reilly and St. Louis named Lady Byng finalists 20
- Zuccarello: ‘I’m not a diver’ 50
- Video: Seabrook ejected for charging Backes; will face hearing (update) (153)
- Bad luck strikes twice: Lightning goal waved off, Stamkos takes knee to head (127)
- Keith doesn’t remember if he taunted Backes after Seabrook hit (125)
- Video: Lucic spears DeKeyser from behind (118)
- Flyers want to ‘punish’ McDonagh (113)