Nov 27, 2013, 1:01 PM EST
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.
Jan 26, 2015, 4:59 PM EST
Who will play this week?
Jan 26, 2015, 4:22 PM EST
This might be the result of fighting in back-to-back games.
Jan 26, 2015, 3:31 PM EST
Will Mikhail Grabovski step up?
Jan 26, 2015, 3:12 PM EST
The post-All-Star Game portion of the season isn’t starting any better for Buffalo.
Jan 26, 2015, 2:21 PM EST
He’s been overseeing co-coaches Adam Oates and Scott Stevens.
Jan 26, 2015, 1:30 PM EST
He didn’t end up playing in the All-Star Game.
Jan 26, 2015, 12:31 PM EST
Remember, the club opted not to amnesty his contract last June.
Jan 26, 2015, 12:23 PM EST
Canucks will give Frank Corrado a chance to show what he can do.
Jan 26, 2015, 12:12 PM EST
Columbus’ star center is having a nice little run at the moment.
Jan 26, 2015, 12:05 PM EST
They also summoned Josh Anderson.
Jan 26, 2015, 11:23 AM EST
“Everybody felt like I just want a car to drive it.”
Jan 26, 2015, 10:55 AM EST
Ilya Kovalchuk deemed it a “worthy tournament,” though.
Jan 26, 2015, 9:51 AM EST
Including an intriguing game between the Islanders and Rangers.
Jan 26, 2015, 8:47 AM EST
Monday’s collection of links.
Jan 25, 2015, 9:49 PM EST
“We’re so proud of our city for showing that hockey is such a big deal here.”
Jan 25, 2015, 9:25 PM EST
“This is something I’ll remember for a very long time.”
Marc-Andre Fleury would like to remind the Columbus crowd that the Penguins beat the Blue Jackets in the playoffs
Jan 25, 2015, 8:59 PM EST
“I remember them being quiet in the end when we won.”
Jan 25, 2015, 8:16 PM EST
29 goals in all.
Jan 25, 2015, 7:36 PM EST
11 in total, eclipsing the old mark by one.
Jan 25, 2015, 6:43 PM EST
Chicago will resume play on Wednesday against Los Angeles.
- Isles’ rise to be tested as they lose Okposo for 6-8 weeks 8
- L.A. Sorry? Kings waive Mike Richards 100
- Bobrovsky out 4-6 weeks, Jackets recall goalie Forsberg 3
- Blue Jackets proud as Columbus shows it’s a hockey town 23
- From contract dispute to All-Star MVP, Johansen’s had quite the year 16
- Marc-Andre Fleury would like to remind the Columbus crowd that the Penguins beat the Blue Jackets in the playoffs 31
- Cannonball Run…and gun: Team Toews wins highest-scoring game in ASG history 24
- Supercut: Every goal from the highest-scoring period in All-Star Game history 7
- Video: Team Foligno survives shootout, wins Skills Competition 4
- Video: Weber wins hardest shot with 108.5 mph blast 13
- Columnist: Flyers ‘orchestrated’ fight night versus Pens during meal at ‘a local steakhouse’ (130)
- Flyers’ Rinaldo: ‘I changed the whole game, man’ (112)
- L.A. Sorry? Kings waive Mike Richards (103)
- Video: Rinaldo tossed for boarding Letang (79)
- Report: Flyers’ Rinaldo waives right to an in-person hearing (61)