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.
Mar 12, 2014, 1:21 AM EDT
He received a minor penalty for the hit.
Mar 12, 2014, 1:04 AM EDT
JVR seems OK, though.
Mar 11, 2014, 11:48 PM EDT
Dallas moves into the second wild card spot for now.
Mar 11, 2014, 11:26 PM EDT
The San Jose Sharks aren’t happy about their game, either.
Mar 11, 2014, 10:52 PM EDT
And an interesting one overall for the East.
Mar 11, 2014, 10:25 PM EDT
Another memorable save for the icon.
Mar 11, 2014, 10:07 PM EDT
That’s eight in a row for Pittsburgh between these two teams.
Mar 11, 2014, 9:11 PM EDT
The contest featured his former team the Saginaw Spirit.
Mar 11, 2014, 8:33 PM EDT
The 20-year-old had been missing since March 3.
Mar 11, 2014, 7:49 PM EDT
On the bright side, there’s the Batmobile.
Mar 11, 2014, 7:19 PM EDT
The Pens have won seven in a row vs. Washington, including Monday.
Mar 11, 2014, 5:33 PM EDT
Because there’s a really good chance they will.
Mar 11, 2014, 4:56 PM EDT
Big development for the ‘Hawks.
Mar 11, 2014, 4:47 PM EDT
Click for the details.
Mar 11, 2014, 4:26 PM EDT
All the latest from the blue paint…
Mar 11, 2014, 3:54 PM EDT
“We played well in the first game, but then it all disappeared.”
Mar 11, 2014, 3:49 PM EDT
The sons of George and Brian, respectively.
Mar 11, 2014, 2:49 PM EDT
Whether he does or not will impact the Flyers’ roster.
Mar 11, 2014, 2:41 PM EDT
A big defenseman from Lake Superior State.
Mar 11, 2014, 2:18 PM EDT
Burly power forward’s in the midst of a disappointing season.
- Stars win one night after Peverley collapse, give Miller first Blues loss 3
- Crosby, Pens continue recent dominance of Ovechkin, Caps 19
- Terry Trafford’s body found in Michigan on Tuesday 8
- PHT Extra: What happens if the Caps miss the playoffs? 17
- Wings can’t afford regulation loss to Jackets 6
- ‘It’s obvious Tortorella can’t come back next year,’ writes Vancouver reporter 57
- NHL on NBCSN: Capitals fight to earn first win vs. Penguins in 26 months 11
- Vanquished: Isles stun Canucks with seven-goal third period 27
- Peverley asked to return to game following ‘cardiac event’ 23
- Peverley hospitalized, conscious after collapsing on Stars bench (Update) 19
- BLOCKBUSTER: Lightning trade St. Louis to Rangers for Callahan (82)
- Kings make splash, acquire Gaborik from Columbus (72)
- Steve Moore remains shocked, disgusted about Todd Bertuzzi attack (71)
- Chiasson ‘shaken up’ by Peverley incident, won’t dress for Stars tonight (69)
- ‘It’s obvious Tortorella can’t come back next year,’ writes Vancouver reporter (59)