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.
May 29, 2015, 8:21 PM EDT
Rangers also make one change to the lineup.
May 29, 2015, 7:20 PM EDT
The winner, as you know, goes to the Stanley Cup Final.
May 29, 2015, 6:39 PM EDT
“I’ve met with Nick several times and he knows he made a terrible mistake.”
May 29, 2015, 5:30 PM EDT
And it looks like Tomas Fleischmann might replace Emerson Etem, again.
May 29, 2015, 4:45 PM EDT
People like ESPN’s Pierre LeBrun.
May 29, 2015, 3:49 PM EDT
Appeared in just 33 games this season.
May 29, 2015, 3:16 PM EDT
“I don’t feel any tingling or soreness.”
May 29, 2015, 2:18 PM EDT
NHL Central Scouting thinks slightly more of the B.C. defender.
May 29, 2015, 1:47 PM EDT
Spent the past five seasons in the KHL.
May 29, 2015, 1:34 PM EDT
That’s former NHL defenseman and current AHL Binghamton bench boss Luke Richardson.
May 29, 2015, 12:51 PM EDT
This according to his club team, Avangard Omsk.
May 29, 2015, 12:49 PM EDT
How does it compare to past promos?
May 29, 2015, 11:50 AM EDT
“The last two years, we were a different team.”
May 29, 2015, 11:39 AM EDT
Well-traveled journeyman played big minutes for AHL Charlotte last season.
May 29, 2015, 11:25 AM EDT
Wes McCauley and Kevin Pollock, who have a fair bit of history working these types of games.
May 29, 2015, 10:57 AM EDT
Moving to Iserlohn after a tumultuous 2014-15 campaign.
May 29, 2015, 10:37 AM EDT
One year, two-way deal.
May 29, 2015, 9:53 AM EDT
Draft picks to hire other team’s fired employees has rapidly become the standard.
May 29, 2015, 9:14 AM EDT
Detroit wants to keep Tony Granato.
May 29, 2015, 8:25 AM EDT
Friday’s collection of links.
- WATCH LIVE: Lightning at Rangers, Eastern Conference Final Game 7 6
- The Ducks got Kesler for a game like Saturday’s 30
- Your Lightning-Rangers Game 7 officials are… 1
- Duchene slams Russian players for storming off after Canada’s 2015 WHC win 53
- DeBoer predicts ‘big bounce-back’ in San Jose 12
- Sabres name Bylsma head coach 46
- Lundqvist on Game 7: ‘You’re definitely nervous, but it comes down to teamwork’ 18
- Report: Bylsma to Sabres being held up by compensation issue 56
- Stanley Cup Final to begin June 3 10
- Caps’ Backstrom undergoes arthroscopic hip surgery 6
- Kesler on wearing down Chicago: ‘No human can withstand that many hits’ (77)
- From healthy scratch to hero: Vermette scores OT winner for Blackhawks (66)
- Report: Bylsma to Sabres being held up by compensation issue (56)
- On Kreider, and trying ‘to turn the other cheek’ (54)
- Duchene slams Russian players for storming off after Canada’s 2015 WHC win (53)