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.
Jul 3, 2015, 7:44 PM EDT
Buffalo also signed Cal O’Reilly, who played last season with the AHL Utica Comets.
Jul 3, 2015, 6:43 PM EDT
He signed a six-year, $36 million deal with Columbus.
Jul 3, 2015, 5:44 PM EDT
“Joel is a quality veteran player who can score but also plays an extremely hard-nosed brand of hockey.”
Jul 3, 2015, 5:00 PM EDT
Could make things interesting next season.
Jul 3, 2015, 4:00 PM EDT
Brings a wealth of success, experience at AHL, collegiate levels.
Jul 3, 2015, 3:12 PM EDT
$52.5 million extension.
Jul 3, 2015, 2:50 PM EDT
“This long-term commitment that assures he will be an important part of our team for years to come.”
Jul 3, 2015, 2:37 PM EDT
“They gotta come in and knock somebody out of the box.”
Jul 3, 2015, 2:12 PM EDT
A one-year, two-way deal for the ex-Islander.
Jul 3, 2015, 1:00 PM EDT
Charlie Huddy, Pascal Vincent and Wade Flaherty all inked three-year extensions.
Jul 3, 2015, 12:46 PM EDT
Expected to battle Brian Elliott for the starting role in St. Louis.
Jul 3, 2015, 12:23 PM EDT
“It’s an exciting time to be a part of this organization.”
Jul 3, 2015, 11:44 AM EDT
Jul 3, 2015, 11:32 AM EDT
Bobby Sanguinetti to Buffalo; Sharks grab Mark Cundari.
Jul 3, 2015, 11:30 AM EDT
Where he “contributed to the development of Jonathan Quick, Jonathan Bernier and Martin Jones.”
Jul 3, 2015, 11:19 AM EDT
How patiently will he wait?
Jul 3, 2015, 10:46 AM EDT
The 44th overall pick at the 2008 NHL Entry Draft.
Jul 3, 2015, 10:25 AM EDT
Plays a similar style to his dad.
Jul 3, 2015, 10:20 AM EDT
Their supporting casts haven’t been this strong in some time.
Jul 3, 2015, 9:20 AM EDT
Pictured listening to Patrick Roy; he’ll next listen to Dave Cameron.
- Brandon Saad brings championship experience to Blue Jackets 2
- Sharks sign Joel Ward to three-year deal 12
- Sabres lock up O’Reilly through 2022-23 53
- Locked in: Columbus signs Saad to six-year, $36M deal 25
- Oilers sign McDavid to entry-level contract 19
- ‘Hawks would like to re-sign Oduya, but still working through ‘financial hurdles’ 16
- Trade: Caps acquire Oshie from Blues for Brouwer, Copley and draft pick 73
- Voynov takes plea, gets 90 days in jail plus probation 60
- Curtains on Broadway: Martin St. Louis calls it a career 36
- Discuss: Where’s the best fit for Alex Semin? 23
- Blockbuster: Kessel traded to the Penguins (131)
- Trade: Flyers send Rinaldo to Bruins for 2017 third-rounder (105)
- Trade: Jackets land Saad; Anisimov and Dano headed to Chicago (93)
- Bypassing a buyout? Kings terminate Richards’ contract for ‘material breach’ (90)
- Trade: Caps acquire Oshie from Blues for Brouwer, Copley and draft pick (73)