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.
Sep 18, 2014, 11:00 PM EDT
Jamie McGinn and John Mitchell also rank among the already-wounded.
Sep 18, 2014, 10:08 PM EDT
Peter Chiarelli also (kinda sorta) addressed Johnny Boychuk rumors.
Sep 18, 2014, 10:07 PM EDT
He won’t be paid or count against the cap while he’s injured.
Sep 18, 2014, 9:37 PM EDT
Everyone wins … except Minnesota’s other goalies.
Sep 18, 2014, 8:45 PM EDT
Maybe the English version of his book will be kinder?
Sep 18, 2014, 7:50 PM EDT
Sep 18, 2014, 6:30 PM EDT
He fits right in with the Flyers.
Sep 18, 2014, 5:30 PM EDT
Could be a slow road to recovery.
Sep 18, 2014, 4:30 PM EDT
At least the Blue Jackets’ GM is ruling out surgery.
Sep 18, 2014, 3:51 PM EDT
He’ll miss at least months, GM Ron Hextall said.
Sep 18, 2014, 3:16 PM EDT
Hey, he’s got less than eight years to go.
Sep 18, 2014, 2:25 PM EDT
“I don’t think I had a conversation with Torts until Christmas last year.”
Sep 18, 2014, 2:24 PM EDT
“The next time I’ll talk publicly about Jaden is when we sign him.”
Sep 18, 2014, 1:42 PM EDT
Never boring in Toronto.
Sep 18, 2014, 12:36 PM EDT
And it’s probably going to be Ryan McDonagh.
Sep 18, 2014, 12:12 PM EDT
Two key youngsters on a Stars team with high hopes.
Sep 18, 2014, 12:06 PM EDT
Former first-round pick missed extensive time to a torn ACL.
Sep 18, 2014, 11:42 AM EDT
Taken 16th overall in 2007.
Sep 18, 2014, 11:27 AM EDT
Remember him? Taken 3rd overall in 2004… behind Alex Ovechkin and Evgeni Malkin.
Sep 18, 2014, 11:10 AM EDT
Tough blow for a kid looking to make the leap this season.
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- Keeping Kuemper: Wild sign goalie to two-year deal reportedly worth $2.5M 9
- Selanne regrets harsh words toward Boudreau 3
- Flyers’ Timonen admits chances of playing are ‘really slim’ 7
- Desjardins (a.k.a. not Torts) makes good first impression on Canucks 22
- Leafs deny rift between Kessel and coaching staff 20
- Injured Crosby, Malkin will miss start of Pens’ camp 10
- Selanne rips Boudreau in book 18
- Just how damaging are heated negotiations between Jackets, RFA Johansen? 38
- Panthers owners say they’re committed even though team has lost ‘tremendous amounts of money’ 12
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- Chiarelli: At some point, I’m going to have to trade a defenseman (56)
- Jackets reveal Johansen offers — including an eight year, $46M deal (54)
- Will the NHL publicize divers? (48)
- No icing on the PK? The USHL will see how that looks (43)