IOC won't be compensating NHL for using players, but...

Discussion in 'Fugu's Business of Hockey Forum' started by LadyStanley, Jan 5, 2011.

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  1. LadyStanley

    LadyStanley RIP Fugu

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    http://nhl.fanhouse.com/2011/01/05/...on/?utm_source=twitterfeed&utm_medium=twitter

    IOC has no $$ to pay NHL for the use of players, but other concerns (highlights, access to players for NHL promo) should be able to be worked out.

     
  2. Turboflex*

    Turboflex* Guest

    Maybe they could give up some of their bribes? :shakehead
     
  3. canuckster19

    canuckster19 Former CDC Mod

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    I don't know, Fasel seems like a stand up guy to me, certainly a saint compared to his Fifa counterpart and fellow countryman Blatter.
     
  4. Fugu

    Fugu Administrator

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    How much does the IOC get from NBC for the TV rights? I presume they sell rights worldwide as well.

    Next question. Where does all the money go from there?
     
  5. Franck

    Franck eltiT resU motsuC

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    Organising the Olympics is not exactly cheap, I'd imagine a lot of money goes back to the host and most of the rest goes into covering the IOC's costs.
     
  6. kaiser matias

    kaiser matias Registered User

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    And if it means anything there is talk that he is working on being the replacement for Jacques Rogge as IOC President. If anything it will mean hockey could get a bigger profile in the Olympics
     
  7. Killion

    Killion Registered User

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    Last edited: Jan 5, 2011
  8. Fugu

    Fugu Administrator

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    I don't think so since it's the IOC that hands out the awards to the cities to host the event (which they have to pay for on their own, iirc). I imagine there are significant costs, but I really would like to see the accounting of it, costs and how money is raised and disbursed.



    :clap:
     
  9. kdb209

    kdb209 Registered User

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    NBC paid $2B for the US TV rights to 2010 (Vancouver) and 2012 (London) plus an additional $200M in sponsorships.

    The IOC hasn't (AFAIK) awarded the rights for 2014 (Sochi) and 2016 (Rio). Rumor has it that both ABC/ESPN and Fox are planning to bid against NBC (soon to be Comcast/NBCU). It's possible that CBS will also bid in a partnership with Time Warner.

    edit:

    http://www.businessweek.com/news/20...mpics-rights-as-nbc-faces-vancouver-loss.html

     
  10. Fugu

    Fugu Administrator

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    http://en.wikipedia.org/wiki/IOC#Revenue

    Will add some details as I find them.


    Revenue generated via five major programs:
    So 8% of $4b for "administrative costs" is $320 million. (Realizing that's a 4 yr period.)


    The Organizing Committees of the Olympic Games (OCOGs):
    National Olympic Committees (NOCs)

    International Olympic Sports Federations (IFs)

    Other organizations


    Pffft. Just charge an extra $50m from NBC or ABC and give it to the NHL. Easy.
     
  11. Killion

    Killion Registered User

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    And Fortnum&Masons (their hampers are to die for).... :laugh::laugh::laugh:
     
  12. seanlinden

    seanlinden Registered User

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    They're going to have a lot less money if the NHL doesn't go -- what will they do then?
     
  13. Fugu

    Fugu Administrator

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    Very true. I think the NHL has some leverage.
     
  14. LadyStanley

    LadyStanley RIP Fugu

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    As has been mentioned in NBC/Comcast purchase thread, TV contract negotiation thread....

    The IOC has NOT even started the process of determining the next (US, Canadian, Mexican, Central America, South America, Australian/European/Asian/African) rights holders for the 2014 Winter (and 2016 Summer) Olympics.



    And one other thing not mentioned in the article is that the NHL (and NHLPA) would like to have insurance covering the players during summer camps and the Olympics. (See Hasek, Dominik injury at Olympics and inability to play for the balance of the NHL season for rationale.)
     
  15. Hockey Team

    Hockey Team Hunger Force

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    I think the NHL should demand at least the following:

    - Unlimited usage of footage for things like highlights (obviously replays of the entire game would have to be limited to the networks)
    - Access to the players/coaches for interviews and what not

    I doubt they'll be getting money, and that's not what they should be going after. But it doesn't really help to promote the sport if the NHL can't use content from the events on their website.

    And it is not an unreasonable request
     
  16. AllByDesign

    AllByDesign Who's this ABD guy??

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    :laugh: You are on your game today. Did you have Bran this morning?

    The Canadian taxpayers would love to see the accounting as well. Somebody made out like gangbusters. The oganizers claim that they broke even or had a very small loss. When asked if they would hand over the books there was a resounding 'no'.

    The NHL's participation is a feather in their hockey tournament's cap, but will not hamper their bottom line. The Russian players have made it very clear that they will attend in Sochi, regardless of the NHL's thoughts on the matter. The NHL is making a veiled threat, but I suspect the IOC has little concern.


    The NHL can demand... kick and scream... tell mommy as much as they like. The IOC plays the role of the poor pauper but they are an 800 lbs Gorilla. I am sure they want to have a cordial relationship with the NHL, but the NHL knows that if the Gorilla wants to start flinging dung, they can only leave the room.
     
  17. seanlinden

    seanlinden Registered User

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    Some? Try a ton of leverage.

    In North America, there were rumours of networks submitting two bids for Olympic Coverage, one with NHL participation in the tournament, and one without NHL participation. Theoretically, the NHL is entitled to the entire difference between the two bids. If they don't have enough money to pay the NHL fair market value for getting their players mid-season, then they don't have enough money to host a best-on-best tournament.

    Sure, Russians are going to go, but who's really going to watch the tournament if we're seeing the Russian stars take on the equivalent of Canada's Spengler Cup team? Meanwhile, all the NHL has to do is get the IIHF on board with replacing the Olympics best-on-best tourney with a World Cup of Hockey, and just cut the IOC out of the potential profits.

    You also have to look past just 2014. Sure, the Russians care because they were embarassed in 2010. But, the 2018 Olympics are going to be in France, Germany or South Korea.... in that situation, the will of the players to fight the NHL on this issue may be much less.
     
  18. kdb209

    kdb209 Registered User

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    Actually, the 800lb gorilla is NBC (or ABC or Fox or ...) and their $2B in revenue.

    They have the pull to dictate event start times.

    If the Olympics rights holders also hold the NHL rights they will have incentive and significant leverage to get access.
     
  19. dafoomie

    dafoomie Registered User

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    After Sochi, I'd like to see the major pro leagues pull out of the Olympics for good and make the World Cup their major international tournament. They can keep the money for themselves and not be dictated to by the IOC.
     
  20. Jeffrey93

    Jeffrey93 Registered User

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    Why doesn't the IOC just hand over the TV rights to the Hockey events to the NHL for them to sell. NHL takes 80% and IOC takes 20%, or something like that.

    Would that tarnish the whole TV package? If you have to flip to one channel for Olympic hockey and another channel for everything else. Would that cut too much into the 'everything else' TV rights value?
     
  21. Killion

    Killion Registered User

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    "Extortion is a messy business Gentlemen. Go away & think it over. Im busy right now"...
    Ernst Stavro Blofeld :naughty:
     
    Last edited: Jan 6, 2011
  22. seanlinden

    seanlinden Registered User

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    Why don't I hand out $1000 to my barber? Because I don't have to. I want to keep my money.

    The thing with the IOC -- they are extremely greedy ********, who are out of touch with today's media market. In the words of Gordon Gekko, "greed is good". However, they fail to realize that the short term greed of wanting to benefit from NHL participation without paying for it, will only lead the NHL to pursue other avenues to making money off a best-on-best tournament. They need to realize that the NHL is just as greedy.

    Exactly. Do it once every 4 years in September rather than starting the season in europe. It'll conflict with training camps / preseason games, but those aren't a money-maker anyways. Great way to start an NHL season.
     
  23. Jeffrey93

    Jeffrey93 Registered User

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    I give both sides a tad more credit than that.

    If the IOC wants to charge big bucks for a pile of hockey games and still get 20% of what would likely be a very big TV deal....as opposed to losing the NHL completely....this would be in their best interest and would also satisfy their greed. The NHL would also, I'd think, find it appealing.

    I look at it this way. You can have product A for $10...or one person can buy product B for $8 and another can buy product C for $5. Product B + Product C = Product A.

    The only issue I see is if this would start a domino effect that the IOC doesn't want to get involved in.
     
  24. seanlinden

    seanlinden Registered User

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    You really shouldn't give the IOC more credit than that -- they don't deserve it. I see that you are Canadian, do you notice that whenever a network like TSN tries to show highlights from the Salt Lake City Olympics, all they can show is pictures? That's because of the IOC, rather than making their content available to everyone (and get people thinking olympics more than once every 2 years), they engage in highly restrictive broadcast deals to squeeze as much money as possible out of the networks. They are consistently operating on antiquated business models.

    We also know, that they are unwilling to pay the NHL for using NHL players, so while the business case you have made is correct, the fact is, they're not prepared to do it.
     
  25. IU Hawks fan

    IU Hawks fan They call me IU

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    Just say screw them already and hold a World Cup every 4 years in the summer.
     

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