KHL business aspects discussion

Barclay Donaldson

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Feb 4, 2018
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So, does that mean that a millionaire taking on the project of a French KHL team is the one thing missing for expansion there?

Millionaire and an arena. They are by far the two biggest issues. Getting the blessing from the country's hockey federation is of minor importance in comparison to these two things.

The only suitable arena for hockey is AccorHotels Arena, which is one of the busiest venues in Paris if not all of France. The venue is perfect for hockey, with both capacity and design, but it hosts nearly every major event in Paris. It's a similar situation the KHL faced with the O2 Arena in Greenwich, London, a situation that caused hockey to be a nonstarter. The released schedule doesn't go very far, but the first non-occupied Saturday or Friday slot is in November and after that is the New Year. Other venues being built for the Paris Olympics would not be a fit for hockey since they are all outdoor except for one massive covered dome.

And then getting an owner is event tougher since it's now known to everyone that KHL teams do not make money, or in the case of SKA there is income but it comes from government-owned corporations. This will be made even tougher since France has some of the highest tax rates in Europe. PSG had to wait decades for a sugar daddy to sponsor the one of the most popular teams in the most popular sport in the country, and when he did come, he came from Arabia. And that was for football. Hockey is not even in the top 10 for most popular sports. It falls far behind football, handball, rugby, cycling, and even skiing. Getting an owner to take on this project is extremely unlikely given all of these circumstances.
 

Barclay Donaldson

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Speaking of Paris any word on the Monaco idea (I know that Monaco is its own sovereign nation). Also Dubai (nuts idea) and Uzbekistan.

Monaco, like dozens of other locations, was mentioned once in passing and there's nothing happening. There's no indoor arena to even host hockey, or plans or even space to put one. With how little support and attendance AS Monaco receives and seeing how the KHL relies mostly on subsidizing government-run companies and ticket revenue, it would be foolish if anyone were to try it, which no one is.

For Dubai, UAE hockey president Vladimir Burden announced his intentions to bring in a KHL team by 2021. Coca-Cola Arena opened last month with seating for 17,000. Faces the same problems as AccorHotels in that it is a packed schedule. There's also the issues of selling hockey to people in the desert. The current highest attendance I can find for any UAE hockey is about 800 people showing up for a really important game for the national team. Looks unlikely, but the story has legs unlike Monaco. And the KHL has dived into crazy before.

Tashkent, Uzbekistan is the same thing except for the arena scheduling issues and the lack of a team to upgrade. Humo will play in the VHL in the Huma Ice Dome starting this upcoming season. Story also has legs and are setting the more realistic timeline of 2022 to upgrade infrastructure. Seems the most likely out of the three as well as being the "safest" move if one can call it that.
 

Exarz

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So I just listened to the second episode of the KHL podcast – and it seems like the league wants to get into the e-sports stage. They are currently evaluating in which way they would be represented and states that being integrated into EA Sports is still not an option (so no hopes of having the KHL in the games any time soon). They also stated that sports games are only 3% of the total market share for e-sports, so another way of entering the e-sports market might be to, for example, sponsor a team in any of the bigger games.
 

Rigafan

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So I just listened to the second episode of the KHL podcast – and it seems like the league wants to get into the e-sports stage. They are currently evaluating in which way they would be represented and states that being integrated into EA Sports is still not an option (so no hopes of having the KHL in the games any time soon). They also stated that sports games are only 3% of the total market share for e-sports, so another way of entering the e-sports market might be to, for example, sponsor a team in any of the bigger games.

They could always produce their own game? Licence it out to a company. Not sure on the interest for a KHL ONLY sports game though so probably not wise.

I'd also guess at seeing teams sponsor already established esports though.

SKA, CSKA Counter Strike teams etc. Would be interesting I guess. A lot of other sports teams seem to be trying it.

Until the esports bubble bursts that is.
 

mkev400

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Jul 21, 2016
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Comeback of 2k Hockey Games with the KHL? Please make that happen! I’m sure they could find additional , albeit minor, leagues to include into the licensing...;) (For the record i very much doubt it would be realistic or has any chance of happening, but if it was to be worthwhile, they’d need a major publisher behind it, because a KHL indie game would not cut the mustard)...​
 
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hansomreiste

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They could always produce their own game? Licence it out to a company. Not sure on the interest for a KHL ONLY sports game though so probably not wise.

I'd also guess at seeing teams sponsor already established esports though.

SKA, CSKA Counter Strike teams etc. Would be interesting I guess. A lot of other sports teams seem to be trying it.

Until the esports bubble bursts that is.

Esports is not going anywhere. If anything, I'd say hockey is under bigger threat. It's getting warmer. Demographics have been changing. Take Sweden as an example. In 30 years, how many Swedish children will grow up with ice hockey being their first and the most favorite sport? How many of them will be able to skate on frozen lakes in winter? Nations rising in population and influence don't care about hockey at all. It will be really difficult to keep its organic development when only few cities and towns get cold enough to play hockey and this is only for 3-4 months of a year.
 
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Jussi

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Esports is not going anywhere. If anything, I'd say hockey is under bigger threat. It's getting warmer. Demographics have been changing. Take Sweden as an example. In 30 years, how many Swedish children will grow up with ice hockey being their first and the most favorite sport? How many of them will be able to skate on frozen lakes in winter? Nations rising in population and influence don't care about hockey at all. It will be really difficult to keep its organic development when only few cities and towns get cold enough to play hockey and this is only for 3-4 months of a year.

Estimates are that in 2070, in Finland there'll be likely no snow during winters so that's definitely going to hurt the outside official training session pick up play. Granted, the biggest issue is rising costs of playing hockey, with junior season fees rising and cost of equipment not coming down. Parents are the ones paying for those, not clubs.
 

Jussi

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The road to the salary cap

The types of income included in the salary cap are as follows:
- Salary;
- Individual bonuses worth more than 20% of the player’s salary;
- Team bonuses worth more than 20% of the combined team wage bill;
- Other material benefits for players and their immediate families, including travel, accommodation, education services etc.

Not included in the salary cap:
- Individual bonuses worth less than 20% of the player’s salary;
- Team bonuses worth less than 20% of the combined wage bill;
- Prizes for teams finishing in the top four positions after the playoffs
;
- Prizes for the top three players in the League;
- Salaries of players on two-way contracts with the Junior Hockey League, or playing for the KHL team while aged 21 or under;
- Salaries of any player who listed as injured with an expected return date no earlier than May 1;
- Sports equipment, meals for players.
 
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TheWhiskeyThief

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They could always produce their own game? Licence it out to a company. Not sure on the interest for a KHL ONLY sports game though so probably not wise.

I'd also guess at seeing teams sponsor already established esports though.

SKA, CSKA Counter Strike teams etc. Would be interesting I guess. A lot of other sports teams seem to be trying it.

Until the esports bubble bursts that is.
The biggest risk to eSportsmen is type 2 diabetes.
 

Exarz

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Shouldn't really come as a surprise if you compare each nation's GDP per capita and its history of pay per view/subscriptions. From what I've understood, these type of sponsorship/broadcasting incomes are on a steady increase in Russia (with for instance Match TV), so it's a business model under development.
 
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Garl

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Shouldn't really come as a surprise if you compare each nation's GDP per capita and its history of pay per view/subscriptions. From what I've understood, these type of sponsorship/broadcasting incomes are on a steady increase in Russia (with for instance Match TV), so it's a business model under development.
Considering our GDP per capita poor comeback after 2014 it is not likely that this model will work anytime soon
 
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mkev400

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Im honestly a little surprised by that. I would have expected the KHL teams to make far more money from their TV Deal(s) than that
If those numbers are correct, and if I interpreted the tweet correctly, that would also mean that with the exception of Jokerit, that ever KHL team makes less money per season from TV contracts than a team in the German DEL, where each team gets € 285.000/annum (though that figure is from 2016 and may be higher now).
And the German TV Deal isnt considered very good, and in fact, I would have ranked it as one of, if not the weakest, TV deal of a big top flight league.
 

KTl

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Apr 11, 2019
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Shouldn't really come as a surprise if you compare each nation's GDP per capita and its history of pay per view/subscriptions. From what I've understood, these type of sponsorship/broadcasting incomes are on a steady increase in Russia (with for instance Match TV), so it's a business model under development.

Doesn't explain why Jokerit earns less than any Liiga team. KHL defines itself as an Eurasian league, but you can't even watch games in neither most of Europe nor most of Asia.
 
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Exarz

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Doesn't explain why Jokerit earns less than any Liiga team. KHL defines itself as an Eurasian league, but you can't even watch games in neither most of Europe nor most of Asia.
Viasat’s KHL-deal is basically a single, niched market focused solely on Jokerit. Of course Liiga as a whole has a bigger bargaining power negotiating their deals than the KHL selling their Finnish broadcasting rights when the only real interest for a whole market is really just one team

And everything adds up to your second point, it’s a Eurasian league with quite low interest outside the participating nations. That’s why the broadcasting rights are often sold to some obscure network for quite possibly a rather low price.
 
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Albatros

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To be fair that's the case with every hockey league including the NHL. The leagues in Switzerland, Sweden, and Finland all rely completely on a relatively strong television market at home.
 

vorky

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Jan 23, 2010
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Dinamo Riga is the only club not reaching the salary floor (₽270m) last season. So, they need to pay a fine (₽4,6m) according to the following rule: a fine of 50% of the difference between the official ‘floor’ and the club’s actual expenditure. So, the club was close to the floor.

The KHL plans to share ₽505m with clubs for 2020-2021, it is a rise (₽466m) from 2019-2020 season. The payment needs to be approved by the KHL Board of Directors at the end of September. At the meeting the new KHL BoD members will be elected, usually it is a formal re-election. We will see if new people (Fasel) get elected. Morozov did not reveal anything, just said "we will see."
 
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