NBC/Versus - NHL deal seen as bargaining experience for upcoming Olympic bids

Discussion in 'Fugu's Business of Hockey Forum' started by LadyStanley, Apr 26, 2011.

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  1. LadyStanley

    LadyStanley RIP Fugu

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  2. kdb209

    kdb209 Registered User

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    http://www.adweek.com/news/television/will-nhl-win-make-ebersol-lord-rings-130952

     
  3. Fugu

    Fugu Administrator

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    Did Bettman agree to Sochi too in order to get that "gargantuan" ten yr deal that gets the NHL as much money in the US as they get from a country one-tenth the size? Including all playoff games and digital rights? :sarcasm:


    What a tough negotiator!
     
  4. Roughneck

    Roughneck Registered User

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    I don't really see the connection. If you want leverage with the IOC offer them the most money. NBC seems good at that.
     
  5. MayDay

    MayDay Registered User

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    Whether NHLers participate in Sochi or not, the ratings are not going to be good.

    The games are going to be on in the middle of the night, and no one wants to watch sports on tape-delay, especially in the internet age.

    I think the smashing success of the Vancouver games have set up some unrealistic expectations.
     
  6. Roughneck

    Roughneck Registered User

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    I agree. Interestingly the Canadian NHL rights are up the same year as Sochi, which means Bell will probably be committing a lot of money to secure the 2014/2016 rights as well as trying to get the premier share of NHL rights from CBC. Just how much can Bell pay for both?

    That will be the far more exciting negotiation, and when Canadian TV rights once again overtake the American ones (will they get over $300M?).
     
  7. He Lied to Mario

    He Lied to Mario Registered User

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    I thought that CBC was paying $100M and TSN $50M, how is that as much as $200M?
     
    Last edited by moderator : Apr 26, 2011
  8. MayDay

    MayDay Registered User

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    It's not a competition. :laugh:

    All the national TV money gets evenly distributed to all 30 teams, no matter which country they are in.

    All the NHL cares about is maximizing both deals.

    What I mean is, whether the American TV deal is a good deal or not doesn't depend on the value of the Canadian deal, and vice versa. US and Canada are different situations.
     
  9. Unstable

    Unstable Registered User

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    One tenth the size and with, what, thirty times as many hockey fans?
     
  10. Fugu

    Fugu Administrator

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    TSN's deal was reported by one outlet as $50 MM per year, but another as up to $100 MM per year. RDS adds another $15 MM. But okay, we can play it your way. $165MM is 82% of $200 MM, and Canada is still one-tenth the size of the US with only 20% of the NHL teams, and one metro area that would make it to the US top 20.


    Now, with that said, do you think Bettman packaged in that promise to go to Sochi with no optinos for further incentives to the NHL for shutting down for 2 weeks?
     
  11. LPHabsFan

    LPHabsFan Registered User

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    Because the Canadian TV deals are a few years old and NBC/Versus paid more than they had to now to save what they expect to be a boatload of money later. The US national tv deal I don't believe is worth 200 million a year right now. But they signed that deal so that they could get a long term deal which would mean they believe in 5 years the value of the deal will be less than 200 million a year. I'm kind of torn on whether or not it's a good business deal for the NHL.
     
  12. Roughneck

    Roughneck Registered User

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    Oh I know, I was nore just pointing out the nature of the deals. The fact that they're negotiated separately means you're going to compare them regardless and I'd say that the fact the Canadian deal expires the same year as Sochi will play a bigger role in how the Canadian TV deal gets done than the U.S. Deal having any real impact on NBC's Olympic negotiations since NBC is paying less for 10 years of NHL rights than it did for two months worth of Olympics.
     
  13. Spydey629

    Spydey629 Registered User

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    The time pendulum swings severely swings back the other way for the Summer games in Rio. Rio's timezone is only one hour ahead of the East Coast. Ebersol won't even need to play the games (pun intended) he did with the Bejing Games.

    With the Summer Games being more popular than Winter, it could end up that Comcast takes a bath on the Winter Games just to make it back (and then some) with the Summer Games two years after.
     
  14. Kitsune

    Kitsune Registered User

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    Fugu - Montreal would squeeze into the US top 20 too, and Vancouver might make it three by the end of this decade.

    Also - a lot people figured that NBC would shy away from bidding. Interesting they didnt. The Rio games are super valuable as they are the first America's game since 96... and rio is +2 to the eastern time zone. The price will be astronimical, it'll be interesting to see how high NBC is willing to go.
     
  15. Fugu

    Fugu Administrator

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    No, I actually compiled these numbers in another thread. Montreal and Vancouver metro areas would be in the third group of ten, iirc.

    Several US teams that are considered big markets are actually mid-size compared to the top ten goliaths (the LA, NYC, Chicago, Houston types), but they are still far larger than all Canadian metro areas except Toronto.

    The smallest NHL cities include 3 of Canada's six: Edmonton, Ottawa and I think Calgary isn't much larger, but I don't remember off the top of my head. There are 3-4 similarly small-sized US markets-- Nashville, Buffalo, and Raleigh-Durham. I don't remember where Columbus falls in the rankings.
     
  16. kdb209

    kdb209 Registered User

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    Ebersol out at NBC Sports

    http://www.nytimes.com/2011/05/20/sports/dick-ebersol-resigns-from-nbc-sports.html

     
  17. danishh

    danishh Registered User

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    um...wow?
     
  18. Fugu

    Fugu Administrator

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  19. Brodie

    Brodie Marxist-Harbaughist

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    I'm reasonably certain ABC/ESPN are going to end up with the Olympics.
     
  20. Fugu

    Fugu Administrator

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    I personally don't really care who ends up with the broadcast. I cherry pick the events regardless.

    Still, they'll need to keep an eye on how much money NBC lost, so the IOC's dreams of some ludicrous amount may not be tenable.
     
  21. danishh

    danishh Registered User

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    i think the networks try to outbid each other because of the prestige of the event.

    i dont think nbc has ever profited on the olympics, this was just the biggest loss.
     
  22. Fugu

    Fugu Administrator

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    Prestige at $30 MM is far different from $300 MM. They could buy a lot of advertising/PR for that much money.

    Sorry, but I have to disagree, danishh. These are businesses after all, not trophy collectors. imho
     
  23. kdb209

    kdb209 Registered User

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    One problem that ESPN/ABC might have is IOC demands for near complete coverage.

    Disney (ESPN/ABC) doesn't have as large a stable of cable channels as NBCU (MSNBC, CNBC, USA, etc) to carry the non-network coverage of the less popular sports, plus they have existing ESPN/ESPN2 programming commitments (MLB during the Summer Games, NBA during the Winter) that they will still need to accomodate.
     
    Last edited: May 19, 2011
  24. kdb209

    kdb209 Registered User

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    AP piece at nytimes.com:

    A Breakdown of Bidders for US Olympic TV Rights
     
  25. kdb209

    kdb209 Registered User

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    Fox, ESPN/ABC, and Comcast/NBCU will present their bids on Monday and Tuesday.

    http://www.nytimes.com/2011/06/06/sports/olympics/lowering-the-bar-in-olympic-bidding.html

     

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