NHL rebate for NBC?

[drive45]

We hear a lot of talk about relocation. The 2 most often cited potential destinations are Quebec and Hamilton (or So Ont, Golden Horseshoe, Toronto #2, etc).

But NBC Universal Comcast just signed a deal for $2B for US coverage rights. Were they forewarned that one of their top 20 markets (Atlanta) was about to be dropped in favor of a city in which NBC does not have an affiliate? And what do we think that contract says about any future relocation to Canada? Would NBC be eligible for a rebate if the Yotes move to QC? Would the NHL then be able to turn around and charge CBC ands TSN more? Or would a smart cookie like Bettman be somehow able to get more from CBC and TSN, but not give anything back to NBC?

Or are all these really trick questions? Correct me if I'm wrong, but I believe NBC not only gets the broadcast and cable rights in the US, but also worldwide online/webtv rights. They could be looking 10 years down the road, when webtv will be a much bigger piece of the puzzle than it is now. They might be thinking that if people are going to be watching online, NBC's interest would lie in having as many viewers as possible, regardless of where they are located. Maybe if that is the general drift of their strategy, they don't mind teams moving to Canada at all.

Do we have any sports-entertainment lawyers or MBAs out there?

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[Hoser]

We hear a lot of talk about relocation. The 2 most often cited potential destinations are Quebec and Hamilton (or So Ont, Golden Horseshoe, Toronto #2, etc).

But NBC Universal Comcast just signed a deal for $2B for US coverage rights. Were they forewarned that one of their top 20 markets (Atlanta) was about to be dropped in favor of a city in which NBC does not have an affiliate? And what do we think that contract says about any future relocation to Canada? Would NBC be eligible for a rebate if the Yotes move to QC? Would the NHL then be able to turn around and charge CBC ands TSN more? Or would a smart cookie like Bettman be somehow able to get more from CBC and TSN, but not give anything back to NBC?

Without having the agreement in front of us no one here can say, definitively, whether there are relocation clauses that reduce the rights fees.

That said, the population of the United States didn't just suddenly drop. NBC will still be airing to the same number of households. You can make the assumption less people will watch, particularly in the Atlanta area, but then again there weren't many viewers there anyway.

Chances are there is no clause 'protecting' NBC from the relocation of a US team to Canada, nor any sort of reverse clause that comes into effect requiring CBC and TSN to pay more for rights because there's now a seventh team.

Or are all these really trick questions? Correct me if I'm wrong, but I believe NBC not only gets the broadcast and cable rights in the US, but also worldwide online/webtv rights.

No, just US rights. Certainly not the Canadian rights, which belong to CBC and TSN...

 

[Trizent]

Bill Daly answered this question and the answer was NO. No rebate.

 

[Bongo]

The better question might be, would NBC have made such a deal if they knew two US markets might lose their teams to Canadian cities? I think the done TV deal had as much to do with the Thrashers leaving Atalanta as the situation in Phoenix.

 

[Buck Aki Berg]

The better question might be, would NBC have made such a deal if they knew two US markets might lose their teams to Canadian cities? I think the done TV deal had as much to do with the Thrashers leaving Atalanta as the situation in Phoenix.

NBC knew. You don't spend two billion dollars without asking such an obvious question.

 

[wjhl2009fan]

We hear a lot of talk about relocation. The 2 most often cited potential destinations are Quebec and Hamilton (or So Ont, Golden Horseshoe, Toronto #2, etc).

But NBC Universal Comcast just signed a deal for $2B for US coverage rights. Were they forewarned that one of their top 20 markets (Atlanta) was about to be dropped in favor of a city in which NBC does not have an affiliate? And what do we think that contract says about any future relocation to Canada? Would NBC be eligible for a rebate if the Yotes move to QC? Would the NHL then be able to turn around and charge CBC ands TSN more? Or would a smart cookie like Bettman be somehow able to get more from CBC and TSN, but not give anything back to NBC?

Or are all these really trick questions? Correct me if I'm wrong, but I believe NBC not only gets the broadcast and cable rights in the US, but also worldwide online/webtv rights. They could be looking 10 years down the road, when webtv will be a much bigger piece of the puzzle than it is now. They might be thinking that if people are going to be watching online, NBC's interest would lie in having as many viewers as possible, regardless of where they are located. Maybe if that is the general drift of their strategy, they don't mind teams moving to Canada at all.

Do we have any sports-entertainment lawyers or MBAs out there?

While there is not a affiliate in canada per say we do get nbc so some stores etc may see this as a good thing to each more people not only could you get your ads out int he states but in canada at the same time.

 

[Buck Aki Berg]

While there is not a affiliate in canada per say we do get nbc so some stores etc may see this as a good thing to each more people not only could you get your ads out int he states but in canada at the same time.

When you and I watch NBC in Canada, it doesn't count towards the ratings.

Also, remember that most of the eastern half of the country gets the Detroit feed of NBC (and most of the west gets Seattle, I believe), so there's no incentive for regional corporations to buy ad time on a US network. Jim Durrell's Capital Dodge, for example, only wants to pay to advertise in Ottawa, not Thunder Bay to St. John's.

 

[cheswick]

How often did NBC show an Atlanta game?

 

[leoleo3535]

We hear a lot of talk about relocation. The 2 most often cited potential destinations are Quebec and Hamilton (or So Ont, Golden Horseshoe, Toronto #2, etc).

But NBC Universal Comcast just signed a deal for $2B for US coverage rights. Were they forewarned that one of their top 20 markets (Atlanta) was about to be dropped in favor of a city in which NBC does not have an affiliate? And what do we think that contract says about any future relocation to Canada? Would NBC be eligible for a rebate if the Yotes move to QC? Would the NHL then be able to turn around and charge CBC ands TSN more? Or would a smart cookie like Bettman be somehow able to get more from CBC and TSN, but not give anything back to NBC?

Or are all these really trick questions? Correct me if I'm wrong, but I believe NBC not only gets the broadcast and cable rights in the US, but also worldwide online/webtv rights. They could be looking 10 years down the road, when webtv will be a much bigger piece of the puzzle than it is now. They might be thinking that if people are going to be watching online, NBC's interest would lie in having as many viewers as possible, regardless of where they are located. Maybe if that is the general drift of their strategy, they don't mind teams moving to Canada at all.

Do we have any sports-entertainment lawyers or MBAs out there?

A few thoughts......
- NBC obviously knew (know) that numerous US markets are a heartbeat from going bye bye....Atl, PHX, CBJ , FL etc. etc.
- How many viewers do you think their were in Atl, Phx etc?
- How many National games have you seen featuring Atl, PHX etc?
- The NHL contracts with TV in Canada exceed the value of the NBC deal......I would think that is considered by the league

 

[Dado]

NBC knew. You don't spend two billion dollars without asking such an obvious question.

Big companies blow billions on deals without thinking through the details all the time.

Not saying NBC did, but it's certainly possible.

Arguably, even likely, given we had The Little Emperor spinning the sell-side story.

 

[wjhl2009fan]

When you and I watch NBC in Canada, it doesn't count towards the ratings.

Also, remember that most of the eastern half of the country gets the Detroit feed of NBC (and most of the west gets Seattle, I believe), so there's no incentive for regional corporations to buy ad time on a US network. Jim Durrell's Capital Dodge, for example, only wants to pay to advertise in Ottawa, not Thunder Bay to St. John's.

No i was snot talking about ratings i was talking about sponcers just as a exzample if your a owner of a store you buy time on nbc detroit not only are you reaching your local area but a large part of ontario.