OT: NHL TV Contracts: Are They Fair?

[Tatanka]

Here in Chicago we are seeing the next step in the monetization of team brand. The Cubs will have their own network like the Yankees and no games will be available over the air on the local broadcast network they used for decades, i.e. WGN. To counter, the Hawks, Bulls and Sox have formed the NBC Sports Chicago network to counter. Here is the thing that I find interesting. When the Hawks are on NBCSports or NHLN, they are allowed to broadcast locally with their own crew and local advertising. They are never blacked out on their own network like the Sabres are on MSG. Quick count of just the NBCSN games there about 7 Hawks games that will be on the bill but will be essentially local broadcasts. That means they can charge advertisers and sponsors for 7 more opportunities to be seen. Additionally the targeted marketing and streaming revenues for mobile devices. I know there are other similar arrangements like NBC Sports Philadelphia that also have this arrangement.

Is this fair? I mean if a game is “national” why are they allowed to get additional revenue through an essentially local broadcast? Do the Sabres have that option? Seems unfair to communities that do not have that type of population to support a captive network. Just something that I saw and wondered what others think.

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[Jim Bob]

Is this fair?

Life isn't fair. This is just one way that larger market clubs have revenue advantages over smaller market clubs.

I mean if a game is “national” why are they allowed to get additional revenue through an essentially local broadcast?

The NFL is the only league that doesn't allow local broadcast deals.

MLB, NBA, NHL, and MLS all have local broadcast deals.

Do the Sabres have that option?

When the club was owned by people that owned a cable system, we did have it in the Empire Sports Network.

Seems unfair to communities that do not have that type of population to support a captive network. Just something that I saw and wondered what others think.

Again, life isn't fair.

 

[Tatanka]

Life isn't fair. This is just one way that larger market clubs have revenue advantages over smaller market clubs.



The NFL is the only league that doesn't allow local broadcast deals.

MLB, NBA, NHL, and MLS all have local broadcast deals.



When the club was owned by people that owned a cable system, we did have it in the Empire Sports Network.



Again, life isn't fair.

Lol. Never said life was fair. Believe me. But one would think that it lessens the value of the national deal that all clubs share in. Hence the NFL prohibition. Just thought that the league would want to max that out.

 

[Buffaloed]

It might be rocky in Chicago but the Hawks broadcast situation used to be much wirtz. lol

 

[Tatanka]

It might be rocky in Chicago but the Hawks broadcast situation used to be much wirtz. lol

Let me guess, you’ll be here all week.

 

[SackTastic]

The NHL national television deal is with NBC. This gives NBC affiliated RSNs additional broadcast rights that are not available to non-NBC affiliated RSNs.

NBC 'native' games are always produced and broadcast directly by NBC. NBCSN will simulcast the Rogers/CBC or NBC RSN feeds whenever possible.

I also think you're worrying too much about the ad revenues. MSG pays the Sabres for the rights to broadcast the games, and the Sabres keep all of the advertising revenue. In return, the Sabres bear the cost of producing the program and selling ads. In most cases, for a NBCSN simulcast game, the ads shown on the RSN follow the same terms as a normal game, and the other markets are shown NBCSN ads, which they sell and keep the money for.

The world of television contracts and advertising revenues is confusing AF.

 

[Tatanka]

The NHL national television deal is with NBC. This gives NBC affiliated RSNs additional broadcast rights that are not available to non-NBC affiliated RSNs.

NBC 'native' games are always produced and broadcast directly by NBC. NBCSN will simulcast the Rogers/CBC or NBC RSN feeds whenever possible.

I also think you're worrying too much about the ad revenues. MSG pays the Sabres for the rights to broadcast the games, and the Sabres keep all of the advertising revenue. In return, the Sabres bear the cost of producing the program and selling ads. In most cases, for a NBCSN simulcast game, the ads shown on the RSN follow the same terms as a normal game, and the other markets are shown NBCSN ads, which they sell and keep the money for.

The world of television contracts and advertising revenues is confusing AF.

Interesting. Thanks for the info. Here the broadcast crew is local and not a feed from the national. Same with the pre, intermission, and post game. So while the nation sees Emery and Olcyck, here its Foley and Konroyd. I do know that here in Chicago, the ads are local. While on an NBCSN broadcast you get Ford and Honda commercials, here you get Bill Jones Ford and Tom Smith Honda. I would assume Honda paid a decent penny for the “official car of the NHL” rights, but that is divided equally with all clubs. The local would seem to go directly into the local club’s coffers.

 

[littletonhockeycoach]

I really don't care. But as a local consumer of Avalanche broadcasts, it's frustrating to be blacked out by NHL.TV now that my cable (Comcast) and the 2 other major providers (Dish and Direct TV) don' have a contract with Altitude anymore.

The vast majority of the local hockey population isn't seeing the local NHL franchise on TV (home or away) anymore. (Old man Wirtz is still pulling strings apparently.)

Oh well. There are ways to get around blackouts that don't involve purchasing a ticket.

 

[Tatanka]

I really don't care. But as a local consumer of Avalanche broadcasts, it's frustrating to be blacked out by NHL.TV now that my cable (Comcast) and the 2 other major providers (Dish and Direct TV) don' have a contract with Altitude anymore.

The vast majority of the local hockey population isn't seeing the local NHL franchise on TV (home or away) anymore. (Old man Wirtz is still pulling strings apparently.)

Oh well. There are ways to get around blackouts that don't involve purchasing a ticket.

Vpn

 

[littletonhockeycoach]

Vpn

(yup)

 

[Jim Bob]

Lol. Never said life was fair. Believe me. But one would think that it lessens the value of the national deal that all clubs share in. Hence the NFL prohibition. Just thought that the league would want to max that out.

The national deals that the NHL, NBA, and MLB get offered aren't willing to cover every single game in the league. That's why they do the local deals.