[Ontario] Judge rejects NHL deal with Molson-Coors; UPD: overturned, deal upheld

Discussion in 'Fugu's Business of Hockey Forum' started by Kitsune, Jun 4, 2011.

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  1. Kitsune

    Kitsune Registered User

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    http://www.thestar.com/business/article/1002715

    .............

    from the sounds of it, the entire deal will have to be junked, and a new US only deal will need to be made.
     
  2. Evil Doctor

    Evil Doctor Cryin' Hank crying

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    :biglaugh:

    Is there nothing the NHL can't screw up? :laugh:
     
  3. Confucius

    Confucius Registered User

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    I wonder how much the Labbatt's deal was? NHL looking pretty unethical, if they already had a deal.
     
  4. Frank Booth

    Frank Booth Registered User

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    I've been saying here for years that John Collins is a moron, but some people continue to defend him. The NFL was glad to get rid of him to the Cleveland Browns, the Browns realized quickly he was worthless, got rid of him and didn't even fill his "position" for years, and threw him out on the curb with the trash. But like good garbage pickers, the NHL picked him up, and thought that he was a rising star. He's good at taking credit for what others have done, and when he tries to make his mark, you get things like this, which has his fingerprints all over it.
     
  5. jessebelanger

    jessebelanger Registered User

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    If you have to take a partner to court to continue a relationship - do you really want to continue that relationship?

    I don't really understand what happened here, either there was a deal or there wasn't. Why the gray area?
     
  6. Fugu

    Fugu Guest


    He keeps getting the credit for the Winter Classic, but I was under the impression that it was Shannon who first proposed that idea, after they embraced The Heritage Classic (an idea out of Edmonton, iirc).


    From the OP link:

    Interesting way of doing business though. AB sponsors an overwhelming majority of teams, and the league decides to go this route? Wow.

    I'm curious though as to what a league level sponsorship allows a sponsor to do, vs the individual team agreements. I assume arenas and team events would have their sponsor's signage and participation. Does the NHL get a separate patch of the arena where they can put up the competing brand? Of course, nationally produced broadcasts would be covered by the league's contract.
     
  7. Fugu

    Fugu Guest

    Article from February as harbinger of what might come:

    http://www.thestar.com/business/article/942969--nhl-cashes-in-as-beer-giants-brawl

    This blurb at the end deserves special consideration, although it may be moot if the US portion of the deal can proceed:

     
  8. jessebelanger

    jessebelanger Registered User

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    There was an article posted here at one point..I'm sure it's around somewhere..I searched but could not find it...if I recall correctly, basically Shannon proposed the idea a while back, and it was shot down by the NHL. When Collins came in, they were able to resurrect it.
     
  9. Confucius

    Confucius Registered User

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    Well if you're making money, and they want to leave, obviously:nod:
     
  10. Fugu

    Fugu Guest


    Well Wiki tells us this:

    Nevermind. :P
     
  11. Mwd711

    Mwd711 Registered User

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    Collins was in the wrong role with the Browns. Collins is a marketer. His experience is in advertising, marketing and broadcasting, not in running a professional sports franchise. Collins spearheaded the launch of the NFL Network and had run NFL Films and the league's marketing arm when he left for the Browns. You won't find many in the NFL that don't praise him. I'm not sure where you get that the NFL was happy to get rid of him.

    His biggest problem with the Browns was a culture clash with other execs and a power struggle among big egos. He wanted to fire Phil Savage and Randy Lerner didn't approve. Savage and Collins constantly butted heads. Either way, he wasn't qualified for the job. If you can tell me why an ad guy is qualified to be running an NFL team, I'd love to hear it. He's back doing what he's best at with the NHL. The results speak for themselves. While he was at the NFL, marketing grew to new heights, and the same thing is happening at the NHL.

    Pouring rights are sometimes held by the arena operator. Every arena and team handles it different. Basically, you already see it in arenas where Miller is the team sponsor and Bud Light logos are nowhere to be found. The only thing that an official league partner gains are rights to use various logos for marketing, run contests, etc. They also gain visibility during league events - i.e. the Draft, Winter Classic, ASG and can gain exclusive television sponsorship rights.
     
  12. JGRB

    JGRB It’s not a lie if YOU believe it - Marc Bergevin

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    I'm more interested in knowing how much the InBev deal is worth compared to the Coors/Molson one and what it means for the cap, if anything.

    NHL just further making ass clowns of themselves in front of the world.
     
  13. LadyStanley

    LadyStanley RIP Fugu

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    How good are you at guessing. :sarcasm:

    The InBev/AB deals are individual team/arena deals, not league wide. I've rarely seen team sponsorship $$s in press releases.
     
  14. La Grosse Tendresse

    La Grosse Tendresse Registered User

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    Not really.

    This isn't about the InBev deal for inividual teams/arenas, rather that the NHL already had a national deal with InBev in Canada before it signed a deal with MolsonCoors that covered both the USA and Canada. Basically the New York office signed a deal with MolsonCoors that included Canada while the Toronto office had already signed on with InBev. (Of course it isn't as simple as that, but just to get the idea...)

    So it will be interesting to see how this will affect the deal with MolsonCoors for the USA, as the InBev deal in Canada + a renegociated deal with MolsonCoors in the States will probably be worth less than the "record" deal the NHL had signed with MolsonCoors, thus affecting the salary cap to a certain extent.
     
  15. JaymzB

    JaymzB Registered User

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    That would make an interesting situation for RDS and the Canadiens broadcasts. Since that is a national contract (RDS is available in all of Canada) and MolsonCoors owns 20% of the Canadiens, it could make an interesting situation (of course, I'm not certain if the RDS contract is shared throughout the league, or is only with the Habs).
     
  16. Fugu

    Fugu Guest

    http://espn.go.com/blog/nhl/post/_/...brad-richards-value-and-sidney-crosbys-health

     
  17. Killion

    Killion Registered User

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    Well, according to Litigation experts commenting on the case theres little room for appeal. I can imagine what Collins was thinking when he entered into negotiations with Molson-Coors, and despite their denials & inclusion of the indemnification waivers in their contract of negotiation, impossible to believe that they too were "unaware" of Labatts' preceding sponsorship agreements. It dont work like that. Labatts has deals with 2 of the 6 Canadian teams & Bud with 21 of 24 US teams which includes pouring rights amongst other incentives & opportunities. This appeared to be a Power Play & a Hail Mary to try & abrogate existing sponsorship contracts, pitting the league against its own member clubs & Labatts/AB. It would appear Mr.Collins eyes exceeded his grasp. Hard to believe this guy heads up Sponsorship & Marketing quite frankly. This is no way for a COO of the NHL to treat existing sponsors, potential sponsors or its member teams.
     
    Last edited: Jun 5, 2011
  18. BadHammy*

    BadHammy* Guest

    This looks like a case of very dirty dealing by the league, shame on them. I also don't know how they thought they had a leg to stand on legally speaking. It sounds beyond black and white unless there's something big we don't know of.
     
  19. Killion

    Killion Registered User

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    It would appear that the plan was to supercede the individual teams (and collectively the Canadian sponsorship package with Labatts) agreements in dealing with their beer sponsors, centralizing the rights with all revenues pouring into the league. It would be very interesting to get a look at the actual sponsorship agreement itself to see what it entailed, particularly as it related to product sales & pouring rights league wide including NHL events, how much they planned to drop on NBC, CBC & regional broadcasts etc on top of the $375M. Though heralded as "the richest sponsorship deal in NHL history" last February, upon study, we may find that in fact Labatts & AB in the US are already paying that much & more in dealing directly with the teams. Regardless, one does not enter into negotiations with a competitor of a cornerstone sponsorship category having not 2 months earlier finalized a deal, nor should the NHL be inserting itself into the middle of team direct-to-sponsor relationships when the ink on the contract is barely dry with Labatts. The whole thing just reeks of Piracy.
    :arr:
     
  20. kdb209

    kdb209 Registered User

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    I doubt that that was the plan.

    1) The League does not have the power to dictate beer sponsorships and pouring rights agreements to the franchises - especially since in most cases the arena is manged by a separate legal entity from the member Club.

    2) It would likely be a violation of anti trust law to centrally negotiate a sponsorship agreement for each team's venue. The collective negotiation of broadcast rights is only legal because of the Sports Broadcasting Act of 1961 - which carved out an anti trust exemption to allow a league to pool broadcast rights and sell a league wide package.
     
  21. Killion

    Killion Registered User

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    1) The teams if not controlling concessions hold a great deal of sway & influence with the manager in terms of "requesting" that "so & so" be assigned exclusive & or premium pouring rights/positioning/branding as per their sponsorship agreements with ABC Brewery. In my experience the Concessionaire will almost always accommodate such requests.

    2) Why would that be a breach of anti-trust law provided the competitors are given shelf space in the coolers, maybe the odd tap here n' there?. How about the NHL does a deal with Orville Redenbacher whereby league wide the only popcorn you can buy at a game is Orvilles & the Concessionaires get it for less than what they currently pay from a wholesaler. Thats anti-trust?.
     
  22. LadyStanley

    LadyStanley RIP Fugu

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    The NHL and Molson expect a ruling today to determine the status of Molson's huge exclusive agreement with the NHL.
     
  23. Mwd711

    Mwd711 Registered User

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    The NHL and Molson have won their appeal.

    http://paranoidpuck.wordpress.com/2011/07/12/nhl-molson-win-appeal/
     
  24. Killion

    Killion Registered User

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    So the NHL & Molsons won on Appeal?. Thats pretty amazing. Litigation experts by the dozen claimed they didnt stand a chance. So the $375M sponsorship deal is upheld & Labatts' is now going to do what?.

    I also noticed the NHL has rolled its National Media Advertising Sales Department of 14 people into NBC. This wont affect media sales & sponsorships at local team levels, but for everything from broadcast sales to nhl.com etc etc etc, it now falls under NBC in a first of its kind in pro sports. Apparently a revenue sharing program of some sort was worked out, details not released.
     
  25. Rink Rage

    Rink Rage Registered User

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    If that 375 million is per year, than I would project every team to make a profit next year.
     

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