[The Athletic] NHL’s losses will top $1 billion

[Anisimovs AK]

Yeah, it's hard to pinpoint exactly what revenue is/was and therefore make any accurate statements for this season. At least before anyone could easily find HRR by using the salary cap figures, but that's now thrown out of the window with the flat cap.

I do know that the current yearly revenue from television deals really are worth a lot less than what people think. Just taking a casual look:

NBC deal (up for renewal at the end of this season) (NHL, NBC sign record-setting 10-year TV deal)
$200 million (USD)/ year

Rogers deal $5.232 billion (CAD) for over 12 years (NHL, Rogers announce landmark 12-year deal)
$342.5 million (USD)/ year

So the league makes about $542.5 million USD total in national TV deals this year, or about half a billion only.

Even accounting for local TV deals for all 31 teams
And adding in sponsorships/advertising fees/merchandising
That's still a long way to climb without attendance.

There's the $100 million a year from MLB Bamtech for the online media rights

 

[robertocarlos]

I look forward to the NHL folding in half. Less teams equals better hockey.

 

[MetalheadPenguinsFan]

Can vaccinated people buy tickets yet? Time to see a whole lot of senior citizens and nurses in the stands.

Home team scores 4?? Get a free small organic applesauce!!

 

[eddygee]

Yeah, it's hard to pinpoint exactly what revenue is/was and therefore make any accurate statements for this season. At least before anyone could easily find HRR by using the salary cap figures, but that's now thrown out of the window with the flat cap.

I do know that the current yearly revenue from television deals really are worth a lot less than what people think. Just taking a casual look:

NBC deal (up for renewal at the end of this season) (NHL, NBC sign record-setting 10-year TV deal)
$200 million (USD)/ year

Rogers deal $5.232 billion (CAD) for over 12 years (NHL, Rogers announce landmark 12-year deal)
$342.5 million (USD)/ year

So the league makes about $542.5 million USD total in national TV deals this year, or about half a billion only.

Even accounting for local TV deals for all 31 teams
And adding in sponsorships/advertising fees/merchandising
That's still a long way to climb without attendance.

This I've said this and I've actually seen the AAV NBC number listed at $187 milion (USD) yr which makes me think that deal with NBC was front loaded. For the TV amount NHL pays its players damn well compared to other leagues on pure revenue to dollars ratio. Sure some teams have very nice local deals where you could argue opposite, but more don't than do. This year is gonna be real rough and I think we'll see the ramifications next year as ownership will be really complaining about the bath they are going to take this year. I wouldn't be surprised to hear about a 2-3 billion loss.

 

[Lazlo Hollyfeld]

I look forward to the NHL folding in half. Less teams equals better hockey.

Not gonna happen.

They'll cry poor and make it sound like they're having this season out of the kindness of their heart. Then when Seattle joins Bettman will talk about how the league has never been stronger. Until the next CBA comes up for renewal, then the league will be in shambles again.

 

[Mordoch]

It is very feasible that teams are going to fold by next season

I would still find this to be pretty farfetched. If a couple specific owners end up in bad enough shape they can sell their teams, and you might conceivably see one or two teams move although of course that part takes time. While I would not rule out the start of next season getting slightly delayed, barring what would be somewhat unexpected issues with vaccine production, I would expect the next season to at lease see mostly normal in fan attendance. (Because of the 50/50 salary rules and escrow, if anything NHL teams should temporarily be more profitable than normal in future years given basically the salaries paid will be less than they otherwise would have been.)

 

[mouser]

This I've said this and I've actually seen the AAV NBC number listed at $187 milion (USD) yr which makes me think that deal with NBC was front loaded. For the TV amount NHL pays its players damn well compared to other leagues on pure revenue to dollars ratio. Sure some teams have very nice local deals where you could argue opposite, but more don't than do. This year is gonna be real rough and I think we'll see the ramifications next year as ownership will be really complaining about the bath they are going to take this year. I wouldn't be surprised to hear about a 2-3 billion loss.

The Rogers deal is definitely backloaded, with reports that the payments increased 5% year over year. Not clear if that % is cumulative or absolute, but the difference between either would be small.

Have not seen an authoritative report on the structure of the NBC TV deal, but these sort of long term deals are almost always backloaded. Would be an outlier if the NBC deal is front loaded.

 

[vandymeer13]

things get desperate enough, it'll be an European rink out there. 80 ads on the ice and 60 ads on the jerseys

But everyone always talked about how great the European game is with just skill no fighting less hitting. Obviously they dont make great money there in those leagues. I know the khl has had lots of money issues. Get rid of the instigator bring back enforcers and rivalries maybe the league can recover

 

[eddygee]

There's the $100 million a year from MLB Bamtech for the online media rights

Forgot about that $100m. That adds another $3.2m per team, when you add $535m yr for the National and Canadian TV rights that's $17.3m per team and then we factor in local deals that range from too low to be mentioned for some teams to $10m to $50m yr with Montreal the top local tv deal. The top local US team deal is $35m yr. So thats $30m to 70m yr total TV revenue for teams. With the cap at $81.5 mil teams need anywhere from $10m to $50m yr in additional revenue just to cover player expenses before making revenue after expenses.

 

[kingsholygrail]

So in other words, 38 Evander Kanes.

Evander Kane is officially a unit of measurement.