NHL, Rogers Communications Agree To Blockbuster Media Deal

On Tuesday morning, the NHL announced a stunning, blockbuster media deal with Rogers Communications.

The 12-year, $5.2 billion agreement is the largest media rights deal in league history and one of the largest media rights deals in Canadian history. The partnership between the NHL and Rogers begins with the 2014-15 season and runs through the 2025-26 season.

Kane

According to reports, Rogers will make annual payments to the NHL that will incrementally increase from $300 million in 2014-15 to $500 million in the final year of the deal. There is also an upfront payment of $150-million.

In addition to television rights, Rogers also wins control of mobile rights, internet streaming, and radio rights. That includes all regular season and playoff games, and events such as the All-Star Game and NHL Draft.

It’s safe to say the NHL’s salary cap will be increasing significantly in coming seasons thanks to the new media deals with NBC in the United States and Rogers in Canada.

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15 Responses to NHL, Rogers Communications Agree To Blockbuster Media Deal

  1. Phil says:

    Does this mean season ticket holders will see lower prices? Somehow I don’t see that happening, but one can only hope…?

  2. JS says:

    Sorry Phil, that isn’t going to happen. Hawks season ticket waiting list is 15k deep and has had a 99% renewal rate. There will always be someone willing to pay (unless they start sucking again).

    Besides, have you seen the secondary market for tickets? Pretty easy for people to sell their seats for 2x face value.

  3. Ike says:

    No, but it does mean that the Hawks stand a better chance of keeping this fantastic team together in the future, as the salary cap is likely to rise. Fantastic news for Hawks fans.

  4. Phil says:

    JS, I was laughing when I saw the deal . Of course, the Hawks won’t lower tickets. While I hate writing the checks every year for regular season and playoffs, we have a great team that fans from other teams can only dream about. These are the days where we must be thankful for what we have. How many fans around the league expect their team to compete hard and win every time out? Not many.

    As for selling my seats for double face value, I have not been able to command that kind of premium and my seat location in Club level is a good one. However I do go to almost every game so my tickets aren’t put on the open market very often. Trust me on this one. I am a very happy season ticket holder despite the annual sticker shock.

    Calgary next. Lets Go Hawks!

  5. JS says:

    It’s pretty easy to be a happy season ticket holder of this team. :)

    And if you, ahem, ever have an extra ticket… well just saying

  6. EspoForever says:

    I was crunching some numbers and this deal should give the teams each $25m for national TV rights combining US and Canada. Local TV rights vary A LOT, but the Kings get about $21 m for their local rights (the amount is front-loaded but was 250m over 12 years which they signed just after their cup win) and the Pens get $12m…so assuming the Hawks are around $20 M and if the cap is to be $75 m next year (both those numbers pulled from my arse) that would mean HRR for the Hawks would need to be $150m per team since the cap is supposed to be 50% of HRR. If the Hawks get $45m from TV (national and local) then $105m has to come from “other”…tickets for sure. Not sure if parking, concessions, etc are in HRR).

    So if the Hawks have about 1 million seats to sell for the regular and pre-season (21,000 times 45 home dates) then they have to extract $105 million from 1million fans…so $105 per fan per game…playoffs is not guaranteed ever, so that is gravy.

    I would say they are getting close to that $105 figure now just from tickets, so they SHOULD be able to hold prices reasonably steady.

    I have a 9-game pack and I am no longer getting anywhere 2x back when I sell a game, because my cost is up so much. For the Florida game. Have a playoff game myself that night, so I sold my $55 seats for $70 each. So the margin for people’s tolerance to pay more is getting prett thin in my eyes.

  7. Sr. Brad says:

    A couple of comments…first, this deal has been in the works for some time and clearly Bowman was aware of it, and banking on it closing this year, as it allows us to resign everyone we need to in the coming years with the CAP space that will be available…this is why I suggested to everyone to relax about the $ because Bowman would not have done these deals (including CC) without being sure he had the room for Toews and Kane…

    Second, this should tell all of us who rules the world…MONEY…Ted Rogers and the Rogers family were two bit cable channel owners 30 years ago, but through their business acumen (see gun to head) they cornered and then controlled first the satellite/cable industry in Canada, and then the telecom industry, in particular, cell phones…this is an enormous amount of money that will keep the NHL going for decades…funny how the sickening rich choose to spend all their dough…

  8. RyanDale says:

    The secondary market used to involve the street corner or Stadium bathroom or stairwells. And STH might have ate a few games along the way. None of this Ticket Exchange etc crap. You never knew what to expect, crazy times.

  9. SouthSideHawkMan says:

    Its a good day for NHL fans, the league is now flush w money! I wouldn’t be surprised if we see some expansion,…Seattle again? I hope the league doesn’t expand but I wouldn’t put it past the Count. It be nice to see them move Florida to Seattle. Hockey doesn’t belong in Miami or baseball for that matter.

  10. Phil says:

    Please no expansion!! We need to lose some teams not add.

  11. Mike says:

    Brad, I am sure you are right about the deal being in the works for a long time and SB privy to it . But I don’t take this as a panacea of guaranteed riches for the NHL. The new deal starts at $300mm next year and increases to $500mm in the final year.

    The current Canadian contract provides about $150 to $175mm per year. So while the money increases substantially, it is not all new found money, particularly in the first few years. For example, if there is $150mm of NEW money next year, that is about $5mm per team…….less whatever costs are involved.

    However, this is GREAT news for the NHL as it will have a lot more money to support the small market teams. It is too bad the NHL is stuck with a puny US contract through 2021.

  12. RyanDale says:

    Phil, right on brother

    24 is a good # for me

  13. Rufus T. Firefly says:

    This is a good deal for the NHL. But Mike is right with his comments. Sr Brad? I find you painful and insufferable already without you adding a economic / political jab to your post.

  14. Mike says:

    Rufus, I am sure there are a lot of details we do not know but the way it looks right now:

    In the US the NBC / NBCSN contract signed in 2011 was for $2.1-2.3 billion for 10 years.

    The TSN/CBC contract that is about to expire provides the NHL somewhere around $150mm per year. That is being replaced with the RC contract of $5.2 bil (although I have read $4.9 bil) over 12 years. The 14-15 season starts at $300mm and gradually increases each of the 12 years.

    I have no idea if the NHL has any offshore contracts in Europe or Asia.

    Not trying to rain on the NHL’s parade, this is a HUGE deal. Some bloggers will immediately think each team is gonna get tens of millions of dollars next year and raise the cap to $80mm. That is just not happening…..

    What I am sure of is that ticket prices will keep going up until the fans stop buying them.

  15. JS says:

    From James Mìrtle

    NHL looking at massive growth – 5% or more – in 2014-15 from this deal alone. Overall HRR grew at 7.1% annually under last CBA.

    So it’s pretty significant.

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