Did TSN Get The World's Greatest Bargain With The CFL

What market momentum??

What networks are willing to pay for sports programming. When the CFL rights are renegotiated, TSN will not be able to ignore what they (and Sportsnet) paid for hockey.

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I am reminded of 2 things during this discussion…

  1. How surprised everyone was when the CFL signed the $43M/yr deal with TSN. So many posters expected the package to be no bigger than the previous one. Everyone kept saying the CFL was not a desired package, there was no competition for the rights and we are lucky TSN even wants to televise the games. Certainly, no one expected it to double - until it did - and anyone who says they predicted $43M/yr is lying.

  2. When I was young, there were only 3 U.S. networks and the TV ratings for Monday Night Football were thru the roof - the Chicago/Miami game in 1984 scored almost a 50 share. 30 years later, the Monday night games do not get anywhere near those ratings yet the cost of the NFL Monday night package is 10 times what it was 30 years ago.

Is the CFL the NFL? No. Is the CFL the NHL? No. But the number of viewers is impressive, no matter the demographics, and demand for live sports programming is at a peak. That will be reflected in a doubling of the current package compensation in 2018/2019.

I did a little digging on the Monday Night Ratings/TV package I mentioned above...

In the early 80's, when Monday Night Football scored huge ratings, ABC paid approx. $120M/yr.

The current deal, that does not provide anywhere near the rating ABC had 30 years ago, pays $1.9B/yr.

Again, we are not the NFL but that increase reflects the demand for live sports programming in today's PVR world.

TSN did get a really good deal but the CFL as well did not do too bad itself.
Really TSN and the CFL have a true partnership going here and it is growing so fast after years of being down and almost out.
The deal and money has nothing but expected growth.
CFL has also wisely been able to use the now very strong an quality ratings to tap into the modern corporate partner stream of revenue. So although the actual $$$ amount coming from TSN is not as big as other deals with other leagues. Revenue streams are growing at a massive rate for everything from game sponsor presentations to naming rights for a specific section of the stadium to the modern electronic advertising strips.

I agree. It is a Win-Win for TSN and the CFL.

I just remember, after the last deal was coming to an end, so many posters expected something similar with the current deal. HOPING for an increase, posters thought $20M or $25M - if we were lucky. Maybe $30M but that would take a miracle. NO ONE(!) expect the package to go from $16M to $43M - almost tripling.

I expect the same in 4 years. The deal will surprise to the upside and those same posters will quickly forget what they wrote in Sept of 2014.

If I remember correctly, argotom predicted the CFL would get $50M and I thought $40M for the latest TV deal. We were close.

The CFL TV rights come up for renewal at a strange time and those who follow closely know, the CFL TV deal comes up just before the NHL's does, so they look to compare to the 'current' NHL deal. Just as they sign the contract and get close to a fair deal based on what the NHL is getting, the NHL signs their deal shortly after and gets a huge raise, making the CFL's look bad.

This is what happened last deal when Tom Wright was commissioner. Same thing again for this latest TV deal, and probably the same for the next one.

Although with the next one I don't think there is another major sports property that has their TV contract up for renewal around the time of the next CFL deal. The CFL TSN deal I believe is a 5 year deal so it should expire after the 2018 CFL season. The current NHL and NFL deals both run for 12 years until 2025.

Like many things, what price something brings is based as much on the competition as the intrinsic value. If other networks had submitted expresssions of interest INCLUDING comparable ability to deliver on a similar broadcast schedule, you can assume their would have been a competitive bid process. However, I don’t see any other network willing to clear other revenue generating programs for the CFL and bidding as much as TSN.

Sportsnet has 5 network channels. I am sure they could make space.

Besides, if you were Sportsnet, you want Bell Media to pay as much as possible for the CFL package. The last thing you want is to make it cheap on your competitor.

If you were a betting man, how much do you think they will get in 4 years?

Too many variables in 4 years time to consider.
Ask me again 1 year before the contract is up. Who's to say what happens with the TV ratings during the next 4 years or what the sporting landscape will look like then.

Just some info regarding CFL,TSN, ESPN.
ESPN owns 20% of TSN
TSN used the extension clause of their previous contact to negotiate the current 5 year contract.
Current contract did not go out for bid.
ESPN wanted same contract term as TSN, contract directly with CFL.
ESPN contract is exclusive US rights with 17 games broadcast including playoff and Grey Cup games.
All games available on ESPN3.

TSN is planning on two night games each week as "Highlight" Games. (i.e. NFL Sunday Night Football and Monday Night Football).
The ESPN six figure noted is "netted to the League", is not the Gross amount ESPN is paying for the rights.
Both CFL and ESPN have stated they believe the current ESPN contract schedule will develop a US fan base that will "improve" the follow on contract.
Current connections to ESPN3 is over 300,000 each game. This is not how many individuals are watching the game since many US Sports Bars are connecting to ESPN3. ESPN is currently more than satisfied with coverage.
ESPN tied their contract term to TSN since they can use the TSN broadcast. Remember the 20% ownership. However, by not being a party to the CFL/TSN contract but direct with CFL ESPN could in the future establish their own game coverage.
It is believed that ESPN "covered" some of the TSN contract cost assuring that all the pieces would fall in place.
What all this means in 2018 will be determined how the League performs over the next 4 years.

Since this is your League, which by the way myself and many others are really enjoying, I will make no predictions or comments, just some info for you.

Glad you’re enjoying it challenger99. I don’t know how long you’ve been following but it does (and will) get better than this. I’ve been following this league closely for over 35 years and this is unquestionably the least entertaining season of them all. This year, it’s the Can-Can-adian Football League. One, two, kick…one, two, kick… :oops:

NBA expected to announce a new Media deal with ESPN & TNT. 24 Billion over 9 years.

[url=http://www.tsn.ca/report-nba-reaches-new-television-deal-with-espn-and-tnt-1.100125]http://www.tsn.ca/report-nba-reaches-ne ... t-1.100125[/url]

Almost triples their current deal with apparrent no immediate end in sight with rising rights fees, is 80-90 mil/year reasonable for the next CFL deal which will will still be less than double what they're getting now.

Very reasonable. I am predicting $80M to $100M - as a conservative bet - but I would not be shocked if it was north of $100M. It sure would be a huge step towards all the teams breaking even.

I would have to agree, who knows what ratings will be in 5 years, they have held steady since 2010 between 700k to 800k.
Also, how do we know what sponsors are willing to pay for a 30 second ad, CTV can charge four times the amount for a Super Bowl ad compared to what TSN can charge for a Grey Cup ad. Also comes down to what networks would want to bid, you can rule out Rogers Sportsnet, they have jumped big time into the NHL. It will come down to TSN as the only bidder and calling the shots, so don’t count on a huge TV contract for CFL teams to survive.
It’s still going to be a gate driven league and CFL teams being creative and selling things like the “private suites” “club seats” “field level seats” “end zone party areas” unique concession food and beers etc

:roll:

Sportsnet has 5 different TV stations to fill. I am sure they will be interested. Even if they’re not, they won’t want to make it easy/cheap on TSN.

TSN now has 5 stations as well. They won’t want to lose the CFL.

TSN will have the right to an exclusive bid before the CFL approaches others. To ensure Sportsnet does not make a bid, they will want to make a bid the CFL accepts. It will not be below $80M and I would not be surprised if it is north of $100M.

Though with Sportsnet showing the Jays my concern with them having the broadcast rights is the CFL would be burried in Sportsnet One or 360.

If Rogers wants in, another thought is each Network buy a package of games - it may need to happen get MLSE to buy the Argos, but I digress.

Sportsnet carries a game or two a week for the slots when the Jays are not playing and TSN gets the rest including all Fridays. With a healty Argos and eventually a 10th team, more content to split. Sell 2 packages, better bottom line for the CFL :smiley:

:thup:

4 times more ?
Try around double, could be a little less or a little more, but nowhere near 4 times.

As for TSN being the only bidder, I find that highly unlikely. Rogers has admitted that they’ve wanted the CFL before, adding more summer content isn’t something they’d avoid, although it does seem unlikely that Rogers will go after the CFL. CBC has wanted the CFL rights back since they lost 'em, if the price is right CBC could get involved. Shaw is also very interested in bringing in some sports, it was rumoured that had the CFL gone to market (2013) that Global (owned by Shaw) and CBC were going to bid.

It should also be noted that when TSN got the exclusive CFL rights back in 07, Global and CBC actually had the bigger offer at a reported $20 million. TSN as we all know ended up paying $15-16 million.

And most of the posters, altho many will no longer admit it, did not expect a huge increase from the numbers you mentioned above. When TSN came in at $43M/yr, posters were (pleasantly) surprised.

I just hope the posters who do not see any value in the CFL package are around in four years and willing to admit they were wrong when the package is bigger than they expected. Hopefully, they are willing to eat a little crow. My guess, most will try and spin what they have said in the past.