Hindsight: Did CFL get proper value of $40M?

In light of the mega deal paid by Rogers of some $430M per year for 12 years, the obvious has to be asked.
Now, we all know how Rogers got taken with the Bills first contract and took a bath of what $78M.
So it's likely that they grossly overpaid again on this deal.
But having said that, in light of the money presumably left on the table by TSN, therefore freeing up same for what?
Did the CFL again get taken for the $40M annually.
Some of us here including yours truly kept saying the bidding should start at a minimum $50M per.
Oh I am sure some of you will say oh well this is hockey there is no comparison.
Really, the CFL is a very close second in viewership to the NHL.
We have 4 games per week soon to be 81 games in total.
With 10 teams hopefully coming soon this could be 5 games per week.
No idea how many games Sportsnet will broadcast, but their per game cost will have to be astronomical.
Anyway, my point is hockey worth 10 times more then CFL football?
Not for me.

The same questions asked as the last tv deal the CFL signed in '06 ( which didn't take effect until the '07 season, if I remember correctly ) , only to have the NHL sign a deal shortly after which opened eyes to how short the CFL sold itself.

The CFL is always going to play catch-up to the NHL. Just when the CFL thinks it got close, the NHL goes to the next level months later, leaving the CFL stuck in a 5 year deal.

It's just the way the TV contracts expire with the CFL 's expiring first, months ahead of the NHL.

This should be an indication that the CFL is going to shoot for the stars in 5 years time. Could double the value of the latest deal yet again.

I guess timing is everything, that plus Negotiations 101 as I like to call it.

Well said. In 5 years, TSN will be more desperate than ever for content and I expect the bidding to start at $80M/yr.

Considering how much Rogers actually overpaid for the NHL deal, $43 million for the CFL is decent, could they have gotten more, maybe if other partners were involved. I suppose the only real issue is the CFL negotiating their deal before waiting to see the NHL deal. However with Rogers essentially guaranteed to be out of the next CFL tv negotiations, I expect to see Shaw, CBC and TSN, either joining together for a massive deal or TSN to double the current deal.

Keep in mind the old TSN-CFL deal was only worth between $15-17 million, there was no way a jump too high in one shot, the way I see this deal is the "mid-level" contract, so our next deal should be massive, if ratings continue to grow/hold up. The first deal we needed TSN more than they needed us, the CFL was still rebuilding from the disaster known as the 90's, now that we're a lot stronger and the networks are taking notice, IMO we shouldn't be too concerned with the TV deal.

One thing that I wasn't crazy about was the CFL only talking to TSN again, first time ('06) I understood the situation, but IMO the CFL left itself short changed to a degree.

Let's stop comparing the CFL deal signed with TSN and the NHL deal signed with Rogers. There are 1,220 games in the NHL compared to 81 games in the CFL. The Rogers deal will "give" each NHL team an average of roughly $14.250 millions per season,while CFL teams will receive an average of roughly $4.0 millions per season,per team. THe NHL cap for 25 players per team or so will amount to roughly $65.0 millions,while the CFL cap for 53 players per team or so will amount to roughly $5.0 millions. With the TSN deal,each CFL team will receive roughly 80 % of max.cap; with the Rogers deal,each team will receive roughly 46% of max. cap.

The deal signed between CFL and TSN is very good.

Richard

I'm just happy the league is growing in popularity and that the awesome game is growing even beyond Canada now.

10 teams, 46 players on game day, and maybe even a real OT perhaps here we come next - those are the only format changes I advocate and only changes beyond the safety recommendations I have for all gridiron football that I've written about elsewhere on here over a few years now.

As we have seen once my fellow countrymen get a taste of the CFL, there is no going back until perhaps October when sometimes the CFL season has been decided for the playoffs already for the most part.

The NFL and NCAA conflicts in September make it especially tricky for fans of either, and count me in the minority for wishing that the season started only 2 weeks sooner. Also the NCAA action is often best in September but for the diehards of the SEC who are the only bunch who like the NCAA better than the NFL. After that few but Southerners, students, and alumni give a rip. They don't care for the NCAA down here in the Tampa Bay area either but for a few Florida fans who go to those games - the Lightning and MLB in that order are actually more popular than the NCAA here.

And don't give me this NHL conflict crap I am reading on here way too much - nothing is going to pull hockey fans away from the Stanley Cup Playoffs anyway so c'mon get real.

Nothing every two years is going to pull soccer fans away from the Euro tournament or the World Cup, and an earlier CFL season won't make a damn bit of difference there either.

Neither of those sports need create scheduling conflicts in June either unlike the NFL in September and in October and the NCAA in September, so two weeks earlier would be great with the Grey Cup in early November too.

Not that most Canadians care or that it matters to enough Americans so far, but this is the first year since I have been watching the CFL that the Grey Cup did not fall on the American Thanksgiving Day weekend. :thup: The earlier in November the better I say.

I would say they got the right deal. The bigger thing...CFL is now TSN's bread and butter. The contract in 7 years is going to be huge. Sure, if this NHL contract was signed before the CFL contract, then the CFL contract would have been muh bigger, but how many people would have honestly anticipated that TSN would get no games.

even then, sure it is 467 mil per season, BUT, it equates to abot 380k / available game, and the CFL is getting 494k/available game (with 9 teams)...and this is not including playoffs, which further dilutes those NHL numbers. I'd say the CFL did fine.

I think that this move is a scary sign of things to come for sports networks in Canada. This is a clear indication that there is a clear battle ground being laid out. There have been some previous jabs thrown, ie TSN stepping up and sending others away from the CFL table in a foul mood, but this is huge. CBC HIC is essentially done...even though it continues, it is essentially Rogers on CBC, and likely diluted games of minimal interest. Now TSN is out...losing these panelists and a mamoth amount of production cast with it...how does this hamper their ability to bid on Olympic and World hockey? NHL has enough teams that single sourcing broadcasting really narrows their market exposure...I don't think this was an overly smart move long term, but time will tell.

With all its eggs in the hockey basket, Rogers likely will not have the money to bid up CFL rights. Bell/TSN may well be an exclusive bidder. Hard to imagine CBC getting back in the sports game after losing all of its hockey revenue, which was propping the network up. So unless some other sports-minded player enters the picture in the next few years, what leverage will the CFL have to start a rights bidding war?

No, the CFL got a good deal. The actual money was a huge increase, and TSN's promotion is a big deal.

Maybe if they had gone to bidding they could have gotten a bit more, but it's not like they got taken to the cleaners by TSN. You can't compare these deals. The CFL provides 4 games a week in the summer/fall. The NHL is capable of providing 4 games a day on Saturdays, now that Rogers/CBC/City have enough network space to show them all. They can provide games 7 days a week for over half the year, and then playoffs for another couple of months.

The sheer scale of content and when it's being provided make the deals incomparable (winter content and summer content don't have identical value). Plus, Rogers seriously overpaid and will have a hard time breaking even (but I guess they can just jack up cable rates).

There's a lot to like in the new TSN deal.

Tridus wrote: Plus, Rogers seriously overpaid and will have a hard time breaking even (but I guess they can just jack up cable rates).
Exactly, they can take this from other budget lines. They want to be perceived as the no. 1 sports network in Canada. Personally, who cares. TSN has been that but if you've spoken with many people in the Toronto area, those that aren't big on the CFL, they already believe Sportsnet is the no. 1 because of the Jays mainly. Which is their right to believe that.

Sportscentre is just more professional appearing than Connected and the entire manner and delivery of TSN is more professional than Sportsnet, IMHO. I don't see that changing at all really. The Sportsnet "culture" if you will, while having loads and loads of money, just doesn't come across as polished or classy as TSN, to me.

Rogers is paying/will pay 2 1/2 times what is being paid presently. Do you think that the Tim Hortons,Molsons,Canadian Tires ,etc. will pay 2 to 3 times more for publicity? I doubt. In comparison, NBC is paying $2.0 billions for 10 years and Rogers $5.2 billions for 12 years. Rogers will lose money. The winners are the teams and the players. Bell/TSN was wise not to pay for these foolish costs.

There will definitely be more NBA games on TSN,starting next fall.

Richard

how right you are...

[b][u]Sportnet's new hockey deal to mean higher cable costs[/u]

While Sportsnet was busy crowing about its new lucrative deal to broadcast National Hockey League game across all media platforms over the next 12 years, beginning for the 2014-15 season, reaction to the move across Canada was a little more muted.
While there is little doubt that a lot more hockey will become available on TV as a result of the Rogers broadcasting deal, consumers are also being warned to fasten their chin straps, that the move will ultimately wind up costing them more.

“The first thing I noticed is the big price tag, and obviously Rogers has to recoup that,? said University of British Columbia Sauder School of Business professor James Brander.
Brander said that Rogers will have to find some way to recoup the $5.2-billion the deal cost and it will start by reaching into the pockets of cable subscribers.

“We’ll see a lot of bundling or extra charges for premium channels,? said Brander. “I’m sure Rogers will be pushing hard on all those buttons because they’ve got a lot of money to recoup. Whether it means having to buy stuff you don’t want or premium channels, your cable bill will be going up.?[/b]

[url=http://www.theglobeandmail.com/sports/robert-macleod/article15625730/]http://www.theglobeandmail.com/sports/r ... e15625730/[/url]

$42 million is better than $15 million but the CFL TV rights are still undervalued.

Here are the facts:

  • Canada has 1/10th the population of the U.S. The ratings for CFL games are about 1/10th of the NFL.
  • With the NFL getting $8 billion from TV, 1/10th equates to $800 million in Canada.
  • Then divide by 4 (the NFL has 4X the games) = $200 million.
  • Then divide by half again because of the "Canadian inferiority complex" = $100 million.

The only problem with this scenario is the U.S. TV networks lose nearly $500 million televising the NFL and Super Bowl (what they pay for the TV rights minus what they can charge for advertising). We would want TSN to make money not lose on the CFL, so we could settle for $80 million.

Thus, the actual CFL TV contract is worth $80 million per year. :thup:

Agreed and I do like you “Canadian inferiority complex”, how sad but true.

It may be time to cut cable if costs go up because of this Rogers NHL deal. We'll see but yes, wouldn't surprise me.

I was thinking about this thread topic as well. Had the CFL not signed this new TV contract until now, things may have been different. But you can't build Rome in a day. To get a motherload TV contract, a new team/stadium in Halifax is paramount, and now I'm starting to think that even McMahon needs to be replaced (even though in past comments/threads I have been a booster of this venue.)

CFL ratings are not 1/10 that of NFL ratings. Sunday night football averages about 23 million viewers. CFL Friday Night Football doesn't come close to to 1/10.
Second, ALL Network deals in pro sports lose money for the networks, but they can use the game to leverage other shows they produce to bring in additional revenues. This doesn't exist in Canada. Networks also use extensive pre/post game shows to sell more add space. With only 1 game a night, pre-game shows don't offer much. Post game shows don't even really exist up here.
This doesn't even cover the Super Bowl where adds cost probably 100X if not 1000X than what Grey Cup adds do. Our corporate culture is not even in the same galaxy as theirs. Heck, half of big companies are based in the US.

The "value" is EXACTLY equal to the highest amount the seller can get.

Comparing to the NFL and NHL is absurd. The NFL not only is the top-rated sport on US TV it pretty much dominates the ratings for ANY program on TV in the USA. In any case, it isn't the straight numbers that count, it is what TSN can sell so many minutes of ad's for. If you go by TV ratings year-over-year, then the CFL TV contract is overvalued.

Source ???

Because I'm pretty sure NBC is making money off the NHL, the Cable networks are making money off of the NBA, not sure about baseball because most of their deals are regional, but I do know that Fox is losing money with MLB on the main network.