LUDICROUS; CFL TV DEAL LOOKING EVEN WORSE

All right so you say there is no comparison between the reported new NHL contract with the CBC for 6 years and $550M. Which is some $90+ million per year and is not in the same ballpark as our recent $13M per year contract signed by TSN.
We don't know how many games will be televised but assuming it is the same Saturday night DH and other odd weekly games plus the playoffs.
After all the CFL is the second most popular sport in the country surpassing MLB and the Blue Jays.

What the below article does not contain, this comparison is on the same page but did not make the internet version.

HNIC ---- CBC ---- $550M for 6 years
2010 & 2012 Olympics CTV 153M Blue Jays -- TSN/RSN -- 80M for 4 years
CFL -- TSN -- $ 65M for 5 years

There is no way in this world the Blue Jays should have recieved $20M average per year while the CFL is averaging $13M per year. In fact, it should have been in reverse.
I have been saying for quite some time how the CFL should have secured a minimum $20M per year. After all, the playoffs and the Grey Cup is the prize possesion and is the highest watched sporting event most years.
Someone yet again fell asleep at the switch; whether it was the BOG and in combination with the out going commish, Tom Wright.
The CFL continuous to undervalue its product.

CBC ponies up $550 million

Locks up rights to keep broadcasting NHL games for another six years

Mar 27, 2007 04:30 AM
Chris Zelkovich
Sports Media Columnist

After watching curling and the Grey Cup get away, the CBC has landed the big one.

The network and the National Hockey League announced yesterday that they have agreed on a six-year Hockey Night In Canada deal that will keep the country's longest-running television show on CBC.

There had been speculation that CTVglobemedia, which includes TSN, would attempt to wrest Canada's biggest sports property away from the public network after it beat out the CBC for the 2010 and 2012 Olympics, the country's major curling series and the CFL.

But they never got into the game. The CBC took the prize before its exclusive negotiating window had closed.

Although details were not released, sources say the network paid an estimated $550 million (U.S.) over six years. That works out to about $90 million (all figures U.S.) a season, almost a 50 per cent increase over the previous contract.

"Hockey is part of the Canadian fabric and we're proud and pleased to continue what is the longest-standing sports rights partnership in the world – one that dates back to the very beginning of the CBC," said CBC Television executive vice-president Richard Stursberg.

In return for a higher price tag, the CBC will also get all Internet streaming, video on demand and mobile rights as well as an increased number of games. But it did have to surrender exclusive rights to all playoff games involving Canadian-based teams.

Under the new deal, which runs from the 2008-09 season through 2013-14, the NHL's Canadian cable partner will have the right to some early round playoff games. The number will depend on how many Canadian teams make the playoffs.

The advantage to fans is that they would get to watch their choice of games when there are conflicts. Under the current deal, the CBC broadcasts conflicting games regionally.

The CBC also plans to stream all broadcasts live on its website for free, allowing all Canadians to watch games not shown in their region. In addition, it has promised more national broadcasts for teams outside Toronto and will have one or two fewer Leafs games. However, that likely won't affect the number of Leafs games seen in this area since they would be included in the cable deal that has yet to be negotiated.

TSN is the NHL's cable partner and that's not likely to change since neither Rogers Sportsnet nor The Score are interested in paying the kind of money the NHL is seeking. "The CBC had an exclusive negotiating period and now it's our turn," CTV president Rick Brace said of the cable rights.

Asked if he expected to pay more for a package that included lucrative Canadian playoff games, Brace would not comment. But there's little doubt it will pay more than the $20 million annual fee in last year's deal.

Stursberg took pains to point out that the CBC was not gambling with public money with the NHL deal.

"There is no public money involved," he said. `We're absolutely going to make money."

While he wasn't specific, CBC president Robert Rabinovitch told a federal hearing two years ago that the network made about $20 million a year on hockey.

What Stursberg didn't say was that the CBC has to have this deal. Sports, specifically the NHL, constitute only 15 per cent of the CBC's programming but produce 25 per cent of its audience and a whopping 40 per cent of its ad revenue

The CFL has a minor league image. Advertisers aren't willing to pay big bucks for ads. Hence, even though more people may watch it a network won't make as much money from it.

Why its important that media people stop pissing on the CFL. Image is important.

Also, the CFL may have asked for less money in exchange for better coverage to get more people to games, where they make a lot of their money anyway. Getting on TSN's side is crucial, since TSN is the most important media outlet in the country.

the CFL shot itself in the foot when they didnt even listen to the Global/CBC-joint offer...supposedly of $20 million per season.

the CFL coulda turned around and told TSN to match it if they want it.

Yes. They should have gone for more money.

But still a good move to chose TSN, IMO.

Agreed, how TSN is and has been a great football vehicle for the league.
However I am sure if the league put a gun to their head and said match it or we leave, we would be talking the $20M now.

You fail to realize the REAL details of the hockey deal though.
Technically, CBC has HNIC everyweek but where they REALLY get the big bucks from advertisers is during the playoffs where they broadcast 1 or 2 games a DAY! And that's for like 2 months too!

All the CFL has for playoffs is 4 games then the Grey Cup.

Sure the CFL could have taken the 20K but TSN is the best broadcaster and by a huge mile!

I highly, highly doubt the CFL deliberately chose the lesser offer.

If that was how they did things, we wouldn't have a CFL right now. The CFL is a business, just like TSN, Global and CBC are ... And they will all find, and use, the best deal they can.

Based on the fact that they took the TSN deal at $13M/year, I doubt they even had a chance at a $20M/yr deal. If we'd heard about a $20M/yr deal, then I guarantee you that the CFL would have too, and then at least kicked the tires. That, or there was some legalese in the old TSN contract that made them stick with TSN.

if u read the articles i had posted here long ago, or if you remembered them....global / cbc said they were disapointed cuz they never even got to make an offer.

TSN had an exclusive bargining window, and they made the deal during that window, so the CFL never even listened to global/cbc offer.

word is, CFL was so mad at CBC for the non-announcer games and the non-HD games, that they were not going to go to CBC no matter what.

but they still shoulda waited for the exclusive bargining window of TSN to end, listen to the global/cbc offer than ask TSN to match....cuz global/cbc confessed afterward, they were going to offer $20 million per season.

Comparisons to the NHL should not happen, unless you are drawing true comparisons to the fact NHL ratings are probably on average 3 times as much.(atleast during the reg season) CFL Viewership has been increasing consistently the past 5-7 years so just a few years back the spread was much bigger

But it is true the CFL is selling itself short as it should be able to get a better deal.

20M per year doesn't sound too high, I would like a deal where it's something like 2.5M per CFL team(currently that's 20M but Ottawa comes back that's 22.5M)

Now the thing is the CFL is only getting it's ownership/finacial footing straight now, it may take until the end of the exclusive TSN/CTV deal for the CFL to get the league fixed up and for CBC to get itself fixed up to realize how important their sports are or should be to them.

One other key thing is this Deal is a good sized increase over the last one and the next one should be a big increase too if the CFL can stablize itself over the next 5 years and continue it's upward trend in Viewers.

But still a good move to chose TSN, IMO

Absolutely, after all the analysis is done. As TIMH mentions, the CFL has a minor league image and advertisers, at this point, aren't willing to pony up despite the ratings. But the key thing is now we have a big partner in TSN who is sports all the way and have a big vested interest in the CFL product rather than dabbling around with the CBC who you know is fully in bed with hockey and the NHL and anything else is more or less way down the list.

The CFL did the smart thing IMHO even if it isn't the best dollar deal perhaps on paper right away. The league really couldn't afford to piss off TSN BellGlobemedia in any way.

The CFL must have seen something in this deal they liked, but I agree the lack of a strong commissioner was definitely a factor.

I also look at it a bit differently. TSN is good at something that CBC and Global are not: growing sports. TSN's extensive coverage has helped the CFL grow a great deal. Now with the cross marketing with CTV, TSN is in an even better position to continue to do that.

The other issue is this. What happens if the CFL goes with CBC and Global? If I'm TSN and I get locked out of CFL coverage entirely (which is probably what would have happened), I'm going to make a big push for more NFL coverage. I think the last thing the CFL wants is TSN suddenly putting very little emphasis on the CFL and a ton of emphasis on the NFL.

i dont think anyone is saying that the CFL shoulda gone with global/cbc....

but they SHOULD have listened to thier offer and then asked TSN to match it.

use the global/cbc offer as a bargining tool to get TSN to pay more.

dg, we really don't know how it all went down behind closed doors. But look at it this way, you've got a girlfriend, pretty excellent, say a 8 1/2 out of 10, but there are a few others on the horizon that could be possibilities. Should you explore and possibly ruin your excellent relationship, not perfect but excellent, and try and make this relatioship go from an 81/2 to a 9 and maybe even a 9 1/2? I think, from what I know, the CFL wanted to keep the classy relationship they have with TSN right on the level and that is what they did rather than dinkering around and maybe getting some extra bucks but risking the relationship they have with TSN. Too risky. Money, in the short term especially, isn't always everything as much as some seem to think it is.

This assumes that the CFL has a leader who can pull this off successfully. Right now, they don't. What if TSN decides to play hardball, and the BoG gets divided on what to do about it?

Being leaderless makes your bargaining position weaker.

yes!

And the 50 year history and relationship that the CFL has had with CBC is worth nothing then?
While it is true that TSN has done a nice job of marketing the CFL in recent years, where would the league be without CBC?
CTV had its share of CFL football a few decades ago and bailed on the league like it was a plague ship.
CBC stuck with the league through the tough times, and now that the league is reviving, they couldn't even listen to their proposal?
To follow your analogy, the CFL has chosen to get divorced from their wife of 50 years because the hot new girl bats her pretty blue eyes....

We all agree how the league and TSN are a great combination.
However I definitely believe how the league did not maximize the TV value by using the negotiations, one TV company versus the other and creating a bidding war.
The $13M per year versus the $20M is the example.
The league got rooked.

my thoughts exactly, argotom...

i bet tsn said, 'we're offering you x amount now, but if you wait til our exclusive bargining window is done, that x amount goes down'...and that scared the CFL into taking it without listening to the other offer.

when the CFL shoulda came back and said, 'well cbc/global is offering us $20 mil, so you match and its yours.'

TSN prolly woulda agreed to $20 mil, or woulda up'd that $13mil to $18mil...or something to that affect.

The CBC's 50 years with the CFL mean nothing if they can't produce a quality telecast today.

Like I previously said, in the art of negotiations one has to be professional and hold "your trump" card close to the vest.
Playing "both ends against the middle".
I am sure with the history between the league and TSN, and since the latter does not wish to lose the league and its highly rated GC game, if you put a gun to their head at $20M I would "bet dollars to donuts" the league signs.