The NHL’s $1.7 billion television deal with Comcast and Time Warner Cable is scheduled to expire in 2021.
What if the NHL decides to sell?
Should the NHL continue to play on the same cable and satellite system that it’s on now?
In an attempt to understand the financial ramifications of such a move, NHLPA Executive Director Ron Hextall has released a report that breaks down how the NHL’s TV deal with both Comcast and TWC might affect the future of the league and its fans.
“We have long believed that the NHL is an important part of the local community and should be treated as such,” Hextill said in a statement.
The report examines how the future broadcast revenue generated by the NHL would be divided between its 30 teams and its 18 local franchises. “
While we understand the NHLPA will continue to fight for fairness and fairness for the league, this report will help inform the discussions and actions that the National Hockey League needs to take to ensure that the game of hockey remains in the hearts and minds of all.”
The report examines how the future broadcast revenue generated by the NHL would be divided between its 30 teams and its 18 local franchises.
If the league sold its TV rights to Comcast and/or Time Warner, the average amount of TV revenue generated from the NHL each season would be about $2.8 billion.
If that revenue were split equally between all the teams, the distribution of that revenue would be $1,091 million more per season.
The report also breaks down the impact of Comcast and other media companies on the local TV market.
The NHL has about 1,300 teams across Canada, with approximately 80 teams located in major markets like Montreal, Ottawa, Toronto and Vancouver.
Comcast is the largest cable and/aspect of TWC TV service in Canada.
It currently has more than 1,800 channels and currently owns rights to more than 90% of the NHL TV market in the United States.
The majority of the television market in Canada is owned by the Bell Media Group, with a smaller portion owned by Rogers and Rogers Media.
The average TV viewership of the Canadian markets is about 1.7 million, and about 80% of Canadians watch their local teams on TV.
The analysis of the financial impact of the sale of the rights to both Comcast-owned TV and cable TV to the NHL and local TV teams is based on a hypothetical scenario in which both companies owned the rights.
If a sale were to take place, the report concludes that a $1 billion reduction in the average annual TV revenue of each franchise would generate an additional $1 million per season for the NHL.
The $1 per $1 difference between the average and median TV revenue from each team in the market would translate to an additional total revenue of about $821 million for the team and its local teams.
That means the difference in revenue would drop by about $300 million annually from 2017-19.
In a similar scenario, a $100 million reduction in revenue from Comcast-controlled teams would yield an additional revenue of approximately $2 million per year.
The difference in annual TV and local revenue would translate into an additional average annual revenue of $1m for the teams and their local markets.
The study also suggests that a sale would impact the average attendance by a small amount.
A $100 increase in the number of fans attending a game would increase the average ticket price by about 0.5% from the current $11.75 to $13.75.
But an increase in average attendance of 1% would mean an additional increase in ticket prices of approximately 0.7% for the average fan.
That would translate, the study says, to an increase of approximately 10% in ticket price for a $500 ticket.
The league is not expecting to receive any revenue from the sale, as the NFL already collects revenue from its television contracts.