Kukla's Korner

Kukla's Korner Hockey

The Next, Big Revenue Stream?

from Craig Custance of ESPN (paid subscription),

Leafs TV, owned by the team, was launched in 2001 and immediately added leverage to negotiations to televise Maple Leafs games and helped raise the value of the franchise.

"What I can tell you, the television deal prior to Leafs TV arriving and the first contract after Leafs TV -- the rights fee per game doubled," said John Shannon, who was the vice president of programming at MLSE and now an analyst for Sportsnet.

During his time running LeafsTV, Shannon said three NHL teams approached the Leafs directly about setting up their own network, much like the Leafs did with the Yankees and their YES Network.

With teams like the Leafs, Rangers and now the Capitals leading the way, it threatens to create a gap between those NHL teams adding significant revenue through television deals or their own networks and those unable to do so.

"It drives up the revenue for the league and it drives up everyone's salary cap number," Leonsis said. "So if you're not generating more revenue while the league's revenues are going up, it means you're paying more in salary without have the additional revenues. There's this real drive to try and find more revenues so that you can keep up."

Which led to the creation to the Monumental Network. The problem for teams that don't also own an NBA team or arena, is it's a little tougher to create a network that would add leverage to local television deals. The infrastructure costs alone would take a good 10 years to recoup and a hockey team doesn't provide nearly enough content to fill a channel.

read on if an ESPN insider...

Filed in: NHL Teams, Washington Capitals, NHL Talk, NHL Business of Hockey, | KK Hockey | Permalink
 

Comments

Be the first to comment.

Add a Comment

Please limit embedded image or media size to 575 pixels wide.

Add your own avatar by joining Kukla's Korner, or logging in and uploading one in your member control panel.

Captchas bug you? Join KK or log in and you won't have to bother.

Smileys

Notify me of follow-up comments?

Feed

Most Recent Blog Posts

About Kukla's Korner Hockey

Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

Email Paul anytime at pk@kuklaskorner.com

 

image

image