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NHL Is Thriving, Especially In Canada

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NHL and Rogers Broadcasting dealThe NHL has hit pay-dirt in its new broadcasting rights deal.

Rogers Communications and the National Hockey League have come to terms on a 12 year, $5.2 billion contract.

Rogers Communications is Canada’s dynamic communications and media company.  In a move to strengthen its sports presence, Rogers has recently purchased a 75% stake in professional sports team owner Maple Leaf Sports & Entertainment Ltd, which includes the NHL’s Toronto Maple Leafs and Toronto’s professional basketball team, the Raptors.

With the new NHL broadcasting deal, Rogers has likely become the go-to place for sports fans in Canada.

NHL deal with Rogers Communications is a big deal

These Canadian NHL jerseys aren't the only thing that will cost you a pretty penny this season.

These Canadian NHL jerseys aren’t the only thing that will cost you a pretty penny this season.

The new broadcasting deal will see Rogers pay the NHL $150 million up font, with an annual $300 million, incrementally increasing payments flowing throughout the life of the contract.

It seems like a lot of money, but the deal is sweet for both Rogers and the NHL.  One major reason this deal looks so good for the Canadian Communications company is the fact that they now have the rights to broadcast every NHL game, including the playoffs and Stanley Cup.  This deal includes the right to stream across all platforms, and allows control of mobile rights, Internet streaming and terrestrial and satellite radio rights.

A deal like this is also great for the NHL.  Why?  Because three of the top five most valuable NHL franchises are located in Canada; the Toronto Maple Leafs, Montreal Canadiens and Vancouver Canucks; in that order.  This is also the first time that every Canadian team has ranked in the top half of the 30 team league, according to Forbes.

It has also been shown that six of the seven Canadian teams charge an average ticket price for non-premium seats of at least $70, compared to the league average of $64.  The five most expensive average ticket prices?  Also all Canadian teams:  Toronto ($120), Montreal ($99), the Winnipeg Jets ($95), Vancouver ($90), and the Edmonton Oilers ($79).

Why is this important though?  Doesn’t it just mean that it’s expensive to see a hockey game in Canada?  Not exactly.  Because hockey is a religion in Canada, their teams have seen financial stability, and with a massive broadcasting contract sending more money their way the NHL has a great opportunity to expand the league.  With such great results in Canada, the NHL could capitalize on potential expansion teams, all while pleasing the dedicated hockey fans.

Do you think expansion in Canada is a good idea for the NHL?

Photo credit – cadillacnews.com

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