Cable / Telecom News

Rogers, NHL, sign $5.2 billion, 12-year TV, multiplatform deal. HNIC to live on with sub-license for CBC. TVA to be French broadcaster

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TORONTO – It’s a stunning deal in its breadth and depth. Rogers Communications and the National Hockey League today announced a 12-year $5.2 billion broadcast and multimedia agreement that includes all national rights to NHL games on all platforms in all languages.

The agreement, the largest media rights deal in league history, begins with the 2014-15 season and continues through the 2025-26 season. This marks the first time a premium North American-wide sports league has granted all of its national (Canadian) rights to one company on a long-term basis, says the press release.  

Rogers also announced today it picked CBC and TVA for separate sub-licensing deals for English-language broadcasts of Hockey Night in Canada and all national French-language multimedia rights, respectively. The agreement is subject to approval by the NHL's Board of Governors at its meeting on December 9-10.

"Sports content is a key strategic asset and we've been investing significantly to strengthen our sports offering to Canadians," said Nadir Mohamed, president and CEO, Rogers Communications. "Canadians are passionate about hockey, and through this landmark partnership with the NHL we'll be able to bring hockey fans more games and more content on their platform of choice."

"Our fans always want to explore deeper and more emotional connections to NHL hockey, and that is precisely what Rogers has promised to deliver over the next 12 years – channeling the reach of its platforms and the intensity of its passion for the game into an unparalleled viewing experience," said NHL Commissioner Gary Bettman in the release. "The NHL is extremely excited about the power and potential of this ground-breaking partnership."  

Canadians will receive more NHL games than ever before through Rogers' wireless and cable assets, promotional vehicles, and diverse media assets – including City and all Sportsnet platforms (Click here for a sample schedule). Highlights of the agreement include:  

•          National rights across TV broadcasts, TV Everywhere, wireless and mobile tablets, Internet streaming, terrestrial and satellite radio, and out-of-home

•          National rights to all regular season games, all playoff games and the Stanley Cup Final, and all special events and non-game events (i.e. NHL All-Star Game, NHL Draft) – in all languages

•          Out-of-market rights for all regional games

•          Ownership of all linear and digital highlights, including condensed games and video archives

•          NHL broadcast assets: Rogers to operate NHL Centre Ice and NHL Game Centre Live

•          Sponsorship rights to the NHL Shield logo as an official partner of the NHL; and

•          Canadian representation of ad sales for NHL.com.  

"Our vision is to build on the NHL's legacy in Canada with an emphasis on storytelling, innovation, and technology – weaving the NHL, its teams and its stars even deeper into the fabric of Canadian culture," added Keith Pelley, president, Rogers Media. "Today's announcement significantly increases the value of our premium Sportsnet brand and reinforces our commitment to making Sportsnet the number one sports media brand in Canada."

It goes without saying that this is a significant loss to Bell Media’s flagship sports channels TSN and RDS. While the focus for so many has always been on the CBC’s chances of retaining hockey rights and continuing HNIC past its 61st season now in progress, TSN’s national deal with the NHL also expires at the end of the 2014 season and the loss of this rights package will really hurt the network – and is a major coup for Rogers.

This deal should also permanently put to rest any questions of Bell and Rogers, each part owners of Maple Leafs Sports & Entertainment, colluding on and consolidating the TV rights to all hockey across Canada.

Rogers will provide multiple game coverage on up to nine TV channels plus digital and radio on any given night. Expanded pre- and post-game coverage, behind-the-scenes access, profiles of the league's Top 50 stars, first-to-market production technology, a state-of-the-art high-tech studio, and a Hockey Production Centre of Excellence will give Canadians a new way to experience the NHL, says the company.

Sportsnet is also the regional broadcaster of the Calgary Flames, Edmonton Oilers, Ottawa Senators, Toronto Maple Leafs, and Vancouver Canucks, already producing and airing 264 regional games per year.

This agreement is net present value positive for Rogers' shareholders – it is expected to be accretive to Rogers Media operating profit from the outset and significantly, will yield additional benefits to the cable and wireless operations, adds the release. “The financial terms comprise annual payments commencing at just over $300 million in the first year, with gradual annual escalations, increasing to approximately mid-$500 million in the final year of the contract term. These payments, together with an upfront payment amount of $150 million spread over the first two years of the contract, will amount to $5.2 billion in total payments to the NHL over the 12-year term. The annual rights costs will be offset by consideration received under the CBC and TVA sub-licenses referenced above.”

"We are proud to select CBC as our partner to carry on the Hockey Night in Canada tradition for Canadians," added Mohamed in a separate release. "We are also excited about our long-standing sports alliance with TVA Sports and Quebecor, which will use its many channels and platforms to deliver French-language NHL coverage."

As part of the multi-year agreement, CBC will continue to air nationally-televised regular season games on Saturday night and playoff games. In addition, the iconic Hockey Night in Canada brand will continue on CBC and also be used across all Rogers channels and platforms on Saturday nights.

Today's announcement with CBC is part of an intent to create a larger extended partnership between Rogers Media and CBC, in which Rogers and CBC will work together on future sports alliances for Canadian sports fans, says the release.

"Given the NHL agreement with Rogers," said Hubert T. Lacroix, President and CEO of CBC/Radio Canada, "we were happy to come to an agreement with Rogers to ensure all Canadians from coast to coast to coast would continue to have hockey available on Saturday night and through the playoffs. Partnerships like this one are a strategic way for CBC to promote the public interest in today's broadcasting landscape."

"At Quebecor, we are passionate about hockey and we are excited to become the official French-language broadcaster of the NHL in Canada. Through our convergence strategy, I can guarantee that all French-language hockey fans will be able to benefit from the best possible multiplatform viewing experience," added Robert Dépatie, president and CEO of Quebecor and Quebecor Media.

The agreement also grants TVA Sports exclusive French broadcast rights to all playoff games, including Montreal Canadiens playoff games and the Stanley Cup finals. In addition, TVA Sports will have the rights to all Canadian national games and up to 160 games between American NHL teams, as well as NHL special events such as the All-Star Game, the Winter Classic, the NHL draft and the NHL Awards ceremony.

"Rogers has enjoyed terrific partnerships with CBC and TVA over the years, and we look forward to continue working together to bring Canadians more NHL games, more content and more choice like never before," said Pelley.