Sweet Deal Took Time

For some streaming video is something new, but for others it a regular day event one does to promote and webcast sporting events.

Now we are hearing that MLBAM finalized a deal with the NHL allowing them to run GameCenter Live, Centre Ice, the NHL Network, NHL.com and the individual team websites for the next six (6) years.

I am hearing that the video rights are worldwide with the exception of the mega Rogers-controlled Canada as well as the Scandinavian countries.)

If you are wondering if this will affect you the answer follows:

First it will provide a revenue boost at a time the salary cap is leveling out and I hear the deal was first presented to the Board of Governors in Las Vegas at the June meetings.

COO John Collins (NHL) would not confirm these figures, but it is reported that the value to the league is around $200 million per year.

The annual breakdown:

• $100M rights fee to the NHL,
• $20M in savings from the league (not having to invest in the capital resources)
• $80M in equity in MLBAM’s technology business

One Governor stated or indicated for the purposes of the salary cap, “We were told to expect $120M per year in added revenue … $4M per team,”

Hockey Related Revenue is split 50/50 with the players, so that would raise the ceiling.

Apparently they (NHL) did a test-run of player tracking technology (at the 2014-15 All-Star Game) and ran into barricades in some attempts to use it on a regular basis.

Collins told the media “We were struggling with costs, the chip added, $200 per puck, which would not allow you to do the things you like to do with them.”

He continued “When we met with [MLBAM], they gave a quick response and said ‘We can do this, but we’ll need a little time, but we can do it.’”

MLBAM President and CEO Bob Bowman said “There are lots of different ways to do it and we are going to test.

One other way is cameras on the rinks and you can put cameras right there and track a lot of things and that is something that will work.”

Bowman said MLBAM has discussed the possibility of such a partnership for three years. He had some pretty good lines, saying you can put the deal in the “category of perseverance over brilliance,” and referring to hockey as “the mother’s milk of Canada.”

MLBAM is very protective of who uses its videos online.

As this hit the air-waves there were numerous questions about what this could mean for fans that create popular GIFs during games.

Collins added the NHL discussed this possibility with other providers, including DirecTV and Comcast that currently has six years remaining on it’s contract in addition to the fact that the MLBAM was the most aggressive bidder.

The NHL Network, previously based in Toronto, will move to Secaucus, NJ where space is being built at the old MSNBC studios.

League and team websites will stay as is until January, then unveil their new look.

Let’s not forget that you can catch the action on Delta TV, so this is clearly a win for the fans.

Here’s hoping it works out for all parties involved?