Booming NHL business a double-edged sword for low-revenue teams

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Yesterday, the NHL announced a 12-year Canadian broadcast agreement with Rogers worth almost $5 billion in U.S. dollars.

Yeah, it was a pretty big deal.

Immediately after the news broke, people started to wonder what it would mean for the league’s 30 franchises. And in particular, they wondered about the clubs that aren’t considered among the financial powerhouses of the NHL, for which finances are always a concern.

For example, Yahoo! Sports columnist Nicholas Cotsonika was thinking about the Phoenix Coyotes, a team that very nearly relocated this past summer before finally finding new ownership.

Say you’re the Coyotes. You have been at or near the bottom of the league in attendance in recent years. You want to win, draw fans and make the business work on your own. But the cap and floor are more manageable. You don’t have to hit attendance targets to receive revenue-sharing anymore. Your cut of the Canadian TV revenue now is $4.75 million a year at the current exchange rate, but it will shoot up to an average of about $13.8 million a year over the next dozen years – a $9.05 million difference per year. Now factor in revenue from the American TV deal, the outdoor games, a World Cup, other international events, et cetera.

And now consider this: If the NHL does expand – to, say, Quebec City and Seattle – the owners will split hundreds of millions of dollars in fees between them, and they won’t have to share any of that money with the players.

That’s the positive spin. But here’s the potential negative side, from the CBC’s Elliotte Friedman:

The only thing to worry about here is the salary floor, if you love a low-revenue club. Article 50.5 b (i) of the CBA states “the magnitude of the Team Payroll Range shall never be less than $16 million … or greater than $28 million.”

The promise of this new agreement allowed Bettman to stabilize his three biggest trouble spots: Florida, New Jersey and Phoenix. No doubt the owners of those teams, like Leonsis in Washington, are thrilled by the television bonanza and updated revenue-sharing formula.

The true test of the new CBA will be how many teams can’t afford to go much higher than the floor because you know the revenue powerhouses can’t wait to flex their financial-steroid muscles.

That’s the only concern I see. It’s at $44 million this season, and a $60-million base – with the upper limit approximately $20 million higher – is not out of the question in the near future.

The Globe and Mail’s James Mirtle conservatively estimates the salary floor/cap will rise as follows throughout the course of the CBA:

source:

It’s impossible to say for sure how current low-revenue teams like the Coyotes, Panthers, Predators, and Blue Jackets will fare in the next few years. Yes, there will be more national TV money coming in, and yes, there’s more revenue sharing under the new CBA. But paid attendance will still matter greatly for individual clubs, meaning much will continue to depend on their win-loss records.

Penguins re-sign Ruhwedel to a two-year deal

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The depth of the Pittsburgh Penguins defense faced the ultimate test this spring, winning a Stanley Cup despite the absence of Kris Letang.

Among those depth blueliners asked to come in and help fill the void left by injuries on defense was Chad Ruhwedel. And on Thursday, Ruhwedel re-signed with the Penguins to a two-year deal.

The Penguins announced that this new deal has an average annual value of $650,000 — a modest raise from his one-year, $575,000 deal for last season, but still certainly affordable for a Pittsburgh team that needs to get restricted free agents Brian Dumoulin, Justin Schultz and Conor Sheary under contract.

In his first season with the Penguins, Ruhwedel split his time between Pittsburgh and the AHL team in Wilkes-Barre/Scranton. He scored twice with 10 points in 34 games with Pittsburgh, and then appeared in six postseason games as injuries continued to mount on the blue line.

His last game of the postseason came on May 19 versus Ottawa. He was diagnosed with a concussion, which was the result of a hit from Bobby Ryan in Game 4.

 

NHL announces 2017-18 regular season schedule

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The NHL released next year’s schedule on Thursday — one that cemented the league wouldn’t be participating in the 2018 Winter Olympics in South Korea.

Games are scheduled right through the Olympic window, which runs from Feb. 9-25. You can view the entire schedule here.

Some dates of note:

• The Penguins will raise their Stanley Cup banner on opening night, Oct. 4, prior to their home date against the Blues.

• The league’s newest team, the Vegas Golden Knights, will play their first game on Oct. 6 in Dallas, and their first home game on Oct. 10 against the Coyotes.

• Detroit will play its first game in Little Caesar’s Arena on Oct. 5, against the Wild.

• Ottawa and Colorado will play a pair of games in Stockholm, Sweden on Nov. 10 and 11.

• Ottawa and Montreal will play the Scotiabank NHL100 Classic outdoors, at Lansdowne Park in Ottawa, on Dec. 16.

• The Rangers and Sabres will participate in the annual Winter Classic on Jan. 1 at Citi Field.

• From Jan. 26-29, Tampa Bay will host the NHL All-Star weekend.

• On Mar. 3, Washington will host Toronto in an outdoor game at the Navy-Marine Corps Memorial Stadium in Annapolis.

Marc-Andre Fleury, now a Golden Knight, will make his return to Pittsburgh on Feb. 6.

Jonathan Drouin, now a Montreal Canadien, will make his return to Tampa Bay on Dec. 28.

Jordan Eberle, now a New York Islander, will make his return to Edmonton on Mar. 8.

Eberle hopes to re-establish chemistry with John Tavares

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Jordan Eberle believes the trade to the New York Islanders will provide him with a fresh start — and possibly the opportunity to play alongside John Tavares.

In a blockbuster Thursday morning, the Oilers dealt Eberle to the Islanders for Ryan Strome.

There is a history between the two talented forwards that famously dates back to the 2009 World Juniors.

Back then, the draft-eligible Tavares was expected to go No. 1 overall in a few months time. Eberle was a first-round pick from the year before. It was Tavares shoveling a backhand shot toward the net and Eberle scooping up the puck and putting it behind the Russian goalie in the final seconds of regulation to send the semifinal game into overtime.

It’s one of the iconic moments in Canadian World Juniors history.

They will be reunited with the Islanders, and potentially on the same line, in order to give Tavares a scoring winger.

“From me, you have to be confident in your ability and confident that you can be in a top-six role. I think I’ve shown in the past that I can score in this league and I’ve had previous chemistry with John,” said Eberle, who scored 20 goals and 51 points for the Oilers this past season.

“Obviously, he’s a very intelligent player and the way that he plays suits my game. Maybe, if that’s where I end up, our games suit each other well.”

Eberle goes from a team that had Connor McDavid, the 2017 Hart Trophy winner, to Tavares, the first overall pick in 2009, an Olympian, and a player with two 80-plus point seasons under his belt.

They are both, as Eberle said, generational players. But with two totally different styles on the ice.

“I think you look at their attributes as players. I think Connor, the first one that sticks out to mind, is his speed. He’s maybe one of the fastest guys with the puck and you have to be able to keep up with that,” said Eberle. “John thinks the game, maybe, better than any other player in the league.

“Each does his thing in their own way, but gets the job done. For me, it’s more of, in my mind, to get ready to the best ability that I can to get into camp and hopefully fit in.”

Welcome Jason Demers to the trade rumor mill

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Florida’s season ended on April 9. Since then, the Panthers:

— Made a coaching change from Tom Rowe to Bob Boughner

Re-instilled Dale Tallon as GM

Lost leading goalscorer Jonathan Marchessault in the expansion draft

Traded Reilly Smith to Las Vegas.

And they might not be done shaking things up.

Per TSN’s Pierre LeBrun, defenseman Jason Demers — who was left unprotected at the expansion draft — is now available for trade. The news comes just one year after Demers signed a five-year, $22.5 million deal with Florida in free agency, one of the biggest moves in the club’s defensive overhaul from the season prior.

The 29-year-old was a lineup fixture in Florida last year. He appeared in 81 of 82 games, scoring nine goals and 28 points while averaging 19:37 TOI.

If anything, today’s news suggests Tallon might be trying to undo the work Rowe did during his stint as GM. It was Rowe, don’t forget, that inked Smith to his five-year, $25 million deal last July. Smith went on to have a subpar year — just 15 goals and 37 points — and, in one of his final noteworthy acts as head coach, Rowe called Smith out for his lacklustre play towards the end of the season.