Coyotes fans

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


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:


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.

Blues put Berglund on LTIR, use savings to sign Gomez

Scotte Gomez
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As was the case last season, Scott Gomez accepted a professional tryout offer because he went unsigned over the summer and once again he has used that opportunity to extend his career.

The St. Louis Blues announced that they have signed Gomez to a one-year contract. They didn’t disclose the financial terms, but it’s a two-way deal that comes with a base salary of $575K at the NHL level, according to the St. Louis Post-Dispatch’s Jeremy Rutherford.

In order to free up the space necessary to sign him, St. Louis moved Patrik Berglund to the long-term injured reserve list. Berglund had shoulder surgery in August and isn’t expected to be available until January.

Gomez, 35, is coming off of a resurgence campaign where he recorded 34 points in 58 games on a Devils’ team that finished near the bottom of the pack offensively. The two-time Stanley Cup champion will be bringing more than a 1,000 games worth of NHL experience to St. Louis.

He’s not the only veteran forward to make the team off of a PTO as the Blues signed Scottie Upshall on Monday.

NHL key dates for the 2015-16 season

Alex Ovechkin, John Tavares
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Nov. 10 —  NHL General Managers Meeting (Toronto)

At last year’s November meetings, the GMs decided to kill the dry scrape. But these meetings usually serve as a table-setter for the rest of the season. It’s the more in-depth meetings in March where the majority of things get decided.

Nov. 27 — NHL Thanksgiving Showdown: Rangers at Bruins

The first of 12 “NHL on NBC” games in 2015-16. Click here for the full list, including the games on NBCSN.

Dec. 7-8 — NHL Board of Governors Meeting (Pebble Beach)

This is where we could find out about expansion. Will both Las Vegas and Quebec City get the nod? Only one of them? Neither of them?

Jan. 1 — Winter Classic: Canadiens at Bruins

From Gillette Stadium in Foxborough. Please don’t make any “deflated pucks” jokes. You’re better than that.

Jan. 28-Feb. 1 — All-Star Break

This year’s festivities are being held in Nashville, which is a pretty fun town we hear. Skills competition on Saturday the 30th, game on Sunday the 31st. Over/under has been set at 25 goals and 60 percent effort.

Feb. 29 — NHL trade deadline

Leap day! Click here for a list of pending unrestricted free agents, a.k.a. potential rentals.

Mar. 14-16 — NHL General Managers Meeting (Boca Raton)

As mentioned, these are the more in-depth meetings where any recommendations are typically made. Last season, the GMs recommended 3-on-3 overtime and a coach’s challenge.

Apr. 9 — Last day of the regular season

All 30 teams in action on this Saturday. Playoffs begin four days later on Wednesday. Also, the draft lottery’s date is still to be determined, but should be held sometime around here.

June 18 — Last possible day for the Stanley Cup Final

Click here for PHT’s Cup picks.

June 24-25 — NHL draft

In Buffalo this year. Click here for Central Scouting’s “players to watch” list, led by Auston Matthews.

July 1 — Free agency begins

And then it’s summer.