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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.

The Caps say they’ve ‘matured’ and have ‘good poise’ now — we’ll see tonight

DENVER, CO - NOVEMBER 20:  Joel Ward #42, Alex Ovechkin #8, Nate Schmidt #88 and Brooks Orpik #44 of the Washington Capitals take a break on the bench as head coach Barry Trotz (L) and assistant coach Blaine Forsythe (R) oversee the action against the Colorado Avalanche at Pepsi Center on November 20, 2014 in Denver, Colorado. The Capitals defeated the Avalanche 3-2.  (Photo by Doug Pensinger/Getty Images)
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The Washington Capitals — desperate for a win tonight in Pittsburgh — are vowing to stick to the plan, keep their composure, and not let a certain 21-year-old netminder get into their heads.

“I think that’s where this team has matured,” said coach Barry Trotz, per CSN Washington. “We have good poise. You’ve seen that all year with our team. We don’t get rattled often. We do get, I would say, very determined at times and we’ve shown a lot of resiliency all year. That’s why we were able to have the record we did. We didn’t let things bother us too much. And we’ve got a good leadership group that when things maybe aren’t going the way you want, they seem to be able to put it back on the rails for us. I think that’s the growth of our team the last two years.”

In Game 3, the Caps had every reason to feel like the hockey gods were out to get them. They put 49 shots on Penguins goalie Matt Murray, but were only able to beat him twice. They lost, 3-2, and now must win tonight in order to avoid falling into a 3-1 series hole.

In Game 4, the Capitals will have a major advantage, as their opponents will be without two of their top defensemen, Kris Letang (suspended) and Olli Maatta (injured).

So not only is it a game the Caps need to win, it’s a game they’ll be expected to win.

That means pressure.

And pressure, sometimes, can lead to panic.

According to Trotz, the Caps used to be guilty of exactly that. They’d change the plan when things didn’t go their way. They’d play too much as individuals. They’d play right into the opposition’s hands.

But not anymore.

“I think what this group has learned is that you stay to the plan, you execute and do the job well,” said Trotz.

“If you do that, it will turn your way.”

No hearings scheduled for Boyle on Hickey hit, or Hickey on Drouin hit

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Doesn’t look like there’ll be supplemental discipline coming from Tampa Bay’s crazy 5-4 OT win over the Isles at Barclays last night.

Per the Times, both Brian Boyle and Thomas Hickey have avoided hearings for their big hits — Boyle’s on Hickey, Hickey’s on Jonathan Drouin.

An NHL spokesman has confirmed to PHT that no hearings have been scheduled.

Both hits went unpenalized, but were focal points of Tuesday’s game.

The impact of the Hickey hit forced Drouin from the contest for a lengthy period of time, though Drouin did return to set up Nikita Kucherov‘s game-tying goal with under a minute remaining in regulation.

Boyle’s hit on Hickey was followed by Boyle scoring the game-winning OT goal roughly 10 seconds later.

It also led to Isles head coach Jack Capuano venting his frustrations in his postgame presser.

“It’s a direct shot to the head,” Capuano said, per ESPN. “I mean, probably going to get suspended a game. That’s what I mean. The whole game, it shouldn’t come down to that. [Referee] is standing right there. I’ve watched it numerous times now. Those are the types of hits that we’re trying to eliminate from our game.

“It’s just too bad that it had to end that way. It’s frustrating because it’s right there. The play is right there. He’s looking right at it. The league can look at it if they want, but I’ve watched it four or five times, maybe more, and it’s just frustrating it had to end in that particular way with a head shot.”

Capuano didn’t have an update on Hickey following the contest.

Game 4 of this series goes on Friday at Barclays, so there could still be developments forthcoming. The league holds the right to schedule a hearing later (should it be deemed appropriate), and there will likely be an update on Hickey in the coming days.

Related: Islanders believe Boyle should be suspended for hit before OT goal

Report: Ducks sign ’15 first-rounder Larsson

SUNRISE, FL - JUNE 26:  Jacob Larsson poses after being selected 27th overall by the Anaheim Ducks in the first round of the 2015 NHL Draft at BB&T Center on June 26, 2015 in Sunrise, Florida.  (Photo by Bruce Bennett/Getty Images)
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Though it’s yet to be announced by the club, Swedish d-man Jacob Larsson has reportedly signed on with the Anaheim Ducks — the club that selected him in the first round (27th overall) of the 2015 draft.

Larsson, 19, is set to join Anaheim’s AHL club in San Diego, per Hockeysverige. The Gulls are currently in the midst of the Calder Cup playoffs, embroiled in a series against Ontario.

Larsson came into the ’15 draft fairly highly touted. He was pegged by Central Scouting as one of the top-10 international skaters available, and ended up the seventh defenseman off the board (after Noah Hanifin, Ivan Provorov, Zach Werenski, Jakub Zboril, Thomas Chabot and Noah Juulsen.)

Per Hockeysverige, Larsson is still under contract to SHL club Frolunda for another year, and will be loaned back to the club for the ’16-17 campaign.

Ergo, this trip overseas appears to be so Larsson can get a taste of pro hockey in North America.

Here’s your Stanley Cup playoffs schedule for tonight

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There’s just one game scheduled for tonight, but it should be an exciting one and as you’ve likely guessed, you will be able to watch it via the NBC Sports Group’s television and digital platforms.

Washington at Pittsburgh (8:00 p.m. ET)

Pittsburgh holds a 2-1 series lead, but this game in particular will be a big test for the Penguins as they’ll be without defensemen Kris Letang (suspended) and Olli Maatta (upper body). The contest will air on NBCSN and if you want to stream it, you can do so by clicking here.

In the meantime, here are some relevant links:

If there’s an expansion draft, which goalie should Pittsburgh protect?

Penguins bring up Sestito and Oleksy

Video: Letang suspended one game for late hit with ‘significant head contact’ on Johansson

With Letang suspended, Schultz out to ‘prove a lot of people wrong’ if he gets the call in Game 4