ESPN Doesn't Match Comcast Offer For NHL

[MrRant 0]

The NHL will have a new television home next fall.

 

 

ESPN, which has had a stake in NHL broadcasts since the 1992-93 season, informed the league on Wednesday that it would not match the offer put forth by Comcast.

 

 

"Tonight, we informed the NHL that we did not accept their final contract offer," ESPN and ABC Sports president George Bodenheimer said in a statement. "We worked very hard to build and sustain our relationship with the league and would have liked to continue. However, given the prolonged work stoppage and the league's TV ratings history, no financial model even remotely supports the contract terms offered."

 

 

In the 2003-04 season, NHL games on ESPN drew an audience in 416,000 homes and games on ESPN2 were watched in 209,000 homes.

 

 

In May, ESPN informed the league that it would not pick up the $60 million option it had to broadcast the league's games for another season. After the league and the players' association settled on the terms of a new collective bargaining agreement in mid-July, Comcast, the nation's largest cable television provider, became the most interested in picking up the NHL's broadcasts. Comcast offered a three-year deal worth more than $200 million, and ESPN officials were brought back to the table. They had until Wednesday to once again decide if it was in the network's best interest. Comcast agreed to broadcast the league's games for at least two years, but that can be extended up to six years.

 

 

"Over the years, thousands of great NHL moments were presented to our fans through the lenses of ESPN cameras," NHL commissioner Gary Bettman said. "ESPN was a supportive partner, and both the National Hockey League and ESPN enjoyed a mutually beneficial relationship. We wish ESPN continued success."

 

 

Comcast, which owns four regional sports networks as well as a majority share in the Philadelphia 76ers and Flyers, is expected to put its NHL games on OLN. An OLN spokesperson did not immediately return calls seeking comment.

 

 

Over the past year, the channel has endured a major shift. The network's name is now what was once its acronym. The Outdoor Life Network is no longer and its motto is now, "We've Got A New Attitude." The hunting and fishing the network was founded on a decade ago is now mostly replaced with events ranging from the Tour de France and America's Cup to the All-Star BBQ Showdown. One of OLN's greatest assets is the 10 seasons of "Survivor" re-runs it purchased from CBS for a reported $10 million.

 

 

The deal appears to be a winning proposition for all the parties involved.

 

 

Despite a season-long work stoppage, the NHL will still collect a good deal of money on the sale of its broadcast rights. That's an amazing achievement, given that the league agreed to a revenue-sharing deal with NBC before the lockout that came free of any rights fee.

 

 

Since NHL programming is going to be OLN's most important asset, Comcast officials could be willing to spend more money to capitalize on the relationship. For the networks that have had hockey, including Fox and ESPN, investing in growing the hockey audience simply didn't pay off when considering how much more they had invested in other sports programming. The agreement calls for OLN to show Games 1 and 2 of the Stanley Cup finals before NBC takes over for the remainder of the series. Comcast will also bring the NHL Network to cable systems in the United States, and provide on-demand game broadcasts and computer streaming of live games.

 

 

Comcast might also have additional motivation to spend -- to prove to leagues it is willing to be a great partner if leagues should seek to use OLN to build a sports network from scratch. Last year, Comcast offered an unsolicited bid of $66 billion to buy the Walt Disney Co., which owns ESPN. The offer was rejected by the Disney board.

 

 

"It seems clear that OLN is setting itself up as a competitor to ESPN," said Bodenheimer. "We welcome it. It will make us better."

 

 

The potential audience is smaller. ESPN is in 90 million homes and ESPN2 is in 89 million homes. OLN is in 63 million households, a 75 percent increase from the number of households the network was in four years ago. That makes it easier for hockey fans to find the channel and, if they don't have it, they might be willing to pay for it.

 

 

"With the NHL deal, OLN is now further away from being that niche channel for serious sports recreation enthusiasts and moves closer to the sports fan who is enthusiastic about sitting on his couch watching the sport he loves," said David Carter, principal of The Sports Business Group, a sports consultancy firm.

 

 

A year without hockey proved to ESPN executives that picking up the option or matching Comcast's offer didn't make much financial sense, even at half the price it paid when the deal started in 1999. In the NHL's place, ESPN filled the air with original programming, like "Bowling Night" and "Stump The Schwab." Programs like these drew ratings that were at least comparable to the number of people watching NHL games.

 

http://sports.espn.go.com/nhl/news/story?id=2137098

 

NEW YORK (AP) - NHL games will air on Outdoor Life Network for at least the next two seasons.

 

The league finalized a two-year deal with Comcast Corp. - the owner of OLN - late Wednesday night after ESPN declined to match the agreement that will pay the NHL $65 million this season and $70 million in 2006-07.

The agreement between Comcast and the NHL was approved by the league's board of governors last week. ESPN, which resumed regular broadcast of NHL games in 1992, had until Wednesday night to match the contract but decided to pass.

 

"Over the years, thousands of great NHL moments were presented to our fans through the lenses of ESPN cameras," NHL commissioner Gary Bettman said. "ESPN was a supportive partner, and both the National Hockey League and ESPN enjoyed a mutually beneficial relationship. We wish ESPN continued success."

 

The new deal can be extended up to six years. For the 2007-08 season, Comcast would pay the NHL $72.5 million but that number could go higher based on contingencies.

 

OLN, best known for providing live coverage of the Tour de France, will show between 58 and 78 regular-season games, as well as conference quarterfinals and the entire conference finals - with the exception of some weekend windows that could move games to NBC in both playoff rounds.

 

OLN will show Games 1 and 2 of the Stanley Cup finals before NBC takes over for the remainder of the series.

 

The deal with Comcast goes beyond just television rights. Comcast will bring the NHL Network to cable systems in the United States, and provide on-demand game broadcasts and computer streaming of live games.

 

This is the second time in recent months that ESPN has declined a deal with the NHL. In June, ESPN passed on a $60 million option under the previous contract. The network tried to retain the rights for less money in talks with the league.

 

ESPN contended that the value of NHL games had dropped substantially following the lockout that wiped out all of last season.

 

"We worked very hard to build and sustain our relationship with the league and would have liked to continue," George Bodenheimer, the president of ESPN, Inc. and ABC Sports said in a statement late Wednesday night. "However, given the prolonged work stoppage and the league's TV ratings history, no financial model even remotely supports the contract terms offered. We wish the NHL all the best."

 

The NHL will begin a two-year deal with NBC for over-the-air broadcasts beginning with the upcoming season. That is a profit-sharing arrangement, a deal similar to what the network has with the Arena Football League and the National Lacrosse League in which it pays no rights fee to televise games.

 

http://msn.foxsports.com/nhl/story/3901516

 

Well hopefully I can score some free NHL on OLN stuff.

[Ripper 0]

What a mighty deathblow to ESPN. Although I am sure that shuffleboard will match Hockey's ratings now.

 

But really, shouldn't Comcast work on changing the name of OLN.

[MrRant 0]

This is good for the NHL (especially if you have Comcast )

 

OLN and the NHL will bring television viewers closer to the ice by leveraging the League's new telecast enhancements - increased behind-the- scenes access, microphones on the players and coaches, netcams and in-game interviews.

 

The partnership between OLN, Comcast and the NHL will redefine the sport for hockey viewers. More action on video on demand (VOD), in HDTV and online will create an experience like never before, including:

 

 

    -- VOD game highlights and library footage of hockey's greatest moments

        with full fast-forward, rewind and replay capability;

    -- HDTV game coverage in a crisper, faster-moving, more exciting game for

        hockey fans every week;

    -- Online streaming of two live games per night (subject to local

        blackout), broadband highlights, commentary, and library footage;

    -- Round-the-clock coverage on the NHL Network, to be launched in the US

        in the future; and

    -- Comcast will have the ability to carry and/or syndicate additional

        games on Comcast's regional sports networks where it has the consent

        of the local team and team's rights holder.

 

 

http://biz.yahoo.com/prnews/050818/phth019.html?.v=23

[Guest Ronixis]

This is the best damn deal the NHL could have, they dont have to pay that much and they get cash from the NBC deal (which doesnt have much money to begin with- but I hear theyre spening a near $250,000 for a new set and crew and HD compatbilties for the Sunday Night games in 2006) and I dont know what they could call OLN, maybe TSN USA?

[Guest Frank_Nabbit]

Hockey on OLN?

 

 

????

 

 

????

[geniusMoment 0]

I have never even heard of OLN, and know no one who has it. Then again no one likes hockey anyway.

[kkktookmybabyaway 0]

I never heard of OLN either until I saw some recent hippie ads pimping their re-airing of the first Survivor. I found them while scanning through some previously blank channels. I discovered OLN, Style and that video game channel. Yay, I guess...

[EVIL~! alkeiper 0]

I watched OLN because of the Tour De France coverage. Hopefully they will provide the NHL with the respectable coverage they deserve, and not hamstring the league by bashing its popularity at every opportunity.

[MrRant 0]

Yes. They spent $70 million annually, plus are investing in crews to televise the games all in an order to bash and devalue the product they hope to help rebrand the network.

 

Brilliant Holmes.

[Danville_Wrestling 0]

Crap, I don't get OLN where I live. I guess I'll just have NBC as my only hockey outlet. AHH!

[EVIL~! alkeiper 0]

Yes.  They spent $70 million annually, plus are investing in crews to televise the games all in an order to bash and devalue the product they hope to help rebrand the network.

 

Brilliant Holmes.

<{POST_SNAPBACK}>

 

I was taking a shot more at ESPN's "efforts" to broadcast the games.

[MarvinisaLunatic 0]

I see that OLN is getting an HD Channel just in time for hockey season..but I doubt anyone other than Comcast will carry it for a while..

 

I wonder if HDNet is going to do NHL games..

 

Plus, I wonder if the rumor about NHL Center Ice going for $20 is true..

[MrRant 0]

Chances are they would be simulcast on InHD if it isn't a simulcast for OLN like ESPN HD

[Danville_Wrestling 0]

May seem like a stupid question (and sorry if it is) but does NHL have a program similar to MLB TV where you can watch games online? Just wondering, thanks.

[MarvinisaLunatic 0]

Chances are they would be simulcast on InHD  if it isn't a simulcast for OLN like ESPN HD

<{POST_SNAPBACK}>

 

InHD = cable only..

 

bah

 

not that I really care much about the NHL..but I've got a 4 tuner HD-TIVO box and I could be recording some HD NHL games to watch in between the times when theres nothing else on. I was really hoping ESPN would get the NHL, especially when I heard that Directv will be carrying ESPN2 HD starting next month.

[Guest darealdeal21]

why would htey, NHL might not be as exciting as it was before...i wouldnt match either

[Guest Rrrsh]

why would htey, NHL might not be as exciting as it was before...i wouldnt match either

<{POST_SNAPBACK}>

 

If you look at the new rules and watched the last years NHL, there is no way the play will go anywhere but up.

[Art Sandusky 0]

I'm not even much of a hockey fan, but I'm pretty jacked for the new rules. It just might successfully finish its invasion of the rest of the US outside of the midwest and northeast.

[TheDevilAndGodAreRagingInsideMe 0]

I have OLN, but never watched hockey in my life.

[MarvinisaLunatic 0]

I thought I didnt get OLN either, but its The Outdoor Channel that I dont get as its in the sports pack.

 

WTF does anyone need 2 Outdoor channels..???

 

$2 says Directv moves OLN to Sports Pack before the season starts..

[EVIL~! alkeiper 0]

I never understood the purpose of the Outdoor Channel. I mean you can watch the outdoors....inside on television?

[The Czech Republic 0]

That'll be three hours of reality TV for you, young man

[nl5xsk1 0]

Yes.  They spent $70 million annually, plus are investing in crews to televise the games all in an order to bash and devalue the product they hope to help rebrand the network.

 

Brilliant Holmes.

<{POST_SNAPBACK}>

 

I was taking a shot more at ESPN's "efforts" to broadcast the games.

<{POST_SNAPBACK}>

 

ESPN's mockery and 'coverage' of the NHL has always enraged me, and it's getting worse. I was given a subscription to ESPN The Magazine as a gift, and it's laughable how much more frequently the rip on the league (using it as a punchline) than they do provide actual coverage. I don't know how real hockey fans work for ESPN (Hradek, Buccigross, et cetara)

[MarvinisaLunatic 0]

Just saw this:

 

According to a source close to the proceedings, NHL games will be blacked out in cable systems that relegate OLN to a digital sports tier, including all of Cablevision’s footprint and Cox Communications’ Phoenix system.

 

While 90 percent of OLN’s carriage is on standard analog tiers, the network is likely to use the threat of a blackout in order to win total analog carriage, which would significantly boost its number of homes reached.

 

And..Comcast is going after ESPN's Wednesday/Sunday Baseball contract after it expires at the end of this year which also includes the HR Derby. ESPN's Tuesday/Thursday/Playoff baseball contract doesn't expire until next year. Hitches in the deal included MLB starting its own network (so say if Comcast offered to carry MLBTV in all of its areas, it would give them a leg up on ESPN).

[Hogan Made Wrestling 0]

Nothing would make me happier than to see Comcast totally stick it up ESPN's ass.

[Guest Agent of Oblivion]

Comcast Cable is demon.

 

As long as they don't take away fishin', I'm fine with this minor format change.

[nl5xsk1 0]

Nothing would make me happier than to see Comcast totally stick it up ESPN's ass.

<{POST_SNAPBACK}>

 

Repeatedly.

 

ESPN could realize their goal of not showing live sports at all, and just have "experts" talking about sports 24/7.

[Hogan Made Wrestling 0]

Nothing would make me happier than to see Comcast totally stick it up ESPN's ass.

<{POST_SNAPBACK}>

 

Repeatedly.

 

ESPN could realize their goal of not showing live sports at all, and just have "experts" talking about sports 24/7.

<{POST_SNAPBACK}>

 

You mean yelling about sports 24/7, right?

[MrRant 0]

WHAT?! YOU'RE CRAZY! SHAQ IS THE MAN!

[The Czech Republic 0]

QUITE FRANKLY, THERE HAS NEVER, AND WILL NEVER, BE A PLAYER LIKE ALLEN IVERSON EVER AGAIN IN THE NBA! HOWEVAH!, YOU CANNOT IGNORE KOBE BRYANT!