One year ago, Forbes Magazine called MLB Advanced Media The Biggest Media Company Youve Never Heard Of.
As of Tuesday, hockey fans can brag they know.
MLBAM, already the streaming-video provider for HBO, ESPN and World Wrestling Entertainment (among others), closed a deal with the NHL to run GameCenter Live, Centre Ice, the NHL Network, NHL.com and the individual team websites for the next six years. (The video rights are worldwide, minus Rogers-controlled Canada and the Scandinavian countries.)
So, how does this affect you?
First, much to the relief of teams, players and agents, it will provide a revenue boost at a time the salary cap is flattening. According to several sources, the deal was first presented to the Board of Governors at the June meeting in Las Vegas. NHL COO John Collins would not confirm these figures, but word is the league valued the deal at $200 million per year.
The annual breakdown: a $100M rights fee to the NHL, $20M in savings from the league not having to invest in the capital resources/expertise it would take to go on its own, and $80M in equity in MLBAMs technology business.
The equity portion may not figure in revenue calculations for the purposes of the salary cap. We were told to expect $120M per year in added revenue
$4M per team, one governor said.