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Bruce Dowbiggin

Will Cable Cord Cutting Shock Pro Sports Back To Its Senses?

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If there’s one constant in modern sports it’s bewilderment at how high salaries have risen for elite athletes. Where a million dollars a year was once the “unheard-of” threshold for salaries, today’s stars are easily taking home 20, 40, even 50 million a year under the new economy in sports. Even college athletes, once forbidden to accept remuneration, are cashing in millions for their name, image or likeness.

When people complain about overpaid athletes to IDLM we simply say the money is in the business, who else do you think should get the cash? Ditto for franchise values, where the Denver Broncos recently sold for a staggering $4.65 B. and the Washington Commanders might fetch $6B.

Largely the infusion of riches in pro sports has come from TV and digital-rights contracts between leagues and regional sports networks (RSN). Those RSNs are the carriers of the local and regional teams. Packaged through cable or satellite carriers they deliver valuable programming dollars to leagues. And for smaller media markets they are a vital source of revenue to keep up with the big boys whose ancillary revenues are pumped by many more customers.

As just one example, the MLB St. Louis Cardinals are currently earning about $66 million a year from their 15-year, $1B deal they signed with Fox Sports in 2015. There are 18 other teams on Sinclair/Diamond local TV deals, all of whom rely on RSNs to play New York salaries in Pittsburgh or Kansas City.

In Canada, as opposed to the American model, regional sports contracts are held directly by either TSN or Sportsnet, national carriers. The monopoly status has suppressed revenues to Canadian NHL, MLB or NBA teams relative to the deals cut in large markets such as New York’s tri-state area, southern California or Chicago.

Recently TV rights packages values were boosted by the arrival of Amazon, YouTube and Google which began to compete with traditional networks for U.S. broadcast rights. But now RSNs are threatened by the cord-cutting trend that sees American and Canadian consumers dumping their traditional bundlers of services to go à la carte digital directly with the producers of programming. ( In Canada the DAZN network has gone head-to-head with TSN for NFL games on a digital deal with the league.)

This past week the American cable giant Comcast reported a year-over-year 11 percent loss in its customer base. That’s about two million Americans saying “I can do without the middle men and the useless channels. I want to subscribe directly to the producers of the material I want to see.” From a peak of 110.5 million customers in 2013 the Comcast market is estimated to drop as low as 65 million customers by 2025.

In part this is consumers shedding programming bundles they never watch and bloated subscription fees as they tighten their belts. It’s also a reflection on the Netflix streaming revolution sparked by Covid-19 lockdowns that saw locked-down consumers get used to the convenience of directly streaming programming from Netflix or Amazon Prime or Disney without paying for a raft of useless channels.

Advertisers have noticed, too. They are headed to streaming services, where their messages can be more targeted to desired audiences than cable TVs scattershot approach.

The impact is being seen in the U.S. where Diamond Sports Group, which controls a huge portion of the pro sports RSNs, is said to be headed to bankruptcy court to restructure its $8.6B in debt. “There are a lot of business and financial terms and policies to work through,” says Deadspin, “but the long and short of it is that DSG is likely going to skip an interest payment it owes, which should be enough for them to get to the bankruptcy claim they’ve been rumored to be after for a while now.”

Bloomberg reported that if they file for bankruptcy it could “potentially put at risk crucial broadcasting rights revenues” for major North American sports networks. Greg Boris, a sports management professor at Adelphi University summed up the looming disaster for pro sports. He told The Score that RSNs have “been a golden goose. You remove cable TV from the scenario, and franchises are worth a fraction of what they are today, players make a fraction of their salaries today… the boom has been going on for almost 30 years. But the vast majority of the people that pay never watch (services they purchase). That’s been the model.”

Leagues are now investigating what to do if the RSN model collapses. Currently the leagues operate direct streaming services for customers wishing to watch out-of-town games not involving their local team. They could simply add the RSN rights too these streams.But direct-to-consumer can be very costly. The Disney+ operation was thought to be a slam dunk, but now management at Disney admits it will be a few years before the operation gets out of the red. American carrier Comcast launched the Peacock network as an outlet for NBC content. It lost $2.5B in 2022 and projects to lose another $2B in 2023. Similar startups such as CBC Gem have been flops.

Direct-to-consumer is also not the easy money machine that RSNs were. If a league or a team operates a direct customer service it takes on the responsibility of signing up and maintaining its customer base. That means dealing with the fickle fans who might drop his/ her package to an NHL, NFL, MLB or NBA team for a few years till the club improves.

That could be a disaster for underperforming teams like MLB’s Pirates or NHL Vancouver Canucks who had the assurance that, while their programming sucked, the other offerings on the cable package were worth customers retaining the service. Direct-to-consumer could, however, be a ray of hope for fans of bad teams that force clubs to finally get serious about producing a winning product.

This potential financial shortfall is probably one of the reason pro sports has so fervently embraced sports betting— to the annoyance of many fans. If the TV money goes, they’ll need every dollar they can find to pay out the contracts they’ve been issuing with impunity the past decade.

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Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Inexact Science: The Six Most Compelling Draft Years In NHL History, his new book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via http://brucedowbigginbooks.ca/book-personalaccount.aspx

BRUCE DOWBIGGIN Award-winning Author and Broadcaster Bruce Dowbiggin's career is unmatched in Canada for its diversity and breadth of experience . He is currently the editor and publisher of Not The Public Broadcaster website and is also a contributor to SiriusXM Canada Talks. His new book Cap In Hand was released in the fall of 2018. Bruce's career has included successful stints in television, radio and print. A two-time winner of the Gemini Award as Canada's top television sports broadcaster for his work with CBC-TV, Mr. Dowbiggin is also the best-selling author of "Money Players" (finalist for the 2004 National Business Book Award) and two new books-- Ice Storm: The Rise and Fall of the Greatest Vancouver Canucks Team Ever for Greystone Press and Grant Fuhr: Portrait of a Champion for Random House. His ground-breaking investigations into the life and times of Alan Eagleson led to his selection as the winner of the Gemini for Canada's top sportscaster in 1993 and again in 1996. This work earned him the reputation as one of Canada's top investigative journalists in any field. He was a featured columnist for the Calgary Herald (1998-2009) and the Globe & Mail (2009-2013) where his incisive style and wit on sports media and business won him many readers.

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Bruce Dowbiggin

It Gets Late Early These Days: Time To Bounce Biden & Trudeau?

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“Take out the papers and the trash, or you don’t get no spending cash.”

Whether you’re in the stock market or real estate the question of when to sell is paramount. When to dump a tanking investment or sell a house in a bad market is an art form. Hence the expression, Timing is everything.

For the incumbent governments in Canada and the U.S. the time has come to make that risky decision of when to fish or when to cut bait with their respective leaders.

In Canada the federal Liberals, still shacked up with the NDP in a common-law embrace, have been doing denial for an extended period since they used the Covid-19 lockdown to sneak out a minority government in 2021. As soon as voters awoke to the lockdown hoax they’d lived through— courtesy of Justin Trudeau— they began to abandon him as a marketable product.

With five years to procrastinate, however, they indulged their radical agenda of climate and culture rather than address how they might be re-elected with Trudeau and his Quebec-dominated cabinet. They blew black holes in Canada’s debt load. There was a PR strategy to label Pierre Poilievre as a mini-Trump. And to buy up the floundering legacy media sources before there 2025 vote.

But for the most part the Liberals still saw Happy Ways where the mainstream saw an intellectual lightweight tilting at every Woke windmill. Since 2021 the polls have shown a steady erosion to the point where they see a Conservative majority— maybe even super-majority— if an election were called today.

Now all governments get tired over time. The biggest complaint about Stephen Harper from the talking classes in 2015 was the sense of fatigue he projected to Canadians who want their PM to be a rock star. But the collapse in Trudeau’s support has come via other very serious underpinnings from corruption (Lavalin, ME Charity, Chinese influence) to entitlement (the Carbon Tax, deficit).

However you see these issues they have led to the point where Liberals, more than half of whom will lose in the next election, must decide if they want to go to Davy Jones locker on the HMCS Skippy. Many of them will qualify for federal pensions if they hold on to the bitter end with Trudeau in October of next year. So he has that assurance of support. But if he is punted by the party he resurrected in 2010, who will succeed him? The taint of Trudeau on his most loyal sycophants will disqualify anyone in cabinet from being taken seriously for the top job.

Outside the immediate junta, names like Mark Carney— former Bank of Canada head— and deposed justice minister Jody Wilson Raybould have been put forward. The problem for anyone aspiring to replace Trudeau is they will have to face his fanatical loyalists in the PMO who’ve slapped down any pretenders so far.

The most recent forlorn hope for Trudeau was that the Federal Budget might calm the waters. Running up the deficit to perilous numbers with a menu of profligate policies to slake the restless NDP was going to force Poilievre on the defensive. So were limp attacks such as this from Trudeau cabinet pal Marc Miller.

For a brief fortnight the polling seemed to stabilize. But now more recent polls show that Trudeau’s popularity bottom was not a bottom at all, just a transfer station en route to the Marianas Trench of politics. Leaving the question of who and when as the only measurables in the equation. How much runway does he deserves and how much his successor gets are the operative problems when Liberals spend the summer in their ridings.

Meanwhile Joe Biden’s faint hope of putting his opponent in jail before the November election has done nothing to move his polling. If anything the prosecution of Donald Trump as he runs against Biden in 2024 is seen as a distinctly underhanded tactic by many outside the MSNBC mouth breathers.

While polls are a mugs’ game, the news that Biden trails Trump in all seven of the swing states he needs to be re-elected has sent shock through Team Obama, which runs the Democratic Party at the moment. There are a lot of sinecures and cushy salaries at risk here. The addition of Robert Kennedy Jr. to the presidential ballot in key states like California is further diluting the DEMs base. While RFK Jr. draws from both parties it’s expected he’ll hurt Biden most.

As if that wasn’t enough the recent pro-Palestine occupations by students and paid agitators is seen as a referendum on Biden’s support for Israel among the fanatical left-wing base of the DEMs. And polls indicate the effect has been disastrous.

Unlike the Liberals who have time to effect a palace coup, the DEMs are up against the clock with their convention coming in July. While he still plays to the Hollywood and Wall Street donors, the general public sees Biden getting more decrepit by the day. His persona as a pleasantly dazed crossing guard has worn thin.

While replacement scenarios have dogged Biden since his election (saved only by the utter dislike for his VP Kamala Harris) the party pros are talking about one last pierce of theatre: letting Biden take the nomination in July, replace Harris with a star candidate like Michelle Obama or Tom Hanks and have Biden then take a knee for health reasons.

Let the untainted replacement take on Trump, who produces a puke-in-your-mouth reaction with half the American electorate. A squishy Obama/ Bill Clinton replacement could rout Trump in a debate and bring single white women and blacks/ latinos back home to the DEMs. Seems like a longshot?

This is the party that orchestrated at least four separate legal assaults on Trump, coincidentally in the year of the election. Don’t under-estimate their chicanery. And while they  didn’t pay off the media as Trudeau has done, they don’t need to. They get the love for free.

Give them credit if they do, because doing nothing is a ticket to four years of The Don.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Now for pre-order, new from the team of Evan & Bruce Dowbiggin . Deal With It: The Trades That Stunned The NHL & Changed Hockey. From Espo to Boston in 1967 to Gretz in L.A. in 1988 to Patrick Roy leaving Montreal in 1995, the stories behind the story. Launching in paperback and Kindle on #Amazon this week. Destined to be a hockey best seller. https://www.amazon.ca/Deal-Trades-Stunned-Changed-Hockey-ebook/dp/B0D236NB35/

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Bruce Dowbiggin

In Toronto The Leafs Always Fall In Spring: 2024 Edition

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Who knew when we tuned in Saturday night to Hockey Night In Canada that we would be witnessing playoff history. Nay, not just playoff history but hockey history. According to what we saw and heard on HNIC just ONE TEAM played on Saturday. And they lost. It goes without saying that the team was HNIC’s beloved Toronto Maple Leafs.

Those of us who’d stuck with the telecast all evening could’ve sworn there was another team on the ice in black and gold. Rumour has it they were the Boston Bruins, but don’t quote us on that. Also, take it as a rumour that Boston’s 3-1 win gave them a 3-1 lead in games over Toronto heading back to Boston for what most expect will be the  coup de grace for the blue and white. Again.

But when time came to discuss the game afterward the Toronto-based panel told us that the Leafs had beaten themselves. Yes, in some hockey version of metaphysics Toronto had transcended the third dimension. The Bruins were like The Fugitive, lurking far out of sight. Brad Marchand had had nothing to do with breaking up Toronto’s neutral-zone speed nor Charlie McAvoy clearing the front of their net. Jeremy Swayman, who he?

Instead the talking heads dissected the loss in shades of blue.

For those who were washing their hair or another vital task on Saturday, the Leafs had more story lines than a season of Curb Your Enthusiasm (insert your joke here), They finally got their migraine-afflicted star William Nylander back in the fold before a delirious Scotiabank crowd who’d probably paid about a $1000 a ticket to attend. But their star sniper Auston Matthews (allegedly) had food poisoning or a gall stone or a tee time next week back home in Scottsdale. Hard to say.

There was also a goaltending controversy, a Mitch Marner controversy and a Keith Pelley controversy (more on MLSE’s new CEO in a moment). And the, you know, 1967 thing. Despite the hysteria of their long-suffering fans at puck drop, postgame analysts hinted the Leafs seemed to be disinterested. Or, to those who actually watched the game, they were schooled by a better Boston team.

By the middle of the second period, despond and a 3-0 deficit had settled on the Leafs. Despite being the ONLY TEAM on the ice their well-compensated stars were bitching at each other on the bench. While Matthews looked glumly at his pals, Marner had a hissy fit throwing his gloves to the floor. Nylander lip-synched a rebuke to Marner along the lines of Grow up, this ain’t junior hockey. Did we say the crowd booed them off the ice after the second period? Yeah, that too.

Which led mild-mannered Kelly Hrudey to scold Marner for a bush-league behaviour in the break. Remember, Hrudey’s the nice guy on the HNIC panel. Where others see an alligator chomping on their leg Kelly sees a chance to get up-close with nature. So the rebuke for Marner was incendiary. By the time they dropped the pick for the third period you’d have thought Bob Cole wasn’t the only person to pass away this week. Gloom.

Making matters worse, Matthews was nowhere to be found. (According coach Keefe, the doctors had pulled him from the game. Whatever.) When the contest ended with a Toronto loss, the postgame chatter was once more obsessed with Toronto’s failings, as if another team were not having its way on the ice. Where was the effort? Where was the intensity promised when Leafs management spread dollars like Easter candy among its Core Four?

Kevin Bieksa, typically the most salty one on the panel, reminded everyone there was a Game 5 Monday and that 3-1 leads have been overcome. But with Toronto’s success in comebacks being nil he sounded like a guy trying to sell you a penny mining stock.

The dressing-room afterward was mint. “You know what, that’s just the way we are,” Nylander said. “I mean we expect a lot from each other, and we love each other.”

“I don’t think there’s any (frustration),” Marner added unconvincingly. “We’re grown men. We were talking about plays out there that we just want to make sure we’re all 100 percent on and know what we’re doing… We’re not yelling at each other because we hate each other.”

Chris Johnston of The Athletic called it the end of the Maple Leafs as we know them. “They’re making more mistakes at five-on-five, they’re soundly losing the special-teams battle, and they’ve transformed from being one of the NHL’s best offensive teams in the regular season to one that can’t score more than two goals per night in the playoffs. Wash, rinse, repeat.”

Coach Sheldon Keefe, whose shelf life has about 60 minutes left, was enigmatic in the face of cruel destiny. “You can question a lot of things; you can’t question the effort,” he said.

He’s right about one thing. When this first-round ends in ignominy there will be plenty of questions from Pelley, newly installed at the top of the MLSE pyramid. Such as, why should I keep this management team that teases Waygu beef in-season but delivers ground chuck in the playoffs? It’s long been said that the league the Leafs have been built for doesn’t exist in the postseason. So why keep pretending it does?

For those not in the know, Pelley has spent the last few years dealing with the Saudi’s LIV golf enterprise in his role as CEO of what used to be known as the European Tour. (Insert your barbarism reference) So he’s used to dealing with nasty situations.

Maybe his first act on the Leafs file is reminding everyone that two teams play each other in the playoffs, and it might be a good idea to learn from what the winners are doing.

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Now for pre-order, new from the team of Evan & Bruce Dowbiggin . Deal With It: The Trades That Stunned The NHL & Changed Hockey. From Espo to Boston in 1967 to Gretz in L.A. in 1988 to Patrick Roy leaving Montreal in 1995, the stories behind the story. Launching in paperback and Kindle on #Amazon this week. Destined to be a hockey best seller. https://www.amazon.ca/Deal-Trades-Stunned-Changed-Hockey-ebook/dp/B0D236NB35/

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