Connect with us
[the_ad id="89560"]

Bruce Dowbiggin

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

Published

9 minute read

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.

Sign up today for Not The Public Broadcaster newsletters. Hot takes/ cool slants on sports and current affairs. Have the latest columns delivered to your mail box. Tell your friends to join, too. Always provocative, always independent.  https://share.hsforms.com/16edbhhC3TTKg6jAaRyP7rActsj5

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.

Follow Author

Bruce Dowbiggin

WOKE NBA Stars Seems Natural For CDN Advertisers. Why Won’t They Bite?

Published on

The wonderful people who brought you Elbows Up and Don’t Shop At Home Depot! are now on to Edmonton Oilers Bring Home The Cup. In response to no Canadian-based team winning the Stanley Cup since 1993 the corporate nostalgia folks are linking arms with Connor McDavid & Co in their struggle with the dastardly Florida Panthers. The Oil are now Canada’s team!

In one bit they were taking ice shavings from McDavid’s home rink in southern Ontario to mix with the frozen Zamboni water of Edmonton’s Rogers Place arena. Okay, they have eight players on the Oilers roster who aren’t Canadian (hello Leon Draisaitl), and the stars now killing it for the Panthers, Sam Bennett and Brad Marchand, are from Ontario. But never mind. Like playing Mr. Dressup trivia with Mike Meyers it’s just too good an idea to waste.

The outcome of all this patriotic wind therapy will be determined Tuesday— or Thursday at the latest. But it will have achieved the desired goal of warming the cockles of all those Canadians who turtled in the election, flipping back to Mark Carney’s Liberals when the going got a little rough with Donald Trump. Resulting in a maximum four more years of Carney’s faculty lounge of dunces and Kamala Harris clones.

While the marketers were playing the Maple Syrup March over the Stanley Cup Final they missed an even better opportunity to marry Canadian patriotism with sport. We speak, of course, of the inevitable crowning of Canadian stars as champions of the NBA. In fact the entire progress of the postseason in the sneaker league has witnessed great Canadian results.

Not least of which: Hamilton’s Shai Gilgeous Alexander winning the NBA MVP while leading his Oklahoma City Thunder to the brink of the NBA crown. For those distracted by Stu Skinner and Corey Perry, SGA is a revelation, If you missed him leading Canada back to the Olympics last year the wiry 26-year-old is a lithe, unstoppable chinook who routinely scores 30 points a game.

He has help from another Canadian, Montreal’s Lu Dort, a finalist for NBA defensive player of the year, who also led Canada to the Olympics. As unstoppable as SGA is, Dort is immovable. But that’s not all the Canadian content. In the Finals they are up against two more Canadian teammates from last year. Aurora Ont.’s Andrew Nembhard is the back-court catalyst for Tyrese Haliburton’s  Indian Pacers, taking them to the Eastern title and within two wins of the NBA title. He’s assisted by another Canadian, Montreal’s Benedict Mathurin, the hero of the Game 3 win for the Pacers. They’re now household names.

The Canadian content didn’t end there, either. In the semifinals, the Thunder beat the Minnesota Timberwolves featuring SGA’s cousin Nickeil Alexander-Walker , another alumnus of the CDN national team. At one point the two close friends were anything but friendly, shoving each other under the basket.

They had Canadian company in the postseason. In earlier rounds R.J. Barrett and the New York Knicks made it to the second round in the East, Jamal Murray’s Denver Nuggets fell to the Thunder in Round Two, while the Houston Rockets and Mississauga’s Dillon Brooks, a tenacious physical presence, lost to Steph Curry’s Golden State Warriors . Meanwhile, Corey Joseph’s Orlando Magic lost in the first round to Boston.

But the Canadian content didn’t end there. The Toronto Raptors, NBA champs of 2019, are now spread throughout the league, affording nostalgic Canadian fans a rooting playoff interest in players such as Pascal Siakim, who’s pairing with Nembhard and Mathurin to push the upset-minded Pacers, shooting guard OG Anunoby teamed with small forward R.J. Barrett on the Knicks and point guard Fred Van Vliet of the Rockets. All harkened back to the Raptors’ greatest days.

But in the heat of Elbows Up marketing these great performances don’t seem to get a sniff from marketers looking to promote Canadian unity in these fractious days. While the sports networks give airtime to the stories in the Association. the general public and advertisers have little time or inclination to draw patriotic strength from these young men.

Before we completely condemn Canadian marketers it should be noted that the interest in the NBA in general is waning. The NBA has lost 75 percent of its TV audience since the Michael Jordan peak while many other sports — NFL, men’s & women’s college basketball, college football — have set record TV ratings. Yes, TV ratings in many fields have dropped since the 1990s. Still, it seems significant.

The problem for the NBA in a Time of Trump is its embrace of hard-left politics. Whether it’s LeBron James defending Chinese shoe manufacturers, the slavish devotion to #BLM even as its corruption is revealed and a maniacal obsession with Donald Trump (and embrace of Kamala Harris) the NBA has made its bed with radical political and cultural elements. It’s as if the Trump election and cultural shift never happened.

In this wilful blindness they are supported by their media partners whose own credibility is at an all-time low after carrying water for the Biden farce and Kamala’s erasure. Ironically, this is the same political crash car running Canadian politics at the moment.  You’d think that would make the NBA— and its sister Women’s NBA—like catnip to the Canada Not For Sale crew.

So far the hockey quest is foremost in their minds. But perhaps when SGA holds the Larry O’Brien Trophy they might just achieve the symbiosis that the sport has always coveted.

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, his new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous 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 brucedowbigginbooks.ca.

Continue Reading

Bruce Dowbiggin

Canadians Thinks America Owes Them. Trump Has Other Ideas

Published on

Breaking: It’s now being reported that in the 2024 U.S. election, zero Canadians voted for Donald Trump. In fact, zero Canadians voted for anyone on the ballot. They’re not allowed to. And yet rage monkeys in the Canadian media seem to have the idea that Canada is— and should be— an immediate priority of POTUS 47.

Here’s Globe & Mail/ CBC wind therapist Andrew Coyne about ten exits past normal on the idea of Donald Trump on Canadian soil. Okay, on Alberta soil. “We’re going to roll out the red carpet for the wannabe dictator of America at the very moment he is moving to suppress dissent with armed force?” (You mean like the Truckers Convoy?)

Cartoonist Michael DeAdder, who likely cries if you use improper pronouns, says “Hold my kombucha”. His latest etching has Trump asking a veteran what he did in the war. The witty retort is “Fought against people like you”. Get it? Trump murders six millions Jews. But The Hill keeps this guy working, and the laughs just keep on coming. Free speech!

The presumption is jaw-dropping. Even as Trump’s approval rating hits 53 percent, Canadians online were echoing Democrats’ fever dreams of forming a shadow government to take over from Trump via coup. This sense of impunity at a distance is why the Canadian government— along with other drive-by virtue signallers UK, Norway, New Zealand, and Australia— have imposed sanctions on two sitting members of the Israeli cabinet. They know it will rile Trump’s America.

For ordinary Canadians, Trump became a post-it note to justify giving Team Liberal another swing at ruining the nation. “We used to be such friends! He’s a tyrant.!” This just in: Love him or hate him Trump is employed by Americans to do their bidding. He’s not a sentimental buddy of Canada who’ll cut us some slack for old time’s sake. He has no remittance from Canada to please the Laurentian elites. If your defence is non-existent and your military gender-obsessed: you had it coming.

Are his policies jostling Canada? Absolutely. Read Art of the Deal. The 51st state jibe when Justin soiled himself was rude. But it worked on pliant Canadian liberals. Now the The Little Banker is disavowing the dissolute decade of Trudeau while employing Conservatives’ policies on defence spending, inter-provincial trade and border security. Hell, he’s naming longtime Tories to his personal staff.

In the end Carney knows this ain’t mock Parliament. That his dossier begins and ends with satisfying the beast to the south. None of this should be a surprise. Yet Canadians dozed when Trump made clear in his election campaign that the American economy is the greatest in the world. If you want to fish in that pond it’s not going to be for free. That means tariffs for a range of U.S. industries that couldn’t compete in a Biden world.

We can argue how well tariffs work, but Trump wants them to reduce taxes on the people who elected him. Not the Canadians who fly first class but pay economy. And who have pushed his approval ratings into the 50s, higher than ever before. (Likely to spike higher after the No Kings Riot season peters out.)

No wonder Canadians preferred the guy before Trump, the senile sock puppet whose government was run by anonymous figures using the auto-pen. Sleepy Joe let Canada slide into mediocrity and financial peril without any judgement. It was comfortable. Then The Donald had the nerve to expose the ditch Canada was in.

Canada, Trump pointed out,  was delinquent on its defence, harbouring Chinese drug lords, printing money like Canadian Tire and its banks were involved in money laundering. That was the nice stuff. Try Organized fentanyl networks operating with impunity in the largest cities of the nation So dumping on Trump in salty cartoons allows Canada’s Mod Squad to ignore the real issues that should have been litigated in the April election.

We have written extensively about the ruse that was played on gormless Canadians in  “U.S. Voters Smelled A Rat But Canadian Voters Bought The Cheese” We have catalogued Canada’s drug and money laundering disgrace in “Chinese Gangs Dominate Canada: Why Will Voters Give Liberals Another Term?” We’ve described the real-estate bubble economy created by Trudeau and sidekick Carney that threatens to crash the economy and ruin seniors’ pensions in

In the end, it is still la-la-la-la We Can’t Hear You. Trump-obsessed Boomers more concerned with the equity in their jumped-up bungalows gave the finger to the next generations and blamed it all on Orange Man Bad. In the monotone of Canadian political comment it all seemed so easy. Turn against Trump. Cash another dividend. Cheer on MSNBC and CNN bitch sessions.

The Family Compact don’t get it. Their Antifa heroes down south plan demos and “nonviolent” activity to crater the public resolve. In Canada that still works. But in the U.S. the Covid reverb is hitting the natural governing class of the nation. While they craft fine phrases about democracy the consumers remember them using a virus to stop society.

The appetite for Gavin Newsom blovaitors and Jen Psaki fart catchers is crashing in America. Riots may be coming in the U.S., but it won’t be like  George Floyd and Covid and the pussy hats. At some point Canada’s docile classes better wake up, too. America owes them nothing. They need to earn the respect.

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, his new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous 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 brucedowbigginbooks.ca.

Continue Reading

Trending

X