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

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
Why Best Friends Are Fighting: Tariffs Are Just Trump’s First Salvo

Trump is holding a mirror to a postmodern Canadian state that still thinks it’s Bob & Doug McKenzie and polite folk opening the door. Maybe it was at one time, but since Justin Trudeau spread his chocolatey goodness on the nation it’s now a world centre for money laundering that won’t pay its defence obligations.
The hysteria was mint this past weekend from panicky Canadians acting as if Donald Trump’s tariffs were a Pearl Harbor sneak-attack. They booed the Star Spangled Banner at sporting events, had conniption fits of self pity (‘we’ve been friends for so long!”) and generally acted like fainting goats by forgoing U.S. sun holidays.
Whatever the merits of Trump’s beefs the indignant reaction revealed a very unsettled nation. Punishing America by pulling wines you’ve already paid for off the shelves is baffling. Cancelling a Star Link contract with Elon Musk is just a self goal. (A chastened Musk replied, “Oh well!”) Alberta premier Danielle Smith, who’d used negotiating to get a cutout for Canadian oil, being roundly called a vendu by the righteous Eastern horde was precious.
Charter members of the crumbling legacy media outdid themselves in promoting Trudeau’s fanciful Team Canada theme. “This is a mind poisoned with grievance and resentment,” raged CBC panelist Andrew Coyne. “So coked up on his own bile that even in a moment of maximum national peril his first thought is how to use it to settle scores with the rest of the country.”
Well then. It was all rather unseemly. Noted Dilbert creator Scott Adams, “Canada’s response to Trump’s tariffs is to be publicly sad about it.” But are Trump’s concerns genuine? Is he picking unfairly on a longtime pal? The fact is that Trump is holding a mirror to a postmodern Canadian state that still thinks it’s Bob & Doug McKenzie and polite folk opening the door. Maybe it was at one time, but since Justin Trudeau spread his chocolatey goodness on the nation it’s now a world centre for money laundering that won’t pay its defence obligations.

Example: TD Bank was just fined $3B by US regulators for laundering fentanyl drug money back to Communist China. It’s the largest such fine in U.S. history. A fine TD paid without complaint. Trudeau’s Canada is a credit-bubble real estate play inside a WEF construct wrapped up in an entitled clique that sits in first class but only pays economy. (And don’t get us started on the unsolved Sherman murders.)
Having gotten their news from CBC and Toronto Star, the average CDN does not understand any of this. While the Libs/ NDP swoon over climate and pronouns, Canada has become a place that Trump and other nations simply don’t trust. Security officials fear that anything said to Trudeau’s government will end up getting to China or other bad actors. And many of those same bad actors are domiciled in Canada at the moment. (The RCMP say there are over 4,000 separate groups dealing drugs in Canada.)
Canada’s exclusion from surveillance organizations like AUKUS and the G7 Quint talks is enough to tell you that Trump is not alone in distrusting Canada. Under the previous Obama doctrine, Canada was cool so long as it did DEI, ESG and had kittens over climate. Biden let the Great White North snooze away under Trudeau. The new American administration, however, has a higher bar of expectations.
Ones Trudeaupia has not met. How do you describe America’s sense of astonishment when it asked its “loyal friend” Canada not to import 5,000 undocumented Gazans during this current shooting war, not wanting terrorist sympathizers along its northern border. Then, out of spite, Trudeau’s response was to bring them in, give them healthcare and do photo ops with them?

Trudeau has also lectured Americans for electing Trump and not a woman in 2024. No wonder Trump played them last weekend about their lax border security. One of the “brilliant” ripostes on borders — repeated by all the clever people— was that only one percent of America’s fentanyl comes from Canada. For those who think that’s a mic-drop moment consider: that’s fentanyl seized by America at the border.
Here, Canada’s international crime agency destroys the one-percent argument. Canada is a major manufacturer and distributor of fentanyl. How major? There is a technique used by international drug and money launderers called the Vancouver Model.
As a recent discovery of 8 Kg during a truck stop in Swift Current illustrates, the amounts undiscovered in Canada and the U.S. that originate from shipments to Montreal or Vancouver are way more than the CDN media parroted over the weekend. For those booing the Star Spangled Banner, note that 8 kg. is enough for four million deadly doses of fentanyl. (B.C. NDP premier David Eby had to confess he can’t even begin to inspect all the drugs flowing through Vancouver).

This story of a Punjabi driver arrested in Manitoba with $50M in meth in his truck gives you the flavour. Last month, Toronto police seized 835kg from a truck and stash houses across the city. And, say experts, there are more terror suspects coming from Canada to America than from Mexico. Now tell us why the unchecked importation, distribution and profits from the drugs are not significant in a trade deal.
Speaking of truckers, Canada’s explosion in newly arrived cross-border truck drivers is another huge issue for Americans. As Toronto business writer Stephen Punwasi @stephenpunwasi explains a good portion of the “students” coming into the nation are getting a very different education on life in Canada. “Canada had no checks or balances for its study program. No background checks or school verification. Just show up at the airport w/ proof of funds, and a letter they won’t verify. That’s it. ” These “graduates” quickly end up in a rig running contraband drugs, guns and tech to supplement their minuscule earnings.
“Between 2017 & 2024, Ontario went from 80 truck driving schools to 280. The province has 6 auditors for 600 private career colleges—almost half for trucks, apparently. No enforcement standards.
“To recap,” continues Punwasi:
-
“money laundering capital of the world
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– no school regulations
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– criminals run certifications
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– desperate folks from developing countries w/no standard of entry
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– no scrutiny for x-border traffic”
Canadian trucking executives know the problem in the industry. They say new entrants make no money trucking, but they do make for easy “‘runners’. It is rampant. One executive says his firm has virtually exited the cross-border business, because of the changing demographics. These truckers— many of them speaking no English— are housed in suburban neighbourhoods in Brampton or Mississauga or Surrey, stacked by the dozens in barracks homes in between their sorties to the U.S. and the ROC. Attempts to restore local zoning laws are fought by the ringleaders.

But hey, says CBC, Trump exaggerates the problem. He’s also contemptuous of the current attempt to slide climate alarmist Mark Carney into Trudeau’s seat. The dread of being lectured by a CBC-approved suit like Carney is only leavened by the prospect that he can deal with Pierre Poilievre when— if— the Liberals ever let Canadians voice their will. This is what Canada’s Left call progress. Save the tundra and the Arctic swallow but crater the economy.
A final feature of the pearl clutching this past weekend was the idea that Trump would somehow invade or otherwise claim Canada as a 51st state. Canadians seem to feel that Trump’s job is to pacify their feelings, not act on behalf of those Americans who decisively elected him and his mandate. Like victims of a high school break-up Canadian progressives are now tearing up all the letters and sending back the jewelry from their tryst. Memo to Canada: Being U.S. president is not joining a book club. As such you don’t elect a trust-fund poseur.
Whatever Trump’s jest, the last thing he wants is the culture nightmare of Quebec, the vast land claims of the native tribes, the welfare status of the Maritimes and the unbearable smugness of the Flora MacDonald Marching Band in Ontario. If Canada or Canadians are to join America it will be because they’ve asked in, not be captured. Trump would dictate the terms, and he doesn’t want a dozen new Mississippis, especially ones with poutine.
For now, the 30-day pause in tariffs allows time to drop the theatrics and get on with the reality of an economy that will consume Canada’s economy at the present rate. By week’s end even Trump’s vitriolic critics like the Globe&Mail were offering backhanded acknowledgements that, however crude they found the president’s tactics, he did wake up Canadians to the issue of Canada’s lassitude on defence and the border. Doomberg summed up the conflict. “The economic wisdom of applying tariffs is worthy of debate, but the threat of tariffs has proved the perfect instrument for the task. Having weighed 250 daily American deaths on the scale of trade-offs, Trump’s actions have finally acknowledged reality. Godspeed’.”
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. You can see all his books at brucedowbigginbooks.ca.
Bruce Dowbiggin
The Limping Loonie: Are Canada’s Pro Sports Team In Trouble Again?

With the Canada/ U.S. Tariff War going from talking conflict to hot trade war on Feb. 1 there are numerous predictions as to what might happen if the dispute drags on. As the sides in the Ukraine War will tell you very few of the outcomes so far were foreseen by the sides when the shooting started. That’s the nature of these conflicts.
One immediate byproduct seems to be the continued descent toward 60 cents by the Canadian dollar. If Trudeau and his anointed successor Mark Carney are true to character it will also involve billions in cheques going out the door— a la Covid— to those citizens “harmed” by the Liberals stumbling into a highly predictable and easily avoidable trade war. If past is prologue, vast amounts of that money will disappear as bad actors find a way to access the funds. While Canada’s GDP collapses some more.
For the moment, however, let us concentrate on what Justin Trudeau’s ineptitude might be costing Canadian professional sports teams in American-based leagues. On the purely trivial level it means that your beer at the park/ arena will be Canadian suds exclusively. Not cheaper or better. Just Canadian. Owners will stock luxury boxes with Canadian wine, etc. A road trip to see the Canucks in L.A. or the Canadiens in NYC will balloon, too.
But on a more serious level the showdown between Donald Trump and Trudeau could well return Canadian teams in the NHL to the bad-old days of the early 21st century. Despite efforts then to create a Canadian fund to save teams, two clubs— Winnipeg Jets and Quebec Nordiques— were forced to sell because of a dollar that bottomed out around 62 cents U.S. Winnipeg went to Phoenix/ Quebec City went to Colorado as a result
In Montreal the MLB Expos also moved— to Washington— after 37 years, because no one in Quebec would/ could pony up the money to make up for the declining dollar or repair the disastrous Olympic Stadium. Expos fans then had the cruel fate of watching Washington win the 2019 World Series after the Expos had never gotten that far. (Nordiques fans saw Colorado win two Stanley Cups after escaping Quebec.)
Why were these teams forced to move? Because while teams collect revenues locally in Canadian dollars almost all their payroll and other costs are paid in American dollars. So when you see the Toronto Blue Jays facing a possible US $500 million price tag to keep star Vladimir Guerrero you’re really talking about raising $750,000 million in CDN revenues to meet the demand. Multiply those jumps over a 25-man roster and you’re talking a huge jump in payroll— or being consigned to after-ran status.
While no one is about to hold a tag day for Toronto it will make the Jays’ job of competing in a division with the big-spending New York Yankees and Boston Red Sox that much harder. With a national market of almost 40 million now to exploit they still have resources. But will American players want to play in Canada during a hot trade war between the nations? Now that yahoos fed by a doltish CDN media have started booing the Star Spangled Banner in Ottawa and Vancouver before games do you think that will encourage American stars on teams there to stick around?

But the NHL is where the biggest losses will be seen. Already there have been concerns about the Jets.2 surviving in Winnipeg. Last week it was revealed that after years spent coming back from Covid revenue shortages, the NHL is going to raise its salary cap from today’s US $88 million to as much as an estimated US $115 million in three or four years. The news that players will no longer have escrow payments held back to compensate owners for revenue shortages was greeted with cheers by players and their agent.
The boost in the cap will likely mean that today’s US$14 million peak (Leon Draisaitl) will also advance to somewhere just beneath US$20 million a season. And while that figure is a few years off, teams will have to start negotiating today with their stars with that figure in mind if they wish to retain them.

The test case will be superstar Connor McDavid who is due for a new contract after 2025-26. For the small-market Edmonton Oilers that will mean creating a template that buys him out of estimated salary later by boosting his salary before the cap arrives at its peak. With Draisaitl already pulling down top dollar the Oilers’ resources will be stretched thin to accommodate McDavid— while still paying the rest of the roster.
Could the drop in the dollar produce another Gretzky-like trade for Edmonton when the Oilers were forced to dump the greatest scorer in NHL history to L.A. because his worth exceeded the Oilers’ ability to pay? We chronicle the trade in depth in our new book Deal With It: The Trades That Stunned The NHL & Changed Hockey.
The fate of hockey stars will be only a small piece of any future U.S. trade deals. But they will be highly visible to Canada’s hockey fans. Not being able to satisfy them is a political price no pelican wants to face. But given the current intransigence by Justin Trudeau scrambling to stay in office it is far from improbable.
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. You can see all his books at brucedowbigginbooks.ca.
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