The NHL's cable deal with the fledgling CTV Sports Net
is examined by William Houston of the Toronto GLOBE & MAIL.
Canada's six NHL teams "voted unanimously" last week to sell
national cable rights to CTV Sports Net (CTVSN) in a
decision "based on future TV revenue." CTVSN, which will
have four regional signals, "will now begin buying regional
cable rights" from the clubs, providing a new, fourth source
of TV revenue for Canadian teams. The six teams already
receive national over-the-air, local over-the-air and
national cable rights. CTVSN, which will broadcast 27 games
in '98-99, "could eventually" show up to 100 games a season
with the addition of local rights. Houston reports that
CTVSN got the NHL package "for about" C$15M a year, while
TSN offered C$10M. Houston writes that by failing to hold
the NHL rights, TSN's Founder & Chair Gordon Craig "made a
devastating tactical blunder. ... he gave Sports Net the
high-profile property it needed to begin operation. As a
result, TSN now has competition" (GLOBE & MAIL, 11/26).
ON THE REBOUND: After losing the NHL, Houston writes
that TSN will "probably" look to show "more NBA games." One
TV exec said Craig should be "developing a huge affection
for the NBA. Basketball has an immense growth opportunity
in Canada" (William Houston, Toronto GLOBE & MAIL, 11/26).
