Molson Breweries announced yesterday that the NHL has
rejected a five-year, C$300M-plus offer for Canadian
broadcast rights to NHL telecasts. The league will instead
negotiate directly with Canadian broadcast outlets. Molson
had sought to reacquire the NHL rights for the period beyond
the '97-98 season. Molson, through its Molstar Sports &
Entertainment subsidiary, has managed national hockey rights
in Canada since '85. Molstar Sports & Entertainment
President Brent Scrimshaw: "Of course we are disappointed by
the league's decision. ... [T]he NHL sought greater control
over production, advertising and promotion and has elected
to undertake direct discussions with Canadian broadcast
carriers. We wish them well." Molson will remain active in
the NHL through its involvement with Canadian teams and
other marketing and promotional activities. Molson also
expects to enter negotiations with the league on a continued
sponsorship and beer exclusivity in Canada (Molson).
DETAILS: In Toronto, Rubin & McKee report the NHL's
move will "force competitive bidding by Canadian networks
and increase its revenue." Molson currently acts as a
middle man in "buying the rights from the league and then
reselling them" to the CBC and TSN. NHL COO Steve Solomon
said the league was looking to eliminate the middle man: "If
there's a financial reason to have the third party, that's
fine, but in this case, there wasn't the dollar premium that
would justify it." Yesterday's decision could "result in
the Saturday night hockey tradition leaving CBC for the
first time" since '52, "should another network such as CTV
or Canwest/Global outbid the CBC" (TORONTO STAR, 7/31).
Also in Toronto, Dave Fuller the move "could entice new
bidders, like CTV and its fledgling cable sports network ...
though it is felt that the NHL would like to maintain its
longstanding relationship with CBC." Molson retains its
local broadcast rights and will produce mid-week games for
all Canadian teams (TORONTO SUN, 7/31).
