As part of the NHL’s expected move to Las Vegas, the league will have to negotiate with two of its existing clubs to create a local-market broadcast package for its newest franchise.
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The Kings are familiar with Las Vegas, having played preseason games at the MGM Grand Garden Arena since 1997.
Photo by: GETTY IMAGES
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The Los Angeles Kings and Anaheim Ducks currently control Las Vegas’ TV market, with their games broadcast regionally by Fox Sports sister networks Fox Sports West and Prime Ticket. Those rights are held through a 10-year deal for the Ducks (signed in 2014) that pays the club an estimated $13 million a year, increasing annually, according to a source. The Kings have a 12-year deal, valued at more than $20 million annually, signed in 2012.
A fee would need to be paid to the California teams to cede their TV rights to Las Vegas, and the NHL would play a role in crafting that deal.
Both the Kings and NHL Deputy Commissioner Bill Daly declined to comment on the impact of the NHL’s expected new Las Vegas team. The Ducks did not respond to requests for comment.
The local TV negotiations, however, are expected to be little more than a formality, for several reasons. Both Los Angeles and Anaheim view Las Vegas as an outer market, relatively speaking, for their territories; the city is about 270 miles from Los Angeles. The Kings and Ducks also will receive a share of the expected $500 million expansion fee that would be paid by the Las Vegas team’s ownership group, led by Fidelity National Financial Chairman Bill Foley — a cut of nearly $16.7 million per team.
Kings and Ducks games would be considered out-of-market games in Las Vegas upon completion of new local TV rights agreements and would be made available in that city through NHL.TV and other providers.
The Las Vegas expansion franchise is expected to be confirmed on Wednesday following a meeting of the league’s board of governors in Las Vegas. Earlier this month, the board’s nine-member executive committee led by Boston Bruins owner Jeremy Jacobs recommended the approval of the new franchise.
NHL Commissioner Gary Bettman has said no expansion team would enter the league prior to the start of the 2017-18 season.
The NHL, like other major leagues, has geographic restrictions in place that prohibit teams from advertising outside of their designated home territories. Daly declined to comment on the specifics of the restrictions, but they do not prevent the Ducks’ and Kings’ games from being broadcast in Las Vegas.
Additionally, the Kings have been active in Las Vegas during the preseason, playing games at the MGM Grand Garden Arena dating back to 1997. Los Angeles has two preseason games for the coming season slated for Las Vegas, with both of those set for the new T-Mobile Arena. That venue — a joint venture of MGM Resorts International and AEG, which owns the Kings — would be the home arena for a new Las Vegas NHL club.
For the 2015-16 NHL regular season, Las Vegas averaged a 0.25 household rating for national game broadcasts, according to Nielsen data.
According to the Kings, 70 percent of the tickets for their Las Vegas games typically are sold to fans from Los Angeles and other California cities who then travel to the game.
