[News] NHL and MLB announce digital operations partnership

[sureLoss]

http://www.sportsbusinessdaily.com/D...px?hl=nhl&sc=0

The NHL has signed a six-year partnership with MLBAM in which MLBAM and MLB’s overall media division will now operate the NHL’s digital operations, streaming services and NHL Network, according to multiple sources. The deal, valued at more than $1.2B over the course of the contract, will also give the NHL a 7-10% equity stake in MLB’s digital arm. MLBAM will take over operations of the websites of the league and its 30 clubs, all mobile applications, and its GameCenter Live streaming video service. The NHL had previously used NeuLion as its digital vendor for the past seven years.

MLBAM will also oversee NHL Network, moving the channel's HQ to MLB Network’s existing location in Secaucus, N.J. With the new deal, MLBAM will work with the NHL on programming and production, and pay the league approximately $100M a year in rights fees. The partnership will be formally announced during a conference call this afternoon hosted by NHL Commissioner Gary Bettman, NHL COO John Collins, MLB Commissioner Rob Manfred and MLB President of Business & Media Bob Bowman.

[OutOfTheCube]

Interesting, so... good for the NHL?

[Resolute 14]

MLB team websites are a horrible, muddied mess. Even worse than NHL team websites. We lose if MLBAM decides to standardize.

Otherwise, this is a rather interesting partnership between two entities that are ostensibly competing for the same dollars.

[Caged Great]

Yuck. I hate the MLB's convoluted mess of a website. Not a fan of this at all.

[Matata]

I've heard MLB's digital streaming is first rate, but I'm not sure what the point would be to revamp the team websites. Cautiously optimistic.

[Resolute 14]

For the same reason why both the NHL and MLB standarized all team websites. Consistent templates are easier to manage.

[RedHot25]

MLB fan here.

I use MLB.tv and quite like it, although I know a number of complaints are out there. Generally though I have found very good quality, good controls, etc.

Websites though are bit of a mess. Well they are ok, but I just feel that they good be....better. Not completely what I would expect from such a successful digital operation.

[squiggs96]

MLB.tv is very good ............... now. There have been some huge problems with it, but I think they finally figured them all out. This year's mlb.tv games have been excellent, and the quirks, problems and complaints have almost all been fixed. Like any streaming service it looks very good, but once you switch to the TV, and have the regular feed come through your cable box, you realize how sharp and crystal clear the TV is compared to the stream.

[Finger Cookin]

So is this an additional $200M of HRR for the cap in each of the six years? That's about a $3.3M cap increase per team.

[sureLoss]

Originally Posted by Finger Cookin

So is this an additional $200M of HRR for the cap in each of the six years? That's about a $3.3M cap increase per team.

It is kind of hard to say how much of an effect this will have on the cap.

Frist, it sounds like the NHL is getting $100 million per year with the rest of the deal as being the equity stake in MLBAM. Not sure how the NHL and NHLPA will agree to equate that stake into HRR over the next 6 years, if they do so at all.

Also that $100 million per year doesn't mean that the NHL is actually gaining $100 million per year. All the revenue that the NHL previously made from its websites (advertising, etc.), NHL network, and Gamecenter live now go to MLBAM. Without knowing how much the NHL was previously making off their digital services it is hard to know the net benefit to HRR.

[nfotiu]

MLB Advanced Media has a very strong reputation for being best in the business. They are also providing streaming for the new HBO Now service. There is a lot of room for improvement in NHL Gamecenter. It never has been able to consistently keep a solid frame rate, and would be nice if it was expanded to more platforms like Chromecast, etc.

The equity stake could prove to be very fruitful over the years too, as MLB AM has been a very profitable arm of MLB and really has a lot of potential.

[Sidney Crosby's Hat]

MLB websites also have all their content done by MLBAM staff and club web staff does not even exist. That would be a huge change and would probably suck for teams that do a decent job like the Flames since it would gravitate to the lowest common denominator.

[PeteMoss]

Maybe they can actually get the streaming to not have that 1-5 minute delay and the Game Centre folks could actually participate the game threads.

[snowdude]

http://www.sportsnet.ca/hockey/nhl/a...ip-with-mlbam/

First, much to the relief of teams, players and agents, it will provide a revenue boost at a time the salary cap is flattening. According to several sources, the deal was first presented to the Board of Governors at the June meeting in Las Vegas. NHL COO John Collins would not confirm these figures, but word is the league valued the deal at $200 million per year.

The annual breakdown: a $100M rights fee to the NHL, $20M in savings from the league not having to invest in the capital resources/expertise it would take to go on its own, and $80M in equity in MLBAM’s technology business.

The equity portion may not figure in revenue calculations for the purposes of the salary cap. “We were told to expect $120M per year in added revenue… $4M per team,” one governor said.

[sureLoss]

Frank Seravalli @frank_seravalli
Bettman says "shockingly" reports of the financial value and nature of structure between NHL and MLBAM are false: "They're too high."

[curves2000]

Originally Posted by Sidney Crosby's Hat

MLB websites also have all their content done by MLBAM staff and club web staff does not even exist. That would be a huge change and would probably suck for teams that do a decent job like the Flames since it would gravitate to the lowest common denominator.

So are you saying that in the Flames case that people like Kristin Hallett and Ryan Leslie wouldn't be part of the website ?? For some sports and games I know that sometimes a central studio where they provide game day highlights and interviews etc for all the games. If this is the case I am not sure I like it. I much prefer having local talent look after the local team in terms of media.

[heep223]

FWIW, Neulion is a publicly traded company and the market hates this deal from their perspective. Stock gapped from $1.50 to $0.80 overnight.

[codynw]

Yea but will there be blackouts?

[sureLoss]

Originally Posted by heep223

FWIW, Neulion is a publicly traded company and the market hates this deal from their perspective. Stock gapped from $1.50 to $0.80 overnight.

Charles Wang is also heavily involved with Neulion. He started the company IIRC and currently is Chairman of their board.

[getbak]

Originally Posted by curves2000

So are you saying that in the Flames case that people like Kristin Hallett and Ryan Leslie wouldn't be part of the website ?? For some sports and games I know that sometimes a central studio where they provide game day highlights and interviews etc for all the games. If this is the case I am not sure I like it. I much prefer having local talent look after the local team in terms of media.

There's this quote from the Sportsnet story...

“We understand technology, we understand video and we understand distribution,” Bowman said. “We won’t suggest we have better thoughts. We’re the first to recognize we’re the new folks on the block, and have lot to learn… [Commissioner Gary Bettman] made it clear teams have a lot of rights with their own websites. This is no way encroaches on those rights.”

So, hopefully that means there will still be a place for the stuff that Hallett and Leslie do.