Rogers NHL deal: Pros & cons from new 12-year, $7.7 billion Canadian TV deal 

The NHL has signed a new 12-year TV rights deal with Canadian broadcasting behemoth Rogers Communications, Sportico reported on Monday.

The league’s new 12-year pact comes as the previous TV rights deal between both parties was set to expire. The NHL and the broadcasting giant signed a 12-year contract in 2013, meaning the current deal will expire at the end of next season.

Rogers is the parent company of Sportsnet, which holds exclusive rights to games featuring Canadian hockey teams like the Toronto Maple Leafs, Vancouver Canucks and Edmonton Oilers.

Here's a closer look at the pros and cons surrounding the new major TV rights deal between Rogers and the NHL.

Pros & cons of Rogers NHL deal

Pros

Firstly, the new Rogers TV deal is reportedly worth $7.7 billion over 12 years. That works out to over $640 million per season. The new deal’s annual total is double Rogers’ current deal.

That situation is partly what has allowed the league to raise the salary cap ceiling for the next three seasons. That situation not only allows teams to spend more but also allows clubs to retain many of their biggest stars.

Secondly, the new deal with Rogers solidifies the League's standing in its biggest market. In particular, teams like the Maple Leafs, Canucks and Oilers drive much of the viewership within Rogers’ broadcasting territory.

As a result, the new pact ensures continuity and consistency in the NHL’s coverage for the next decade or so.

Lastly, the league has cost certainty moving forward. In other words, the NHL can project how much it will earn as Rogers’ new contract, plus the one signed with ESPN, gives it certainty moving forward.

In pro sports, having cost certainty is something crucial as clubs plan their payrolls and athletes demand wages.

Cons

Arguably the biggest issue with this new deal is the apparent monopoly that Rogers has built in the Canadian NHL market. Aside from Bell Media, Rogers doesn’t have other competitors for TV broadcasting rights.

While other networks like ESPN carry Canadian-market games, the games are relatively few. Other potential entrants like Amazon have tested a short package of NHL games with resounding success.

However, there’s no telling if Amazon or Netflix, who are reportedly looking to enter the sports streaming sector, will be able to gain a foothold in the Canadian market.

Furthermore, concerns regarding blackouts in some markets may become an issue. While fans may be able to catch most, if not all, Canadian-market games, there may still be issues with American-market games in Canada and Canadian-market games in the US.

This situation hasn’t been a major issue for the league thus far, but could become a concern as regional networks, like Bally, disappear from the landscape.

All told, Rogers’ new contract, while largely positive, may continue to exacerbate current concerns moving forward. It remains to be seen if any of these concerns grow into issues for the NHL.

What do you think of the NHL's new 12-year TV deal with Rogers? Let us know your thoughts in the comments section below.