00:02:28.260So Gary Bettman and Bill Daly would never say no to that kind of money because of the
00:02:34.180amount of money from the tv deal and ticket sales and merchandise sales and overall league revenue
00:02:39.840the salary cap this year is 104 million paul next year it's 113 million in 2028 it's 127 million
00:02:49.280dollars that means the players are making more money the star players and teams have more room
00:02:54.880to keep star players so it it's good for the overall health of the league from a financial
00:03:00.980standpoint but for the average viewer for seniors for people maybe don't have the resources they
00:03:07.460will be missing a lot of hockey a very quick favor before we continue a large percentage of you who
00:03:13.860watch or listen to tpl media every week aren't subscribed yet our simple commitment to you is
00:03:19.860that if you find value there if these discussions make you think if you want our uncensored debates
00:03:26.900deeper dives and extended sit downs head over to tplmedia.ca and subscribe there directly it takes
00:03:34.100just five seconds cost nothing keeps you informed so thank you now back to the show yeah well they'll
00:03:41.300be missing a lot of hockey so jim back up a minute because it's interesting we did a show on i just
00:03:46.580want the viewers and you know i'm probably uh you got to get me up to speed a little bit 11 billion
00:03:52.180dollars correct right so there was a bidding on the tv rights yes and at the end of the day
00:03:58.980the amazon it was rogers it was a bunch of people it was warner i think in the u.s so take me through
00:04:07.660that so and go we have to go back to 2013 right when rogers bought the national nhl rights for
00:04:14.480at that time 5.2 billion for 12 years and everyone thought wow that's a lot of money they overpaid
00:04:21.160Right. And it seemed like it at first because there was a year, the first time ever, no Canadian teams made the NHL playoffs. Right. But things changed and we had great runs by the Sens and the Oilers and all these teams, all these Canadian teams. The Habs. The Habs had fantastic runs and then it started to pay off. So when the rights came up, Rogers, to their credit, decided they were going to push all their chips on the table and blow everyone financially out of the water.
00:04:49.900so they went from 5.2 billion in 2013 to 11 billion right and they sold and at the same time
00:04:59.980so 917 million a year for tv rights yeah so that and you know on top of you know and
00:05:07.100their asset purchases and everything as far as mlsc so they've been doubling down on this right
00:05:13.420in a huge way and there's not even in and and because so let's chat about that yeah because
00:05:18.620there's a i'm going somewhere with this a little bit they did that because quite frankly one of
00:05:23.340the only things you know is you're a tv network or you know you're producing broadcasting you're
00:05:29.660trying to grab on to things that you can get viewership on that you can actually sell advertising
00:05:34.780to correct right so they're you know they're i guess it's interesting their huge quest for these
00:05:42.540huge dollars to pay for the broadcast so they were worried i guess their concern at that point when
00:05:47.340that comes up for renewal is quite frankly an american company is going to hop in and grab
00:05:52.340uh but see this was for the um national tv rights in canada right so there was a possibility but
00:06:01.300to be honest with you they're betting against cbc which do not have the money to compete with them
00:06:06.740right it's government money and bell media tsn and bell media would only go so far now bell media
00:06:12.740slash tsn they have regional rights so tuesday night's game leaves the national predators was
00:06:18.980a tsn regional game right um so it's not seen nationally but they rogers has the national rights
00:06:25.680the the bulk of the playoffs the stanley cup final the big saturday night games the big games that's
00:06:31.380all rogers and sports now right so they they doubled their they doubled up their bid primarily
00:06:37.120to thwart off cbc and bell oh well they squeeze them out squeeze them out so squeeze them out so
00:06:43.740they basically said listen i'm going to double it up 11 billion you're not going to come in i'm going
00:06:47.380to go to 917 million dollars a year and that's the economics that you have that's the new sandbox
00:06:54.340we're playing in and everyone gets a piece of it and for the teams you can't say no to that and
00:06:58.940and it's in today's sports television it's not just the game itself paul it's the content it's
00:07:05.280the social media it's the video clips the interview clips the exclusivity that comes with this now
00:07:11.100yeah it's big for them that means elliot friedman and a 101 with gary bettman he gets it first
00:07:17.780because of their their exclusivity and their rights right so now they can they can actually
00:07:23.380go out and distribute a gotcha so they distribute the games like you said the primary games to the
00:07:29.380the content and they get roughly you know let's talk a million people a game like this for a leaf
00:07:36.020game well yeah see now let's see let's do a little bit rollback there sure yes the ratings are that
00:07:43.140yeah but what is the content what are the likes what are the clicks what are the impressions
00:07:48.180through the people watch the game on their phone people watch the game on their laptop people
00:07:53.220a checkout clips that they provide so oh yeah that's there's shorts there's absolutely it's a
00:07:59.800whole media world it is i get it so they're you know so that number is right is partly true but
00:08:05.700not the entire number of people that consume the content because i in my opinion the ratings people
00:08:11.900don't understand truly yet how people consume media when they say there were this many people
00:08:18.400that watched a political debate this many people that watch the emmy awards this many people that
00:08:23.440watch the leaf game they're going by the old school tv system but that's that's just part of
00:08:28.540the picture now well when you mean and help me because you know when i met you when and mike i
00:08:34.980had to kind of get educated on this which for me from a layman's perspective right uh it became it
00:08:40.920was very interesting because i dug into it and i'm looking at i'm thinking how did they throw
00:08:44.840these numbers on like how do they figure it out so you know first of all the ratings tv ratings
00:08:51.000in canada so let's talk about that for a minute so numerus is the the group that actually nielsen's
00:08:56.360in the us numerus in canada numerus began in 1944 they're a bureau of broadcast measurement
00:09:05.560it's a non-profit voting group it's with advertisers agencies and uh broadcasting
00:09:13.720groups it's a 12 person uh board uh has eight executives from broadcasting and media so
00:09:21.080primarily made up of the rogers bell cbc chorus um you know and patterson stingray those guys right
00:09:29.400that they make up the board um and they basically now this is where i had to get my head around it
00:09:35.800they do and it's weird the way they say it comes from a panel so they what they do is a panel of
00:09:41.320testing so they go out every year and i took the 2023 kind of uh test case for how they go out and
00:09:49.240figure out how many people are actually viewing so they go out and they get 11 000 people and
00:09:54.760and then this is in 2023 4560 households in canada in canada so they disperse these so they get 11
00:10:03.960so you know we're saying three people roughly to a household a little under three two and a half
00:10:09.560two and a half people to a household they put a uh they get them to carry this uh broadcasting audio
00:10:15.640inaudible code device or a small meter yeah they call it people meter a people meter so they get
00:10:20.840them to carry the people meter they uh put it in their house and they get them to go through their
00:10:27.080daily life after they charge it at night and walk around and it picks up codes from the broadcasting
00:10:33.400correct and it can say okay so if you're in a bar uh if you're all sitting in a bar quite frankly
00:10:39.960and the game comes on over there it'll pick it up if if you know you're walking through a tv store
00:10:45.480quite frankly that'll pick up a bunch of stuff so it's it's really just listening to everything
00:10:49.880you're doing and and tracking what's coming into your content and easily hackable because i'll tell
00:10:55.320you the dirty secret is people within different organizations who got a people meter who work
00:11:01.800for media companies you hear urban legends like they tied it to a ceiling fan so it kept moving
00:11:08.520on slow and then kept their station radio or tv station on all day to cook the books paul they
00:11:15.640because there's such few numbers of people that have the ratings people's jobs and careers and
00:11:21.960life depend on those numbers and if the numbers are weak you're out of a job you're out of a career
00:11:27.560so they'll do anything to keep the numbers up and jack the numbers up so they look better
00:11:32.600and they keep their money coming in well it's think about it you are it's interesting the way
00:11:38.200the world that's so good the way you said it you know because your livelihood is dependent on their
00:11:45.640ratings absolutely it is but your livelihood really is is a subsection a small subsection
00:11:52.520of canada with 40 plus million people now yeah which so you're talking 11 000 people and on an
00:11:59.240annual basis this is in 2023 so if it's changed i for forgive my numbers but i'm sure it hasn't
00:12:05.320changed a lot so they get this data from those people they then go away and they balance the
00:12:11.640data so i i couldn't really figure out when they say they balance it to census it's a dark art i'm
00:12:17.960telling you it is every time every place i've worked at in radio or television when they get
00:12:23.400the numbers they actually have someone on staff to interpret the numbers this is serious and explain
00:12:30.200to management to producers to talent hey these are the numbers this is what it means hey we're
00:12:36.360doing great in western canada in eastern canada we're really popular with women in the bc coast
00:12:42.760and that's how they break it down that specific oh no and they do it for advertising and they do it
00:12:47.640for the content and everything else no no and i think that's true you know i don't think it's
00:12:53.080terrific but i think it's interesting but you know so they balance it to census so my guess is
00:12:58.760they try to figure out that they have equal representation amongst male female and different
00:13:05.080cultures oh yeah yeah and then and then once they get the data they project it to the country
00:13:10.920so they extrapolate it across and in the small print there's always a margin of error right of
00:13:16.680course because quite frankly they're to your point your your sample size is 11 000 over divided by
00:13:23.480i guess 41 million people yeah you probably take out kids who aren't kids and seniors who aren't
00:13:30.120functional so what is that 20 million no no it's a lot higher it's probably like 35 million so 35
00:13:35.160million so 11 000 out of 35 million is extrapolated across and then they kind of come out and they say
00:13:41.000to your point then they start giving data yeah right now you know and this is the uh interesting
00:13:46.920part jim that i find is where i think it's probably more helpful to get into the digital
00:13:54.520and and because at least digital you know you hit on it before the show at least digital advertising
00:13:59.320online advertising that you're getting through facebook instagram you know youtube at least
00:14:04.360you're getting some info you're correct you're getting quite frankly you know you can you can
00:14:10.200break it down between male female you can break it down between age group you know how many people
00:14:15.400viewed how long they stayed on your content so the nice part is as you're um as you're actually
00:14:22.040putting the broadcasting into the tv world you're putting all the social alongside it and then
00:14:27.960you're getting you're getting a feel for how many people are interacting with your content bingo the
00:14:34.120content is everything now right in media so for it has to be because if i'm an advertiser
00:14:41.000of course i'm saying listen i just signed a deal for i just signed a deal and i'm on the hook for
00:14:46.760917 million dollars a year i'm distributing i'm paying that money to the nhl the nhl is paying
00:14:53.720that money to the teams the team who pay the players who pay the players so there's a like
00:14:58.840a whole flow down if i can't get any return on it now we did go through shows jim that the us
00:15:06.040the us tv rights are significantly smaller yeah because it there's an insatiable passion for
00:15:12.120hockey in this country right we have seven nhl teams and it's it's the fact that a canadian nhl
00:15:19.640team has not won the stanley cup since the montreal canadians in 1993. so it goes back to
00:15:25.000the wait for the red socks and the cubs for years and that they kept coming and coming waiting for
00:15:30.480next year and that just feeds the beast that is nhl hockey in this country oh yeah no it feeds
00:15:37.060the beast and quite you know i think you know i've told you before i think it feeds the beast and i
00:15:42.260also also think quite frankly americans given their their appetite for hockey is smaller they
00:15:48.700have more options you know football basketball play a bigger role in their lives ncaa sports
00:15:53.980ncaa sports so quite frankly the money gets subdivided amongst a bigger pool
00:15:58.460i also think from a telecommunications perspective there's lots more competition so you know a lot of
00:16:04.780the well there's a lot more people there's also a lot more competition for your cell dollars for
00:16:10.460your tv dollars for your online dollars so the rates they charge are a lot lower so the profitability
00:16:15.820of those companies so they have to spend their money more sparingly so they're not like rogers
00:16:21.020able to kind of stroke that 11 billion dollar check because to be honest with you um the big
00:16:25.900companies they're spending their big money enormous money on nba rights nfl rights things of that
00:16:31.980nature because the rights for those are are just through the roof and every time they think it's
00:16:37.580going to go down the renewal contract is higher because of the content because not only had the
00:16:42.940immediacy that if the knicks are in the nba finals we know that america is going to watch because it's
00:16:49.340the knicks and the celebrities and everything go with it but they're also going to come the social
00:16:53.420media the content ben stiller and spike lee courtside the clips and everything and a lot of
00:16:59.340the young people even if they're not watching the game in real time they're checking out the
00:17:04.220highlights and the clips and everything goes with it and all that content's all part and parcel with
00:17:08.700it right content okay so i'm with you content that they only can measure you know i think what
00:17:14.940we've broken down and i hope the viewers kind of figured it out with us is the content that
00:17:21.180can only measure really through social or through online yeah so truly like the truly and you know
00:17:27.500for whatever it's worth and then you know then you have some issues then quite frankly it's clouded
00:17:32.060by bots and everything else that goes on so then you have all those issues quite frankly so you
00:17:36.780don't know how much of those are real people hitting your content so on the tv side it's you
00:17:42.700know it's challenging you know and in in the u.s in the u.s i think i i mentioned before you know
00:17:48.620you have some uh uh interesting um uh nielsen ratings it's a little different yeah and i you
00:17:56.940know i was it's but it's roughly the same in a way it's a black box that goes into people's homes
00:18:02.860so it's not the it's not the people meter reader but it's a black box that kind of goes on their tv
00:18:08.220and then it monitors what they watch and um and that actually i was interested to find which is
00:18:13.980to me was really interesting when i looked into the nielsen guys i didn't realize that um brookfield
00:18:20.140had a share in that oh we're carney's guys yeah well why not right yeah because it puts you in
00:18:26.300the catbird seat right because now you're the now all the guys producing content really are you're
00:18:32.060the master of their fate because you're the one deciding where the box goes and you're the one
00:18:37.020doing nelson's ratings and you're trying to figure out kind of so it does it does put you in a in a
00:18:43.100real good position to you know measure and uh assess and comment which does give you power in
00:18:51.500that relationship right but for the the um media relations people the sales reps working say for
00:18:58.300rogers with the content bots or no bots they will go to an advertiser we had this many likes this
00:19:04.380many clicks this many impressions across all our social media and we had this many viewers i mean
00:19:09.820they had close to seven million people when you get to the stanley cup funnel that's a big number
00:19:14.780in canada oh yeah well there's a lot of phones right like you don't forget don't forget too
00:19:20.060you know rogers from uh from uh which is good on them to tell you the truth with the position
00:19:25.100they're in they can push and pull market so now on their phones they have the ability to push
00:19:30.460things out to you and pull things back hey the stanley cups on well they have the whole series
00:19:34.940of commercials where they have different hollywood celebrities showing how you can check out stuff on
00:19:39.420your tablet your phone yeah and so they're like we know you're going to do it so do it with us
00:19:44.700well yeah so you're capitalizing the push-pull market space which is good for them so as as
00:19:49.820to be an advertiser you're seeing so what you're what you're doing is you're corning the advertising
00:19:55.900uh world well but that's exactly so it's um because because no one else can get into it
00:20:01.180because so you sell the cell phone you own the rights you have the content you have the
00:20:07.020and so you have the teams and it's all feeding off each other you know the ecosystem that i
00:20:11.340always draw on the board when we sit there yeah you created the ecosystem that covers off all
00:20:15.660bases everything great everything so from a consumer perspective now though this is where
00:20:21.180free so now now you say okay which we always knew was going to come this time was is coming so we
00:20:27.420knew in 2013 but we just pretended it wasn't going to happen no but that might happen in 2013 remember
00:20:33.340the stories well yeah because in 2013 when rogers first signed the deal they took over hockey night
00:20:39.660in canada right so yes it was technically free but it was one not run by the cbc sports it was run by
00:20:46.460rogers and sportsnet and that changed everything so up until 2013 it was hockey night in canada
00:20:54.140and cbc producers and their vision and their talent how to project the games or produce the
00:20:59.660games and that changed when rogers bought it so this is just a natural extension of that
00:21:04.620because now rogers just they squeezed everyone out now it's all them right so now it's simply
00:21:09.580so now it's simply i guess jim is supply demand so now it's easy well it's not easy it took a lot
00:21:15.500lot of money quite frankly probably a lot of convincing getting you know government to
00:21:20.100basically work with you to grow the market and figure out the market you know you don't have a
00:21:27.520lot of competition in the market so quite frankly you had to kind of progress there and you had to
00:21:32.460get that ecosystem to work so that ecosystem now has is launched and that ecosystem so now
00:21:38.920it really from their perspective it's just a supply demand so in other words I have all the
00:21:44.720supply and then i can lift the price so it's it's it's a very interesting curve because all you have
00:21:51.540to do is see the two intersecting points and figure out where people start to drop off so
00:21:56.740where it's too expensive that i don't watch it so it becomes kind of how much do i love it until
00:22:02.380and then i'll tell you when that the two curves meet when come the spring in the playoffs assume
00:22:08.280the leafs are in and they go on a run the i know a lot of people across canada can't stand when i
00:22:15.400say stuff like that or anyone does but it moves the needle because of the population and if the
00:22:20.520leafs went around and go a go around people will sign up because oh i gotta watch it and if montreal
00:22:26.320they went to the conference final last year we had conor mcdavid and the oilers before last year
00:22:32.080went to two straight stanley cup finals that moves the needle here you have this canadian
00:22:37.160superstar at a canadian team going to the cup final two years in a row and you have huge numbers
00:22:42.220across canada people watching so that's when things happen when there's when there's compelling
00:22:47.640content when there's something in your neighborhood if it's the audible senators or the winnipeg jets
00:22:52.500are back in the playoffs all those people who are like no no no i'm not going to do it like yeah i'm
00:22:57.260going to sign up to rogers so i can get my sports net content so i can watch my team in the playoffs