ESPN Bails On the NHL
The Canadian Press reports that ESPN will decline its option to broadcast NHL hockey next season. The deal would have paid the league $60 million US for the rights to 40 regular season games and a handful of playoff games.
The lockout fiasco makes the decision easy. But the loss of this contract also points to the NHL's long-term decline in the United States, a result of Gary Bettman's failed vision.
Under the current commissioner, the league ignored its strengths and opted for ambitious expansion across the U.S. By placing teams in cities like Atlanta, Nashville and Miami, the NHL aimed to take America by storm, thereby driving revenues and franchise values through the roof. The failure of the scheme is illustrated in the league's eroding value to American broadcasters:
Despite the grim news, the NHL is almost certain to find a home on an American cable network when the lockout finally ends. The hockey ratings can't go much lower. So broadcast rights will be available dirt cheap, with a small but devoted core audience guaranteed and plenty of potential for growth. As a TV property, that makes it an attractive buy for bargain hunters. If Sidney Crosby lands in New York or Chicago, or the U.S. wins Olympic hockey gold next year, NHL broadcasting rights could turn out to be a steal.
(Update: ESPN has confirmed the report.)
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