Millions of reasons why the Leafs don't want Hamilton in the NHL club

BlackBerry gazillionaire Jim Balsillie was on the FAN 590's Prime Time Sports Wednesday, an interview that was more revealing than you'd expect.

First, host Bob McCown finally asked the question that's been haunting media types for months: How DO you pronounce Balsillie? According to the man himself, it's BALL-sillie. Not Bal-SILLIE. We'll take his word for it.

Second, Balsillie sounded like he'd scored a major victory in that Phoenix courtroom, which showed that he's either seriously deluded or knows something we don't.

Third, McCown told Balsillie that he'd heard Leaf honcho Larry Tanenbaum had told a third party that Maple Leaf Sports and Entertainment would never agree to another team in this area. Since MLSE isn't talking on this issue, we'll never know if this is just gossip or fact. Balsillie said pretty much the same thing in his response, by the way.

Gossip or no, the Leafs have about 20 million reasons to object. That's what they'd stand to lose every year in television money if another team invaded their territory.

For example, Rogers Sportsnet pays about $15 million for the rights to 28 games in the Leafs region, which covers all of Ontario west of Belleville (approximately.) The NHL would have to give a new team its own region, which could cut the potential Leafs audience by as much as 50 per cent depending on what territory the Hamilton Coyotes were given. That would severely reduce the value of those rights.

The Leafs would then have to share a piece of the national pie on CBC and TSN broadcasts. Sources say the total reduction in TV rights could be as much as $15 million a year. One would not expect MLSE to accept that, unless Balsillie is willing to cough up that and probably a lot more. And that's just to cover potential losses on TV revenues.

That's a lot of BlackBerry sales.

On the topic of sports talk, The Bill Watters Show on Toronto 640 plans to have Larry King on Friday afternoon, which made at least one media critic wonder what King's connection was to sports. In fact, King used to do the pre and post-game shows for the Washington Capitals a couple of decades ago.

We're not sure if he did them wearing suspenders.

Comments

[Josh]

Are you 100% sure on that, Chris? Why couldn't it be a situation like Sportsnet West, which carries both Alberta teams across all of Manitoba, Saskatchewan and Alberta? Or like when Sportsnet had a (small) English-language package of Habs games and they carried them and the Sens on Sportsnet East?

***
BLOGGER'S RESPONSE: Josh, that certainly could happen. But there's only so much money in the Canadian TV system and something would have to give.
Chris Zelkovich

[JP]

Balsillie has offered MLSE the right to manage broadcasts of a Hamilton team. We may see some games on Leafs TV. Go figure.

By the way....Larry King was also the voice of the Miami Dolphins in the late 60s.

[Peter Brown]

Chris, you write: "One would not expect MLSE to accept that, unless Balsillie is willing to cough up that and probably a lot more."

It's Balsillie's opinion, bolstered by expensive lawyers, that MLSE's alleged territorial rights have no legal basis, and he will test those rights in court if necessary. So MLSE may have no option than to accept it, like it or not.

***
BLOGGER'S RESPONSE: Peter, that's true. But it's also Balsillie's opinion that has yet to be proved in court. Remember what the Islanders had to pay to invade New York?
Chris Zelkovich

[Kent]

Larry King is also a tremendous fan of baseball.

[Noel Kivimaki]

I disagree. I would in fact argue the Leafs would realize GREATER TV revenue by moving the Coyotes to Hamilton.

First, as far as sharing the revenue from Canadian national rights, these are already shared across all 30 teams (both Canadian and US based) - the Phoenix Coyotes already get a cut of it. In fact, with a 7th Canadian team, these rights are likely to INCREASE in the next contract - a team in Hamilton would mean an additional 73 games involving a Canadian NHL team, some of which would go into the mix for national games; and, more importantly, would increase the potential number of playoff games involving a Canadian team.

Second, there would be a very strong incentive for the Leafs and the Hamilton team to come to an agreement and share their TV region (just as the Sens and Habs share Eastern Ontario, Quebec and the Atlantic provinces). Key to this is Oakville: Oakville is one of the richest municipalities in Canada, and it's closer to Hamilton than Toronto.

Rather than risk losing access to the lucrative Oakville market (along with Waterloo region and the rest of SW Ontario), the Leafs would be compelled to strike a deal with Hamilton to share the TV market and allow all "local" games of both teams to be broadcast across the region.

[baseballfan]

Wishful thinking there, Noel. The presence of a Hamilton team will not substantially drive up broadcast rights paid by CBC or TSN. The Hamilton Coyotes will not be surplanting the Leafs on HNIC, nor would they ever be a featured game across the country because they have no following. Note there is no CBC affiliate in Hamilton either, and the CBC will not be removing the Leafs on a Saturday night and airing the Coyotes in the Toronto/Hamilton market.

Same deal goes for TSN. Sure, they'd prefer the Hamilton team over an all-American matchup, but the national following will be small.

[chris]

Is Larry King going to be in Toronto to talk to Watters? If so, that's a huge coup for Bill Watters over his one time partner Bob McCown, who seems to be fanatically obsessive with everything Coyotes/Balsillie these days.

BTW, King was hilarious on The Daily Show with Jon Stewart last night.

[bob]

a more important reason to be against the hamilton team is how much money will this take away from the raptors. Since MLSE owns both the leafs & raptors, adding more hockey in the region could mean the raptors lose viewers, and are relegated more to TSN2 or worse, causing MLSE bigger losses