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CPL TV Contract


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Congrats to the CPL on a job well done !  World class production, global distribution and boatloads of money !

Macron was big money and world class product, VW founding sponsorship, now another deal for $150 million.  Nothing but world class deals, with leading global companies.

CPL office is going to be fielding lots of phone calls regarding CPL expansion !

 

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The stability factor continues to be something a lot of the people in the press keep raising. To know you have a guaranteed revenue stream and locked in partner is such a huge benefit. Not only are you locked in financially, you aren’t busy using your limited resources trying to lock down new broadcast partners every few years.

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6 minutes ago, Ansem said:

 

Desktop app? I assume that means web app.

All this sounds like it would not possible in this timeframe normally but I assume they already have a bunch of existing technology assets(ie beIN websites/app code) and are just going to rebrand it to whatever they are going to call it in Canada.

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2 minutes ago, KW519 said:

EA has to pay licensing fees. Since EA is Canada based there's a good chance we see the league in 2020

EA is an American company; their Vancouver studio has been the main developer of the FIFA series for decades, but they don't get a say in what leagues actually go in the game.

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1 minute ago, Zem said:

EA is an American company; their Vancouver studio has been the main developer of the FIFA series for decades, but they don't get a say in what leagues actually go in the game.

EA Canada is Canada based* Who decides on what leagues are in the game? 

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I find it weird that the CSB isn't actually saying what the dollar figure is.  We're going based on sources.  Big leagues talk about the value of their TV contracts.  If it was smaller I could understand why they'd want to shield it, but if it's large as speculated than I'd think that's something they'd want front and center.  "We're going to be a big deal in sports TV in this country and here's why."  So I think maybe it's not as much cash as people want to think, that it's going to be tied up in to production costs a lot more.  And I'd still love to know the split in revenue, because as excited as people are for the CPL I'd love to ensure that the national teams are being properly funded as well.

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7 minutes ago, KW519 said:

EA Canada is Canada based* Who decides on what leagues are in the game? 

EA Canada and EA Vancouver are the same thing, they're literally just a subsidiary studio owned by EA. EA Headquarters in California decides, because they pay the bills, including licensing fees. EA Vancouver can only add leagues EA think they will get a return on, which very well might not include the CPL for now, but who knows.

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I love this news, it's very big, but I really don't think the $200/$150 million figures being thrown around mean what people are interpreting it to mean. The article I read said...

A source said Mediapro is investing $200 million into the Canadian project over the lifetime of the deal. Scott Mitchell, CEO of Canadian Soccer Business, calls it "the single-largest commitment any company has ever made in terms of soccer in Canada."

In the live stream they talked about basically starting up from nothing in Canada. They are going to be hiring locals to deal with the production, etc. I really think this $200 million is largely (possibly entirely) their expenses for producing content and games. They'll have to buy equipment, hire cameramen, directors, writers, on air talent, etc. As more teams join the league that investment will have to grow in terms of having more people to create more content. There might be some amount of payment towards the league, but I think likely the vast majority of that number is the cost of giving us stuff to watch.

That might not sound as sexy as a duffle bag of money being dropped off at the head office of each team every year, but it eliminates the worries of CPL having to pay for all those expenses, or asking TSN or Sportsnet to take on those expenses. As people have pointed out previously, TSN and Sportsnet play things like darts and poker because they just have to throw a tape in a VCR (I'm assuming they are using VCRs) and then go for a smoke break. Now they can do that with CPL games, CPL pre game and post game shows, and CPL features that MediaPro makes.

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10 minutes ago, Watchmen said:

I find it weird that the CSB isn't actually saying what the dollar figure is.  We're going based on sources.  Big leagues talk about the value of their TV contracts.  If it was smaller I could understand why they'd want to shield it, but if it's large as speculated than I'd think that's something they'd want front and center.  "We're going to be a big deal in sports TV in this country and here's why."  So I think maybe it's not as much cash as people want to think, that it's going to be tied up in to production costs a lot more.  And I'd still love to know the split in revenue, because as excited as people are for the CPL I'd love to ensure that the national teams are being properly funded as well.

You beat me to it. That's what I get for proofreading my post and then getting tied up in a conversation with my wife.

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2 hours ago, Gopherbashi said:

Yeah, surely 7 teams in the future, but for right now (and even years out) it's a huge chunk of change for those teams.

Ted's source said the deal is worth $150m to the league, not to CSB - so I don't think we need to arbitrarily cut it down to 60%.  Similarly, I haven't seen anyone say this is USD or CAD, but considering it's Canadian sources dealing with a Canadian product, CAD seems fair.  Besides, if it's $150m or $200m USD, that works out to even more in CAD.

And even if we work with the assumptions above and say it's "only" $1m per team - based on the numbers we've heard - that's still likely covering most (if not all) of their player salaries.  Still a huge amount of money for these guys.

The article said that the total MediaPro investment is around $200m. So if VCup + MNT + WNT don't get paid out of the $150m then they get paid out of the remaining $50m -- which, unless their cut is very small, would not leave much for production costs.

Under your assumption that CPL gets $150m, how would you envision the breakdown for the other $50m, between production costs and "VCup + MNT + WNT"?

Edited by dsqpr
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4 hours ago, Ansem said:

And now they should have a better idea of where the salary cap should be. Don't know about year 1, but it will go up faster than we think

Well, no.  This media deal is for the next 10 years so you already know what your revenue source from it is.  And further, if you're adding teams over that time period (as they will), then any dollar value from it per team actually goes down.  So the cap might go up, but it won't be because of this deal.

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22 minutes ago, Keegan said:

I hope @BringBackTheBlizzard isn't straining himself too hard trying to spin this!  Getting worried.

BBTB probably: "There's nothing to suggest this league will be better than USL.  A broadcasting deal just means you'll have lower attendances, which could be 

See Kent's post above for what I would otherwise have pointed out. It's not clear yet what this means for the league in actual revenue terms.

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33 minutes ago, BringBackTheBlizzard said:

See Kent's post above for what I would otherwise have pointed out. It's not clear yet what this means for the league in actual revenue terms.

Even if it turns out to be a lot less cash than the $150m mooted, it is still a good deal. At the end of ten years, the sport and CPL should be firmly rooted and ready to push on with a much bigger deal that does provide a lot of cash. It is a great time for Canadian football.

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16 minutes ago, dsqpr said:

Even if it turns out to be a lot less cash than the $150m mooted, it is still a good deal. At the end of ten years, the sport and CPL should be firmly rooted and ready to push on with a much bigger deal that does provide a lot of cash. It is a great time for Canadian football

Rooted in what? As I said in a previous post. MediaPros interest are not the same as the league's. They will license to whichever broadcaster bids the highest, and that may not be the broadcaster that's best for providing the league with exposure. Without mainstream exposure, it is likely that the only people that will watch this will be diehards. Additionally, to be mainstream the league needs to be on Sportsnet or TSN, but they have a vested interest in MLS. So if there is no mainstream appeal, the only people watching the league in 10 years are diehards, and mainstream media has no incentive to broadcast the league, how do they plan on getting a better deal? How will this league grow?

I honestly think they've humstrung themselves going down this path by selling off the rights to MediaPro. How much control will the really have on where the content is distributed? If they do have some control over these negotiations maybe there is hope yet, otherwise I do not understand this decision.

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