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John says if the NHL's Phoenix Coyotes move to Canada, it would be easier as the team's contract with Fox Sports Arizona expired this season.

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May 11, 2009, 5:31:05 PM5/11/09
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http://www.sportsbusinessjournal.com/article/62461

By JOHN OURAND
Staff writer

Published May 11, 2009 : Page 26
The Phoenix Coyotes’ potential move to Canada would not have a major
effect on either the team’s local TV contract or the league’s national
TV contracts.

A source with the league’s board of governors said the Coyotes’ local
TV deal with Fox Sports Arizona ended last month, when the team’s
season came to a close.

The team had been negotiating a renewal, but failed to come to terms.
According to the bankruptcy filing, the team still owes the regional
sports network $261,438.75 for production-related costs.

Fox Sports Arizona has held the Coyotes’ rights since the team moved
to Phoenix in 1996. Under terms of its most recent deal, the network
pays the Coyotes a rights fee to carry about 40 games a year and
produce another 20 or so for a local broadcast channel. It’s not known
what Fox Sports Arizona pays the team in a rights fee.

Only five teams posted smaller ratings than the Coyotes’ 0.40 average
rating last season. And only two other teams posted smaller audiences
than the 7,000-household average that watched each Coyotes game.

On the national level, industry executives do not believe Versus would
be able to open its TV contract even if the team relocates out of the
U.S.

Versus is paying an average of $77.5 million a year through 2011 for
the rights to the NHL.

“In the unlikely scenario that the team does move to Canada, I don’t
think it would have a significant impact on the league’s national TV
deals,” said media consultant Neal Pilson.

Pilson pointed out that the Phoenix market represents just 1.4 percent
of total TV homes, which “is not a significant enough change to
warrant re-opening any of the TV contracts.”

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