Showing posts with label Sochi 2014. Show all posts
Showing posts with label Sochi 2014. Show all posts

Saturday, June 4, 2011

Gary gabs



A big week for hockey north of the border.


The National Hockey League announced May 31 it would return to Winnipeg after a 15-year absence with the conditional move of the Atlanta Thrashers by True North Sports and Entertainment. The Thrashers were the 28th worst market for attendance in the 30-team league.


Commissioner Gary Bettman announced a 13,000-season ticket drive and that a vote on the $170 million purchase would be taken by the board of governors on June 21. More than 7,000 packages were sold before the public sales began and each NHL owner will get a slice of the $60 million relocation fee, so it'll be a done deal.


On June 1, the Stanley Cup final returned to Vancouver for the first time since 1994 -- and began in Vancouver for the first time since the Millionaires were 1921 hosts. The Vancouver Canucks blanked the Boston Bruins 1-0 on Raffi Torres's late, overtime-avoiding goal with 18.5-seconds left in regulation time.


The 5.6 million average audience, with a peak of 7.8 million, was an all-time record for CBC's Hockey Night in Canada. The previous record was in 1994 when 4.96 million tuned-in to see the Canucks battle another Original Six team, the New York Rangers. That was game seven of the Stanley Cup final and the Canucks lost by a goal.


The NBC ratings for game one were the best in 12 years, a 3.2 national rating which translates to approximately 3.708 million viewers. Boston, Providence, R.I. and Hartford, Ct., were three of the top four markets.


The storylines are simple: an Original Six team from a sports-made region with a 39-year Cup drought against the Sedin twins and the rest of the Olympic city kids who are trying for a third time to win the franchise's first Cup since debuting 40 seasons ago.


Before the game, Bettman held his annual state of the league address. Here are highlights from the question-and-answer session:


Q. Can you update where things stand for realignment in lieu of Winnipeg's re-entry, and also the latest on Phoenix?


BETTMAN: With respect to Winnipeg's re-entry, obviously there is a process under the Constitution and Bylaws with respect to ownership transfers and relocation that needs to be complied with. That's on the agenda, will be on the agenda, for the June 21st Board meeting.


In order to do a schedule for next season, it's not possible to do realignment right now. Winnipeg, despite its geographic peculiarities relative to the Southeast Division of the Eastern Conference, will be playing in that division and in that conference, with an assurance that for the following season they will be in the west.


We have a number of clubs that would like to address specific issues on realignment. All those clubs need an opportunity to be heard. That's a process we'll go through the first half of next season, looking at the issues that clubs want to raise, looking at various possibilities, and trying to figure out what will make the most sense moving forward.


If I had to guess anything, and this is purely speculation, as much as I hate to do that, because ultimately it's a Board decision, I think we'll wind up moving towards a slightly more balanced schedule to accommodate the variety of issues I've heard so far from the clubs.


Q. Phoenix?


BETTMAN: Phoenix, as I think you all know, because it's gotten a ton of attention, the City of Glendale stepped up and said they want the team to stay another year while they try to complete the sales process with us and will be funding the losses. Any suggestion that the League is funding this club or carrying the burden is not true. Last season the City of Glendale did it. This coming season the City of Glendale will do it, but hopefully not. Hopefully the club will be sold in due course, and there will be a new owner in there to start turning things around.


Again, we've gotten a number of questions about why this process in Phoenix and why the other process in Atlanta. Atlanta, not unlike Winnipeg in '96, found itself in a situation where nobody wanted to own a club in that market anymore. That's been for me the trigger point on having to deal with a relocation.


With respect to Phoenix, you have a city in Glendale that built the building and has invested in it and wanting the club to stay there. As long as they're prepared to carry the burden of doing this while we try to effectuate a solution, there's no reason to move.


Q. Steroids have obviously run their course through all of the professional sports. Yet your sport, your league, has not had a positive test in years, as I can recall. People who know steroids say if you're not catching anybody, your testing isn't good enough. Is it your belief simply no NHL players are doing steroids now? (Note: NHL players are not tested for drugs during the playoffs or off-season.)


BETTMAN: Well, it's clear that if we're not having positive tests, none of them are getting caught, which means if some are, it's not very many.


I do believe, and we've been in discussions over the last couple of years with WADA, there are ways that we can improve our substance testing, our performance?enhancing testing program. But that's something we need to do with the Players' Association, and that's something, when we actually sit down and begin discussions, we need to address.


I think we have a good program. It deals with education and counseling. It has comprehensive testing, but I think we can probably do more. At the right time we'll have that discussion with the Players' Association.


Q. There's been recent reports of a group in Seattle interested in an NHL team. What are your thoughts on Seattle as a hockey market? With Winnipeg done, do you have a list of cities that are potentials?


BETTMAN: There are no shortage of places that continue to express interest in having a team. I think it was half a dozen, and now it's down to five because Winnipeg comes off the list. My answer is the same. I don't want to raise anybody's expectation. We're hoping not to do relocation. You all know that we don't believe in doing that, except as a last resort. We do everything possible to avoid it, and we're not planning on expanding.


The interest is flattering, but I don't want anyone in any market that doesn't have a team to get their hopes up yet.


Q. Québec City was involved, Pierre Peladeau, the owner of Quebecor, launched a sports channel yesterday. He got 25 games of the Ottawa Senators. Is there some sort of relation there that we can say they are up front to get something in Québec City done or there's absolutely nothing to deal with that?


BETTMAN: I am not going to raise expectations. I'm well aware of Mr. Peladeau's interest and that is gratifying. I am well aware there are plans to build an arena, although we have made no promise of what will happen after that.


At the present time, since I don't have a franchise we're looking to relocate, and as I said, we're not planning on expanding, I don't want to get people's expectations in Québec City raised.


Q. Despite the $3 billion in revenue across the League, a lot of teams are losing money, or at least claim to. Is the gap too large between high and low revenue teams? Especially now that you're in Winnipeg, what adjustments need to be made to revenue sharing and the CBA, the next one, so those clubs can be in the best position to succeed?


BETTMAN: The fact we're in Winnipeg, the agreement is basically self?executing. It will apply to the Winnipeg team as it applied to the Atlanta team, again, assuming Board approval, which everybody is anticipating.


To the extent there are issues in Collective Bargaining, as I said in my opening remarks, the good news is it's too early to discuss it. The discussions I'll have in the first instance on that topic will be with Mr. Fehr. I won't be doing it in this environment.


Q. Is the gap too big?


BETTMAN: We have a system that is dramatically improved from where we were in terms of teams' ability to compete. You've seen it in our competitive balance. There has been dramatic improvement. Whether or not the Players' Association or we are going to be looking for adjustments is something we'll look at quietly and hopefully resolve quietly.


Q. Your office put out numbers on concussions specific to how they were suffered, be it from fighting, be it from hitting, whatever. The number that caught my eye was from fighting. I think it was 8% or somewhere around there. I'm wondering, after you've given out those numbers, has there been added talk, be it from managers, owners, governors, specific to that part and their interest in perhaps ending fighting?


BETTMAN: I don't think the discussion has gotten to the level where there's widespread sentiment to end fighting. I'm not sure exactly what you mean by 'ending fighting.' I assume you mean by increasing the penalties for fighting, because there are penalties now.


The issue is really one about concussions. The reason for releasing the numbers is to make clear that concussions in the game are being caused by a variety of causes. And, in fact, the increase isn't coming, although the conventional wisdom incorrectly was that it was coming from more head hits, it's coming from pucks to the head. Maybe we should be having mandatory visors, something we'll discuss as we have over the years. Sometimes it's collisions with your own teammates, sometimes it's a check where you fall and bang your head.


The number of head hits really hasn't been the cause of the increase in concussions. It's been other sources, and that's what we're looking at in a comprehensive way.


One of the things that I indicated the Blue Ribbon Committee is looking at, as it's been dubbed, is whether or not we want to expand the head?hit rule. Accidents I think are going to happen and we have to deal with that and we do that through the proper diagnosis and treatment of concussions. Nobody has taken the leap that you're suggesting.


Q. Any updates with the next Winter Olympics or the World Cup?


BETTMAN: There is no update. That, again, is something that we will be in discussions with the Players' Association on because the international competitions, be it the conducting of a World Cup, which we're interested in doing, and the participation in the Winter Olympics, is something that we need to discuss and resolve with the Players' Association.


Mr. Fehr has been on the job a relatively short time. He's putting together his organization. He's been doing a lot of homework and catching up. In due course, we'll be having those discussions.


Q. Any more precise indication of where the cap is going?


BETTMAN: Actually, I think Mr. Daly did. I don't remember giving cap numbers. Bill, do you want to venture a guess?


BILL DALY: I think our current projections have the cap being in excess of $60 million, maybe as high as $63 million.


BETTMAN: And, obviously, the new television contract in the United States has an impact on that, bringing it up.


Q. Poignant because of the travel back and forth between Vancouver and Boston being difficult, the format of 2-2-2-1-1-1, any increased talk of going to 2-3-2?


BETTMAN: We periodically raise it with the managers, who when it comes to competitive issues are the heart and soul. There doesn't seem to be much of an appetite. I think people in our game are used to the travel. They like to keep the routine going.


It is what it is. We've been doing it for, oh, at least a couple of decades. I think if you go back to the '80s or '70s, there were a couple of years when it was tried. But this seems to be what the clubs are most comfortable with. What we try to do is make sure we're providing the best environment for them to have the competition and let it all out on the ice.

Thursday, May 19, 2011

Broadcast giant quits NBC: what next for Olympics?




June 6 and 7 could be among the biggest days on the sports business calendar in 2011. They'll definitely be among the most important for the beancounters at the International Olympic Committee.

That's when American networks will be in Lausanne, Switzerland to make their bids for the rights to broadcast Sochi 2014 and Rio 2016. They may even look for a bulk discount by tendering bids on Winter 2018 and Summer 2020.

Munich, Germany, PyeongChang, South Korea and Annecy, France are bidding for 2018. The 2020 race has yet to begin.

NBC, which paid $2.2 billion for Vancouver 2010 and London 2012, is the incumbent. The former GE-owned broadcasting giant has held rights to all Summer Games since Calgary 1988 and Winter Games since Salt Lake 2002. But it will be without Dick Ebersol.

Ebersol dropped a broadcasting bombshell May 19 when his resignation from NBC was announced. NBC is now owned by Comcast and the official word is they couldn't agree on a new contract. The news broke exactly a month after Ebersol announced NBC and Versus's 10-year, $2 billion National Hockey League broadcast deal at a news conference with NHL commissioner Gary Bettman.

Ebersol's Olympic journey began in 1967 when he joined ABC as a researcher. Ebersol and Canadian Lorne Michaels collaborated to create Saturday Night Live for NBC in 1975. During Olympic Games, Ebersol would actually camp in custom-made quarters in NBC's facilities at the International Broadcast Centre instead of stay in a hotel room. Ebersol spoke at length about his storied career during the Denver 2009 SportAccord convention.

Ebersol enjoyed his Vancouver experience so much (and the fact that the British Columbia government became an important advertiser) that he appeared in a video honouring outgoing Premier Gordon Campbell at a Vancouver Board of Trade event on Feb. 4, 2011. NBC lost $223 million on Vancouver 2010 after being hit by the Great Recession's advertising slump.

Whether NBC's London 2012 coverage will suffer without Ebersol at the helm remains to be seen. He has many proteges who will now run the operation. NBC, sans Ebersol, said it still plans to go to Lausanne and bid for the Olympics broadcast rights, but it will be a hotly contested race with Disney-owned ABC-ESPN, Fox and CBS.

A source told me Ebersol has been bearish on a bid for Sochi 2014 for quite some time. The unfriendly time zone -- eight hours ahead of New York -- was the biggest worry. Live sports are best shown live, but not at 3 a.m. when viewers would rather be sleeping. During a meeting, Ebersol was asked what he thought Sochi would be worth. He paused for a moment and scribbled on a note pad. He turned around and showed those in the meeting. It was a big "0".

Sochi 2014 could well be a commercial bust for the IOC and whichever company wins the U.S. rights if National Hockey League players aren't playing the hockey tournament. The Russian resort is building everything from scratch and, from what I saw last June, is on-track to be ready for February 2014. But volunteers, venue operations, transportation and security remain big unknowns for Sochi, which passed the 1,000-day countdown on May 14.

Tuesday, June 15, 2010

No Vancouver 2014



There will not be a Vancouver 2014.

Who would organize it and who would pay for it? VANOC is dismantling itself and, well, you know all about the British Columbia government's budget problems and the HST in the former Host-province.

Rumors swirled during Vancouver’s 2010 Winter Olympics that the Russians wouldn’t be ready to host the 2014 Winter Games because work had barely begun in Sochi.

Sochi 2014 president Dmitry Chernyshenko tried to thwart the rumors at a Vancouver news conference at the end of February by calling his hometown the “world’s biggest construction site.”

It wasn’t spin folks, it’s the truth. I was there last week and saw the massive amount of work to build venues, hotels, tunnels, bridges, port facilities and power plants. Some $30 billion of public and private money is being spent. It’s nothing like we saw in Vancouver because the Russians are building from scratch. It’s actually the winter version of Beijing. Chernyshenko wants the sporting venues to be finished two winters before his Games.

Work hasn’t begun on the 40,000-seat Olympic stadium near the shores of the Black Sea, but the Bolshoi Ice Palace hockey rink (below) is on-track to be finished by the end of next year. Sochi, like Vancouver, has a year-round, construction-friendly climate.

Russian Prime Minister Vladimir Putin didn’t come to Vancouver, but he hosted a dinner in Sochi for International Olympic Committee president Jacques Rogge on June 7. These are Putin’s Games. He is on a mission to make Russia a super-power again and not just in the realm of sports. This is also a second chance at hosting the five-ring circus. Thirty years ago, the Soviet Union hosted the 1980 Summer Olympics which were boycotted by 65 countries in the wake of the invasion of Afghanistan.

The peaks around Sochi, 2 kilometres high, still have snow from last winter. Despite the subtropical Black Sea coastal climate that gives Sochi-proper bananas and tea plantations, the mountains are snow magnets. Several resort villages are being built to accompany the alpine and nordic venues. There are 19,000 workers at 58 sites. They live in portables stacked three-deep in villages dotted along the banks of the Mzymta River. Mzymta means “crazy” and the level of work done to divert the river would probably not pass a Canadian environmental assessment.

With almost three-and-a-half years to go, the Games should also be built on-time, unless the doomsday predictions of Sergei Volkov come true. The consultant to Sochi 2014 quit and fled to Ukraine. He said a lack of engineering assessment has taken place and works are being conducted in a seismically active area with unstable slopes.

Ultimately, Sochi’s greatest weakness could be its lack of international sporting events and lack of English and French speakers. Organizers are scrambling to create a Russian volunteer culture. They already have a few quality people -- some 70 who participated in the June 7-10 Vancouver 2010 Debrief at the Krasnaya Polyana resort. But they will need more than 20,000 by Games-time.

The organizing committee has people with competent English language skills, but the same can’t be said for restaurateurs and cabbies. The frontline of the tourism industry.

While Sochi readies itself, June 22-23 in Lausanne, Switzerland will be the next chapter in bidding for the 2018 Winter Games. Representatives of Annecy, France, Munich, Germany and PyeongChang, South Korea will submit their applications. The IOC executive board could rubber stamp all three or make a short-list of two. The 2018 host will be decided next year at the IOC congress in Durban, South Africa.

There are already whispers of a Canadian bid for the 2022 Winter Games from Quebec City and a group in Calgary is preparing a challenge.

Friday, March 5, 2010

Record numbers forecast for Vancouver, but not record profits

The International Olympic Committee’s marketing director estimated 3.5 billion viewers would experience some of Vancouver’s 2010 Winter Olympics.

Timo Lumme said more than 300 broadcasters in 200 territories delivered the first all high-definition Winter Games to TV viewers. He said the total amount of content delivered was 50,000 hours, which is more than Salt Lake 2002 and Turin 2006 combined.

“In four short years from Torino to Vancouver we’ve had a continuing digital explosion,” Lumme said. “We now have the same amount of hours globally covered on digital media, Internet and mobile, as we have on the old media, broadcast.”
In Canada, a record 22 million people were watching when Sidney Crosby scored the gold medal-winning overtime goal in the hockey final. CTV reported average prime time viewership of 5.8 million.

The ratings were in record territories, but the recessionary Games won’t translate to record profits because of the advertising slump. NBC parent General Electric already announced in December that it would lose $200 million because of Vancouver 2010 and is being coy about its post-London 2012 plans. NBC Olympics chief Dick Ebersol is bearish about Sochi 2014, mainly because it's eight hours ahead of New York. Fox and ESPN have mulled bids.

Also in December, CTV Olympics president Keith Pelley said the aim was to break-even. CTV bid US$153 million five years ago for 2010 and 2012 rights, more than double the CBC contract for US$73 million for 2006 and 2008.

"We've said what we're going to say about the economics leading into the Games. Now we're totally focusing on the actual Games and we'll address the consolidated numbers shortly thereafter,” Pelley said during the Games.

The IOC promised VANOC a roster of 11 global sponsors, but it stalled at nine and no new deals were announced in Vancouver. Last summer, the IOC pledged to help VANOC with losses up to $22 million unless the gap could be narrowed through other means.

The B.C. government is the ultimate guarantor and launched a $38 million tourism ad campaign before the Games. The You Gotta Be Here out-of-home ads took up substantial space in the Olympic city and at transit stations, filling space that would have been used by private sponsors had the recession not happened.