Thursday, September 20, 2007

MSNBC On Sabres TV Revenue

There's been a lot of speculation about exactly how much money the Sabres deal with MSG brings in the team. MSNBC, in an article about the franchise's turnaround off the ice, provided a bit of insight, but along the lines of what we already knew:

Golisano & Co. have signed a local TV deal with MSG Network through the 2016-2017 season believed to be in the high seven figures annually, in which the Sabres bring in money by selling advertising and where they control production (whose costs they bear). Under previous owner John Rigas, founder of cable firm Adelphia Communications, the team’s broadcast territory through Empire Sports Network barely made a dent in the Empire State. Today, their games can be seen as far away as Albany, helping to mint new fans.

Obviously, with the Sabres generating income by selling advertising, the exact figure won't come out barring a major leak from someone in the know. That said, Larry Quinn admitted that the blunder causing MSG's ratings numbers to be underreported cost the team a significant amount of advertising revenue last year. It's unknown exactly how widespread the underreporting was, but it's safe to say the ratings were artificially low by 30-50%. This season will be the first time advertisers are paying for the full rating prowess that the Sabres bring. They're the top rated cable show in Buffalo reaching prime demographics.

Since we know that Empire's rights fee was $9.5 million annually, I'd be surprised if the Sabres don't pull in well over $10 million from their local TV contract alone for the 2007-2008 season.

1 comment:

Anonymous said...

Helping to mint new fans?

Showing the Sabres in Utica and Albany isnt "helping to mint" new fans. These areas have already established fanbases.

Do they honestly think its up for grabs?

Its Rangers and Devils fans.

http://www.commoncensus.org/maps/nhl_1280.gif