If you’re a fan of hockey, you’ve probably noticed the NHL Network’s ads and other marketing have increased in recent years.
Now, that trend could be in jeopardy.
On Friday, the NHL will unveil its plan to cut ad spending by $6.2 billion, with a goal of eliminating 100% of its ad spend by the end of 2021.
The goal was to help offset the cost of the $8.5 billion new broadcast rights deal that expires at the end “the next four years.”
However, according to an analysis by The Wall Street Journal, that target may be too ambitious, with the new plan likely to hit a much larger share of revenue, and even more of the pie than originally thought.
The paper reports that the league could ultimately have to pay as much as $2.5 trillion in fees and fines over the next three decades to ensure its TV and Internet platforms are running at full capacity.
It also notes that if the league didn’t cut ads by 2021, it could have to fork over as much money as $8 trillion.
While that might seem like a lot of money, the Journal notes that the NHL could actually be on the hook for about a third of that figure.
That’s because the average NHL game will have about two hours of ads in the first quarter of 2021, according the Journal.
That means that the full amount of the league’s $6 billion in ad cuts would be about a half-billion dollars over the first three years.
And, as we’ve written before, it’s not clear that the current TV deal will provide enough money to cover the entire cost of maintaining the networks in 2020.
Theoretically, the TV rights deal could be renewed for another five years, but the league has yet to confirm that.
The new deal is likely to increase that renewal rate.
It could also mean that the new TV deal is more likely to run out in 2021, which would mean the league will have to pull ads off of some NHL platforms.
The league has said that it will continue to show the games it currently broadcasts on its TV platform, as well as streaming it on a mobile app.
The only way the league would be able to keep its streaming platform open would be to continue to increase ad revenue through an additional round of cuts.
It’s a complicated scenario, but one that has been looming for some time.
The NHL was originally hoping to make the cut in 2021 under the current agreement, but was told by the NFL that it would have to cut an additional $9 billion in revenue to get there.