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NHL, Major League Baseball Digital Media Arm Ink $1.2B Streaming Rights Deal
According to WEEI.com, MLBAM already handles streaming for the YES Network and SportsNet New York, along with back-end infrastructure for WatchESPN, CBS Sports’ March Madness, the WWE and HBO Go, among other entities, so it has experience with respectfully handling non-baseball properties. The National Hockey League had previously used NeuLion as its digital vendor for the past seven years.
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Under the terms of the pact, MLBAM will pay the NHL about $100 per year for the rights to distribute the league’s out-of-market telecasts in the U.S. and certain global markets, while the NHL will receive an equity stake in MLBAM of between 7% and 10%. The NHL’s cable-TV community will function from the Secaucus, New Jersey, headquarters of the Major League Baseball Community.
The video distribution rights do not apply to Canada, where Rogers Communications is the rights holder.
MLBAM will also operate NHL.com and team websites, though the NHL and its teams retain editorial control across all platforms. Hockey fans would surely love to see just how fast Tyler Seguin can be on a breakaway, or the exact speed of a Zdeno Chara slap shot.
MLBAM is now owned by the 30 franchises that make up Major League Baseball, but could be headed toward a future as an independent company. BAM Tech will focus on non-baseball content. “More and better than you ever imagined”, Bettman said.
“NeuLion has been a great relationship and we have been well-served by them”, Collins said.
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“All of us in sports share a desire to distribute our games and tell our stories as widely and broadly as possible”, said Manfred. The National Hockey League had experimented with putting computer chips in pucks in January at the all-star game in Columbus but, at $200 a pop, likely would be too costly, especially with the number that end up in the crowd during each and every game.