Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada Competition Bureau closes review of Rogers-NHL broadcast deal, (Oct 28, 2015)

By Michael Menzhuber, J.D., LL.M.

The National Hockey League’s Canadian broadcast and multimedia rights agreement with Rogers Communications Inc. has not, at this time, resulted in a substantial lessening or prevention of competition, the Canada Competition Bureau has determined. The $5.2 billion agreement, which is the largest media rights deal in NHL history, gives Rogers exclusive rights to all national NHL games, including the Stanley Cup Playoffs. The agreement took effect with the 2014-2015 hockey season and will run through the 2025-2026 season.

In relation to this agreement, the Canadian Broadcasting Corporation (CBC) was contracted to continue to broadcast Hockey Night in Canada for at least four seasons, but with Rogers producing and retaining the revenue of those broadcasts. All of the French-language national rights were subsequently contracted to TVA by Rogers. Prior to the agreement, the national NHL rights were split between Bell (TSN) and CBC, with Rogers and Bell each holding the regional rights to various Canadian teams.

Over the course of its review, the Bureau consulted with a broad range of market participants, including advertisers, television service providers and distributors. It also examined a large volume of evidence from Rogers, the NHL and other sources. During its review, the Bureau considered the potential impact of the agreement on:

• the prices that cable companies and other distributors pay for Rogers’ Sportsnet channels;

• advertising rates during NHL games; and

• the ability of Rogers’ broadcast competitors to obtain important sports programming.

The Commissioner’s enforcement decisions are based on the available evidence. Should new and compelling evidence come to light that this or any other sports rights arrangement has harmed competition, the Bureau will not hesitate to take action, as appropriate.

News: Antitrust