NHL commissioner Gary Bettman says the league is set to generate record revenue this season, bringing in at least $5.2 billion.

At his annual state of the league address before Game 1 of the Stanley Cup Final on Wednesday, Bettman credited the revenue increase to more scoring, which helped boost TV ratings. An average of 6.28 goals were scored during the regular season, the highest since 1992-93.

Bettman added that $5.2 billion is a conservative estimate, but the number is still a significant jump from the last full season’s $4.6 billion in revenue for 2018-2019.

More revenue is also flowing from the league’s $1 billion media rights deal with ESPN and Turner Sports that started this season following a 16-year partnership with NBC Sports. The new agreements total more than double what the league had been getting from its previous deals with NBC and ESPN.

• This year’s opening game averaged 984,000 viewers on ESPN.
• Last year’s first game brought in an average of 972,000 viewers to NBC.

“Our playoffs this year, the first two rounds generated 88% of the revenues that we did in the first two rounds the last time we had normal playoffs [in 2019],” Bettman said.

The NHL’s salary cap is expected to grow $1 million to $82.5 million next season.

Pepsi on Ice

On Thursday, the NHL announced a 20-year extension of its North American partnership with Pepsi, but Gatorade is not included. Financial terms were not disclosed, but the pair’s previous deal was between $10 million and $15 million annually.

Anheuser-Busch will not renew its exclusivity deal for Super Bowl LVII, allowing other alcohol brands to advertise during the game for the first time since 1989.

The announcement comes after the company renewed its deal with the league in December for $250 million annually, and just months after announcing that Bud Light will have a presence at all major NFL offseason events. 

“The Super Bowl is a huge tentpole moment for consumers, but it doesn’t necessarily line up with the key moment of consumption for the beer industry,” said Spencer Gordon, Anheuser-Busch’s VP of consumer connections.

• Anheuser-Busch, the parent of Budweiser, Bud Light, and Michelob Ultra, still plans to advertise during the Big Game, but now so can its competitors.
• Diageo bought the league’s hard alcohol rights for a reported $30 million per year last June.

The Super Bowl brought in 112.3 million viewers this year and remains the most-watched TV program in the U.S. Each ad cost around $5.6 million for this year’s game.

Gordon said the money previously spent on the brand’s exclusivity deal will still go toward the Super Bowl’s broadcast partners, but “on different moments throughout the year.”

Super Bowl Sorrows

Anheuser-Busch is the second company to pull its center-stage sponsorship from the Super Bowl. Last month, Pepsi pulled out as the exclusive Super Bowl halftime show sponsor, but will continue its partnership with the league.

The NFL still has plenty of revenue coming in. Last year, the league signed media deals worth more than $110 billion.

MLB owners approved David Blitzer’s purchase of a minority stake in the Cleveland Guardians — a deal that lays out a path for the billionaire investor to take a controlling interest in the club. 

A vote on Blitzer’s 35% purchase in the Guardians, which values the team at around $1 billion, took place Wednesday, sources told Front Office Sports. As part of the deal, Blitzer can increase his stake in the team over time. 

Blitzer is “at a minimum six years away” from securing control of the Guardians, a person with knowledge of the discussions told FOS. The Dolan family purchased the MLB club for $323 million in 2000. 

• Blitzer teamed with billionaire investor Josh Harris to create Harris Blitzer Sports & Entertainment in 2017, a group that consolidated its ownership in the Philadelphia 76ers, the New Jersey Devils, and the Prudential Center into one organization. 
• Blitzer and Harris paid around $60 million to purchase a stake in the English Premier League’s Crystal Palace Football Club in 2015. 
• Blitzer teamed with Utah Jazz owner Ryan Smith to purchase MLS’ Real Salt Lake in January for close to $400 million. 

A Year of Change

Paul Dolan, who has served as controlling owner since 2013, announced last July the club would change its name to the Guardians, a rebrand that came after years of pushback from Native American advocacy groups. The Guardians had to settle with a roller derby team with a trademark for the name.