Success breeds success: clubs share nearly $2m from TV revenue

The Kontinental Hockey League has given a further boost to its teams and their fans with a payment of 114m rubles (approximately $1,827,200) to be shared among all member clubs. The new income distribution scheme means that the money earned from the sale to Russian and international broadcasters of TV rights to cover the 2014-15 Championship can be targeted at modernizing the arenas, upgrading existing equipment, and improving the conditions for spectators.

In order that the payments should benefit everyone, but also reward the quality and entertainment value provided by the teams, the KHL Board agreed that the funds should be distributed in the following manner:

Of the total, 40% is to be shared equally among the KHL member clubs and a further 30% is allocated in direct proportion to demand among the TV audience. The remaining 30% is performance-related: half of the sum is distributed among the 16 teams who qualified for the play-offs; one quarter rewards the Gagarin Cup winner; second place in the play-offs earns a team 10% and the final 15% is given to the team which wins the regular season.

This means that last season’s champion, SKA, receives 15.2m rubles (approx. $244,600) and regular season winner CSKA is handed a total of 10.6m ($170,500). Beaten Gagarin Cup finalist Ak Bars has the consolation of 8,7m ($140,000) and last season’s surprise Eastern Conference finalist, Sibir, has a windfall of 4.2 m ($67,500). The League is optimistic of a continued increase in TV revenue and therefore expects that the income shared in the future will increase accordingly.

Kirill Fastovsky, HC Sibir General Manager, was one of many who welcomed the news: “For us, this is a significant sum and we are very satisfied. Of course, one could always wish for more, but for that, we need to play better, and the better we play, the more we will receive. We will spend the money on continued modernization of the Ice Palace, in accordance with the League recommendations.”

Zigmars Priede expressed gratitude on behalf of the HC Dinamo Riga Board of Directors, saying the plan helped the club, “materially and psychologically,” and was “one of many changes for the better”, while Sergei Nino, General Director of HC Sochi, described the scheme as “a good initiative… which helps us improve our infrastructure and so improve our relationship with the fans.”