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and I can't do a thing about it

Monopoly…a Canadian way of doing business

A lot of you will look at the deal to buy Maple Leaf Sports and Entertainment (MLSE) by Bell and Rogers as simply a sports deal. You may be questioning what this means for the future of your favorite sports franchise, be it the Toronto Maple Leafs, the Toronto Raptors, TFC (the soccer team), maybe even the Toronto Blue Jays or one of the other six NHL teams in Canada. If you are a sports fan in this country and whether you love the dismal Toronto franchises, or love to see them fail year after year, there are real sporting implications…the truth though, whether you like to hear it or not, is that the future of the Leafs success on ice is mostly irrelevant in this deal.

The sale of MLSE is about content rights, who will control the television, radio, internet, mobile, etc. rights to the sporting content generated by these teams. In those terms this is a very frightening deal. Bell and Rogers are already the two most powerful media conglomerates in Canada. They own and manage, some would say mismanage, 80 television stations including all of the major sports stations on TV. They own 88 radio stations including all of the major sports-talk stations. They will pick up an additional three television licenses that MLSE owns. Together they own the vast majority of Canada’s online and mobile services. You think that it’s just Bell and Rogers? Think again. They also own Virgin, Solo, ChatR and Fido, and of course the largest satellite and cable companies too.

It’s hard to believe that a few short years ago it was deemed illegal for a cable or satellite company to own a television station, let alone a network. Thank you CRTC.

This concentration of power will be bad for everyone. While Bell and Rogers are busy divvying up the nation, they leave little room for their competition. This means they can do with sports content what they have done with mobile technology and cable and satellite delivery. They can control access and they can control price. All you have to do to see the future is to look at what these to companies have done in the past. Canadians pay among the highest rates in the world for mobile service and internet access, and Bell and Rogers continually strive to keep competition out through influence on government and regulatory bodies and with unfair discount practices that disappear when the competition is wiped out. To quote Ellen Roseman in the Toronto Star, “Rogers and Bell bludgeon customers into accepting a flurry of extra charges for wireless phones. They hit them with unexpected bills for data roaming and third party text messages.”

Roseman goes to describe some of the dirty practices of Bell and Rogers that include discounts that evaporate before the subscriber ever sees them, raised prices that make the discounts offered moot, and of course, some 8000 complaints from Canadians to the government last year about how they are being treated by telecommunications companies like Bell and Rogers.

I expect to see access to Toronto’s sports franchises on radio and television to change in three ways, first, you will see far more games on Rogers Sportsnet and TSN and expect to see fewer games in which let’s say the Calgary Flames or Winnipeg Jets own the rights. Why pay the owners of a third party NHL club when you can pay yourself and fill the same amount of air time? Second, I see fewer opportunities for non-MLSE affiliated channels like CBC and Global to get the rights to the most popular sports entertainment. Finally, I see the possibility of a new pay channel that replaces Leafs-TV and Raptors-TV with a new sports channel that forces the public to pay big subscription fees to gain access to games that will no longer be available on any other channel, think MSG Network (Madison Square Gardens) or YES Network (Yankee Entertainment) two very profitable networks in the United States that control all of the most popular sports franchises in the New York City area.

Lastly I want to make a point about the way sports journalism will be affected. Since the owners of MLSE will now control virtually all of the sports broadcast media who will be left to criticize the missteps and worse the arrogance of this new sporting monster?

Will the guys at The Fan or TSN Radio take on their corporate bosses? Will they lose jobs and be punished for doing so? Does anyone see the conflict of interest here? Does anyone at the competition bureau or the CRTC care?

In the past few months Rogers and Bell have been busy buying the services of dozens of the best print sports writers to fill slots on radio and television and to write for new magazines. Most have quit their print jobs like Stephen Brunt, some like Damien Cox keep a foot in both camps. It is my contention that just about every sports writer in Canada is at least partially beholden to either Bell or Rogers. Sure you may write for a local paper in Vancouver that’s owned by the Post group or an independent in Toronto like the Toronto Star, but you all supplement your income, your reach and your popularity with appearances on one of the Bell or Rogers sports television and radio channels. Do you want to blow your chances for more guest shots? I think not. So, when the Toronto Raptors decide to spend less money and refuse to sign a free agent that’s available and who might make the team competitive, or merely watchable, will you write about it or just keep it to yourself? When TFC charges more for tickets than Manchester United (this is already a fact) will you shout about it in your column or is discretion a better road to take? For those of you who haven’t seen it, The Globe and Mail, which should stop calling itself Canada’s national newspaper, barely noticed this story. Why?

Sports journalism is for the most part an oxymoron in Canada. The last bastions were the daily newspapers in the major cities. Bell and Rogers have figured out how to co-opt even this small amount of opposition. Now it can only get worse.

Canadians in general and sports fans in particular will be the big losers if this deal is allowed to go through. The only way to stop it is if all Canadians get up of their backsides and scream at their political representatives. There’s one thing more powerful than the money and influence Bell and Rogers can and do wield, that is the threat of losing the next election.

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Filed under: Media Commentary, Political Commentary, , , , , , , , , , , ,

About the Author

Howard Bernstein is a former TV producer. He has worked at CBC,CTV, Global and has produced shows for most Canadian channels as an independent producer.

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