25. Sportsnet 10th Anniversary Statues

Hockey

Sportsnet 10th Anniversary Statues

This may come as a surprise to many and not to others. In 2008, Sportsnet was having its 10th anniversary. We were going to put on an elaborate party for our advertising clients and other partners including Rogers Communications and Rogers Media.  Sportsnet had been very successful in meeting its targets every year from 2001 to date so we felt it was a good time to have the party and to have mini hockey player sculptures made to give as gifts for all client attendees and to all the Rogers Media and Sportsnet Staff as a thank you.

It turned out after placing the order we were told due to the economic downturn in 2008 and with all Rogers Companies not anticipating meeting their business plans all functions should be severely toned down.

We ended up distributing these statues at the toned-down function only to clients but did not distribute the remaining 100 to 200, as they remained in a back closet even after my departure in late 2008.

To this day no one seems to know where they all went similar to the Blue Jays elusive 10,000 Frank Thomas Bobbleheads that were never distributed due to his trade.  (except for a few)

A little background on Sportsnet and their success from 2001. Back when Sportsnet launched in 1998 it was part of CTV launch as a regional network. During that time CTV had purchased Netstar which at time owned TSN, RDS, Discovery Channel, Dome Productions, Viewers Choice etc.

The CRTC which are the media regulators would not allow CTV to own both cable sports channels even though TSN was National and Sportsnet was Regional. It took until 2001 when CRTC forced CTV hand to make a choice, TSN or Sportsnet. CTV chose TSN since it had been around since 1984 so was a more mature station.

When I was hired as VP Finance and Administration, we were a Company in Trust. We had minority shareholders in Rogers, Fox, Molson and still had some assistance from CTV in the transition but did not have a majority stakeholder.

My first job as I was told by the President of Rogers Media and Sportnet was to try and control the spending as the years 1998 to 2000 were very extravagant and business plans were not made. My background after 12 years with Dome Productions/DAVE was controlling costs so did not see this as a problem. My first problem was realizing these Networks made money so easily by just being picked up by a Cable/DTH company. Actually 2/3 of all the revenue was derived from Cable revenue and 1/3 from at that time the only other revenue stream which was advertising.

However, everybody wanted to be associated with the advertising side as that was considered the sexy side of the company. Selling advertising spots to sponsors in highly desirable programming we purchase or produce.

The reason I tell this story is because one of the reasons for Sportsnet financial success over the next 8 years was due to knowing a little background.

When I came in and got to know my new staff, I asked the ladies who deposits the cheques that come in why we were getting some large cheques each month close to a million each. She explained it was the monthly cable cheques from the largest companies like Rogers, Shaw, Star Choice, Expressvu Cogeco etc.

I asked how we verify those numbers to ensure that they are correct. I was told we rely on the Cable Companies to tell us. I quickly called by counter parts at TSN and they explained they have a clause in their contract that allows them to send in an affiliate auditor annually to verify the numbers. Strangely we did not have that clause in our affiliate contracts. (TSN affiliate auditor at the time was Phil K., who later went on to be TSN President)

I had an opening and requested to fill it with what we called an Affiliate Co-ordinator/Accountant. I knew a lady from Dome Production who did an amazing job in analyzing invoices in the distribution department and would be a perfect fit to take on this role. It took a little convincing, but she decided to take on the role. (Mary Lou)

All my fellow Vice Presidents and President would realize that this one addition to our staff did substantially more than just the production savings we were able to achieve and made our day-to-day jobs easier.

It eventually became known internally as the Mary Lou factor. We would complete our business plan incorporating significant growth each year and then determine what Mary Lou will find during her forensic review of the cable companies invoices and know we had a reserve. Unfortunately for us when Rogers Media got wind of the Mary Lou factor, that was now always build into our business plans going forward.

She eventually caught the eye of Ted Rogers and of course the President of Rogers Media Tony V. and demanded she move to Rogers head office so she can do the same for MSNBC, Tech TV, Biography, and the Shopping Channel. We did whatever we could to stop the move as we knew her value directly with us and knew she would not be happy going there. (She reminded me many times)

My tenure at Sportsnet ended December 02, 2008 (co-incidentally, the same day Ted Rogers passed away) but can happily say we exceeded our business plan each and every year from 2001-2009 while on the payroll. We had a great team before everything got consolidated but we will all remember the effort and success that Mary Lou brought to our team.

A funny story after I was no longer working with Sportsnet but knew their 2009 business plan in depth. It was also in my best interests that they make their plan in 2009 so while watching the Leaf's on Sportnet at the ACC in the fall of 2009, I noticed Sportsnet rink boards were used as advertising.

I quickly called my former fellow VP Marketing (Dave B.) and asked him why he would be using these rink boards this year as we were not far enough over our business plan for 2009. He "said who is this” knowing it was me and he said how come you are still busting my chops on spending and you have been gone for almost a year. I told him we approved the spending in 2008 as we had room in the budget that year only.

We both had a good laugh and 2009 ended up being a success as well.

There was no slowing Sportsnet down and then Mary Lou decided to resign the following year and a lot of changes were made. That can come in a later segment if and when I decide to write another segment on this.

Just one final note. Both Sportsnet and TSN must be having a phenomenal year in 2020 due to the pandemic as they will have very few live events. To understand this, their advertising revenue will be less but their costs to produce the game and the rights for each game will disappear. How ever everyone will still continue to pay their cable bills with or without live baseball, hockey, etc.

Unfortunately Dome Productions who produces these games will not be as lucky as their production revenue will take a big hit.

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