TVA Sports is on the “edge” between survival and closure.
It’s not my expression. It is the one used by the president and CEO of Quebecor, Pierre Karl Péladeau, in an interview with Paul Arcand on Friday morning. I will not feign surprise. The channel’s financial results have been catastrophic for 10 years. Even when TVA Sports broadcast the Stanley Cup final involving the Canadiens, in 2021, its losses reached 11 million.
“It does not look good for TVA Sports, launched Paul Arcand to Pierre Karl Péladeau.
– Effectively. There are a number of considerations that do not militate for the prospect of success [de TVA Sports].
“Have you ever made a piastre of profit?”
– No. On the contrary.
“How much did you lose?”
— The total investment since we launched TVA Sports is 200 million.
“What have you lost?”
— That we have invested. We can say that we have lost it. It depends if you see the glass half full or half empty. »
The survival of TVA Sports, added Pierre Karl Péladeau, is now at stake before the CRTC. The federal agency will soon decide whether Bell should pay more royalties to TVA for its specialty channels. “We are in arbitration. We are on the edge. This will be the last arbitration before the renewal of the contract with the National Hockey League. It will be decisive. »
At a high level, Quebecor seems to be in permanent conflict with its main competitors. But on the assignments, between its representatives and us, good understanding reigns. Journalists from other media are not my enemies. They are simply colleagues who work for another box, in order to inform you.
Thus, the dismissal of 140 employees of TVA, 100 others of Quebecor and the financial problems of TVA Sports do not please me. It’s quite the opposite. TVA gave me my first chance as a journalist. I met dedicated, passionate and competent people there. Several of my friends still work there, in different departments. I wholeheartedly agree with them.
Afterwards, there are questions to be asked about all the money that Quebecor has swallowed up TVA Sports. TVA Group shares are worth five times less today than when TVA Sports was launched. Okay, not everything is attributable to the losses of the sports channel. But when a specialty channel loses 10, 20, 30, up to 39 million a year for a decade, the hole is deep.
How did Quebecor get to 200 million in losses?
In 2009, TVA wanted to attack RDS’ monopoly on sports coverage. A very good idea. So much so that Radio-Canada did the same. Both have filed applications with the CRTC. TVA has obtained a licence. Radio-Canada abandoned its project.
At the same time, Pierre Karl Péladeau cherished the dream of repatriating the Nordiques to Quebec. The prospects for convergence were enticing. He did not skimp to make TVA Sports an immediate success.
The bosses of TVA have opened the checkbook. And they signed some really, really big ones. First to the stars of RDS, to convince them to change employers. Renaud Lavoie, Félix Séguin, Denis Casavant, Michel Bergeron and Rodger Brulotte made the leap. Then to the various leagues, to take away the rights from their competitors.
One contract hurt more than the others.
The NHL’s.
Seven hundred and twenty million for 12 years.
For all Canadian games?
Not even. For 22 games in season (those on Saturday), as well as for the playoffs and games involving other teams. An excessive amount. “We chose not to go to that level, because it would have destroyed RDS’ profitability. Total destruction. A financial suicide “, had then entrusted the president of RDS, Gerry Frappier. “Honestly, with all due respect to the power of the Quebecor empire, I rack my brains trying to see how they are going to make this agreement profitable. »
The strategy, while waiting for the return of the Nordics, was similar to that of the big box stores: to offer a popular product at a loss, to attract customers to the trade.
The profitability of the Canadian matches was announced to be difficult, if not impossible, but TVA Sports was going to fill up with subscribers.
It was a failure.
And the Nordics never came back.
In 2015, Quebecor mentioned the closure of TVA Sports. Nobody believed it. It did not reflect what we observed on the ground, where TVA was spending as if there was no tomorrow. The size of his delegation at certain events – like the Stanley Cup final – was impressive. But shortly before the pandemic, when it became clear that the return of the Nordiques was faltering, nervousness set in among the employees. Four of them told me they feared cuts.
Then the pandemic hit. TVA has lost more than 110,000 subscribers. Even the presence of the Canadian in the final, in full confinement, was insufficient to generate profits.
Management realized that the shows surrounding the parties – and in which it had invested heavily – were no longer popular. The newscast was cut. The morning show, too. Dave Morissette live has been removed from the schedule. The chain also lost the QMJHL and CF Montreal.
So today, what remains?
Jean-Charles Lajoie’s show. La Poche bleue at noon. Otherwise, hockey. Lots of hockey. That of the Canadian, on Saturday, also available on CBC. That of the series, partly retransmitted on CBC. The NHL’s. Women’s tennis, available on DAZN and TSN. Baseball. Then secondary properties, such as the Lions of Trois-Rivières, the Force of Montreal, university football and Formula E. Difficult to get hundreds of thousands of new subscribers with this offer. Especially with the Canadian in reconstruction.
This is why Pierre Karl Péladeau links the future of TVA Sports to CRTC arbitration. And even if Quebecor were to win its case, I’m not convinced that beyond the edge, the grass will suddenly be greener in the forest.
(Total transparency: in the past year, I have collaborated four times on the show 5 to 7 of RDS.)