Sports bar, without the sports: Businesses call foul over steep TV package fees

St. John's-area bars and restaurantsthat cater to sports fans arefeeling the brunt of recent increases in TVfees, in the wake of sharp increases forboth Bell and Rogers packages that came into effect this month.

"I was stuck without sports in my sports lounge," said David Primmer, owner of the Fifth Ticket restaurant and bar on Water Street in downtown St. John's, "other than what CBC offers during the NHL playoffs."

Bell and Rogers introduced new fee regimes for sports bars and similar establishments on May 1 a bit of timing that has alarmed hospitality businesses hoping to take advantage of playoff season.

"Coincidentally, it's the NBA and NHL playoffs, and also the start to the baseball season," said Primmer, who used to pay $53.99 a month, and then faced a bill of $385 for a two-channel service.

"Luckily for me, I'm not a sports bar in nature so I could say no to that. Bu there'sa lotof other sports places out there that can't."

TheBell and Rogers fees are aimed at any establishment holding a liquor licence that carries speciality sports channels like TSN, RDS and Sportsnet.

Prices vary by size of business

The justification for the fees is that they should reflect the commercial use of the channels, and the value that they provide to businesses that aim to attract sports fans in droves.

• Bell and Rogers to ask bars to pay more for sports packages

"New sports packages for business TV clients with a liquor licence will be introduced," Bell said in a statement to CBC News in March.

"Prices vary depending on the size of the business and other factors such as the specific sports package a business client wants."

Primmer, who added a40-seat sports bar on the second floor of his restaurant, thinks the new fees are simply too much to absorb.

"I understand the need for the price to reflect what it's being used for. But this is more than just a slight increase," he said in an interview.

"They put businesses in a bind where they couldn't even make the decision. They [Bell and Rogers] made the decision for them."

'Economy is not at its best'

Geoff Thistle, general manager with the BigsUltimate Sports Grill, said he had little choice in absorbing the extra costs to keep the speciality channels in both of his locations in St. John's and Mount Pearl.

"It puts you in a place where you can't say no," said Thistle. "We're a sports bar. We have to show sports."

The Bigs' cable bills will not change until the end of the year, when current contracts with media providers expire. Then, according to Thistle, there could be annual increases of about $4,000 at each location.

We're a sports bar. We have to show sports.- Geoff Thistle

Thistle added he is concerned about the tipping point of a night out, where customers will decide to simply stay home and watch sports for free rather than going out to their favourite sports bars.

"The economy is not at its best and larger companies keep tacking on bills and fees," said Thistle.

There could be some reprieve for those struggling with the new costs.

Restaurants Canada,which represents the country's restaurant and foodservice industry, says its members could be eligible for rate discounts based on how visible the televisions showing the sports channels are.

The new increases, on the other hand, are based on factors that include total seating.

There is, however, a membership fee to join Restaurants Canada.

Meanwhile, both Primmer and Thistle say the timing of the rate increases is curious.

"It's probably when Canadians are watching sports the most," Primmer said.

"There's no way that both networks, Bell and Rogers, coincidentally upped their rates at the same time during the busiest time of year for sports. I don't think that's a coincidence."