Taking over for ESPN,[7][8] SportsChannel's contract paid US$51 million[9][10][11] ($17 million per year[12]) over three years,[13] more than double[14][15] what ESPN had paid ($24 million) for the previous three years[16] SportsChannel America managed to get a fourth NHL season[17] for just $5 million.[18][19][20][21][22][23][24]

The SportsChannel America deal was in a sense, a power play created by Charles Dolan and Bill Wirtz. Dolan was still several years away from getting control of Madison Square Garden, and Wirtz owned 25% of SportsChannel Chicago. NHL president John Ziegler[25][26] convinced the board of governors that SportsChannel America was a better alternative than a proposed NHL Channel backed by Paramount and Viacom that had interests in the MSG Network and NESN.

SportsChannel's availability

Unfortunately, SportsChannel America was only available in a few[27] major markets (notably absent though were Detroit, Pittsburgh, and St. Louis[28])[29][30][31] and reached only a 1/3 of the households that ESPN[32] did at the time.[33][34] SportsChannel America was seen in fewer than 10 million households.[35][36] In comparison, by the 1991–92 season,[37] ESPN was available in 60.5 million[38] homes whereas SportsChannel America was available in only 25 million. As a matter of fact, in the first year of the deal (1988–89), SportsChannel America was available in only 7 million homes when compared to ESPN's reach of 50 million.[39] When the SportsChannel deal ended in 1992, the league returned to ESPN[40] for another contract that would pay US$80 million over five years.[41]

SportsChannel America took advantage of using their regional sports networks' feed of a game, graphics and all, instead of producing a show from the ground up, most of the time. Distribution of SportsChannel America across the country was limited to cities that had a SportsChannel regional sports network or affiliate.[42] Very few cable systems in non-NHL territories picked it up as a stand-alone service, with many only taking it on a pay-per-view basis during the Stanley Cup Finals. In addition to the SportsChannel regional networks, Maryland-based Home Team Sports and Minneapolis-based Midwest Sports Channel (independently owned and operated despite the similar sounding name) carried the games. In 1991, two Prime Sports networks, KBL (Pittsburgh) and Prime Sports Northwest agreed to carry the playoff package, expanding it reach to an additional 2.6 million homes.[43]

Philadelphia

Since SportsChannel Philadelphia did not air until January 1990, PRISM (owned by Rainbow Media, the owners of SportsChannel, at the time) picked up the 1989 Stanley Cup Finals. Other than that, there was no NHL television coverage in Philadelphia except for the Flyers for the first half of the original deal.

Lawsuit

As previously mentioned, the NHL would return to ESPN following the 1991–92 season. Shortly after the ESPN deal was signed, SportsChannel America would contend[44][45] that its contract with the NHL gave them the right to match third-party offers for television rights for the 1992–93 season. SportsChannel America accused the NHL of violating a nonbinding clause. SportsChannel America argued that it had been deprived of its contractual right of first refusal for the 1992–93 season. Appellate Division of New York State Supreme Court justice Shirley Fingerwood would deny SportsChannel America's request for an injunction against the NHL. Upholding that opinion, the appellate court found the agreement on which SportsChannel based its argument to be "too imprecise and ambiguous" and ruled that SportsChannel failed to show irreparable harm.

In the aftermath of losing the NHL, SportsChannel America was left with little more than outdoors shows and Canadian Football League games. For SportsChannel, the deal was a disaster overall. While the cable channel three years later, was available in 20 million homes (as previously mentioned), the broadcaster lost as much as $10 million on the agreement, and soon faded into obscurity. Some local SportsChannel stations – which carried NHL games in their local markets – were not affected.