The National Hockey League moving to Las Vegas
Three years ago, expanding the National Hockey League (NHL) was just an idea up in the air. The NHL was regrouping from a partial lockout during the 2012–2013 season. There have been two lockouts within a 6-year period. Many people were wondering there has to be an answer to this. In 2016, Las Vegas was awarded an expansion bid over Quebec in 2017. The Vegas Golden Knights is the new the hockey team in the National Hockey League starting in the 2017–2018 season.
Through the expansion process, the owner and billionaire of the team, William Foley had to put down $500 million. The catch is if he can only attract or bring in $10 million annually from a sports network to help out with costs, the team could lose around $30 million a year (NY Post). Now thinking of this deal, Foley, in Las Vegas has only built an arena. Bringing a team in from scratch is a difficult process but if the team can’t get the revenue, Vegas will not last very long.
The goal of a new brand or team is to become a household name or to create a name that someone will remember and look to. To build a franchise, create a team, build an arena, and get players is no easy process. Owners have to find ways to make that revenue back. As of now, the Vegas Golden Knights are in talks about media rights. But are having some trouble getting that deal going.
From a marketing standpoint, I’m sure the newest NHL team (Golden Knights)will get many offers for the 2017–2018 season. The one idea I found from reading how organizations start business talks, partners, and marketing from scratch is don’t wait around for the top marketers to pass along deals or updates. In other words, use what you already know to construct your sports marketing campaigns and improve them later with fresh ideas. This idea has a solid foundation, especially for a new team that will jump immediately into good size market.
When the brand new team hits the ice in October for the new season, I am sure people will be excited. But I want to see how long a hockey team stays in the entertainment capital of the world.