ECHL PROPOSAL Sara Tinnick
Full Sail Univesity: Masters Thesis February 2016
wants “Las Vegas is ready — ready for the energy, excitement and thrill that only NHL® hockey can deliver”
4 SWOT
Strengths, Weaknesses, Opporunities, and Threats
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Vegas Hockey
Investor Bill Foley is “All In”
Market Positioning................................................................ 8 Personas.............................................................................. 10 Competitive Review............................................................. 12 Narrative.............................................................................. 14 Strategy............................................................................... 16
Las Vegas looks the way you’d imagine heaven must look at night.
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Our Values
1. Entertainment: Provide quality entertainment for our community locally, nationally, and worldwide.
2. Community: To foster community outreach and a sense of
togetherness through youth hockey, mentoring, charity work, veterans support, and sled hockey.
3. Athletic Development: Continued development of players to
support the NHL as well as promotion of athletic and character development with the competitive, hard-working nature of hockey and competition.
4. Teamwork: Working together to further the sport of hockey across multiple demographics.
5. Financial Growth: Deliver financial benefits to the league, stakeholders, players, and the supporting community.
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Strengths weaknesses • Current population of Clark County: 2,102,238
• 47% of guests present for vacation or pleasure
• 43% of the workforce is supported by tourism
• No home arena
• Will supply more stable jobs
• Competitive/league balance
• In 2014, 41,126,512 people visited Vegas • Gaming revenue in 2014 was $9.6 Billion •Only 19% of visitors are first time visitors • Return Visitors may return to frequent hockey games • Market is ready for a team
• Biggest rivalry: Alaska Aces • Not a “Road-Trip Rivalry” • No time table for NHL professional bid • Transient nature of Las Vegas lifestyle • 80% of Las Vegas Valley homeowners are behind on their mortgage, leaving little for leisure items
• Civic pride • Hockey is in demand - www.vegaswantshockey.com • $375 million MGM-AEG arena is 75% complete • 17,500 hockey seats • 13,5000 full season ticket deposits •100% of luxury suites sold • Dual target market focus: Locals and Tourists • Two groups of tourists: • Road trip fans • Long-distance travelers
Opportunities
• Of the 47% target visiting for pleasure, 68% of them were for vacation of pleasure, with only 12% being there only to gamble. • High-end luxury box for hotel guests. A promotional suite can be create for specific hotels with an all-inclusive, all-you-can-eat-drink special (Tim Hortons?) • Las Vegans have cited local governments are failing to foster a sense of community, providing an opportunity to create
• Outreach programs for youth: it costs $195,406 to incarcerate
a youth in Nevada per year, a juvenile delinquency program tied in with a teen hockey league may help reduce this cost.
• Sled hockey initiatives for handicapped individuals • Charities programs • In-house job opportunities • Staff for games • Production staff • Food and drink services • Uber-type game transit
• Security
• Pairing with other local hockey teams: • WSHL Nevada Storm • High Schools • Colleges • Pee-Wee • Sled Hockey • Economic boost due to income generated by the franchise • Ticket sales • Food and drink revenue • Merchandising • Camps and training 6
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Threats • This is the 2nd time they have not secured an arena, the 1st being their inaugural season in 2000 • Three seasons were missed due to lack of venue • Teams/owners against league expansion • Player expansions and salary cap • Northern/Eastern coast association with hockey • People do not necessarily think “Vegas” when you think hockey
SWOT Vegas Hockey
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Market
Positioning The city of Las Vegas is ready for a professional sports team. Numerous studies, polls, and blueprints have been drawn up and debated upon. The Wranglers were a very successful franchises while they had ice to call home. In order to return to Vegas, hockey needs to dedicate some time to the people who make up the Las Vegas community. Las Vegans have cited local governments are failing to foster a sense of community, providing an opportunity to create. The hockey team can create outreach programs for youth: it costs $195,406 to incarcerate a youth in Nevada per year, a juvenile delinquency program tied in with a teen hockey league may help reduce this cost. In the 2014-2015 season, USA hockey reported that over one million players registered. Along with players, there are also fifty-five thousand coaches, and twenty-three thousand officials. Arizona and California have shown the fastest growth in youth hockey. For
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the first time, more than fifty thousand first time players were girls. These statistics are a positive indicator that hockey in Vegas is still a viable market. According a an article by ESPN’s Bruce Kelley and Carl Carchia, sports not only benefit the individual: Kids all over America play sports, which means a large portion of families focus on youth sports. Ninety percent of parents with children on a team attend at least one of their kid’s games a week. And with youth players mostly at the age when they’ll still talk to parents, you can guess what the subject of conversation often is: 68 percent say they talk at least every other day about games and practices. Many NHL franchise’s are employing mission statements that focus not only on their own success, but also the success of the communities they live in. For example, the Nashville Predator’s mission statement cites: “To use our distinctive set of assets to support the youth and their families in the community
I think we need to do as much as we can to give back to these young kids growing up.
that we call home.” The Predator’s make no mention about profit, fame, or fortune. The new Vegas team will also align their values to benefit the community, not just their stakeholders. Creating an organization that will recognize the importance of members of community, from peewee aged skaters to their parents, from people rooting at home with their furry friends, to all the local businesses and schools, Vegas hockey will add more light to an already bright city.
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Persona’s Name: Sammy Geographic Location: Cedar City, Utah Age: 26 Gender: Female Education Level: Associates Degree Marketing Income: $26,000 Occupation: Secretary/Social Media Specialist Target Attributes Family (Single? Married? Children? Pets?): Single, 1 dog named Calder (after the Calder Cup) Social Life (Hobbies? Dining Out? Outdoor Activities? etc.): Music: plays saxophone and is active in church choir Physical Fitness: Avid gym member (Planet Fitness); P90X home workout; avid skater; YETI member and volunteer; hikes regularly Foodie: Although very active, she indulges in junk food; cooks at home for twin sister Nikki and her mom and dad Hockey Extraordinaire: Loves the sport and all that goes with it; willing to travel 4+ hours by packed vehicle to see minor league teams; has spent $250+ for tickets, room, board, and food to see games; volunteers with YETI; referees local hockey games; Spent 21st birthday at the 2010 NHL Draft at the Staples Center in LA Social Media (Facebook user? Twitter? Other?): Facebook, SnapChat, Pinterest, Instagram Cultural (Book reader? Music lover? Art lover? etc.): likes “old” 80s music: Journey is her go-to; modern pop: 1D, SWAAY, the 1975, Imagine Dragons, Bruno Mars, Lady Gaga, Walk the Moon. Political: undecided Ethnicity: Caucasian Personal Values (core beliefs worth fighting for): equality for women, beauty in all sizes, promotion of winter sports Clubs/Tribes (Starbucks loyalist? Fitness enthusiast? Smartphone user? etc): Social media guru: uses every new type of social media and has been Tweeting since Tweeting was Tweetable; a YETI through-and-through: believes that the community can be brought together through outdoor activities and that ice skating in particular can teach coordination, cardio fitness, and balance.
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PERS
Willing to Travel over Four Hours to support her team.
SONAS
Persona’s Name: James Geographic Location: Las Vegas, Nevada Age: 41 Gender: Male Education Level: PhD - Political Science Income: $55,000/year Occupation: Statistician for State of Nevada, Roller Derby Statistician for the Hoover Damned Target Attributes Family (Single? Married? Children? Pets?): Divorced, two cats Social Life (Hobbies? Dining Out? Outdoor Activities? etc.): Drinking, trivia at bars, roller derby, hockey, lacrosse, baseball. Hockey: Grew up watching hockey, both pro and amateur. Bitter about the loss of the Wranglers, adamant that Seattle should NOT get a professional team. Began playing pickup hockey after learning to skate as an adult. Social Media (Facebook user? Twitter? Other?): Facebook and Twitter Cultural (Book reader? Music lover? Art lover? etc.): Avid video game player, multisystem; popular culture dictionary; heavy metal fan: Has a memorial at home AND at work to Lemmy (this is not a joke) Political: Republican Ethnicity: Caucasian Personal Values (core beliefs worth fighting for): Pro-gun; anti-declawing Clubs/Tribes (Starbucks loyalist? Fitness enthusiast? Smartphone user? etc): Derby, hockey, cats. Faith/Religious Beliefs: Byzantine Catholic
Not a die-hard fan;
he is a die-never fan.
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Competitive
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The glitter and glamour of Las Vegas itself competes for attention, time, and disposable income.
The direct competition in this case is not another hockey team, as would be expected. The competition in Vegas is Vegas itself. The city is teaming with things to see and do: Shark reef (in the middle of the desert) Red Rock Canyon Countless casinos Britney Spears Blue Man Group Penn & Teller 2,374 restaurants Magicians Light shows Shooting ranges Botanical gardens Zip lining down Fremont Street Fountains shows where volcanoes erupt … the list goes on and on and on. It will be difficult to target tourists with all the glitz and glam. Difficult, but not impossible. 65% of visitors attended shows during their stay in Vegas (which is down from 72% in 2013). Of this group of people: 77% went to a lounge act 17% saw a big-name headliner 10% saw comedy shows 19% went to “other” shows Sporting events would fall into “other” but are not significant enough to create their own share of the breakdown. In 2014, the average nights stayed was 3.2, which may not leave enough time for a hockey game along with all the other nightly shows available in Vegas.
The Alaska Aces are the “favorite” rivals, As are the bakersfield vondors, Idaho steelheads and Ontario Reign.
Vegas is everything that’s right with America. You can do whatever you want, 24 hours a day.
Approximately 9% of visitors who are there for a Trade Show or conference and these individuals may pose an interesting market. When the meetings for the day conclude, a group hockey game could be a fun activity. When targeting to the local population, the history of the Vegas franchise is a large threat, as is the current economic situation of Las Vegas. While tourism provides a rather stable job market, over 80% of Las Vegas residents are behind on their mortgages, leaving little extra for season tickets. The franchise will also have to overcome its history and reputation in the heart and minds of the locals. Finally, the logical competitors are area ECHL hockey teams. The Alaska Aces are the favorite rivals in Vegas, as both the Wranglers and the Aces were the winningest teams in the ECHL. Other notable competitors are: Bakersfield Condors, Idaho Steelheads, Ontario Reign, Stockton Thunder and Utah Grizzlies.
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Narrative The Las Vegas Wranglers were Vegas’s professional hockey team until 2014. Initially, they were slated to begin in 1999 after the Las Vegas Thunder became defunct. The Wranglers name and logo were announced prior to the 2000 season, however the franchise failed to secure a home venue. The Wranglers officially hit the ice in 2003 at the Orleans Hotel and Casino. They also became the affiliate team of the Calgary Flames and the Lowell Lock Monsters. In 2013, The Orleans Hotel and Casino made the decision to terminate the Wrangler’s lease. The franchise was set
We cannot simply replace the Wranglers. The team has to offer Las Vegas more than just another sports team or tourist trap. The team will be active in the community, fostering relationships with youth, veterans, and even animal shelters.
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to move to a facility at the Plaza Hotel & Casino in downtown Vegas, however the venue proved to be too costly to retrofit. A voluntary suspension of operations was grated by the ECHL, a permanent cessation was announced on January 30, 2015 via Facebook due to no suitable venue. This has left a giant gap Las Vegan’s sports fan nation. Eighty percent of local Las Vegans behind on their mortgages, the franchise will have to contend with the economic competition, as well as dealing with their history of instability. Locals may not feel as if they are priority, in a city here they already feel that they are not a priority. Many Las Vegans feel they are there to serve tourists and literally clean up after others enjoying themselves. Bringing professional hockey back to Las Vegas can help the local population feel they are an asset, and help clean up the community they live and work in. By actively working with citizens from Las Vegas, positive initiatives can be enacted that will focus on veterans, children, teens, college students, handicapped individuals, and local charities. It will be imperative to garner the support of the local community.
Filling the gap left by the Wranglers – with more Vegas Hockey
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Strategy In his article 4 of 10 residents looking to leave Las Vegas, Joe Schoenmann states that “residents and former Las Vegans cited the fact that local governments [fail] to foster a sense of community at the same pace developers threw up chock-a-block stucco homes.” This creates a huge opportunity for a team with a community-forward mission to engage and foster that sense of civic pride and togetherness citizens find lacking. The lack of a home arena can also be an asset. Garnering support from the local citizens, donations can be given to help fun the rest of the building costs. Each member who donates can be placed on a tile in a mosaic that will be a permanent part of the Las Vegas Hockey team’s history and physical location. The Pittsburgh Penguins are known in the city for their charitable deeds. The Pens donate $350,000 to thirty-six local charities through Game Day 50/50 raffles, totaling more than $1.8 million in the past three seasons. The Pittsburgh Penguins Foundation states:
Hockey is a unique sport in the sense that you need each and every guy helping each other and pulling in the same direction to be successful.
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“The Penguins organization has always been noted for our generous contributions to the surrounding communities. We understand the importance of our fans and the role that we collectively play in the development of the region. Our players, coaches, and front office staff are involved in every aspect of community development, but what makes the programs work is the response to our efforts by our fans.”
A similar Mission can be instated with the new Vegas team, meeting the needs of citizens who feel there is little reason to stay in Vegas. The lack of a home arena can also be an asset. Garnering support from the local citizens, donations can be given to help fun the rest of the building costs. Each member who donates can be placed on a tile in a mosaic that will be a permanent part of the Las Vegas Hockey team’s history and physical location. A video wall/monitor in an immersive but nonobtrusive manner showed a momentary clip of the donor in a hat trick scoring montage, complete with their name being shouted. It would make the donor be more willing to go to the games, especially if the plays they “starred” in changed. This would have to be a green-screen video/Photoshop deal. Perhaps the video could be uploadable to Facebook/ Twitter/Vine. Since 80% of locals are behind on their mortgages and financial hardship is a reality,
tickets, especially season tickets may not be high on their priority list monetarily. Combined with the franchise’s track record of leaving or not securing a venue, locals may not feel they are a priority. A special pricing system for locals only may help improve the perception that the team is only temporary or that it caters to tourists only. Special promotions for locals or those who travel just for the team’s games will also help with Las Vegans feel valued. The franchise must also focus on the positive impact they can have on the community. Jobs will be created, which will help boost the local economy. Vegas is on the list of cities that will be able to support a professional sports team.
I went to a fight the other night, and a hockey game broke out.
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Every day is a great day for hockey.