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”
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Strengths, Weaknesses, Opporunities, and Threats
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Investor Bill Foley is “All In”
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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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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Narrative
Jay and Jana have just spent a whole week living it up in Las Vegas. Gambling, magicians, show girls, a gondola ride through Venice, you name it. They have two evenings left and are a bit “Vegased” out. While leafing though their hotel’s binder of “Things to Do” Jana notices a page dedicated to “All You Can Eat” seats at the new arena located at Park Ave and Frank Sinatra Blvd. The package includes private seats with a fully catered buffet, a carving station, nacho bar, peanuts, popcorn, unlimited soft drinks, wine and draft beer. If they book via their hotel, they receive a 25% off discount and a complementary Vegas hockey tee-shirt. Jay is a sports fan, but Jana has never been to a hockey game. However, she is a sucker for a great deal and agrees to attend for all the free food - not to mention the free wine!
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The Road Warriors Sammy and Nikki are twin sisters who have grown up in Cedar City. They have been members of YETI, Youth & Enthusiasts for Ice, since they were children. Both are extremely active individuals, and they spend as much time outdoors skating, hiking, or volunteering with YETI. They both love anything hockey – college hockey, pee-wee hockey, professional hockey. They follow several teams, but love Vegas hockey. The lights and atmosphere is so different from their sleepy town of Cedar City. The glitz and glam is magical, and driving the four hours to be able to watch a hockey game is more than worth
it for them. They usually score a cheap hotel room on Orbitz, as the hotel is inconsequential to them. Every trip to see some hockey lands them at Ruby’s diner for some old-fashioned diner grub before the game. They can’t afford season tickets, so they plan ahead early in the year to snag tickets to key games. Alaska Aces games are a priority, but they can also be expensive. The girls tend to travel with several other friends, and they can reduce their cost by carpooling and over-crowding their hotel room. It’s all worth it, as they love the team, the game, and the experience.
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James is a diehard fan. You know the type- when watching away games on tv, he is screaming at the tv as if the team can hear and it would help. When the team is on a winning streak, he will wear the same clothes, eat the same food, travel the same route, as if his daily habits impact Vegas hockey. As a season ticket holder and a fanatic, price was of little consequence to him. Each year he budgeted for his tickets and he had no plans to give them up. He was very bitter about the delay of the inaugural season in 1999, and the recent suspension of play. He feels it’s another typical “Vegas
THE DIE-HARD move”: who cares about what the residents want or think, as long as there are facilities for the tourists! This will be the third time Vegas residents are expected to give up their hard earned money to support an organization that did not have enough forethought to secure a long term home. The first time he understood, inaugural seasons hit bumps, but the second time? It was a bit ridiculous in his opinion.
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He wants to know how things will be different this time. How can the organization prove they care about their fans? He wonders if they know they need the locals, not the tourists? The locals are the ones supporting the team: they are the ticket-takers, the janitors, the ushers, and the people in the seats. If the franchise wants success, in James’ opinion they better do something to prove they value their fans.
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OUR FANS
When Emma was eight years old, she was diagnosed with leukemia. She also became a big sister. Jack adores his sister, but all he’s even seen is Emma’s suffering. She has good days, but most of them are bad. In his young life, he’s spent holidays and birthdays
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in the hospital, all underpinned with subtle sadness, though no one would discuss it. Recently, the Arizona Coyotes paid a visit to Children’s Hospital of Nevada at UMC. When they found out it was Emma’s fourteenth birthday. Several players went out of their
EMMA AND JACK BOTH FOUND STRENGTH IN THE COMMUNITY AND THEIR LOCK SPORTS “SUPERHEROES”
way to celebrate: they brought in pizza, cake, and Coyote-themed gifts. Seeing his sister smile and really enjoy herself was amazing to Jack. He saw them as superheroes, but better because they were real. He started to be come enthralled with hockey and he and he decided he wanted to be in the Pee-Wee hockey league. His parents are more than accommodating, as they helped Emma and impacted their family so positively.
THROUGH LOCAL INTIATIVES, OUR TEAM WORKS IN THE COMMUNITY TO PROMOTE TEAMWORK AND HEALTH.
It’s not who wins the fight that’s important, it’s being willing to fight.
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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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Statistics Population of Nevada:
2,839,099
Population of Las Vegas:
603,488 Visitors per Year:
44 million
1.9% increase in population since 2013 24
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39,985
citizens
Resident Education Attendance Clark County School District:
5th Largest
in the country
College of Southern Nevada:
44,088
students
Univeristy of Nevada Las Vegas
26,800
students
16% 2014 11% 2012
16%
Las Vegas 51’s increase from 11%
10% 2014 8% 2012
10%
UNLV Football increase from 8%
19% 2014
19% 2012
14% 2012
11% 2014
19%
UNLV Events increase from 14%
Rodeo, Boxing, Golf
7%
decrease from 19% Vegas Hockey
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Population of Las Vegas:
603,488
7.2% Under the age of 18: 25.9% Over the age of 65: 12% Over the age of 19-54: 55.1% Under the age of 5:
2014 Las Vegas experienced Employment Growth of :
5th
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245,000 Jobs
in job growth Nationwide
53.6% are Homeowners $163,500 Median Value 2.74 Persons per Household
91,000
NHL Fans in Las Vegas
11,000
Season Ticket Holders at
20,000
seats available for events
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Marketing Mix
Tourists/Student rush:
These seats are available year-round, and are sold as a first-come-first serve basis at the box office or through selected hotels.
Tourists:
Booking websites: Orbitz, Trivago, Expedia A proprietary app: on their franchise mobile app and through their website they are able to find seats available on a specific date and find local hotels with vacancies Info found in hotel room binders and on main tv channel in room When specific rivals are in town, their fan-base can search for tickets and hotel deals Airports Billboards along I-15 Cabs Travel agents All you can eat/drink specials with Uber/ cab bundles for safe transport back to hotel 28
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Marketing Mix: Our Fans/The Locals Skating and training camps Charity affiliations Therapy skates for vets and handicapped individuals
Pet adoption initiatives 5K or related run Wives’ association Scholarships
Silent Auctions In Arena/Live Auctions Charity suites
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Youth and Pee-Wee hockey High school affiliations with in Arena highlights Children’s Hospital visits
Fan Participation via Social Media Social Media Food Bank collections
Branding in dentist offices, libraries, gyms, car dealerships, local TV stations, local newspapers, small businesses,
locally owned restaurants and shops, supermarkets, pet stores, dry cleaners, public transportation Road Trip Fans: Hotel/meal deals programs Vegas Hockey
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Every day is a great day for hockey.