Brendan Shanahan proves to be a solid PR asset for the National Hockey League

Strong communications skills and media capabilities have become increasingly important over the past 10 to 15 years for senior executives in general and Chief Executive Officers in particular. That's true in mainstream business but it's arguably even more the case in the business of sport, where the relationship between consumers (fans) and product or company (franchises or leagues) is unique.

In most cases in the regular private sector, only shareholders feel a vested interest in the company in which they own stock. There are some corporations whose products command a higher brand of loyalty and connection (Apple comes to mind) but few if any can compare to the "equity" that fans take in their favourite club or league.

The hard core fans feel a sense of ownership in their team. They care about their favourite league. The best franchises and leagues get that and relate to their fans and their larger audiences as if they are a public trust or a community asset.

After 17 years on the job, however, National Hockey League commissioner Gary Bettman has yet to crack the code on public and media relations. Specifically, he has not mastered any sense of relating to hockey fans through television.

How badly he wrestles with the media in general was so brutally on display in his CBC television appearance with Hockey Night in Canada host Ron MacLean last week. Maybe too much time in the sun that day was the problem, but it was one of the poorest television performances by a professional sport commissioner I've ever seen.

Bettman on Hockey Night in Canada June 2nd, 2010: http://www.youtube.com/watch?v=ww3md8DvoTY

Bettman was alternatively defensive and prickly, even in the studios of the television network that pays more for NHL rights than any other carrier in the world. He was clearly annoyed with MacLean and a line of questioning that focused on ownership troubles in a variety of NHL markets, most notably those in the U.S. sunbelt, instead of what he was hoping would highlight the terrific overall economic performance of the league.

OK. I would have encouraged MacLean to acknowledge the NHL is having record financial results in spite of the basket cases in the southern U.S. and simply raise the matter of what could be if those problem childs were replaced by teams in northern U.S. markets and in Canada, which has never been more bullish for the NHL and which is driving in a big way the league's overall success.

That being said, it's unfathomable to me that Bettman handled the CBC piece the way he did and that he is so bad at media and public speaking despite almost two decades in the commissioner's chair.

Thankfully for the NHL, it has some other emerging executive assets who could help strengthen the league's brand as they grow into their roles and gain more exposure in front of the camera. None is more obvious and more well-equipped to do so than NHL vice-president of business and hockey development, former star player Brendan Shanahan.

Shanahan's interview last night on Hockey Night in Canada was as good as Bettman's was bad earlier in the week. The Stanley Cup champion and surefire Hall of Famer was open, courteous, insightful and even humourous. The contrasts between the two interviews -- and how they reflected the NHL they were each representing -- could not have been bigger.

Shanahan on Hockey Night in Canada June 6th, 2010: http://www.youtube.com/watch?v=zAFl89kgzMo

Shanahan was a prototype power forward in his years with the Hartford Whalers, St. Louis Blues, New Jersey Devils, Detroit Red Wings and New York Rangers.

Sunday night's interview reminded us how well he handles the public side of the business and how much value he could bring to the table for the NHL as its own power forward in media relations and television.

It also laid bare how weak Bettman is on the same fronts and how difficult it will be for the league's frontman to change his stripes when he clearly does not enjoy that part of his role as NHL commissioner. The right strategy for the NHL -- especially with a new round of collective bargaining upcoming -- would be to showcase the likes of Shanahan every opportunity it gets.

www.TheSportMarket.biz
The Sport Market on TEAM 1040 and teamradio.ca
Saturdays 9 a.m. to 12 noon PT
Facebook.com/TheSportMarket and Twitter.com/TheSportMarket

If Gary Bettman cannot see the opportunity for the NHL, someone else will

One of the principal jobs of the commissioner of the National Hockey League – or any professional sports league for that matter – is to create value for his member franchises and their owners. Commissioners do that by creating league-wide conditions that grow the business of their member clubs.

The more revenues franchises generate, the greater their business valuation. When more franchises make more money, the average value increases throughout the league and that is good news for NHL club owners in the same way rising home prices and growing ownership equity is a boon for home owners.

So when it comes to franchise values, we give NHL commissioner Gary Bettman credit where it’s due. Values have grown under Bettman’s 17-year tenure several fold.

The question for any seasoned business valuator -- or any fan who cares about the game for that mattter -- is, however, what could be?

When one considers where the league could be without the stresses -- both public and private -- surrounding a group of under-performing hockey businesses in the southern U.S., Bettman's record raises red flags and deserves further scrutiny.

That’s because every single one of the NHL’s major business indicators – attendance, ticket prices, box office, merchandise sales, sponsorship sales, television audiences and revenues – would be even higher if the league had less U.S. sunbelt franchises and more Canadian or northern U.S. franchises.

Why Bettman has not pro-actively addressed the issue is one of the big blind spots in his leadership of the NHL. Why the NHL’s governors – the owners of the league’s 30 clubs – have not pushed more aggressively for solutions that would strengthen the league and improve their own lots considerably is an even bigger mystery.

If it’s true that you’re only as strong as your weakest link, the Phoenix Coyotes are a problem for the NHL. So are the Atlanta Thrashers. Throw in the case of the Florida Panthers – where less people are watching on FSN Florida (an average of 13,400 viewers per game) than are attending games in person (15,000 on a good night) – and you have at least three teams mired in red ink in questionable hockey markets.

Why not play to your strength? Why not license your product in markets where it is being gobbled up in record numbers? Why not replace your weak links with solid performers?

“The Case for Canada” report outlines just how bullish the Canadian market is for the NHL brand of hockey, especially in the period since the lockout in 2004-'05.

http://www.vancouversun.com/sports/could+cash+return+roots/3060451/story.html

It suggests that if the NHL relocated three of its weakest southern U.S. franchises to Canada, their individual franchise values would increase by more than 50 per cent and the league’s average team valuation would jump by $11 million US. It also submits that the combined revenues of the three relocated franchises would rise by $100 million per year, average attendance would grow by 6,000 more fans per game per franchise (or 738,000 more per season) and regional television audiences would increase twenty-fold. Yes, twenty-fold.

Yet more than anything, the report by TheSportMarket.biz and The Vancouver Sun makes a compelling case for the landing of at least one more NHL team in Canada. Plain and simple, the numbers clearly show how the NHL, its member franchises, broadcast partners and other corporate stakeholders – not to mention fans of the game in Canada – would be well-served if the NHL shifted its centre of gravity northward.

The proof is in the pudding of the hockey markets themselves. Considering market size, demographics and other attributes including affinity for sports in general and hockey in particular (as Forbes Magazine does in its annual list of NHL franchise values), the average NHL market contributes $84 million to its franchise valuation (out of about $210 million in average overall value).

Sun belt markets are considerably weaker; the market attributes of Phoenix, Atlanta and Florida for hockey average out at only $48.3 million according to Forbes.com. That's about half the average U.S. hockey market value and about 40 per cent that of the average Canadian market.

Those numbers exemplify how the sunbelt teams are dragging down the average value of NHL franchises the way shabby houses devalue entire neighbourhoods.

The Case for Canada is clear. It’s your move commissioner Bettman.

www.TheSportMarket.biz
The Sport Market on TEAM 1040 and teamradio.ca
Saturdays, 9 a.m. to 12 noon PT
Facebook.com/TheSportMarket and Twitter.com/TheSportMarket

NHL's own Coyotes spin Slap Shot-like tale

Whether it's called Flight of the Phoenix, From the Ashes of Bankruptcy or simply Believe It or Not, the Phoenix Coyotes are the closest thing the National Hockey League has to a Hollywood script in its 2009-'10 season.

In fact, despite not featuring the Hanson brothers or anything close, the Coyotes invoke the cult movie storyline of the Charleston Chiefs of Slap Shot fame.

Barry Riz of TSN.ca channeled the 1977 flick, the most popular hockey movie of all time, in a blog Monday night as the Coyotes occupied -- albeit temporarily -- a share of first place in the western conference of the NHL.

Instead of the Federal League, it's the NHL...it's not Reggie Dunlap (Paul Newman), it's Shane Doan...Jobing.com Arena in place of War Memorial Arena...stories of relocating to southern Ontario (last summer) and now Winnipeg or Kansas City instead of Florida...instead of a new, aggressive team fronted by the Hanson brothers, it's a new, stubborn team fronted by head coach Dave Tippett.

What would be more unlikely: The Chiefs' league title in Slap Shot the movie in 1977 or the Coyotes winning the Stanley Cup in real life in 2010?

Two things for sure: 1. The Phoenix Coyotes are the NHL’s story of the year for their surprising on-ice performance and position near the top of the western conference. 2. They continue to be its off-ice dog in terms of ticket sales and sponsorship revenues and hence, its most troubling sport business story for the third or fourth year in a row.

With a franchise record 98 points, the Coyotes are fourth overall among the 30 teams in the NHL and tied for second in the western conference – just one point behind the Chicago Blackhawks and knotted with the San Jose Sharks.

They are making the most of a season which they began in bankruptcy protection before being bought and taken over by the NHL itself in the Bettman-Balsillie-Moyes love triangle and sport business soap opera of last summer.

Yet despite being a lock to make the playoffs for the first time in seven years, the Coyotes are playing dead at the box office, despite impressive walk-up sales this month by spring break visitors from Vancouver and transplanted Chicagoans.

Phoenix is dead last among NHL teams in terms of ticket revenues earned per game. It is almost certainly also last in sponsorship revenues and tied for last in local television audiences. It is in the bottom five in the league in merchandising.

Going into this weekend, the Coyotes are averaging just north of $425,000 US per game at the box office. That's $125 K less per game than the next weakest NHL ticket machine, the Tampa Bay Lightning. Even perennial losers such as the New York Islanders -- in danger of moving out of an outdated arena and perhaps out of New York altogether -- and the Atlanta Thrashers -- out of the playoffs and in and out of court in a lawsuit among its owners -- make at least $225 K more every night out than the Coyotes. That's $9 million a year and change.

The Coyotes need an entire season to make as much box office revenue as the Vancouver Canucks do in a quarter-season Ice Pak of 11 games. Conversely, the Toronto Maple Leafs need only eight dates at the Air Canada Centre to outperform a 41-game regular season of Phoenix home games.

The Maple Leafs are the opposite of the Coyotes. Poor on the ice. Solid at the box office and in every category of off-ice hockey business: sponsorships, television revenues and merchandising.

Unless they reach the third round of the playoffs, the Coyotes will still lose at least $20 million US this year. That's a third of the losses they suffered last year but it's still nowhere near long-term sustainable.

Considering that the Coyotes have more points than any Canadian team, even the Northwest Division-leading Canucks, the only question NHL commissioner Bettman should be asking and imagining is what the Coyotes' sport business performance -- ticket sales, sponsorship sales, television and merchandising -- would be in a Canadian market such as Winnipeg or Southern Ontario or in even any northern U.S. market.

http://www.thesportmarket.biz/
TheSportMarket on TEAM 1040 and teamradio.ca
Saturdays 9 a.m. - 12 noon PT (special edition today 6-9 p.m. PT)
Facebook.com/TheSportMarket and Twitter.com/TheSportMarket

NHL's uncertain status for Sochi 2014 an inexplicable question mark as Vancouver 2010 hockey tournament opens

It's here: the much-hyped Vancouver 2010 Olympic men's hockey tournament - the greatest showcase the sport has had in our lifetime.

It marks the fourth consecutive Olympic Winter Games featuring hockey's best players, beginning 12 years ago when Nagano 1998 represented the historic debut of the NHL and NHLPA as partners with the International Ice Hockey Federation on the Olympic stage.

Despite the disappointment of Canada's performance in Nagano, the impact of the NHL's involvement on the '98 hockey tournament in particular and on those Winter Games in general was unmistakable. The global television numbers for hockey at Salt Lake City 2002 -- including the record Canadian ratings driven by Canada's final win over the U.S. -- were terrific for the sport...and the NHL.

Turin 2006 was a seventh-place disaster for Canada and worse for the U.S. but produced a new Olympic champion in Sweden and was a big deal for hockey fans in Europe.

In Nagano, Salt Lake, Turin and now Vancouver, there can be no denying the NHL has been good for the Olympics. Yet four years after the last Games and five years since the last round of collective bargaining, it appears that NHL commissioner Gary Bettman and his Board of Governors still need convincing that the Olympics are good for the world's premiere hockey league.

That's the conclusion one draws with the Olympic men's hockey tournament at Canada Hockey Place (General Motors Place) opening today without an agreement in place for the NHL's participation at Sochi 2014.

If it was a priority for the NHL, that deal would have been in place by now - even if it required a side-deal with the NHLPA and was contingent on resolving the contentious player transfer issue involving the Russian Hockey Federation. Whatever the complexities of the agreement, a strategic-thinking NHL would have made it happen before Vancouver 2010.

It would have been just one step towards making the most of the business opportunity for the NHL, which is ostensibly one of the league's larger concerns as it weighs whether it should stay or leave the Olympic tent.

The most progressive organizations in sport use one event to promote the next staging of that event, whether it's annual, bi-annual or every four years like the Winter Olympics. The best franchises start selling their season tickets for the next year before the current campaign ends. National governing bodies such as Tennis Canada sell tickets to the next year's Rogers Cup at each tournament.

Anytime now during Vancouver 2010 -- or ideally before these Games -- would have been the right time for the NHL to confirm its place alongside the IIHF at Sochi 2014.

Yet inexplicably, that deal is nowhere on the horizon. In fact, to date Bettman has been nothing but wishy-washy on the issue. His attitude and lack of leadership on the NHL's position with respect to Sochi 2014 make us long for the days of former NHLPA executive director Paul Kelly, who clearly articulated his support of the Olympics. Unlike Bettman, Kelly understood both the tangible and intangible benefits of the Olympics for the NHL brand and the business of hockey - and they far outweigh the costs and disadvantages of a two-week break in the NHL schedule once every four years.

Given the origins of the game, having the most important hockey tournament in history on Canadian ice is a natural. Yet Russia has its own tradition of global hockey excellence and is clearly the game's second leading country. It is only fitting that Russia and Sochi 2014 follow Canada and Vancouver 2010 with a hockey mash-up involving a fully-engaged NHL and featuring the world's best players.

There is no doubt the NHL's return would benefit the IOC, Sochi 2014 and the IIHF. Yet having the game's top players represent their countries, build their own reputations and create Olympic history is great story-telling and it's completely on strategy if the NHL truly wants to grow the game -- and its brand -- globally.

www.TheSportMarket.biz
The Sport Market on TEAM 1040 and teamradio.ca
Saturdays 9 a.m.-12 noon PT