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Leagues and Governing Bodies

Sources: NHL Exec Committee Selects Las Vegas As Next Expansion Market

The NHL Exec Committee has "recommended the league expand to Las Vegas" when the BOG meets in the city next Wednesday, according to sources cited in a front-page piece by Steve Carp of the LAS VEGAS REVIEW-JOURNAL. A two-thirds vote from the NHL's 30 owners "is required for approval." Fidelity National Financial Chair Bill Foley, who is behind Las Vegas' NHL expansion effort, would pay a $500M expansion fee to become the league's 31st team. The Las Vegas team "would begin play" in '17-18 at T-Mobile Arena. Quebec City also applied for an expansion team, but it appears the bid "will be put on hold." Quebec City has "faced resistance from league owners, primarily because of the instability of the Canadian dollar" (LAS VEGAS REVIEW-JOURNAL, 6/15). The AP's Greg Beacham noted Quebec City "still has a strong bid for expansion, but owners have expressed concerns about the strength of the Canadian dollar and a geographical imbalance if they add another team to the Eastern Conference, which currently has 16 teams to the West's 14." Even with the Coyotes' "serious financial woes," the NHL "remains opposed to relocation of any franchise, and confident in its belief that hockey can thrive in a non-traditional Southwest market" (AP, 6/14). In N.Y., Kevin Armstrong writes there is "plenty already in place" for a team in Las Vegas. NHL signs "dot the lower corridor" of T-Mobile Arena, and while an ice surface has not yet been installed, a "locker room is carved out for an unnamed hockey team and the water is already bubbling in the hydrotherapy room." Fidelity Exec VP & Chief Legal Officer Peter Sadowski said that Foley "is expected to be able to buy" a 15% stake in the arena when the team comes to town (N.Y. DAILY NEWS, 6/15).

SLOT MACHINE: ESPN’s Bomani Jones said the Las Vegas franchise "will be able to get people to attend” games. However, he is skeptical about whether the league will be "able to build a base around that hockey team.” Jones: "Call them the Las Vegas Fix so you can get your hockey fix” ("Around The Horn," ESPN, 6/14). However, THE RINGER's Claire McNear wrote everybody is "suddenly trying to make Las Vegas into a sports town." The city's population "has more than doubled" since '92, and there is also "a lot of money to go around." But the "biggest change may be pro sports leagues softening their stance toward gambling" (THERINGER.com, 6/14). The GLOBE & MAIL's Eric Duhatschek writes the NHL's belief is that Las Vegas "can become something that other non-traditional, warm-weather franchises have been unable to achieve -- and that's cobble together a business model that takes advantage of all the traditional NHL revenue sources (gate receipts, television, private suites, advertising), plus adds one the others don't have." Fans have "not flocked to games in Arizona or Florida the way those teams hoped, but the belief is Vegas can be different because people go to Vegas with a mindset to get out on the town" (GLOBE & MAIL, 6/15).

ALL IN: In N.Y., Larry Brooks notes Las Vegas "is a gamble as a big league market, untested in terms of generating revenue." It is a "gamble for the NHLPA as well, for while expansion will create another 25 jobs, the average salary across the board will decrease if the new team's revenue/payroll ratio comes in below the league average." There has been "no great public cry for hockey expansion south of the border," but the league has "always wanted to get into Las Vegas first" (N.Y. POST, 6/15). THE HOCKEY NEWS' Ken Campbell noted Las Vegas has a "wonderful new arena, an owner with extremely deep pockets" and a "fertile professional sports market." But it is "still a hockey team in the desert," and what should "concern everyone involved is not the first five years of this team's existence." The team during that time "will be cute and cuddly and people will be drawn to that." Campbell: "What about the lean years? There are bound to be some of them. And has any Sun Belt fan base, with the possible exception of the San Jose Sharks, displayed even a slight willingness to support a hockey team when times are bad?" (THEHOCKEYNEWS.com, 6/14).

NEXT IN LINE: SI.com's Allan Muir wrote on the surface, the NHL bypassing Quebec City for an expansion franchise "doesn't make much sense." The city has a "rich and long-standing hockey history, a deep and passionate fan base, a brilliantly appointed new arena and, most important, a well-heeled owner-in-waiting." But the NHL Exec Committee needed "location and a stable currency," which Quebec City "couldn't provide." The city "happens to be in the wrong place" -- Canada -- and in the "wrong time." Two years ago, when this process "first found its legs, the Canadian dollar was at 92 cents U.S." It is currently at $0.78, a "viable level, but the rapid fluctuation has already cut deeply into the bottom line" (SI.com, 6/14). In St. Louis, Jeff Gordon notes Quebec City will "eventually get back into the league, but that could be where either" the Panthers or Hurricanes "end up moving some day" (ST. LOUIS POST-DISPATCH, 6/15).

MOVE'S IMPACT ON NFL: CBS Sports Network's Amy Trask said the NHL expanding into Las Vegas “may well impact” what the NFL does regarding the Raiders. Trask said the “big issue” for the NFL is whether the market can support an NFL team. Trask said with an NHL team being there first, the NFL’s decision is “going to be impacted because now the NHL team is going to be selling luxury suites and club seats and tickets." Trask wondered if that would "take too much” from an NFL team (“We Need to Talk,” CBSSN, 6/14). However, FS1’s Jason Whitlock said, “This is another domino that just says to the NFL, ‘Come on, baby. Come on out to Las Vegas.’ It makes so much sense for everybody" ("Speak For Yourself," FS1, 6/14).

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