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Leagues and Governing Bodies

NHL Seeks New Revenue Sources In Division Naming Rights, Helmet Ads

An NHL team president said that helmet ads were critical to help offset huge losses facing teamsCAPITALS

The "lasting legacy" of the pandemic on the NHL could be a change in how the league markets itself and a "new, more aggressive pursuit of revenues," according to Elliotte Friedman of SPORTSNET.ca. The league yesterday named Discover, Honda, MassMutual and Scotiabank the sponsors of its four divisions for the '20-21 season. Friedman: "We better get used to this sort of thing." The "conservative days are done," and the doors are "wide open." The only question: Is this a "short-term thing to save revenues and jobs," or a "permanent, new reality?" There is certainly a feeling across the sport -- league employees, teams, players, agents -- that the "shackles have to come off because circumstances demand it." Friedman: "You’ve seen the helmet ads; we’ll see how the on-ice, on-bench, and along-the-glass ads look. Small jersey ads can’t be far away." A few execs and agents believe the Canadian Division "should be given permanent consideration" because guaranteeing four of those teams a playoff spot and one a Final Four spot would "drive up revenues and raise the cap" (SPORTSNET.ca, 1/5).

NO SURPRISE: THE ATHLETIC's Scott Burnside wrote as much as the "corporate intrusion into the formerly pristine standings of the NHL may be jarring," it "should hardly come as any surprise." It is possible the division names "are a one-off" and the league "goes back to its standard Pacific, Central, Atlantic and Metropolitan alignment next season." But marketing experts "wondered if having tapped into a new revenue stream those revenues would be difficult to walk away from." An NHL team president said that divisional naming rights and helmet ads were "critical to help offset the huge losses every NHL team is facing" (THEATHLETIC.com, 1/5). 

NECESSARY MOVE: In Chicago, Barry Rozner writes the NHL is hearing "phony outrage" now because it "dared to sell sponsorships." In a "terrible economic climate and hurting for cash," the league got some "easy dollars by putting sponsor's names on their divisions for this shortened NHL season." The league "needs money so it sold sponsorships." Rozner: "It's OK for you and your website, but not for a pro sports league? Gimme a break" (Chicago DAILY HERALD, 1/6). TSN’s Bryan Hayes said the NHL having sponsors for the divisions and helmets is "not as much about selling it, it’s about making good." These are "big companies that are partners that clearly have not had a lot of NHL content." Hayes: “I don’t blame them. It’s business. ... Eventually people are going to stop complaining about it. But I do wonder about where the next one is.” TSN’s Darren Dreger: “We can all conjure up ideas of where it might go to, and you can’t dismiss any of it, because I think they are 100% open for business." Both the NHL and NHLPA will “encourage every revenue stream possible” (“Overdrive,” TSN, 1/5).

UNCLEAR VALUE: In Toronto, Simon Houpt notes it is "hard to know what Honda, Discover, MassMutual and Scotiabank believe they’re buying with the divisional naming sponsorships." Houpt: "Unlike, say, the names of arenas, which people need to actually remember and pronounce if they’re going to meet a friend for the game, no one is going to say in casual conversation, 'Dude, what do you think the Bruins’ chances of winning the MassMutual NHL® East Division are this year?'" (GLOBE & MAIL, 1/6).

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