Tampa teaches NHL what a sunbelt success story looks like

[mikecubs]

Mirtle: Tampa teaches NHL what a sunbelt success story looks like

Ratings Armageddon was but one game away.

Had the Anaheim Ducks won in Game 7 of the Western Conference final last weekend, the NHL would have had its first all-sunbelt Stanley Cup final, a meeting between two 1990s teams that were conceived in a rocky era of mass expansion that has been derided in Canada ever since.

The hand wringing? There would have been plenty.

Instead, the Chicago Blackhawks moved on, and they – and they alone – were expected to have to carry the freight in terms of drawing U.S. eyeballs to hockey.

After all, they were playing a team from Florida.

But a funny thing happened when the Game 1 ratings came in. By hockey standards, they were big. And they were particularly impressive in Tampa, where a record 18 per cent of households tuned in, up 50 per cent from their opener in their last trip to the finals in 2004.

Compare that with the 10 per cent of New Yorkers and 7 per cent of Angelenos who watched the first game of Kings-Rangers a year ago.

Nationally, the ratings were the second-best for Game 1 of the Cup final since 1999, beating supposed hockey-haven matchups such as Detroit-Pittsburgh and Chicago-Philadelphia.

They also far exceeded projections, including those from numbers guru Nate Silver, whose preseries forecast was 30 per cent under the 3.3 final rating, likely because of underestimating the strong interest in Tampa.

You can see that beyond the TV ratings, too. The downtown in Tampa is filled with Stanley Cup banners and signage, many cars are carrying Lightning flags, and the buzz level in the hockey arena is on par with similarly big games in more established markets.

Twenty-three years after the league took a questionable bet on hockey, it has taken root, with the franchise’s championship in 2004 playing a key role.

“There wasn’t much going on when I first got here [in 2000],” said Blackhawks forward Brad Richards, who spent seven seasons in Tampa and was the MVP of that Cup win. “In ’04, we really accomplished something and got something going. We had a lot of fun, coming to the rink and around town. They really saw how great hockey was by watching that run.

“It took a dip there with some questionable things going on with ownership,” Richards added. “I’ll put it that way. And then Jeff Vinik took it back over. What they’re doing is a huge part [of this rebirth] but then the fan base we built is getting back into it again. You can just see the town loves it.”

Those lean years did a disservice to this market. After the Lightning won in 2004, the NHL immediately began a year-long lockout, killing any momentum the franchise would have gained from another season with its stars still in their primes.

After some years in the wilderness, which netted them Steven Stamkos and Victor Hedman high in the draft, Vinik handed the team over to GM Steve Yzerman, who transformed a struggling roster into a powerhouse through a ground-up approach focusing on the draft.

Vinik also invested in the building – upgrading it to a state-of-the-art party palace, inside and out – and the market, with a major push to get more kids playing and more rinks built in the area.

Attendance has followed. The Lightning were ninth in the NHL during the regular season – playing at 98-per-cent capacity – which is the highest of any warm-weather team.

Not an overly large or wealthy city, Tampa has nonetheless shown it doesn’t belong on a list of the league’s problem children, such as Arizona or Florida.

There’s even an argument to be made the Lightning have become the sport’s model non-traditional market franchise. While revenues remain fairly low, they are growing. Tampa has had the highest two-year ticket-price increase in the league, putting it in the same conversation with more established “hockey” cities such as St. Louis and Denver.

The room for growth also remains massive, especially if the Lightning can win a second Stanley Cup 11 years after the first.

“You wouldn’t know [in Canada],” said Richards, who is excited at the prospect of four new ice sheets being built just north of the city. “I tell people all the time it’s probably a top three place to play in the NHL. I really believe that. And that’s before what’s happened here the last couple years [with the team’s rise up the standings].

“There’s a lot of people from up north that live down here. There’s a lot of people that do follow hockey. Once the product on the ice is good, they come. They love going to the games. They love catching playoff hockey. It’s a great city.”

It’s also turning into a hockey city, bit by bit.

www.theglobeandmail.com/sports/hockey/globe-on-hockey/mirtle-tampa-teaches-nhl-what-a-sunbelt-success-story-looks-like/article24834114/

[mikecubs]

Tampa Bay Lightning's finances on verge of skating into the black

The Tampa Bay Lightning are back in the Stanley Cup final — and maybe in the black as well.

The Lightning is close to breaking even for the first time in the Jeff Vinik era and only the second time in its 23-year history.

Team officials say that the longest postseason run since Vinik bought the team in 2010 has sparked sales of season tickets, suites and sponsorships that will fuel revenues for years to come.

They say this postseason has rejuvenated a Lightning brand that has languished in the years since the team hoisted Lord Stanley's Cup in 2004.

"It makes our brand stronger for future years," said Lightning president Steve Griggs. "The stronger the brand, the more popular the brand, the more people want to be associated with that brand, the more people are emotionally invested in the brand.

"Then financially, down the road, that's when you see the benefits."

Griggs would not say whether the team is projected to go into the black this season or next. But this year's playoff run, he said, has put that goal within reach.

It's hard to discern just how much money a professional sports franchise makes or loses.

The teams are often privately held by owners who don't want their finances subject to public or government scrutiny. The leagues themselves obscure their accounting when dealing with players' unions or municipalities over taxpayer-financed sports facilities.

Forbes Magazine, which regularly tries to assess the value of pro franchises, says that during the previous 2013-14 season the NHL's revenues rose 10 percent to $3.7 billion. Yet the magazine also said that 10 of the league's 30 teams lost money.

The Lightning's various owners have long said that they've lost seven to eight figures annually.

The lone exception was the 2003-04 season: The team played 13 extra home games en route to winning the Stanley Cup. The result was a $3.6 million profit, the only time the franchise ever finished in the black.

The team's former owner, Palace Sports & Entertainment Inc., revealed those details a decade ago when it opened its books while seeking tax breaks from the city and county.

But just because the Lightning has lost money doesn't necessarily mean that its owners have lost money. That's because whoever owns the Lightning also gets to run its home arena, which is one of the nation's must successful entertainment venues.

In 2014, Venues Today magazine ranked Amalie Arena the second best venue of its size in the United States based on ticket sales. Yet ownership groups have never separated their hockey losses from the revenues generated by concerts and events.

Palace Sports & Entertainment, for example, ran both the Lightning and the then-named St. Pete Times Forum when the team won the Stanley Cup. Yet the company claimed it lost $54 million from 1999-2004.

Lightning officials would not open their books to the Tampa Bay Times in discussing the franchise's current financial state. And like owners before him, Vinik does not separate the revenues and losses of his hockey team from his concert and events business.

"We see it all as one," Griggs said.

He said deficiencies in the hockey operation — unsold luxury suites and corporate sponsorships — detract from the entertainment side.

"There's a trickle down effect," Griggs said. "You might have a lot of concerts, but you still don't have enough suite-holders, and you don't have enough top-tier, blue-chip sponsorships, and you don't have enough season-ticket holders."

But this postseason has helped the franchise alleviate that. During this six-week playoff run, team officials said it sold 1,500 new season ticket packages for next season. That boosted the season ticket base by 15 percent to 12,000 total.

The team also sold 56 of its 69 suites this season. Officials expect to sell out all 69 next year.

• • •

University of Alberta sports business professor Dan Mason said there is one sure path to profitability for an NHL team in the Sun Belt: get to the playoffs.

That's why it's quite possible that this postseason could finally put the Lightning in the black.

When Tampa Bay won the championship in 2004, it said those 13 extra home playoff games generated $14.1 million, before expenses.

The Lightning would not disclose what it's making during this postseason, but the team president said that Mason's premise was valid.

"When we took over the team we had heavy losses," Griggs said, "and as we continue to push this organization forward, we're continuing to reduce those losses and a playoff run obviously helps that."

The postseason is particularly lucrative for NHL teams because their expenses plummet. Teams only pay players during the regular season, so during the playoffs their costs fall while they get additional home games to sell tickets, concessions and merchandise.

"You're not paying any money out in player salaries," Mason said. "So anything you get will just be gravy, really."

But even in the postseason, it's hard to compete with NHL teams based in Canada. They can make up to $5 million extra per playoff game, Mason said. Those teams have richer local TV deals and can make more money off their bigger, more committed fan bases.

"Unless you are being competitive," Mason said, "you really don't have a hope of being profitable."

In 2014, Forbes valued the Toronto Maple Leafs — one of the league's storied "Original Six" teams — at $1.3 billion, No. 1 in the NHL.

By comparison, Forbes valued the Lightning at $230 million, 26th out of 30 teams.

Team officials declined to comment on Forbes' figures. But Griggs said the Lightning are at a real disadvantage against their rivals up north.

"They have 300 years of hockey history in established markets," he said.

• • •

The only economic impact from the Stanley Cup final will be inside the Amalie Arena, not outside it.

Another two, three or four home games won't pump a noticeable amount of money into the local economy, said Andrew Zimbalist, a sports economist who has become well-known for challenging the gaudy values assigned to events like the Olympics and the Super Bowl.

He said events like the Stanley Cup and NBA Finals pale compared to a Super Bowl, which draws tens of thousands of visitors to a city who are ready to spend money.

But Stanley Cup games attract a mostly hometown crowd.

"It's a drop in the bucket, really," Zimbalist said.

The real beneficiary, he said, will be Vinik.

"If he wasn't profitable before, then in my view he would likely be after this," Zimbalist said, "and the momentum will carry him over to the next year as well.

"He's already won."

www.tampabay.com/news/business/tampa-bay-lightnings-finances-on-verge-of-skating-into-the-black/2231682

[mikecubs]

First construction on Vinik's downtown Tampa project targeted for August

In December, when Jeff Vinik unveiled his plans for a $1 billion waterfront development near Amalie Arena, the idea was to start moving dirt this summer, after the Tampa Bay Lightning's season ended.

Now, with Vinik's hockey team one win away from playing for the Stanley Cup, his development team is working behind the scenes on plans for the redevelopment, and the schedule is shaping up for a late summer start.

Organizers hope to begin work on roads, utility pipes and other infrastructure for the project in August, said Jim Shimberg, executive vice president and general counsel for the Lightning. Construction of the first buildings could begin in 2016.

Vinik's staff is tweaking the plans after consulting with Jeff Speck and David Dixon, the urban-planning stars hired to help make the project welcoming and walkable.

"We want to make sure we do this right," Shimberg said between meetings on the project last week. "We're getting close to being able to come back to (City Hall) with some refined plans."

Vinik's development team has been meeting with Tampa officials weekly, and Shimberg said everyone understands City Hall is eager to see the launch of the project, which is getting private financing from an investment fund controlled by Microsoft founder Bill Gates.

"I reminded Jeff two nights ago that I have three years and 10 months left, and I would like — and he would like — to get the bulk of this out of the ground before that day comes," Mayor Bob Buckhorn said recently.

In January, City Hall pledged an estimated $15 million in downtown redevelopment funds to reimburse Vinik for extending Old Water Street, upgrading Channelside Drive, putting in new drainage pipes, burying electrical lines and adding landscaping and streetscaping.

Still to be determined: how much state funding will be available for a key piece of Vinik's project, the University of South Florida's planned new 12-story Morsani College of Medicine and USF Health Heart Institute.

Vinik is donating land at Channelside Drive and Meridian Avenue for the USF project, and the university is seeking nearly $33 million from the Legislature this year for the medical school building ($17 million) and heart institute ($15.75 million). USF hopes to see the Legislature appropriate another $40 million for the medical school building over the next two years.

Meanwhile, the Legislature ended its regular session early without coming up with a budget, and the House and Senate plans include different amounts of money, levels of detail and funding strategies for university construction projects. A three-week special session to complete the budget is scheduled to start next week.

Despite uncertainty over the state budget as a whole — a controversy driven by the debate over whether to expand Medicaid — several Hillsborough legislators say local lawmakers are on the same page about the importance of supporting USF's request.

"Our No. 1 priority," House Majority Leader Dana Young, R-Tampa, said of House members from Hillsborough.

"We will hopefully be able to work through the financial aspects of it and get it done," she told a Greater Tampa Chamber of Commerce lunch last week.

"It's a tremendous opportunity for our community," state Sen. Tom Lee, R-Brandon, who chairs the Senate Appropriations Committee, said at the same event. "Bob Buckhorn's probably the luckiest mayor in America right now."

A key difference that legislators will have to work out is how higher education construction projects are financed, Lee said. In the House, where USF's full request would be met, lawmakers have proposed to put about $139 million in general revenue into the state's public education capital outlay fund and then to bond that money to "magnify the number of projects they could build," he said.

"The governor's not a fan of bonding and has asked us not to do that," Lee said. "We'll have to work through that with him and with the House."

By comparison, the proposed Senate plan for university construction does not include the use of bond financing and does not, at this point, detail any individual project funding.

Still, Lee said, "I'm keenly aware of the importance that project has to our community, to what's going on in downtown, and I'll continue to work with my colleagues in the House to try to see if we can get it done. It's an important moment in history for us."

A key question, USF assistant vice president for government relations Mark Walsh said, will be what can legislators afford to do, and what funding mechanism will they use. The size of the appropriation could affect the construction schedule.

If the Legislature approves USF's full request or something close to it, construction on the medical school project could be targeted to start in the fall, he said. But if the appropriation is only a small fraction of the ask, the project might be delayed by a year.

"We have a really great delegation that seems to have bought into the project, and I'm confident that they will do whatever they're able to support the project," Walsh said. "They've been pushing really hard for it."

Lobbyist Brian Ballard, who represents Vinik's interests in Tallahassee, said he feels good about conversations he has had with the governor's office and legislators about the USF project, but he expects competition for available funding.

"There are universities and colleges all around the state that have competing projects," Ballard said. "We've got our work cut out for us, but I'm optimistic."

And yet.

"This appropriation process is unlike anything I've been through in the 25 years I've been doing this," Ballard said, "so I'm not going to take anything for granted."

www.tampabay.com/news/business/realestate/first-construction-on-viniks-downtown-tampa-project-targeted-for-august/2231015

[mikecubs]

Vinik's downtown Tampa development plans have a halo effect on the Lightning

The Tampa Bay Lightning and real estate development are separate pursuits for Jeff Vinik, but the success of one boosts the other.
Vinik and his real estate company, Strategic Property Partners, are working on a billion-dollar, mixed-use district to include a University South of Florida medical school campus, a corporate headquarters and residential, retail and restaurants.

In his quest to lure a headquarters to Tampa, Vinik has become a salesman for the region, pitching the quality of life, cultural assets and climate to everyone from the CEO of Bank of America to Fox Business and CNBC.

Success on the ice is obviously a big driver for building a zealous fan base. But Vinik's development plans are also creating goodwill toward the Lightning, said Marc Ganis, a consultant with Sportscorp Ltd., a consulting firm in Chicago.
"It indicates a greater commitment to the community, which then creates a greater affinity for the team," Ganis said. "Fans feel more free to support the team without hesitation. Eventually that translates to greater TV ratings and ticket sales, but there's not a direct correlation there."
Lightning CEO Tod Leiweke said the development plans and the team "fit very well together." Amalie Arena is one of the anchors of the district, along with the Florida Aquarium, Tampa Bay History Center and Chanenelside Bay Plaza — community institutions built along the river years ago but never truly connected to each other.
"As people get excited about the team, they get excited about the district," he said. "It's a really great fit, and the district is something that’s been envisioned for decades, so it’s kind of cool to be part of a team that executes a vision."

www.bizjournals.com/tampabay/news/2015/06/05/viniks-downtown-tampa-development-plans-have-a.html

[mikecubs]

Stanley Cup run boosts season ticket sales for Lightning

The Lightning's run to the Stanley Cup Final in June made a significant impact the ticket office.

Tampa Bay has sold 3,000 new season tickets since the playoff push, putting them up to 13,500 total for the 2015-16 season. The Lightning had 11,500 season ticket members last season. The Lightning lost to the Blackhawks in the final 4-2. About 18,000 filled Amalie Arena to watch Game 6 on the big screen as the team played in Chicago.

The Lightning ranked ninth in the NHL in average attendance last season (18,823), filled to 98.0 percent capacity. Single-game tickets go on sale Friday at 10 a.m. with the regular season opener Oct. 8 at Amalie Arena against the Flyers.

www.tampabay.com/blogs/lightning/stanley-cup-run-boosts-season-ticket-sales-for-lightning/2243704

[Lions67]

not convinced that Tampa teaches anything for the sunbelt teams, non -traditional markets except that in order to BE successful, you must at least get to the SCF.
to me, it just reeks of fairweather market(s). Hell, Florida, and Carolina "taught" the others how to be a "success story". look at them now.
this article is pure garbage.
success is doing all those things even when you arent a winning club.

[mikecubs]

There is a lot of truth in this, Tampa will NEVER EVER be Canada, NY, Chicago or Boston(or even LA, San Jose or Dallas). But it is progress. Some of these people will become full time fans. Florida never really had any success other than year 1 maybe when the current building opened. When the Coyotes made it to the western conference finals the needle didn't move at all. Tampa is getting to the point where if they win they will make a small bit of money and if they don't lose too bad they won't hemorrhage money. Most important someone wants to own them without the illegal arena management fee. That says something.

Tampa is going to make it long term especially with the Bill Gates development coming on line. Some years won't be pretty though when you get a real bad team. Keep in mind more and more TV money is going to come into the game(next US TV deal). Ya that won't be enough to ever save Glendale(unless the COG reverses course) but it's going to leave enough room for markets like Tampa/Nashville/Anaheim to make a go of it. Tampa is probable the bear minimum of what is acceptable for being an NHL market.

[mikecubs]

If the first 1 billion dollar development around the arena goes well the Tampa owner will invest another 1 billion on more stuff!

Vinik: First phase of downtown development alone will be more than $1 billion

Tampa Bay Lightning owner Jeff Vinik's plans for downtown Tampa have grown significantly since the preliminary vision was unveiled in late 2014.

Originally pegged as a $1 billion development, the project is now estimated at $2 billion, Vinik said Tuesday. The first phase alone will be more than $1 billion and take three to four years to build out.

Vinik and Cascade Investment LLC have formed Strategic Property Partners to lead the project.
"Over the last eight to nine months, working with renowned urban planners Jeff Speck and David Dixon, we've evolved the plan, and frankly it’s grown," Vinik said.
SPP hired Speck and Dixon in March to master plan the district — laying out the exact mix of uses and where each will be located within the district. The master plan is nearing completion, Vinik said. The core concepts are the same — building placement throughout the district is mostly unchanged — but the master plan lays out specifics and includes details like greens pace, dog parks and water features.
Here's what the first phase will include:
"At least one" commercial office building
1,000 residential units
The University of South Florida Morsani College of Medicine and a companion medical office building
200,000 square feet of retail, restaurant entertainment space
Infrastructure work
Renovations to both Tampa Marriott Waterside Hotel & Marina and Channelside Bay Plaza

"If things are going well" after the first phase, Vinik said, SPP sees potential for another billion-dollar phase, which would likely develop additional residential units and retail space.
Vinik spoke with reporters via conference call from New York, where he, Cascade and Tampa Mayor Bob Buckhorn were recognized at the Clinton Global Initiative. SPP has partnered with New York-based Delos on a wellness focus for the district— one that will ensure each building meets WELL Certification standards.
Similar in nature to LEED Certification, which measures environmental sustainability, buildings achieve WELL Certification based on based on the following criteria: air, water, nourishment, light, fitness, comfort and mind.
The entire district will also be WELL Certified — the first entire neighborhood in the world to do so, according to Delos. Delos, which made a Clinton Global Initiative commitment to create a health and wellness standard for buildings, has certified about 20 million square feet since it launched the program in 2012.

More on the WELL Certification will be in the Tampa Bay Business Journal's Sept. 30 Morning Edition email. Sign up here for free daily email newsletters and breaking news alerts.

www.bizjournals.com/tampabay/news/2015/09/29/vinik-first-phase-of-downtown-development-alone.html?ana=buttz

[mikecubs]

Tampa Bay Lightning will pour millions into youth hockey initiative over next five years

The Tampa Bay Lightning are launching a program that will pour millions of dollars on youth hockey initiatives over the next five years, programs that could help build the fan base for generations to come.
The Lightning on Monday announced "Build the Thunder," a $6 million program that will teach hockey and life skills to children in the Tampa Bay area. Jay Feaster, the team's community hockey development executive director, will spearhead the initiative.

Build the Thunder is also supported by the National Hockey League, the National Hockey League Players Association, JP Morgan Chase Co., and Bauer Hockey.

Beyond a charitable endeavor, building youth hockey in Tampa Bay is critical to the Lightning's financial future. The region is a relatively young hockey market, without a tradition for the game that spans generations. That kind of loyalty is key to sustaining the franchise — and selling season tickets and merchandise — after the buzz of a Stanley Cup run fades.
Here's a breakdown of the program:
Equip the Thunder: Distributing 100,000 street hockey sticks and balls to third through fifth graders through an extensive school outreach program
Train the Thunder: Offering 10,000 hours of progressive training opportunities for players and coaches
Develop the Thunder: Increasing the number of youth players, from 7 to 13 years old, registered with USA Hockey in the Tampa Bay area by 1,000
Guide the Thunder: Utilizing Lightning players, coaches and alumni as life skills mentors to identify and work with 100 at-risk youth from diverse backgrounds
Create the Thunder: Establishing 10 junior varsity hockey programs for aspiring high school hockey players

www.bizjournals.com/tampabay/news/2015/09/14/tampa-bay-lightning-will-pour-millions-into-youth.html

[Lions67]

Ok, now THAT is what will make them successful!!
Build your youth through the grassroots levels.
Hockey equipment and ice time is expensive though. Will the parents be able to commit to the costs long run?
Good first step.

[mikecubs]

^^That's the same question faced everywhere not just sunbelt. Florida does have the 14th most people by state in the US playing hockey and it is growing.
unitedstatesofhockey.com/2014/06/17/u-s-hockey-participation-numbers-for-2013-14/

I'm almost certain this number is very skewed towards Tampa and against Miami.

[Lions67]

Dec 7, 2015 10:24:58 GMT -6 mikecubs said:

^^That's the same question faced everywhere not just sunbelt. Florida does have the 14th most people by state in the US playing hockey and it is growing.
unitedstatesofhockey.com/2014/06/17/u-s-hockey-participation-numbers-for-2013-14/

I'm almost certain this number is very skewed towards Tampa and against Miami.

thats true yes, BUT, everywhere else hockey is not considered some foreign sport.
if the parents have played or at least been exposed to it themselves, they are more apt to get the kids involved.
so the question is more valid in places like Florida,Tenessee and so on.

[mikecubs]

Fair enough. In time it won't be a foreign sport though if you keep making progress and doing stuff like the Lightening are doing. You get these kids playing then their kids will likely play. An example is California and Texas. Hockey isn't a foreign sport in LA/California or Texas anymore. Look at how few people played hockey in California/Texas 20-30 years ago compare to today. Look at how the Kings have drawn at Staples, the Sharks and Stars. NHL has proven it can grown in MASSIVE sunbelts. Next step is the smaller sunbelts like Tampa/Nashville/Raleigh(post Karmanos).