Post by mikecubs on Jan 24, 2016 18:42:10 GMT -6
Blues may benefit most from Rams departure
In the nine days since the NFL approved the Rams’ relocation to Los Angeles, the Blues have not sold any major sponsorships, suite packages or even a single season ticket.
There have been three consecutive sellouts at Scottrade Center — including a crowd of 19,501 that became emotionally charged when Blues owner Tom Stillman and Cardinals president Bill DeWitt III dropped a ceremonial puck in support of local sports fans — but those large turnouts were expected prior to the Rams’ abrupt announcement.
Suddenly becoming the city’s second-largest franchise does expect to provide an economic boost for the Blues, but it hasn’t happened overnight and won’t happen, the club says, without continuing with plans that were laid out long before last week’s development.
“I do think as people look at the Rams’ departure, they say, ‘Oh, this is so great for the Blues,’ ” said Chris Zimmerman, CEO of the Blues’ business operations. “Well, we would expect a little bit of tailwind. We’re inviting everybody in, but let’s be clear: We have to do everything really, really well and keep getting better just to stay in the game.
“Are there some sponsors that now have a new opportunity to market their business? Yes. Would we hope that some small businesses might want to entertain their clients here now? Absolutely. But you have to view it like the team: You earn respect, you earn love, and we have to be at it every day. The job didn’t change.”
The job didn’t change, but the landscape has.
The Rams’ departure will make available millions in sponsorships and leave thousands of season-ticket holders without a sporting venue to call home. It’s difficult to quantify the size of the potential uptick this early, but it’s a trend that seemed to be in motion when word began to spread that Rams owner Stan Kroenke was strongly considering a move to LA. The football team lost 10,000 season-ticket holders before the start of the 2015 season, while the hockey club gained 600 new accounts.
The Blues have been insistent on not coming across as opportunistic during what has been widely considered a loss for the city. But in the coming weeks, they will be checking on which doors closed in the past might have a chance of reopening.
“It’s very possible, but not so much simply because the Blues are in the neighborhood to fill the void,” said Jim Woodcock, a former Blues vice president who is now a senior VP and head of the sports practice at FleishmanHillard in St. Louis. “It’s possible because of who the Blues are as a franchise and how they operate at every level. ... This development with the Rams will create an opportunity for a lot of people — fans, sponsors, companies — to discover or rediscover the Blues.”
This is happening during an important juncture for the nearly 50-year-old franchise.
The Blues have made strides in strengthening the organization since Tom Stillman’s local ownership group took the reins in 2012 and added Zimmerman in 2014. Among other moves, they restructured their business operations, allowing the organization to limit its losses.
“I think we’ve made a lot of progress,” Stillman said. “Initially it was like stabilizing the patient. Then from there, it’s been improving performance. I think we’ve made a lot of progress down that road. Now we’ve got a chance. We’ve got the opportunity to be viable, to be healthy, to be competitive. We are in a better position, but we want and need to go quite a bit further.”
To do so, the Blues need to maximize and create new revenue streams in order to keep up with the rest of the NHL. The average revenue among the 30 teams last season was $133 million, according to Forbes.com, and the Blues were below that at $111 million. Despite that fact, the Blues have the highest salary-cap hit in the league this season, according to Generalfanager.com, at $73.5 million (including injured players).
“Success is a completely different zone here from the NFL and our amazing, iconic baseball team (the Cardinals),” Zimmerman said. “We have to fight to hang with the big boys (in the NHL). We’re spending the same amount and yet have $100 million less than Montreal, and Toronto and Chicago. We’re not crying poor at all, but this is about a constant fight just to stay competitive.”
It’s a challenge that is further complicated by several self-inflicted business decisions by previous owner Dave Checketts, along with an aging Scottrade Center.
Stillman’s ownership group inherited a concession contract with Levy Restaurants that in 2008 paid Checketts $10 million in a front-loaded 20-year agreement. The Blues do receive commissions, which are in line with other clubs, but the income would be more substantial if not for the upfront payment. A similar situation exists with the team’s broadcast agreement with Fox Sports Midwest, a deal that included a large advance and doesn’t expire until after the 2019-20 season.
Additionally, because of an agreement between Checketts and the city to refurbish the Peabody Opera House, the Blues remain on the hook in a roundabout way for the five percent “amusement” tax on ticket sales. The team no longer pays the tax per se, but instead funds an equal amount to service the Opera House bonds.
That would seem to eliminate the chance of a tax break such as the Cardinals received in 2002, when city aldermen approved the complete abatement of ticket taxes and 25 years of real estate tax relief. (The Rams did pay the amusement tax, amounting to $1.8 million annually).
In the meantime, the Blues have turned their attention to Scottrade Center, which is owned by the city and operated by the team for games and concerts.
Both the Blues and the St. Louis Sports Commission have gone on record recently with a list of much-needed upgrades for the 21-year-old facility.
A complete list of renovations has not been finalized, but plans include the installation of wireless Internet for fans, high-definition capabilities, new seats and an updated broadcast control room. The cost is not known, but similar projects in Tampa Bay and Boston have reached or exceeded $100 million.
Mary Ellen Ponder, the chief of staff to Mayor Francis Slay, said that coming off the failed stadium bid for the Rams, the city planned to focus on several smaller issues, including Scottrade Center.
“We plan to meet with the Blues organization this week,” Ponder said.
The job didn’t change with the Rams’ leaving, but Zimmerman admits, “there is some opportunity for us to get there faster, and for there to be a bit more reward. I can assure you that we will be working to identify who are some of the best new partnership opportunities. We wouldn’t be doing our job if we didn’t set that as a goal. But in the end, every dollar that we take in is either invested in the team or invested in the guest experience.
“We’ve got two basic jobs, to win the (Stanley) Cup and to make St. Louis a better place to live. For the last few years, we’ve had a pretty simple thing that we’re working to get better at, and it is the fundamental of, ‘What is the experience of being a St. Louis Blues fan?’ The unique thing about this city and region is that there’s this amazing pride, and it’s our job to unite and get everybody going the same way. If we do those fundamentals really well, we certainly expect that we’re going to be able to attract more people and fill more seats.”
www.stltoday.com/sports/hockey/professional/blues-may-benefit-most-from-rams-departure/article_d0030b9b-5fb8-504c-b3b5-4791f6c2a8c0.html
In the nine days since the NFL approved the Rams’ relocation to Los Angeles, the Blues have not sold any major sponsorships, suite packages or even a single season ticket.
There have been three consecutive sellouts at Scottrade Center — including a crowd of 19,501 that became emotionally charged when Blues owner Tom Stillman and Cardinals president Bill DeWitt III dropped a ceremonial puck in support of local sports fans — but those large turnouts were expected prior to the Rams’ abrupt announcement.
Suddenly becoming the city’s second-largest franchise does expect to provide an economic boost for the Blues, but it hasn’t happened overnight and won’t happen, the club says, without continuing with plans that were laid out long before last week’s development.
“I do think as people look at the Rams’ departure, they say, ‘Oh, this is so great for the Blues,’ ” said Chris Zimmerman, CEO of the Blues’ business operations. “Well, we would expect a little bit of tailwind. We’re inviting everybody in, but let’s be clear: We have to do everything really, really well and keep getting better just to stay in the game.
“Are there some sponsors that now have a new opportunity to market their business? Yes. Would we hope that some small businesses might want to entertain their clients here now? Absolutely. But you have to view it like the team: You earn respect, you earn love, and we have to be at it every day. The job didn’t change.”
The job didn’t change, but the landscape has.
The Rams’ departure will make available millions in sponsorships and leave thousands of season-ticket holders without a sporting venue to call home. It’s difficult to quantify the size of the potential uptick this early, but it’s a trend that seemed to be in motion when word began to spread that Rams owner Stan Kroenke was strongly considering a move to LA. The football team lost 10,000 season-ticket holders before the start of the 2015 season, while the hockey club gained 600 new accounts.
The Blues have been insistent on not coming across as opportunistic during what has been widely considered a loss for the city. But in the coming weeks, they will be checking on which doors closed in the past might have a chance of reopening.
“It’s very possible, but not so much simply because the Blues are in the neighborhood to fill the void,” said Jim Woodcock, a former Blues vice president who is now a senior VP and head of the sports practice at FleishmanHillard in St. Louis. “It’s possible because of who the Blues are as a franchise and how they operate at every level. ... This development with the Rams will create an opportunity for a lot of people — fans, sponsors, companies — to discover or rediscover the Blues.”
This is happening during an important juncture for the nearly 50-year-old franchise.
The Blues have made strides in strengthening the organization since Tom Stillman’s local ownership group took the reins in 2012 and added Zimmerman in 2014. Among other moves, they restructured their business operations, allowing the organization to limit its losses.
“I think we’ve made a lot of progress,” Stillman said. “Initially it was like stabilizing the patient. Then from there, it’s been improving performance. I think we’ve made a lot of progress down that road. Now we’ve got a chance. We’ve got the opportunity to be viable, to be healthy, to be competitive. We are in a better position, but we want and need to go quite a bit further.”
To do so, the Blues need to maximize and create new revenue streams in order to keep up with the rest of the NHL. The average revenue among the 30 teams last season was $133 million, according to Forbes.com, and the Blues were below that at $111 million. Despite that fact, the Blues have the highest salary-cap hit in the league this season, according to Generalfanager.com, at $73.5 million (including injured players).
“Success is a completely different zone here from the NFL and our amazing, iconic baseball team (the Cardinals),” Zimmerman said. “We have to fight to hang with the big boys (in the NHL). We’re spending the same amount and yet have $100 million less than Montreal, and Toronto and Chicago. We’re not crying poor at all, but this is about a constant fight just to stay competitive.”
It’s a challenge that is further complicated by several self-inflicted business decisions by previous owner Dave Checketts, along with an aging Scottrade Center.
Stillman’s ownership group inherited a concession contract with Levy Restaurants that in 2008 paid Checketts $10 million in a front-loaded 20-year agreement. The Blues do receive commissions, which are in line with other clubs, but the income would be more substantial if not for the upfront payment. A similar situation exists with the team’s broadcast agreement with Fox Sports Midwest, a deal that included a large advance and doesn’t expire until after the 2019-20 season.
Additionally, because of an agreement between Checketts and the city to refurbish the Peabody Opera House, the Blues remain on the hook in a roundabout way for the five percent “amusement” tax on ticket sales. The team no longer pays the tax per se, but instead funds an equal amount to service the Opera House bonds.
That would seem to eliminate the chance of a tax break such as the Cardinals received in 2002, when city aldermen approved the complete abatement of ticket taxes and 25 years of real estate tax relief. (The Rams did pay the amusement tax, amounting to $1.8 million annually).
In the meantime, the Blues have turned their attention to Scottrade Center, which is owned by the city and operated by the team for games and concerts.
Both the Blues and the St. Louis Sports Commission have gone on record recently with a list of much-needed upgrades for the 21-year-old facility.
A complete list of renovations has not been finalized, but plans include the installation of wireless Internet for fans, high-definition capabilities, new seats and an updated broadcast control room. The cost is not known, but similar projects in Tampa Bay and Boston have reached or exceeded $100 million.
Mary Ellen Ponder, the chief of staff to Mayor Francis Slay, said that coming off the failed stadium bid for the Rams, the city planned to focus on several smaller issues, including Scottrade Center.
“We plan to meet with the Blues organization this week,” Ponder said.
The job didn’t change with the Rams’ leaving, but Zimmerman admits, “there is some opportunity for us to get there faster, and for there to be a bit more reward. I can assure you that we will be working to identify who are some of the best new partnership opportunities. We wouldn’t be doing our job if we didn’t set that as a goal. But in the end, every dollar that we take in is either invested in the team or invested in the guest experience.
“We’ve got two basic jobs, to win the (Stanley) Cup and to make St. Louis a better place to live. For the last few years, we’ve had a pretty simple thing that we’re working to get better at, and it is the fundamental of, ‘What is the experience of being a St. Louis Blues fan?’ The unique thing about this city and region is that there’s this amazing pride, and it’s our job to unite and get everybody going the same way. If we do those fundamentals really well, we certainly expect that we’re going to be able to attract more people and fill more seats.”
www.stltoday.com/sports/hockey/professional/blues-may-benefit-most-from-rams-departure/article_d0030b9b-5fb8-504c-b3b5-4791f6c2a8c0.html
