Fri Oct 17, 2008 11:55 am EDT
To his credit, Gary Bettman hasn't been completely oblivious to the economic downturn's effect on the NHL. While steadfastly using the sometimes-murky concept of "ticket sales" to claim league financial solvency, he's also said that it's "naive to suggest that a major recession might not have some impact on the business."
This means he's addressed the issue of his organization's gloomy economic future more directly than either of the Presidential candidates have in three debates ... but we digress.
We could be seeing a preview of that impact in Ohio, where the Columbus Blue Jackets are having a decrease in sponsorship from three major companies: Huntington Bank, Anheuser-Busch and Pepsi have dropped out of the team's "Championship Partners Club."
From Business First of Columbus:
Huntington, Anheuser-Busch and Pepsi will continue as "significant" sponsors but spend less at the base level with the team, said Cameron Scholvin, the Blue Jackets' vice president of corporate development. They are among nearly 100 companies that have some sort of sponsorship deal with the Jackets, including about a dozen that either are new sponsors or have expanded their commitment this season.
The three move from a class of sponsors that get a wide range of benefits for their money: Television and radio ads, customized promotional opportunities, signs and banners inside Nationwide Arena, use of arena concourses to promote their brands and additional exposure at the Blue Jackets' practice rink and Chiller skating centers. The team doesn't disclose how much its sponsorships cost, but sources familiar with the Jackets' packages have said Championship Partners spend $1 million or more a year with the team.
This change is significant for two reasons.
First, it reinforces that every corporate sponsor, and especially those in the financial sector or cutting jobs in the U.S., are going to re-evaluate all of their business partnerships. Washington Capitals owner Ted Leonsis has identified this as the biggest concern in the downturn, even more so than consumer consumption of tickets.
"We've added probably $3 million of business, and we've probably lost about two and a half million dollars in business from the hard-hit sectors: Banking, automotive, airlines," he said, regarding both sponsorships and suite sales. "[The Capitals] would grow even faster if the economy for our corporate customers was stronger."
But more important for the NHL is that there are still partnerships.
Huntington Bank, for example, is reducing its sponsorship of the Blue Jackets, but told Business First that it will be "focusing more on arena events such as Blue Jackets banking card night and promotions in bank offices." Anheuser-Busch still has some financial partnership with 20 of the league's 24 U.S. teams.
If the NHL can manage to retain these sponsors in a more limited manner, while adding some new heavy hitters like Honda, perhaps it won't have to make regrettable headlines like Bettman's former colleagues at the NBA have recently.
That said, the decrease in sponsorship revenue for a team like Columbus -- which, in the eyes of many, won't be filling coffers with playoff money again this season -- is a tad ominous.
Puck Daddy is an NHL blog edited by Greg Wyshynski. Email him, and follow him on Twitter.

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34 Comments
1 - 25 of 34
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I prefer a scenario where the advertising slims down over the years, in turn forcing player salaries down, and then getting back to what this game is supposed to be about: the Hockey. Remember, back in the days of the Original 6, the boards weren't plastered with ads and the quality of the game was equal to, if not better, than what it is today.
I get so sick of everything and everyone pandering to the almighty dollar. Screw 'em all.
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Yes, because there's nothing political about the economic downturn.
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the fact is w/o arena sponsership there is NO DAMN HOCKEY!
I'll work in the arena for free as long as I can see the game.....
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What do you mean the days of the original 6? Take a look at games as late as 1988...most of them had no advertising on boards!
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And I do agree that salaries are getting pre-lockout ridiculous again, but that doesn't have a thing to do with advertising.
Sorry, I just don't believe there was ever this "golden era" in pro sports where nobody cared about the almighty dollar.... that's a fairy tale.
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Thats when american business crows started blinking bucks, adding eight new US franchises in ten years,
2 crippling (yet constructive) strikes.
NHL's estimated annual revenue is around $2.5 billion.
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how much is enough money for bettman?!!?!
the world may never know.
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(a) The old Montreal Forum was loaded with advertisements though I don't recall their being on the side boards.
(b) Teams had territorial rights on all players within (I believe) in a 250 mile radius! Could that possibly explain why the two Canadien cities were always in contention?
(c) People complained about the lack of scoring.
(d) One family owned the Red Wings and the Blackhawks.
(e) On the rare occasions the Rangers made the Finals they could not play their home games at Msg because the circus was in town.
Nuf said?
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Yup. And that's when cable TV started becoming mainstream in American households. That and Gretzky being traded to LA really changed the sport (for better or worse is certainly open for debate, lol)
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@ John R: You're right, there were a lot of negatives about the Original 6 era that are often overlooked, but the lesser extent of corporate involvement in the league is one of the many positive aspects of that era that I would like to see return to some degree.
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What are the chances now?
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1 - 25 of 34