Puck Daddy - NHL

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.

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34 Comments

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  1. GT
    1. Posted by GT Thu Sep 03, 2009 4:14 pm EDT

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    Maybe Huntington Bank, Anheuser-Busch and Pepsi simply want to be associated with a winner!
  2. Panda God
    2. Posted by Panda God Thu Sep 03, 2009 9:59 pm EDT

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    Ok, when Bettman starts sounding more with it than these illustrious candidates, its time for some new ones!
  3. Betty
    3. Posted by Betty Thu Sep 03, 2009 7:39 pm EDT

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    Huntington Bank also gave a huge hunk of change to have the a new AAA baseball stadium named after the company. I would imagine money was running a bit thin for them.
  4. chieftanfeces
    4. Posted by chieftanfeces Thu Sep 03, 2009 3:23 pm EDT

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    I say good riddance.
    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.
  5. Fact Finder
    5. Posted by Fact Finder Thu Sep 03, 2009 2:57 pm EDT

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    there you go again with the politics PISH. This is a SPORTS blog, stick to sports, if you want to post political garbage go blog for the New York Times.
  6. Drew
    6. Posted by Drew Thu Sep 03, 2009 3:28 pm EDT

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    Chief, you sound like some 80-year-old man on a bar stool browbeating everyone because the world isn't like it was when he was growing up.....
  7. Wyshynski
    7. Posted by Wyshynski Thu Sep 03, 2009 8:21 pm EDT

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    @ Fact Finder --
    Yes, because there's nothing political about the economic downturn.
  8. Peeler
    8. Posted by Peeler Thu Sep 03, 2009 4:02 pm EDT

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    fact finder.....
    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.....
  9. Bill
    9. Posted by Bill Thu Sep 03, 2009 3:08 pm EDT

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    I have to agree with #5. Salaries are getting out of control again to the point before the lockout.
  10. GT
    10. Posted by GT Thu Sep 03, 2009 4:14 pm EDT

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    Chief...
    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!
  11. Drew
    11. Posted by Drew Thu Sep 03, 2009 3:28 pm EDT

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    GT, that's mostly because the NHL wasn't taken seriously until that point.
    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.
  12. Nimzy
    12. Posted by Nimzy Thu Sep 03, 2009 4:10 pm EDT

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    Fact Finder, you are clueless. Did you even read this article much less understand it? Wow....just wow.
  13. Rose-Marie M
    13. Posted by Rose-Marie M Thu Sep 03, 2009 7:03 pm EDT

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    ''GT, that's mostly because the NHL wasn't taken seriously until that point. ''
    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.
  14. Buckeye Fan
    14. Posted by Buckeye Fan Thu Sep 03, 2009 4:29 pm EDT

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    This is happening everywhere. The Yankees reported the other day that they are having a difficult time filling the luxury suites in the new Yankee Stadium. The suites sell for between 600k-850k a season, and are not selling at the rate once expected. Every franchise in every sport is going to be affected by the economic downturn.
  15. gt260
    15. Posted by gt260 Thu Sep 03, 2009 4:14 pm EDT

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    the nhl has to place advertisements all over their jerseys, helmets, skates, sticks, foreheads etc. like they do in the euro leagues.
    how much is enough money for bettman?!!?!
    the world may never know.
  16. John R
    16. Posted by John R Thu Sep 03, 2009 4:42 pm EDT

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    While I look back with nostalgia at the final years of the Original 6 I don't particularly miss it. To temper things a bit
    (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?
  17. Drew
    17. Posted by Drew Thu Sep 03, 2009 3:28 pm EDT

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    "Thats when american business crows started blinking bucks, adding eight new US franchises in ten years,"
    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)
  18. Drew
    18. Posted by Drew Thu Sep 03, 2009 3:28 pm EDT

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    great post, john...
  19. Brett P
    19. Posted by Brett P Thu Sep 03, 2009 3:12 pm EDT

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    Championship and Ohio just don't go together.
  20. dcash
    20. Posted by dcash Thu Sep 03, 2009 3:41 pm EDT

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    I'm with Chief. Why do I care if the big corporations like Pepsi have enough $$ to stick their name all over the place?
    @ 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.
  21. Darkhorse
    21. Posted by Darkhorse Thu Sep 03, 2009 7:25 pm EDT

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    Hockey is still a great sport, and a great sport to watch. I can't even watch baseball anymore with their $10mill players and after the steroid crap with juiced up players now littered all over the record books, side by side with great players. Hockey is, and probably always will be a small market sport, but with a large core following that will always keep it solvent. Being a small market sport means it will always be at the whim of economic tides, so the majority of teams can't spend $10mill for crappy players when they need to be fiscally responsible. Kind of makes the sport better that way.
  22. Jay
    22. Posted by Jay Thu Sep 03, 2009 7:43 pm EDT

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    Economic downturn means Columbus and Atlanta (so many empty seats) move to Quebec and Winnipeg.
    What are the chances now?
  23. Mike
    23. Posted by Mike Thu Sep 03, 2009 10:25 pm EDT

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    Quebec, Winnipeg and Hamilton will have have NHL teams in the next 3 to 5 years I project. Sadly 3 of the last expansion teams wil fill those cities. Columbus, Atlanta and Nashville. Hockey just isnt marketed towards the southern U.S. If any of this teams start winning then it might change especially in Columbus were the revenue is needed.
  24. go2jackets
    24. Posted by go2jackets Thu Sep 03, 2009 4:10 pm EDT

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    they're getting out at the wrong time. Columbus finally has a winner
  25. Yanks09
    25. Posted by Yanks09 Thu Sep 03, 2009 10:42 pm EDT

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    Mike Columbus isn't considered southern, at least not compared to N-ville, ATL, TB, and FLA. Columbus just needs a fricken winner already, although you pretty much already admitted as much. Columbus was real high in attendance figures but I think last year was the first year they took a major hit. I live near DC now but still follow the Jackets and I'm looking forward to their game in DC in Jan., and while I hope they make the playoffs which is starting to become overdue, I won't be surprised if they leave town 3-5 years.

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