Expansion article

Discussion in 'NLL News and Rumors' started by BenMitchell, Jul 25, 2018.

  1. BenMitchell

    BenMitchell Member

  2. swami24

    swami24 Well-Known Member

    Having a real plan is great to see.
     
  3. chuckster

    chuckster Well-Known Member

    "The league has signed up three new — yet undisclosed — expansion franchises to be unveiled later this year"

    Who on this board will win the prize of finding out what the teams are before they are announced? We know Halifax is likely one of the cities with or without Curt Styres as owner.

    This venture sounds good but let's see if The Commish can get more than just lacrosse gear companies on board.
     
  4. swami24

    swami24 Well-Known Member

    Non lax sponsors will be the key.
     
  5. Hollywood42

    Hollywood42 Well-Known Member

    If I had an early guess on the teams
    Halifax
    New York
    Dallas
     
  6. Rick716

    Rick716 Active Member

    Is Montreal a possibility?
     
  7. AFedyk

    AFedyk Guest

    I agree that these are the likely cities, my only concern is the divisional layout after.
     
  8. BIG E NY

    BIG E NY Member

    Could be San Francisco and Tampa Bay as the NBA and NHL operators.
     
  9. AFedyk

    AFedyk Guest

    Tampa seems like a stretch. I’m thinking Dallas and New York are a guarantee
     
  10. Vin

    Vin Well-Known Member

    Thanks for that.
    I am very surprised that we even had access to that article.
    I often go cruising in SBD/SBJ for lacrosse articles and am usually stuck behind a pay wall. Well, I don't have $1200 or so lying around for a subscription, so I normally just try to get a headline off of SBD/SBJ and then find their source article.

    Anyway, since I have to expect that this article will return to being behind a pay wall, I am copying it for posterity here...


    [​IMG]

    National Lacrosse League forms SUM-like arm
    By Adam Stern, Staff Writer
    July 23, 2018

    Moving On Up
    3 NLL expansion franchises to be unveiled later this year
    14 NLL teams after three-team expansion


    The National Lacrosse League has formed a new marketing arm called Global Lacrosse Marketing as Commissioner Nick Sakiewicz looks to drive revenue and increase the league’s relevance.

    Sakiewicz, a former MLS executive, has been eyeing such a venture for around a year, looking to mirror what MLS has done with Soccer United Marketing.

    The venture comes as the 11-team NLL also plots its next expansion, with three new teams in the works for the indoor league to take it to 14 teams.

    Sakiewicz said the NLL’s board of directors will meet in October on Global Lacrosse Marketing before it is formally rolled out by the end of the year.

    “In terms of dollars, I don’t think it’s as big an opportunity as Soccer United Marketing, because obviously the sport of soccer is bigger and more mature than lacrosse,” Sakiewicz said. “But it’s a big opportunity. I’m hesitant to throw a number out there [in terms of a valuation of GLM], but we think GLM is similar to SUM in that it will accelerate the growth of the sport commercially.”

    The plan is to make GLM a one-stop shop for consumer brands and business-to-business companies looking to make a play in the sport. Sakiewicz confirmed that NLL assets will be sold by GLM, and hopes after the company formally launches it will land other partners that GLM could represent. Potential partners could include Major League Lacrosse, U.S. Lacrosse as well as possibly college and foreign lacrosse programs.

    The league has a new media rights deal with Turner Sports’ Bleacher Report Live, and GLM will handle the NLL’s media rights and partnership sales in conjunction with Turner. Advertising assets from that new over-the-top service also will be included.

    “Is it a billion-dollar idea like SUM? I don’t think so — or not at least in my lifetime,” Sakiewicz said. “But is it a $100 million idea? It could be.”

    Sakiewicz said he will serve as president for the company, which will be based in New York City and make several new hires at launch.

    Meanwhile, Sakiewicz remains busy trying to transform the indoor lacrosse league, which plays its season in the winter and spring and has been around since the mid-1980s.

    The league has signed up three new — yet undisclosed — expansion franchises to be unveiled later this year, additions that will take the NLL to 14 teams. Sakiewicz said that after the league reaches 14, it will then only add one further team until 2022.

    A source said that the 10th and 11th teams that joined the NLL paid around a $3 million expansion fee, and that the 12th, 13th and 14th teams are paying more than $5 million.

    Sakiewicz said the new ownership groups will include NBA and NHL team operators. The league has added multiple investors who fit that description over the last year, including Brooklyn Nets minority partner Joe Tsai buying the league’s expansion franchise in San Diego and Canucks Sports & Entertainment taking over the NLL’s franchise in Vancouver.

    The league also recently added a franchise in Philadelphia, where it’s now based and will soon open a new downtown headquarters.

    “The reaction to the strategic business plan that we laid out 24 months ago and brought to the marketplace has been very well received,” Sakiewicz said. “It’s an exciting time to be in lacrosse; we think the sports landscape continues to shift in our favor.”
     
  11. Vin

    Vin Well-Known Member

    EDM
    Maybe a return to MIN
    DAL
    NY or LI
    Vegas?
     
  12. BIG E NY

    BIG E NY Member

    Maybe but I'm going on the NBA and NHL comment specifically. I guess technically NY would be the NBA through Tsai but I'm thinking two new owners not already in the league. I don't think the potential Dallas ownership involves Cuban or the Stars.
     
  13. Hollywood42

    Hollywood42 Well-Known Member

    Doubt Vegas
    It would fall flat on its face
    The golden knights depended on other fanbases to fill the building
    That won’t happen with the nll
     
  14. Vin

    Vin Well-Known Member

    I don't agree or disagree, but I do believe that Vegas has a better shot than realized for several reasons:

    0. We have to assume that whoever would own a Las Vegas NLL team, it would be the current NHL Las Vegas Golden Knights (LVGKn) owners.

    1. No matter what the basis for the LVGKn's attendance this past season, they went to the Stanley Cup finals this year. That success helps drive real ticket sales. Thus, they will have positive income.

    2. The LVGKn owners are experiencing good times now and would be optimistic investors because they realize that this is an exciting ground-floor time; the economy is decent and streaming is the foreseeable future and sports history is replete with early owners of teams becoming rich beyond their wildest dreams simply by sticking with it. The ROI on the purchase of an NLL team now will pay off in spades in the long run.

    3. The LVGKn owners will have learned the lessons for other NLL owners such as Colorado, Saskatchewan, and Calgary... and coming owner, the Edmonton Oilers.

    Calgary because the experience of going from a mom-and-pop owner to an NHL organization showed the success that economies of scale can have on making a team successful.

    Colorado because of the experience of initial marketing. Colorado marketed the team right away by having an example game start right after an Avalanche game, so the Av fans got to see it.

    Saskatchewan slightly too; the team was and still is owned by a mom-and-pop, but, because of cost effectiveness with a better arena deal and being in an under-respected under-served market (like LV now and San Antonio in the 1970s ABA), the fans embraced.

    They will also see that the Edmonton Oilers will have joined the NLL in what had been an NLL market. If the Oilers, a much more experienced ownership group, have faith in a return to the NLL in Edmonton, this implies that that faith is based in their ability to make it work when Bruce Urban could not. Like Calgary, it's the NHL team making it succeed because of economies of scale that the mom-and-pop owner did not and thus could not succeed. Overall, that shows a vote of confidence in the NLL and its leadership, so LVGKn owners are more likely to get on the NLL bandwagon.

    Of course, it did help Saskatchewan which inherited a winner, so that helped create good attendance right away. Same a bit with Colorado which weren't bad initially having been the playoff-bound Power in Washington and they marketed Gary Gait heavily. So, the LV NLL team wouldn't necessarily be successful on the floor right away - they would be expansion, not relocation - and that could put a damper on attendance, but still their owners would support the team and help build the brand because they will have learned from the lessons above.
     
  15. AFedyk

    AFedyk Guest

    Consider market dilution. The Raiders are also coming to town.
     
  16. chuckster

    chuckster Well-Known Member

    I think the 3 expansion teams are Halifax (East), Dallas and Edmonton (both West). I think NYC comes in via Tsai after that....

    But if the 3 come in one year, the expansion draft is going to cause existing teams to lose up to 3 players in one draft and that could mean the rules get tweaked (teams can't lose league rookies, they can pull a player back when a player is selected, etc.)
     
  17. nickp91

    nickp91 New Member

    Would absolutely welcome the return of the NLL to Edmonton via expansion
     
    Andrew GEA likes this.
  18. dougm

    dougm Well-Known Member

    dallas, halifax and edmonton are my bets
     
  19. Vin

    Vin Well-Known Member

    I do consider market dilution but I think that's overrated.

    As an example, when I lived in the Albany NY area, I could attend NCAA Division I hockey for 2 colleges (RPI, Union), NCAA Division I lacrosse (UAlbany), NCAA Division I hoops (Siena), minor league baseball, AFL, and 2 AHL teams.

    While I was a STHer 20 years ago for one season for RPI (I am an alumnus), I didn't go to any of these really. Was it because I was tapped out blowing my sports money for some sports but not others? No, I just had minimal interest. But I was vastly interested when the NLL came to town.

    My point is that, mathematically, entertainments choices are not a zero-sum game. The addition of a new entertainment choice does not necessarily do harm to the other entertainment choices.

    In the case of the Raiders, this is particularly so. First, the Raiders season does not significantly overlap with the NLL season.
    Second, the price of 1 ticket to a Raiders game will likely be as much as a season ticket for LV_NLL. Which would you rather bring a family or girlfriend to? A Raiders game up in the nosebleeds for $500 for you and your GF while you watch moving fat dots and getting sunburned or a LV_NLL game with your GF where you two can actually see the players and action for under a hundred bucks?

    The NLL can sell itself like minor league sports can; it's quality entertainment at a good price. In other words, a good value compared to the alternatives.
     
  20. Vin

    Vin Well-Known Member

    I do not believe Halifax will be joining.

    I've been to 4 times and I just do not see it:
    No major league local ownership group so no significant economies of scale.
    Much longer travel times, distances, and costs.
    The local geography does not facilitate cheap and easy travel (2 bridges with tolls, for example).

    On the bright side, arena costs might be cheaper.

    I know I am a naysayer, but, personally, I really hope I am wrong. I would love to be wrong.

    UPDATE: Given subsequent research, I am now expecting to be wrong! :) ... although I am still puzzled by the feasibility of it all.
     
    Last edited: Jul 27, 2018

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