NHL’s move to Salt Lake City is latest sports downsizing

Sometimes, smaller is better.

For decades, major sports leagues have tried to place teams in the country’s largest markets in the hopes of selling more tickets and sponsorships as well as satisfying broadcasters who want to reach the largest number of viewers possible.

But in recent years, leagues have embraced the charms of smaller markets. Teams have moved to cities like Oklahoma City, Las Vegas and Winnipeg, Manitoba, in search of financial incentives, newer arenas and stadiums, and more devoted fans.

In early April, the NHL approved the $1.2 billion sale of the Arizona Coyotes to tech billionaire Ryan Smith and his wife, Ashley. The team, which will be renamed, will begin play next season in the Delta Center in Salt Lake City, home of one of the Smiths’ other teams, the Utah Jazz of the NBA.

On its face, the move could be seen as a step down. Salt Lake City’s metropolitan area is less than half the size of Phoenix’s; Salt Lake City is the 29th-largest media market while Phoenix is the 11th largest. Utah has never been home to an NHL team. But the league’s decision was less about the size of Salt Lake City and more about its demographics. Like Phoenix, Salt Lake City is one of the country’s fastest-growing cities. But in Utah, a thriving tech industry has attracted an influx of young workers with disposable incomes.

Leagues have been “right-sizing” their operations for years with an eye toward making money off fewer fans. The New York Mets were one of many baseball teams that built smaller stadiums with more exclusive clubs and suites. Citi Field, which opened in 2009, has just 42,000 seats, compared with 55,000 at the team’s previous home, Shea Stadium. Smaller arenas and stadiums are easier to fill — the sight of empty seats on television is a bad look — and teams can focus on more high-end concessions, club seats and exclusive “experiences.”

It typically takes a team several years to prepare for a relocation. But Commissioner Gary Bettman said the NHL had to act quickly because the Coyotes needed stable owners and a big-league arena. The team had trouble drawing fans, and its finances were such a mess that the league temporarily took over the club a decade ago. Since arriving from Winnipeg in 1996, the Coyotes have played in an assortment of places. This past season, their home was a college arena with just 5,000 seats.

But in Salt Lake City, enthusiasm for the new team has been strong. Fans have paid deposits for more than 30,000 tickets in an arena that seats about half that number. While the Coyotes were overshadowed by the NFL, NBA and MLB teams in Phoenix, the new hockey team was already standing out in Salt Lake City, where it would compete for attention with the Jazz and two soccer teams.

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