The Nhl Expansion Scorecard

Ohio University College of Business

Financial Issues in Sport - Case Study 2

Evidence-Based Decision Making

The NHL Expansion Scorecard

Submitted by: Cody Bowling, David Coates, and Brian Stover

Submitted to: Dr. David Finch

Date: October 15, 2015

Table of Contents

Introduction……………………………………………………………………………………………... 3

Objective………………………………………………………………………………………………... 3

Methodology……………………………………………………………………………………………. 3

Local Economy…………………………………………………………………………………………. 4

Arena……………………………………………………………………………………………………. 9

Hockey Fandom……………………………………………………………………………………….... 15

Risk for Ownership Groups…………………………………………………………………………….. 20

Conclusion…………………………………………………………………………………………….... 25

Appendix……………………………………………………………………………………………….. 26

Works Cited…………………………………………………………………………………………….  33

Introduction

“In June, 2015, the NHL has begun the formal process that is expected to lead to the league’s first expansion since the 2000–01 season. This process was expected to attract applications from markets however, with an expansion fee in excess of $500M and a non-refundable deposit of $2M, only two bids were received: Quebec City and Las Vegas. The Las Vegas bid was made by Bill Foley. The Quebec City bid was submitted by Quebecor” Our challenge as evidence based managers is to develop an evidence based expansion scorecard. We must identify and prioritize a criteria that will factor into our final decision of a market.

Objective

“As a leading sports management consultant, the NHL has retained our group to develop an evidence-based expansion scorecard. The goal of the expansion scorecard is to identify and prioritize the criteria that should be factored into a final decision to expand and to what market(s). Our goal is to ensure the scorecard enhances the probability of successful expansion, while mitigating risk to the league. The single goal of the scorecard is to evaluate the factors that predict a sustainably profitable and competitive NHL franchise. If a franchise is sustainable, profitable and competitive it will become an asset the will contribute to the overall value of the league. If a franchise is unstable and unprofitable it will become a liability to the league”