Business

Lots of uncertainty surrounds Comcast’s spinoff of its NBCUniversal cable portfolio.
Comcast may be proceeding with a transaction as a signal to the rest of the media industry that consolidation is necessary.
Comcast shares posted modest gains Wednesday.

Nikolas Kokovlis | Nurphoto | Getty Images

Comcast shares posted modest gains Wednesday after the company announced its plan to spin off all of NBCUniversal’s cable networks, except Bravo, into a separate publicly traded entity.
Investors’ initial shrug at the proposed transaction underscores the uncertainty of the maneuver.

The hope for Comcast is that by shedding declining assets, the company’s shares will rise. Cable networks are still profitable, but they’re hemorrhaging subscribers and revenue every year as Americans cancel traditional pay TV for streaming services. That may be an anchor on Comcast’s shares. Wall Street typically doesn’t like assets with slumping revenue and profit.
Still, there’s plenty of uncertainty around the spinoff. It’s unclear if Comcast investors will care that much. The NBCUniversal cable networks are relatively small assets, generating about $7 billion in revenue over the 12 months ended Sept. 30, according to a Comcast news release. For comparison, the rest of Comcast took in about $116 billion in revenue.
It’s also unclear if the spun-off company will flourish as a publicly traded entity. If Comcast is shedding cable networks because Wall Street doesn’t like them, why would shareholders want a company that consists of declining assets?
There’s a reason Disney decided not to spin its cable assets. The company considered it and ultimately decided the earnings lost from spinning profitable networks would trump any potential multiple expansion from a spin. Still, Disney’s cable networks, including FX and Disney Channel, are more integrated with its streaming platforms than NBCUniversal’s cable networks are with Peacock, the company’s subscription streaming service.
The new company, temporarily called “SpinCo,” will generate cash and could pay a healthy dividend to shareholders looking to invest in declining cash assets. But that’s usually more of a private equity strategy. That may ultimately be where cable networks are heading — to private ownership willing to harvest them for cash.

It’s also possible some of the cable networks could find new footing outside of NBCUniversal’s ownership. SpinCo’s CEO-to-be, Mark Lazarus, may be able to strike new licensing agreements with other streaming services now that the cable assets aren’t purely a marketing and content distribution tool for Peacock.
Profits for SpinCo can be reinvested into businesses, including CNBC and MSNBC, instead of being diverted toward Peacock and NBCUniversal’s theme parks.
Another possible path for the spinoff is as a rollup entity for other cable networks. Comcast is purposefully structuring SpinCo with low debt. Perhaps the company could take on some of Warner Bros. Discovery’s debt and its cable networks. The same could be said for Paramount Global.

The bigger motivation

With so much unknown, Comcast probably isn’t doing this because it’s sure the spin will be a slam dunk for investors. Instead, Comcast’s motivations may be a signal to the media industry that it’s time to enter a new phase.
“There’s simply not enough revenue in these businesses to cover the costs anymore,” Kevin Mayer, co-CEO of Candle Media and a former Disney executive, said in an interview. “There has to be consolidation now. It’s Econ 101.”
That’s a sentiment Warner Bros. Discovery Chief Executive Officer David Zaslav addressed during his company’s earnings call earlier this month.
“This is an industry that really needs to meaningfully consolidate,” Zaslav said. “If the best content is going to win, there needs to be some consolidation in order to have these businesses be stronger and to have a better consumer experience.”
In other words, even if SpinCo flounders as a publicly traded company and Comcast doesn’t get any multiple expansion, simply signaling to the media world that it’s time for a change may be worthwhile. In the long run, perhaps trying something is better than trying nothing at all.
One more thing: If Comcast wants to attempt a large merger in a Donald Trump administration, such as buying U.S. cable company Charter or another telecommunications company, shedding MSNBC may not be a bad idea. The last time Trump was president, his Department of Justice blocked AT&T’s acquisition of Time Warner — reportedly because Trump was not a fan of CNN.
Comcast shares closed up 1.5% on Wednesday.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC. More

The new system will play a beep if a customer has a boarding group that has not been called yet.
Airlines offer their big-spending frequent flyers earlier boarding as a perk and are trying to prevent line cutters.
American Airlines tested the technology in Albuquerque; Tucson; and Washington, D.C., airports.

Haiyun Jiang | Bloomberg | Getty Images

Watch out, line cutters. American Airlines is rolling out new technology across the country to crack down on travelers trying to get on the airplane before their boarding group is called.
Customers who try to scan a boarding pass before their group is called will hear a two-note sound and be turned away, the airline said.

American Airlines has nine boarding groups, ranging from first-class customers and top-tier frequent flyers to travelers who purchased basic economy fares, or the least-expensive tickets. Airlines reward their high-paying elite frequent flyers with perks such as earlier boarding, and have been trying to keep it exclusive.
The new technology as of Wednesday is in more than 100 nonhub airports around the U.S. following tests over the past month at Albuquerque International Sunport, Ronald Reagan Washington National Airport and Tucson International Airport, American Airlines said.
The airline plans to roll it out to hubs later.

The technology will roll out just as American expects 8.3 million people to board its planes between Nov. 21 and Dec. 3, which it considers the Thanksgiving travel period, an increase of 500,000 customers over last year.
Other airlines have experimented with new ways to prevent gate crowding, which helps board planes faster while also trying to protect early boarding for the swelling ranks of elite frequent flyer loyalty program members.
United Airlines texts customers when it is time to board and provides live updates to customer’s iPhones and Apple Watches with a countdown-to-boarding clock. It also has digital signs showing which boarding group has been called.

Don’t miss these insights from CNBC PRO More

ASK ORDINARY Americans about Dallas and you are likely to elicit a few common responses. American-football fans will tell you that the Dallas Cowboys, once the country’s most formidable team, have seen better days. Soap-opera junkies, at least those alive in the 1980s, may reminisce about the long-running series named after the north-Texas city. The few who paid attention in history class may recall that it is where Lee Harvey Oswald shot John F. Kennedy. You will probably not hear breathless comparisons to the world’s industrial capitals. More

In less than four years the share price of Chegg, an online education service, has dropped by 99%. A post-pandemic slump in digital learning is partly to blame for its tumble. A bigger problem for the company, though, is artificial intelligence (AI). Its customers are mostly students who want help answering their homework assignments, which often involves the virtual support of a human tutor. The rise of ChatGPT and its kind have created a free substitute for that service. On an earnings call on November 12th Nathan Schultz, Chegg’s boss, admitted that “technology shifts have created headwinds”. The same day the firm said that it would fire a fifth of its workforce. More

A Cleveland group is submitting a proposal to bring a WNBA team to Northeast Ohio.
The Cleveland Cavaliers and the city of Cleveland believe they have right fan base and infrastructure to support a team.
The WNBA plans to grow the league to 16 teams by 2028.

Dan Gilbert Cleveland Cavaliers owner talks during a press conference introducing new head coach John Beilein at Cleveland Clinic Courts on May 21, 2019 in Independence, Ohio. 
Jason Miller | Getty Images

Dan Gilbert, owner of the Cleveland Cavaliers, wants to bring a WNBA team to Northeast Ohio.
Rock Entertainment Group, the umbrella company that hosts Gilbert’s sports and entertainment properties, told CNBC on Wednesday that it intends to submit a proposal for a WNBA expansion team.

WNBA Commissioner Cathy Engelbert has said she hopes to grow the league to 16 women’s basketball teams by 2028. As women’s sports continues its growth trajectory, a host of cities are coming to the table with their pitches.
Officials in Cleveland — home to professional teams like the NBA’s Cavaliers, NFL’s Browns, MLB’s Guardians and American Hockey League’s Monsters — believe they are well-positioned for a women’s franchise.
“We have this unique convergence of infrastructure, culture and these foundational pieces that we think make Northeast Ohio, and specifically Cleveland, a great opportunity to expand from a WNBA perspective,” Nic Barlage, Cleveland Cavaliers CEO, told CNBC.
As an example, he cited the Cavs recently announcing that they are joining forces with the Cleveland Clinic to create a new Performance Center to provide state-of-the-art training for both the Cavs and the public. The Cavs also have an existing practice facility in Independence, Ohio, which they said could be ready-made for a WNBA team.
Barlage said Cleveland also has a track record of passionate fans that support their teams in good times and bad.

“Cleveland is a real crazy sports town,” said David Gilbert, CEO of the Cleveland Sports Commission. “It’s so closely tied to the identity of the city that’s had, the last couple of generations, some tough times.”
The Cleveland Cavs are off to their best start in history, currently sitting in first place in the Eastern Conference with a 15-1 record.
Engelbert spoke about expansion last month ahead of the WNBA Finals, saying there is no shortage of competition for an expansion team, with at least 10 cities expressing interest.
Potential suitors also include Denver, Miami, Milwaukee, St. Louis and Philadelphia.
“The good news is we have a lot of demand from many cities,” she said. “I think the more people are watching the WNBA and seeing what we’re growing here and seeing these players and the product on the court, more people are interested in having it in their cities.”
With Englebert leading the way, the league has already seen some expansion. The WNBA’s 13th franchise, the Golden State Valkyries, will kick off their season in 2025, and Toronto and Portland, Oregon, were awarded the 14th and 15th franchises earlier this year.
“We’re not in a huge rush. We’d like to bring it in in ’27 or no later than ’28,” Engelbert said in regards to a timeline for a 16th team.
The league said it is looking at a wide range of factors in a city when it comes to picking an expansion team, including practice facilities, a committed ownership group, demographics and Fortune 500 companies.
The WNBA has tapped investment bank Allen & Company to lead the expansion process. Coincidentally, Allen and Company also helped Gilbert when he purchased the the Cavs in 2005.

Cleveland’s case

This would not be Cleveland’s first foray in the WNBA. The city hosted one of the WNBA’S original franchises, the Cleveland Rockers from 1997-2003. The team folded after seven seasons as the team’s owner, Gordon Gund, cited low attendance and said he could not find a way to make the team profitable.
“I have invested in it now for seven years trying to find a business model for it to work in our marketplace,” Gund said in 2003. “The fans we had were very enthusiastic and very supportive. We just didn’t have enough.”
The league was not able to find new owners, and Gund turned his attention to the Cavs and their pursuit of Cleveland’s hometown hero LeBron James.
Yet, a lot has changed in the 20-plus years since the Rockers folded, as the WNBA and women’s sports are seeing major upticks.
The WNBA last month delivered its most-watched finals game in 25 years. The league also saw fans coming out in droves, giving the WNBA its best attendance record in 22 years. And it’s translating to the wallet — merchandise sales are up more than 600% from 2023.
Cleveland itself has also gone through a resurgence, too, in part kicked off by James’ return to the city back in 2014. The Washington Post Editorial Board even published a piece in January calling Cleveland “America’s best example of turning around a dying downtown.”
“We firmly believe we sit at the nexus of the Mediterranean of the Midwest and there’s no reason why we can’t have and manifest all the same opportunities that some of the higher growth markets you may see in the southern half of the country have,” Barlage said.
Since 1994, the Cavs, Monsters and Rocket Mortgage Fieldhouse have generated $6.5 billion in total output, according to the Cavs 2024 Community Impact Report. The Cavs Rocket Mortgage Fieldhouse hosted more than 150 events this year, including the 2024 NCAA Women’s Final Four, helping to stimulate millions for the city.
“I just feel extraordinarily confident that, should a team be given to Cleveland, in part because of the city, in part because of what sports means here, in part because of the Cavs, it would immediately be a huge success,” Gilbert said. More

News, insights and analysis on what professional sports teams are worth.

The National Hockey League is commanding more respect when it comes to team values.
The average NHL team is worth $1.92 billion, according to CNBC’s Official 2024 NHL Valuations, and recent transactions come at revenue multiples that rival deals done in Major League Baseball.

What accounts for the league’s ascension?
Steady revenue growth combined with a hard salary cap and a leaguewide revenue-sharing system all but ensure profitability for the league’s 32 teams.
For the 2023-24 season, the NHL’s hockey-related revenue was $6.3 billion, 8.6% higher than the previous season, according to the league. The NHL also hit record national sponsorship revenue last season, bringing in $250 million, as well as record regular-season gate receipt revenue of $2.4 billion, the NHL said.
That growth, combined with richer media deals, is contributing to a better bottom line for professional hockey. The average NHL team posted EBITDA of $45 million on revenue of $223 million for the 2023-24 season, according to CNBC calculations.
Here is how the NHL’s 32 teams stack up:

CNBC’s Official NHL Team Valuations 2024

Rank
Team
Value
Revenue
EBITDA
Debt as % of Value
Owner(s)

1.
Toronto Maple Leafs
$4B
$324M
$139.5M
5%
Rogers Communications, BCE, Larry Tanenbaum

2.
New York Rangers
$3.5B
$317M
$80M
1%
Madison Square Garden Sports

3.
Montreal Canadiens
$3.1B
$302M
$111.2M
7%
Molson family

4.
Los Angeles Kings
$2.85B
$337M
$110.1M
4%
Philip Anschutz

5.
Boston Bruins
$2.75B
$280M
$78.8M
4%
Jeremy Jacobs

6.
Edmonton Oilers
$2.65B
$379M
$156.9M
3%
Daryl Katz

7.
Chicago Blackhawks
$2.6B
$265M
$103.3M
4%
Wirtz family

8.
Philadelphia Flyers
$2.25B
$247M
$39M
0%
Comcast

9.
Washington Capitals
$2.1B
$246M
$79.3M
9%
Ted Leonsis

10.
Detroit Red Wings
$2.05B
$239M
$34.3M
4%
Marian Ilitch

11.
New Jersey Devils
$2B
$267M
$50.4M
6%
David Blitzer, Josh Harris

12.
Vancouver Canucks
$1.95B
$226M
$31.1M
6%
Aquilini Investment Group

13.
Dallas Stars
$1.9B
$244M
$80.6M
8%
Tom Gaglardi

14.
Vegas Golden Knights
$1.85B
$221M
$49.4M
8%
Bill Foley

15.
Tampa Bay Lightning
$1.8B
$220M
$39.7M
12%
Doug Ostrover, Marc Lipschultz, Jeff Vinik

16.
New York Islanders
$1.77B
$207M
$29.2M
18%
Jon Ledecky, Scott Malkin

17.
Pittsburgh Penguins
$1.75B
$218M
$42.3M
11%
Fenway Sports Group

18.
Calgary Flames
$1.7B
$183M
$29M
5%
N. Murray Edwards

19.
Colorado Avalanche
$1.65B
$195M
$20.6M
21%
Stan Kroenke

20.
Seattle Kraken
$1.6B
$184M
$19.4M
29%
David Bonderman, Samantha Holloway

21.
Minnesota Wild
$1.55B
$202M
$31.5M
11%
Craig Leipold

22.
Nashville Predators
$1.5B
$192M
$27.8M
7%
Bill Haslam

23.
St. Louis Blues
$1.47B
$189M
$6.5M
9%
Tom Stillman

24.
Anaheim Ducks
$1.43B
$175M
$20.1M
21%
Henry Samueli, Susan Samueli

25.
San Jose Sharks
$1.4B
$168M
($3.3M)
4%
Hasso Plattner

26.
Florida Panthers
$1.35B
$181M
$6.6M
12%
Vincent Viola

27.
Carolina Hurricanes
$1.3B
$184M
$25.4M
15%
Tom Dundon

28.
Utah Hockey Club
$1.2B
$119M
($6.3M)
26%
Ryan Smith, Ashley Smith

29.
Ottawa Senators
$1.18B
$154M
$3.8M
23%
Michael Andlauer

30.
Buffalo Sabres
$1.15B
$169M
$15.8M
4%
Terry Pegula, Kim Pegula

31.
Winnipeg Jets
$1.1B
$163M
$1.3M
12%
Mark Chipman, David Thomson

32.
Columbus Blue Jackets
$1B
$148M
($1.5M)
13%
John McConnell, Nationwide More

TJX Companies beat Wall Street’s estimates and raised its full-year profitability guidance.
The off-price giant, which owns TJ Maxx, Marshall’s and Home Goods, said it was seeing a “strong start” to the holiday shopping season.
TJX is still managing to grow sales even as it laps tougher comparisons from the year ago period.

A sign hangs at the entrance of a T. J. Maxx store on February 28, 2024 in Chicago, Illinois. 
Scott Olson | Getty Images

TJX Companies touted a “strong start” to the holiday shopping season on Wednesday, but its shares slid after the fast-growing retailer offered guidance that appeared to underwhelm Wall Street.
TJX comfortably beat Wall Street’s expectations during its fiscal third quarter, but it’s expecting earnings per share for its holiday quarter to be between $1.12 and $1.14, behind expectations of $1.18, according to LSEG.

Here’s how TJX performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

Earnings per share: $1.14 vs. $1.09 expected
Revenue: $14.06 billion vs. $13.95 billion expected

The company’s reported net income for the three-month period that ended Nov. 2 was $1.30 billion, or $1.14 per share, compared with $1.19 billion or $1.03 per share, a year earlier. 
Sales rose to $14.06 billion, up about 6% from $13.27 billion a year earlier.
“Across the Company, customer transactions drove our comp sales increases, which tells us that our values and treasure hunt shopping experience are appealing to a wide range of customers,” CEO Ernie Herrman said in a news release. “The fourth quarter is off to a strong start, and we are excited about our opportunities for the holiday selling season. In stores and online, we are offering consumers an ever-changing and inspiring shopping destination for gifts at excellent values, and feel confident that there will be something for everyone when they shop us.”
Following a year of torrid growth, the discounter behind Marshalls, HomeGoods and T.J. Maxx is still increasing sales. It’s winning over value-seeking consumers who are trading down from department stores like Macy’s and Kohl’s, and making strides with younger shoppers who don’t see off-price shopping as a stigma.

Earlier this year, TJX’s European business struggled due to issues with its execution, but the division posted strong results during the fiscal third quarter. Comparable sales increased 7% in TJX’s international channel.
Before the company reported, some analysts were concerned that TJX and other off-price retailers like Burlington Stores and Ross Stores could be disproportionately impacted by the unseasonably warm weather in October. Off-price retailers tend to be affected by unfavorable weather patterns more than traditional retailers because lower-income shoppers typically buy things when they need them — not ahead of time, Bank of America analysts wrote in a research note.
During the fall months, retailers with heavy exposure to apparel, such as TJX, count on shoppers coming in to buy new coats and other gear for the cooler weather. If its lower income consumer held off on those purchases because the weather was warm, it could have dinged TJX’s sales.
However, warmer than expected weather didn’t appear to have a major effect on TJX’s sales. More

The NHL’s Utah Hockey Club kicked off its first season in Salt Lake City this fall after relocating from Phoenix.
The team expansion comes as Salt Lake City is considered one of the fastest-growing cities in the U.S. — and tech billionaire and Utah native Ryan Smith invests heavily in professional sports there.
Utah Hockey Club has gotten off to a fast start with attracting fans well versed in the sport in the winter city.

Bruce Bennett | Getty Images

Salt Lake City checked all the boxes for a new professional sports team — particularly in the National Hockey League.
One of the fastest-growing cities in the U.S. boasting one of the hottest job markets, Utah’s state capital — with the help of tech billionaire Ryan Smith — is pushing to be a sports hub.

Salt Lake City kicked off its first season in the NHL this year after the Utah Hockey Club relocated from Phoenix. The early excitement of the fanbase, marked by sellout crowds and high merchandise sales, is solidifying Salt Lake City as a sports market.
The city has been home to the National Basketball Association’s Utah Jazz for more than four decades. Major League Soccer’s Real Salt Lake and the National Women’s Soccer League’s Utah Royals are also part of its pro sports landscape. Smith Entertainment Group, founded in 2020 by Ryan and Ashley Smith, is an owner in all of those teams. Along the Wasatch Mountains, the city will also host the Winter Olympics for the second time in 2034.
“I don’t see things slowing down in Utah,” Smith said in an interview. “We have big families here, and people want to stay here.”
Smith was hungry to add an NHL team to the mix at a time when many, including the league’s Commissioner Gary Bettman, believed Salt Lake City was ripe for the expansion. Its growing and changing demographics — which Smith said were on display when it hosted the NBA’s All-Star Game earlier this year — had readied the city for a new team.
“Salt Lake City is known for winter sports. It has a very vibrant economy,” said Bettman in an interview. He added that the city had a major share of residents who likely would be both interested in hockey and able to afford to go to games.

The investor group alongside Smith carried out surveys and other research to determine if the city could support a new team, said Chad Hutchinson, a partner at sports-focused investment firm Arctos Partners. Not only did it show Salt Lake City wanted another team, but it also showed that the city had a strong interest in hockey.
That enthusiasm has shown since the NHL season started in October.
“Everyone walks into the bowl of the arena and they say, ‘I cannot believe the NHL is here. We have an NHL team,'” Smith said.
So far, every one of the 11,131 unobstructed view seats at Delta Center has been sold out, according to the Utah Hockey Club. It expects to sell out every game for the rest of the season. There are 4,000 to 5,000 obstructed view seats that can be opened up depending on demand, and thousands have also been filled for most games so far.
At the inaugural game, merchandise sales doubled the previous record set during any single-night sporting event at the Delta Center. There was also a record-breaking demand for beverages, with beer sales reaching $120,000, more than any other NBA or NHL event held there, according to the team. The Utah Hockey Club generated the highest retail sales on its opening night of any hockey team this season, including the Florida Panthers, the 2023-24 Stanley Cup champions, according to the Utah Hockey Club.
The trend has continued since opening night, according to the Utah Hockey Club.
As of Nov. 15, the Delta Center had sold nearly $600,000 in beer through its first seven regular-season hockey games, nearly three times the amount of beer sold in five Utah Jazz home games this season. In total, the arena has seen a 395% increase in beer sales for NBA and NHL events compared to roughly the same period last year.
When the team’s inaugural season jerseys went on sale at the arena on Friday, the Utah Hockey Club’s team store set the record for the second-best single-game merchandise sales total during the regular season and playoffs, trailing the Vegas Golden Knights during a 2023 postseason game. It was the best NHL regular-season single-game net merchandise sales total, topping the previous record by 29%.
“Opening night was unbelievable,” said Hutchinson. The Utah Hockey Club received 34,000 season ticket deposits before opening day. “So the demand is absolutely there.”

Moving to the mountains

Utah ranked as the second-least stressed city in the U.S., according to WalletHub.
Darwin Fan | Moment | Getty Images

The NHL’s expansion to Salt Lake City was not typical.
“Utah is actually not an expansion, it’s a relocation,” said Irwin Raij, co-chair of Sidley’s Entertainment, Sports and Media industry group. “Utah wanted a team aggressively. There are other markets that want a team — heck, Arizona wants a team, right?”
The Arizona Coyotes faced issues in finding a permanent arena, which led to an expedited sale of the team this year.
A few years ago, Smith voiced his interest in owning a hockey team in Utah, said Bettman. In April, the NHL gave him the opportunity, and Smith reportedly paid $1.2 billion for the franchise. In the scramble to be ready for the 2024-25 season, Smith had to keep spending.The Delta Center, which Smith bought along with the Utah Jazz in 2020, was immediately renovated with new hospitality areas and a locker room for the Utah Hockey Club. It will also undergo further changes to reduce the number of unobstructed view seats for hockey games. The goal is to have 17,000 seats for hockey in the next three years, with most or all having unobstructed views.Smith also invested in a former Olympic facility for the team to use for practices over the summer. He then acquired a mall in a local suburb with plans to build a permanent training facility on the site, to be ready in 2025.
“[The Smiths] really, in effect, probably paid $200 [million] or $300 million more than is actually being reported,” Bettman said.
After the deal closed, the ownership group flew team members and their families from Arizona to Salt Lake City. There was a greeting party at the airport and the ownership group hosted an event at the Delta Center over three days, said Hutchinson of Arctos Partners. Real estate agents drove everyone around looking for homes, while the Coyotes’ front office was told they had jobs in Utah.
“He was able to accomplish things in a handful of months. Nobody has ever done anything like this before,” Bettman said. “We knew we were getting people who were very involved in the community, very progressive and very tech savvy. They had the resources to make this happen.”

Smith’s sports play

Tech billionaire Ryan Smith speaks at a press conference to announce the renewal of the 5 for the Fight Qualtrics Jersey Patch through the 2022-23 season at Zions Bank Basketball Center in Salt Lake City, Utah, on Oct. 21, 2019.
Melissa Majchrzak | National Basketball Association | Getty Images

While varying factors made Utah ready for a new sports team, Smith was the biggest force in making it happen.
“The Smiths, by all accounts, are good owners who are willing to invest and are thoughtful,” said Shirin Malkani, co-chair of the sports industry group at Perkins Coie. “A lot of the leagues, looking back over the last 20-plus years, have seen people coming out of the tech world as being good owners. They understand an investment and the technology piece, which if you’re not good at that, you’re not reaching your fans where they are.”
Smith, 46, founded Qualtrics in Provo, Utah, opening the gate for other tech companies in the state. A top tech market in the U.S., it is often referred to as the “Silicon Slope.”
A lifelong Utah Jazz fan, Smith started down the path of sports in Utah when he bought the team. He said in an interview he is in his “second career.” He reportedly paid $1.66 billion for the team. The purchase was followed by his move in 2022 to invest, alongside David Blitzer, in Real Salt Lake and its National Women’s Soccer League affiliate.
Smith has helped to breathe new life into Real Salt Lake, which has seen its already-strong fanbase grow, said Chris McGowan, executive vice president and chief club performance officer at MLS. McGowan, who works with clubs on business strategies, noted how the team has built up its fanbase through season ticket sales, stadium improvements and new hires since Smith bought in.
Being an owner of multiple teams, especially in one market, also makes Smith’s job easier. His deep ties in the community have helped on that front, many in the industry said.
“When you represent multiple organizations in one market, you can go to sponsors and potential sponsors with a more powerful package,” said McGowan. “You can do a lot of things from an economy of scale.”
Utah Hockey Club has signed sponsorship partners including Delta Air Lines, SeatGeek, American Express, Ford, Verizon and Coca-Cola. In less than six months, it is pacing to be in the top 20 in the NHL for sponsorship and ticket revenue this season, according to the team, despite having less capacity than nearly every NHL franchise. It has also teamed up with local partners on various fronts.
But McGowan, who has worked with other pro sports teams in the past, including the NHL’s Los Angeles Kings, which had preseason games in Salt Lake City in the past, and the NBA’s Portland Trail Blazers, said sports have long been important there.
“From the first game in the arena, Gary Bettman turns to me and says, ‘They’re cheering, they’re booing and sighing at all the right moments,'” said Smith. “Which is a very good indication that there is some hockey knowledge, right?” More