Golden Knights’ Unparalleled Inaugural Season Success Will Translate Into Financial Revenue Windfall For Season 2
By ALAN SNEL
LVSportsBiz.com
By every economic metric, the Vegas Golden Knights’ journey to the doorstep of the Stanley Cup Finals has been financially fruitful during its first NHL season.
And here’s the good news for the Golden Knights.
Major league pro teams that score big wins on the field, court or rink typically see big increases in revenues in all categories during the season that immediately follows.
Indeed, the demand for tickets will increase and season ticket holders who agreed to one-year deals faced a 15 percent increase if they wanted to renew their ticket agreements.
The team’s corporate sales staff led by Jim Frevola, who used to work for UFC and the Tampa Bay Buccaneers, will be in the position to ask for multi-year, multi-million-dollar agreements and steeper deals.
And expect VGK licensed gear sales to only increase as the team’s merchandise becomes more coveted in not only in the U.S. but in Europe and Asia too.
It’s a stunning business success story that professional sports have not seen from a first-year expansion team.
The Golden Knights’ name and licensed logo mark — ridiculed by some when unveiled — have been on products sold to people in more than 90 nations. LVSportsBiz.com broke this story several weeks ago.
The team’s knight helmeted V jersey — worn by everyone from rapper Lil Jon to oldtime crooner Wayne Newton during games — is the number one selling NHL jersey.
Merchandise sales are red hot. Bear witness to the long lines just to get into the team store at the Golden Knights training center in Summerlin.
Ticket revenues have been glorious. Even though their average regular season per game attendance of 18,042 ranked 17th out of 31 NHL clubs, the VGK finished in the top five in overall gate revenue. (The team set a home game attendance record Friday night during the Western Conference Finals Game 5 with a crowd of 18,697.)
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During the regular season, team President Kerry Bubolz said that the secondary market sales of and demand for Golden Knights tickets were so strong that the team could have been justified in increasing ticket prices for the one-year deals for season tickets. But Bubolz noted owner Bill Foley advised to pull in the price reins a bit even though the team could have charged even higher ticket prices.
The playoffs have translated into a stunning financial windfall, from millions of dollars in ticket sales to corporate sponsorships for logos in the center ice area.
During the postseason, the Golden Knights have enjoyed incredible winning success at T-Mobile Arena. The VGK won their two home games against the Los Angeles Kings in Round 1, were 2-1 against the San Jose Sharks in Round 2 and have won their two home games so far against the Winnipeg Jets in the Western Conference Finals. That’s a 6-1 home record in the postseason, so far.
If the Golden Knights defeat the Jets Sunday, they will end the conference finals and enter the Stanley Cup Finals.
Consider that during the Golden Knights’ playoff run on home ice, average retail sales are up 69 percent over sales during the regular season. (That was before WCF home Games 3 and 4 this week, so that number could even be higher by now.)
The playoffs have also brought amazing food and beverage revenue and increased income over the regular season.
At a Las Vegas Global Economic Alliance annual meeting Tuesday when the economic development agency forecast Southern Nevada’s economic future, Bubolz said that during the playoffs, the average food and beverage sales were up 51 percent over the F&B sales from the regular season. But that was also before Games 3 and 4 of the conference finals the past three days at T-Mobile Arena.
Look for more LVSportsBiz.com coverage on the Golden Knights Sunday.
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