Tuesday, 27 February 2024

A Strong Hockey Market

Normally, having important dignitaries coming to one's city is usually a chance to roll out the red carpet. And perhaps the carpeting was changed for this evening at the Canada Life Centre in Winnipeg, but the arrival of NHL Commissioner Gary Bettman and NHL Deputy Commissioner Bill Daly wasn't really an opportunity to celebrate as they were in the city for business - specifically, the lack of business the Jets seem to be experiencing as per the team's owner. Tonight, the "dynamic duo" of Bettman and Daly sat down with the media and worked to reassure fans that the NHL team's situation in Winnipeg isn't as bad as everyone seems to be making it out to be.

For the most part, there wasn't much fencing with the Commissioner as some reporters seemingly want to do. Bettman matter-of-factly stated that the Jets had a problem, they were working to fix it, and the NHL believes that everything will work out betweent the team and its fanbase. Yes, season tickets sales have to be increased, but Bettman sees no long-term chaos coming for the Winnipeg franchise.

"I don't view this as a crisis," Bettman said. "But I do believe, as with any team in any market, there needs to be collaboration between community and the fan base and the club. And I believe ultimately it will be here."

After CBC's Bartley Kives wrote a sobering article that contains more truth than speculation on the team's long-term future, I do believe that Gary Bettman is being honest when he says that Winnipeg is a "strong hockey market". Jets fans are some of the best in the league when it comes to supporting their team, but Bettman and Chipman recognize that the margin for error in the league's smallest market doesn't allow for a lot of wiggle room when things don't go well.

Echoing Kives' article when it comes to the investments made in and around Canada Life Centre in downtown Winnipeg, Bettman made sure Jets fans heard some reassurances about the market and the team's long-term viability based on ownership strength.

"This is a place where hockey matters," Bettman told reporters. "I believe that this is a strong NHL market. I believe that ownership has made extraordinary commitments to the Jets, to this arena, to the downtown area, involving hundreds of millions of dollars, and I’m not sure why people are now speculating that somehow they're not going to be here."

Again, Bettman's stating the very obvious in a way that doesn't give away the secret. David Thomson, one of the planet's richest men, owns the Canada Life Centre, and he wants to see butts in seats so he can continue to profit off the financing of the arena in Winnipeg. This is why the Manitoba Moose play there, this is why they work to attract all the biggest concerts, and this is why they are the top venue in Winnipeg for shows like Cirque de Soleil and Jerry Seinfeld.

By having an arena that has a guaranteed 13,000 people coming in for hockey on 41 nights per year means that his cut of ticket sales, concession sales, merchandise sales, and parking fees all remain strong. If the Jets were to leave, Thomson, as co-owner, would be the living embodiment of cutting one's nose off to spite one's face. Letting the main tenant for his hockey arena - the tenant that he co-owns! - leave for another city would hit him hard in the pocketbook as the arena's owner. In short, it's not happening.

Again, playing in the NHL's smallest market has it's challenges when it comes to making profits, but the Jets have been doing well enough for a while that a few down years on the ice haven't hurt them financially. What has hurt them is their interactions with fans who sought other ticket options rather than full season-ticket packages. Bettman made reference to this, but he kind of swept it under the rug despite trying to turn it into a positive.

"At the end of the day, we could go through a litany of reasons, that either are true or are speculated to be true, as to how the attendance situation got to where it is — it kind of doesn't really matter," he said. "Because teams go through different ups and downs. I believe that the season-ticket base and the attendance will evolve back to where it was."

It doesn't matter? It sure seemed like it mattered to Mark Chipman when he spoke to Chris Johnston. But, please, do go on.

"I share Mark's view," he continued. "But Mark isn’t issuing any deadlines — he's focused on what he can do to make sure the fanbase is maximally engaged, and I applaud the effort. We're not operating under the Sword of Damocles, or on a razor's edge — this is part of the evolution of what franchises sometimes go through. I remember a number of other Canadian franchises, for example — some of them considered to be small-market — where the season-ticket base aged out, and they had to go rebuild it with younger fans. It happens."

Ok, fair point. I do recall Edmonton and Ottawa facing similar issues in years gone by, and they've seen an upswing in support since then. Edmonton has two of the most exciting players in hockey skating for them, so that helped their cause immensely. Ottawa changed ownership, has seen a focus on drafting good players, and they're trying to turn the corner. Winnipeg can claim it has both, so let's be honest in saying that this problem lies at the feet of the front office who sell the game rather than making idle threats about the viability of this team.

Not surprisingly, people don't like, if you'll excuse the borrowing of a phrase, the Sword of Damocles held to their throats when it comes to supporting an entertainment product at the prices the Jets are charging without some sort of return on the investment. Yes, you get to see NHL hockey, but that's also available on TV. Give me a reason to come to the rink, and I'll make the effort. Offer better giveaways; give me some sort of solid entertainment before, during, and after the game; and, by all means, make me feel like my fanship and my dollars matter to you.

"This is a team that's widely regarded around the league as a model franchise," deputy commissioner Bill Daly added to the press conference. "Well-run from top to bottom, has a competitive hockey team, puts a competitive hockey team on the ice, spends to the cap, but also invests in the community. We wish we had 32 of these."

From an NHL perspective, I don't doubt that everything Daly stated is true. True North Sports and Entertainment has done everything the NHL has asked of them to the letter, and they don't rock the boat very often when the waters get a little rough. From the hockey side of things, Bettman and Daly will never have an issue with an ownership group and a team that does what its told and never complains. The Jets are, in one phrase, easy for the NHL to like.

The drop in attendance had nothing to do with how the Hockey Operations Department was running the team, though, so this pat on the back for the organization is moot. Jets fans aren't complaining about how the team is run, but they are complaining about their experiences at the arena and when dealing with the account managers employed by the Jets. The Hockey Operations Department has causes some ripples with player moves, but these moves aren't why fans are unhappy with their experience at the rink. This comment by Daly unfortunately missed the point entirely.

With respect to this problem being a mountain that developed from a molehill, the Jets are starting to see the attendance climb once again, and part of that is due to the Jets putting a good product out on the ice. Competing for top-spot in their division, conference, and overall is certainly worthy of a few extra butts in seats, and the Jets have seen that happen since Christmas.

The catch here is that while attendance is returning, this "problem" will always be something the Jets have to address each day because Winnipeg is a blue-collar town with a white-collar mentality. That's not a dig on my hometown, but it's a matter of economical balance - disposable income is tight right now, so people are prioritizing things differently. If people feel like their hard-earned dollars aren't valued, that money will be redirected to something else. The Jets, unfortunately, are feeling that squeeze right now.

Knowing that, what advice does the NHL Commissioner have for fans?

"Get over your anxiety and come to games," Bettman offered as a solution. "There's no better way to deal with anxiety than rooting for your hometown team."

I'm not sure from where Gary's getting this diagnosis of anxiety, but let me be blunt in saying that people not coming to Jets games has very little to do with anxiety. If anything, people were anxious when Mark Chipman dropped the veiled threat of the Jets potentially not being viable here, but this is a clear message to the brains behind the operations that people aren't satisifed with the entertainment value they're being charged. Jets fans have made that clear by taking their money elsewhere or by re-prioritizing what's important in their lives.

The good news for the Winnipeg Jets is that there is an immense amount of community pride for this team, and everyone who was a season-ticket holder is willing to engage with the Jets with ideas on how the franchise can attract those dollars back that have migrated to other entertainment options. If some of those ideas are put in place, the flow of money and the fans will return to the rink and this entire exercise will be nothing more than something to study for academics.

At the end of the day, the customer isn't always right, but happy customers will almost always be returning customers. That's the part that the Jets need to embrace if they're going to be one of the top entertainment choices in this city. I have no doubt that the Jets will turn this around if they listen, and that turn-around will be because Winnipeg is as, Commissioner Bettman stated, a "strong hockey market".

Until next time, keep your sticks on the ice!

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