Smith asks NHL to begin formal expansion process to bring team to SLC
Utah Jazz owner Ryan Smith, through his Smith Entertainment Group (SEG), has formally asked the National Hockey League to begin the process of evaluating the possibility of locating an expansion hockey team in Utah. In its filing with the NHL, SEG made it clear that it is prepared to immediately bring a team to the state, using the Delta Center in downtown Salt Lake City as an interim home arena while the organization builds a facility to house the team.
“SEG envisions a near future where the NHL will thrive in Utah, and we are 100 percent focused on making this happen as soon as possible,” said Smith, chairman of SEG and governor of the NBA’s Utah Jazz. “We are passionate about sports and entertainment in the state and are committed to providing premium sports and entertainment experiences for the people of Utah and visitors from around the world. We are ready to welcome the NHL and are confident that the time and attention being spent by all parties will bring one of the most exciting and dynamic leagues in the world to our community on a permanent basis.”
Smith Entertainment Groups is the parent company of the Utah Jazz, Delta Center, Real Salt Lake of Major League Soccer, the Utah Royals of the National Women’s Soccer League and several other Utah-based sports and entertainment ventures.
Led by Smith and his wife, Ashley, SEG has been in discussions with NHL Commissioner Gary Bettman since early 2022 about its passion for having a team and why it believes that Utah is the ideal market for an NHL franchise. NHL franchise decisions are decided exclusively by the NHL Board of Governors. Should the NHL act favorably and grant SEG a franchise, the team would either join the Utah Jazz in Delta Center on a temporary basis or begin play in the next several years upon the completion of a new, state-of-the-art hockey arena. Smith has not indicated where a new arena might be build, but he is reported to have had discussions with the Point of the Mountain State Land Authority about the possibility of an arena in its new The Point development in the south end of Salt Lake County.
Smith has the backing of most state business and government leaders in his quest for a hockey franchise.
“Utah has a long history with hockey, the strongest economy in the nation, a passionate sports fanbase and the youngest and most active population,” said Gov. Spencer Cox. “These factors make Utah ripe for the expansion of our sports and entertainment community. We couldn’t be more excited about the opportunity to welcome the NHL. With the Olympic bid underway, our long-standing reputation as one of the greatest winter sports capitals in the world, and with the proven leadership of Ryan and Ashley Smith and SEG in our community, I am extremely optimistic about the future of Utah.”
Smith points to a great hockey legacy in Utah in making his case for top-level team. The state’s first-ever professional hockey team dates back to 1969 with the debut of the Salt Lake Golden Eagles, who played until 1994. When professional hockey returned to Utah in 1995 as part of the International Hockey League, with the Denver Grizzlies becoming the Utah Grizzlies, the Utah Grizzlies won the league’s Turner Cup Championship during the 1995-96 season. Today, the Utah Grizzlies are the East Coast Hockey League (ECHL) affiliate of the NHL’s Colorado Avalanche.
“All eyes are on Utah for the recent and rapid evolution of our sports landscape, especially with the Utah Royals back this spring and Salt Lake City’s Olympic bid underway. There is so much momentum happening at the state level around global sports and sports infrastructure,” said Smith. “While Delta Center is ready to serve as an interim solution for an NHL team, Utah will need a new arena designed for professional and Olympic hockey.”
“Having Smith Entertainment Group pursue bringing professional hockey to Utah could not come at a better time,” said Fraser Bullock, chair of the Salt Lake City-Utah Committee for the Games, the group preparing to bring the Olympic and Paralympic Winter Games back to the United States. “With the Olympics all but certain to return to Utah, a new, state-of-the-art, hockey-specific arena would be a huge contribution to our ability to host a world-class Games, including the women’s and men’s gold medal hockey games. And bringing professional hockey to Utah will further help cement Utah’s place as a premier destination for winter sports. The Salt Lake City-Utah Committee for the Games is excited to work with SEG on the Olympics and what that will mean for sports and entertainment in Utah long term.”
The growth of the NHL’s business combined with the quality of the on-ice product have provided the league with great momentum. By virtually every metric, interest in the NHL has never been higher. The interest is reflected in national broadcast ratings on ESPN and TNT that are up by almost 30 percent over last season. Attendance is also at an all-time high. Through the first half of the 2023-24 season, the league has averaged more than 17,000 fans per game, playing to 96.5 percent of capacity.
“SEG is committed to developing incredible assets and creating memorable experiences that bring the community together. Since its founding in December 2020 with the purchase of the Utah Jazz and Delta Center, SEG has rapidly expanded its portfolio as part of its commitment to Utah and to showcasing the state as a premier sports and entertainment destination,” the group said in a release.
“The NHL appreciates the interest expressed by Smith Entertainment Group to bring NHL hockey to Utah,” the NHL said in a statement. “We have been impressed by Ryan and Ashley Smith’s commitment to their community and their passion and vision for Utah, not only as a hockey market, but as a preeminent sports and entertainment destination. Utah is a promising market, and we look forward to continuing our discussions.”
The launch of a Utah NHL franchise will not be cheap. The NHL added a pair of teams for the 2000-01 season in the Columbus Blue Jackets and Minnesota Wild, and each paid an $80 million expansion fee. Seventeen years later, Bill Foley paid a $500 million fee for the Vegas Golden Knights. The Seattle Kraken followed four years later at a $650 million price tag.
Expanding beyond the current 32 teams will require a much bigger expansion fee, industry experts agree. The average NHL team is now worth $1.31 billion, up 40 percent from two years ago, according to The Hockey News. The magazine asked Bettman about expansion and potential fees in a recent article.
“Whether it is $2 billion or $2.5 billion or $2.7 billion, I think that is the range I believe the owners would want to be in if we were going to consider expansion,” Bettman said.