The Utah Hockey Club is strengthening Salt Lake City's roster as a sports hub.

• The Utah Hockey Club commenced its inaugural season in Salt Lake City this autumn, following its relocation from Phoenix.
• The expansion of the team coincides with Salt Lake City's rapid growth in the US and Ryan Smith's substantial investment in sports in the city.
• The Utah Hockey Club has quickly gained a following of knowledgeable sports fans in the winter city.

The National Hockey League considered Salt Lake City as a potential location for a new professional sports team due to its ability to meet all the necessary criteria.

With the help of tech billionaire Ryan Smith, Utah's state capital is rapidly expanding and has one of the most promising job markets in the U.S. Additionally, the city is striving to become a major sports hub.

This year, Salt Lake City began its inaugural season in the NHL after the Utah Hockey Club moved from Phoenix. The enthusiasm of the fanbase, characterized by packed arenas and brisk merchandise sales, is establishing Salt Lake City as a thriving sports market.

The city has been the home of the National Basketball Association's Utah Jazz for over four decades. Additionally, Major League Soccer's Real Salt Lake and the National Women's Soccer League's Utah Royals are part of its pro sports scene. 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 host the Winter Olympics for the second time in 2034.

"Utah's population growth is expected to continue," Smith stated in an interview. "Our large families and desire to remain here contribute to this trend."

Smith was eager to establish an NHL team in Salt Lake City, a city that was considered ideal for expansion by many, including Commissioner Gary Bettman, due to its growing and diverse demographics, which were showcased during the NBA's All-Star Game earlier this year.

Bettman stated in an interview that Salt Lake City is renowned for winter sports and has a thriving economy. He emphasized that the city has a significant number of residents who are likely to be both passionate about hockey and financially capable of attending games.

Arctos Partners, a sports-focused investment firm, alongside Smith, conducted surveys and research to determine if Salt Lake City could support a new team. The results showed that not only did the city want another team, but it also had a strong interest in hockey.

That enthusiasm has shown since the NHL season started in October.

"As everyone entered the arena bowl, they exclaimed, 'I can't believe the NHL is here! We now have an NHL team,'" Smith stated.

The Utah Hockey Club has sold out every unobstructed view seat at Delta Center, with 4,000 to 5,000 obstructed view seats available depending on demand.

During the first game, merchandise sales surpassed the previous record set during any single-night sporting event at the Delta Center. Additionally, there was a record-breaking demand for beverages, with beer sales reaching $120,000, the highest amount ever recorded for an NBA or NHL event held there. The Utah Hockey Club had the highest retail sales on its opening night of any hockey team this season, surpassing even the 2023-24 Stanley Cup champions, the Florida Panthers.

Since the opening night, the trend has persisted, as stated by the Utah Hockey Club.

Nearly $600,000 in beer has been sold at the Delta Center during the first seven regular-season hockey games, which is three times the amount sold in five Utah Jazz home games this season. The arena has experienced a 395% increase in beer sales for NBA and NHL events compared to the same period last year.

The Utah Hockey Club's team store recorded the second-best single-game merchandise sales total during the regular season and playoffs on Friday, surpassing the previous record by 29%.

"Opening night was unbelievable," said Hutchinson. "The demand is absolutely there, as the Utah Hockey Club received 34,000 season ticket deposits before opening day."

Moving to the mountains

The NHL's expansion to Salt Lake City was not typical.

"According to Irwin Raij, co-chair of Sidley's Entertainment, Sports and Media industry group, Utah is not an expansion but a relocation. "Utah was very aggressive in wanting a team," said Raij. "There are other markets that also want a team, such as Arizona.""

This year, the Arizona Coyotes were unable to secure a permanent arena, resulting in the team's expedited sale.

A few years ago, Smith expressed interest in owning a hockey team in Utah, which was confirmed by Bettman. In April, the NHL granted him the opportunity, and Smith reportedly paid $1.2 billion for the franchise. In preparation for the 2024-25 season, Smith had to continue spending. The Delta Center, which Smith purchased along with the Utah Jazz in 2020, underwent renovations 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.

Bettman stated that the Smiths likely paid $200 million to $300 million more than what is being reported.

The ownership group hosted an event at the Delta Center for three days after the deal closed. Hutchinson of Arctos Partners said that there was a greeting party at the airport and real estate agents drove everyone around looking for homes. The Coyotes' front office was informed that they had jobs in Utah.

"In a short period of time, he was able to accomplish things that nobody had ever done before," Bettman stated. "We knew we were getting people who were highly engaged in the community, forward-thinking, and technologically advanced. They had the means to make it happen."

Smith's sports play

Smith was the driving force behind Utah's readiness for a new sports team.

"According to Shirin Malkani, co-chair of the sports industry group at Perkins Coie, "The Smiths are reputable owners who are willing to invest and are considerate." Malkani added that "many leagues have observed that individuals from the tech industry make excellent owners due to their understanding of investments and technology. If you lack proficiency in these areas, you won't be able to reach your fans effectively.""

Qualtrics, founded by Smith at the age of 46 in Provo, Utah, has helped establish the state as a top tech market in the U.S., earning it the nickname "Silicon Slope."

Smith, a lifelong Utah Jazz fan, began his career in sports in Utah when he bought the team. In an interview, he stated that he is currently in his "second career." It is reported that he paid $1.66 billion for the team. Following the purchase, he invested in Real Salt Lake and its National Women's Soccer League affiliate in 2022, alongside David Blitzer.

Smith has helped revitalize Real Salt Lake, resulting in an increase in its fanbase, according to Chris McGowan, executive vice president and chief club performance officer at MLS. McGowan, who assists clubs with business strategies, highlighted how the team has grown its fanbase through season ticket sales, stadium enhancements, and new hires since Smith took ownership.

Having ties in the community as an owner of multiple teams in one market makes Smith's job easier, according to many in the industry.

"Representing multiple organizations in one market allows you to present a more compelling package to sponsors and potential sponsors, as well as take advantage of economies of scale to accomplish various tasks, according to McGowan."

The Utah Hockey Club has secured sponsorship deals with Delta Air Lines, SeatGeek, American Express, Ford, Verizon, and Coca-Cola. Despite having a smaller capacity than most NHL teams, the club is on track to rank among the top 20 in the league for both sponsorship and ticket revenue this season. Additionally, the team has formed partnerships with local businesses on various fronts.

Sports have long been significant in Salt Lake City, as evidenced by McGowan's previous work with the NHL's Los Angeles Kings and the NBA's Portland Trail Blazers, which held preseason games in the city.

"Gary Bettman turns to me and says, 'They're cheering, booing, and sighing at all the right moments,'" said Smith. "That's a good indication of their hockey knowledge."