[News] NHL announces multi-year sports betting partnership with MGM

[sureLoss]

Could have huge salary cap implications as this would potentially count as HRR.

The National Hockey League (NHL) has formed a groundbreaking, multi-year strategic relationship in the sports betting category with MGM Resorts International (NYSE: MGM). The announcement naming MGM Resorts the NHL’s first official sports betting partner was made today by NHL Commissioner Gary Bettman and MGM Resorts Chairman & CEO Jim Murren in New York City.

“The new sports betting landscape presents a unique opportunity for fan engagement utilizing technology and data that are exclusive to our League,” said NHL Commissioner Gary Bettman. ”As a leading global gaming operator and entertainment company, MGM Resorts is the perfect partner for us to begin our transformative entry into this space. Fan engagement, technological advancement and innovation are paramount to our progressive approach and will be at the forefront of everything we do.”

As an official sports betting partner as well as an official resorts partner of the NHL, MGM Resorts will have the ability to market many of MGM Resorts’ world-class products and services to the League’s millions of fans via the League’s various media platforms and events. MGM Resorts will also use official NHL branding to amplify the relationship across a range of the company’s land-based and digital sports betting offerings within the United States.

“We couldn’t be more excited to enter into this historic partnership with the NHL. The League is home to some of the most exciting action in sports, and we are thrilled to join with them to create new immersive and exhilarating experiences for hockey fans,” said MGM Resorts Chairman & CEO Jim Murren. “Combining MGM Resorts’ world-class sports betting operations and technology with the NHL’s top-level competition, iconic brands and cutting-edge data will further transform the rapidly growing sports betting marketplace and solidify our position at the forefront of the industry.”

As part of the relationship, MGM Resorts will receive access to previously unseen enhanced NHL proprietary game data that will be generated by the League’s state of the art tracking systems currently under development. Access to this data will allow MGM Resorts to provide its customers with specialized NHL game insights, as well as unlocking new and innovative interactive fan engagement and betting opportunities for its U.S. customers wherever legally available.

MGM Resorts will also reach NHL fans through communications to subscribers from the NHL’s robust fan database that will market MGM Resorts’ portfolio of destination resort brands, as well as promote MGM Resorts’ M life Rewards program, which currently has 31 million members.

In addition, MGM Resorts will leverage promotional opportunities in connection with the NHL’s calendar of marquee events -- including the Stanley Cup Playoffs and Stanley Cup Final, NHL All-Star Game, NHL Winter Classic and the NHL Stadium Series -- to showcase a variety of offerings across its portfolio.

[surferguy]

There is a Bettman joke in here somewhere.

[FanIn80]

I see lots of benefit to both the NHL and MGM, but I don't see anything about how this benefits the fans. We can already bet on the games.

If anything, it seems like this is just going to mean a whole pile of new advertising opportunities, which is not at all beneficial to the fans. Like... big deal, you now have access to the NHL fan database. I guess this means I should expect a few MGM Resorts emails coming my way every week now?

[Hockey Fan #751]

Originally Posted by FanIn80

I see lots of benefit to both the NHL and MGM, but I don't see anything about how this benefits the fans. We can already bet on the games.

If anything, it seems like this is just going to mean a whole pile of new advertising opportunities, which is not at all beneficial to the fans. Like... big deal, you now have access to the NHL fan database. I guess this means I should expect a few MGM Resorts emails coming my way every week now?

If they're using the NHL's data, it seems to me like eventually you'll be able to bet online (if you're American) things like "will Johnny Gaudreau score a goal on this power play coming up" and small things like that.

[The Professor]

Will this affect hockey related revenues? Cap going up? I’m assuming there is money involved.

[DeluxeMoustache]

^ From post 1:

Originally Posted by sureLoss

Could have huge salary cap implications as this would potentially count as HRR.

[Table 5]

Maybe they should tie to infrastructure funding.

[The Professor]

Originally Posted by DeluxeMoustache

^ From post 1:

Haha thanks.

[BurningSteel]

Odds on Bettman being booed at this event?

[pseudoreality]

Originally Posted by Table 5

Maybe they should tie to infrastructure funding.

They should, but they won't as long as governments continue to carry that burden.

[topfiverecords]

Originally Posted by burningsteel

odds on bettman being booed at this event?

-100000000

[Northendzone]

i wonder if MGM will freely share some of this new data the NHL will be providing them, or if you have to be onsite, or a paid user of some kind of website.

[GullFoss]

Two major implications:

1) higher ability for small market teams to spend above floor and towards ceiling because these revenues will be split equally among all thirty franchises. It also reduces reliance on gate sales, which reduces arguement that a new arena is needed to stay competitive

2) players are only entitled to 50% of HRR which means more profits for owners, and thus more money to potentially put into the arena pot or charity pot (if like the flames owners say, they haven't taken even $1 of profits for personal use).

[sureLoss]

From all reports the NHL is getting fixed income from MGM for this deal. They do not get a percentage of whatever MGM makes.

[Scornfire]

Originally Posted by sureLoss

From all reports the NHL is getting fixed income from MGM for this deal. They do not get a percentage of whatever MGM makes.

Dummmmbbbbbb

[dissentowner]

Oh look, another way for officials to make money off deciding games.

[GioforPM]

Originally Posted by Scornfire

Dummmmbbbbbb

Dumb unless MGM doesn't make as much as would generate more than a fixed fee. It also makes it easier to budget and calculate HRR.

Should Bettman have walked if this was the only deal?

[Hockey Fan #751]

Originally Posted by GioforPM

Dumb unless MGM doesn't make as much as would generate more than a fixed fee. It also makes it easier to budget and calculate HRR.

Should Bettman have walked if this was the only deal?

This makes sense since the big play appears to be selling their data to multiple books. It would be a lot (and probably less palatable to the casinos) to have to give up a portion of this. Instead, it's $210 million or whatever it is per year which means $8 million per club. If you can get 10 different casinos to sign on suddenly it's $80 million per club at a fixed cost.

It also eliminates the optics of the league profiting directly from bets made on the sport.

[Scornfire]

Good points, is it not an exclusive contract?

[getbak]

Any word on how much this deal is worth?

The story says...

The American Gaming Association released a report Oct. 2 saying the NHL's annual revenue may increase by $216 million because of legalized sports betting. NHL revenues exceeded $4.5 billion last season.

...but that's a projected number potentially from all legalized sports betting, not this specific deal.


This deal looks very similar to the one the NBA signed with MGM Resorts in September: http://www.espn.com/chalk/story/_/id...ng-partnership

That one is rumoured to be worth $25 million over 3 years. I'd think the NHL deal will be worth less than that. Although, the fact that there's an NHL team playing on an MGM property might make the NHL deal a little more valuable to them.

Even if we assume it's $10 million a year, that won't have a huge impact on the salary cap.