June 10, 2024

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As the NHL season winds down and the Stanley Cup Final heats up, the league is being careful about promising expansion. … The NFL’s salary cap may be rising faster than anticipated. … The U.S. Open has some interesting new ways for fans to watch golf. … Front Office Sports Today breaks down the upcoming NBA offseason. … And the NWSL is still sorting out its growth strategy.

— David Rumsey [[link removed]] and Eric Fisher [[link removed]]

NHL Seeing Record Growth, but Bettman Taps Brakes on Expansion [[link removed]]

Sam Navarro-USA TODAY Sports

The NHL is clearly in a significant growth mode, with regular season attendance for 2023–24 reaching [[link removed]] a record level of 22.56 million, revenue also reaching unprecedented level of about $6.2 billion, and the league’s playoffs averaging 1.3 million viewers per game through the conference finals, up by 14% from a year ago and the best such figure since 1996 in the U.S. Meanwhile, Game 1 of Stanley Cup Final posted a 12% boost in viewership to an average of 3.1 million viewers.

But commissioner Gary Bettman (above) is still not ready to push forward on expansion.

Speaking late Saturday in Florida before the Panthers’ 3-0 win over the Oilers in Game 1 of the Final, Bettman said there remains no formal procedure to grow beyond the current 32 teams.

“We continue to deal with expressions of interest,” Bettman said. “We’re not going to—at least at this point—unveil a formal process. We are gratified by the fact that at least half a dozen places continue to have interest in us.”

The sentiment contrasts against that of the NBA, which is expected to begin [[link removed]] its own process to add teams once its long-awaited national media rights deals are completed in the near future.

New and Old Teams

The NHL, however, does have many of the facets of an expansion team unfolding as the Utah franchise settles in its new home after relocating from Arizona in April. That franchise now has more than 34,000 deposits for season tickets— creating [[link removed]] an almost problematic level of fan demand—while the process to select a team name is moving [[link removed]] to final candidates.

“I think things are going even better than we could have hoped, based on the short timeframe that they’ve had to work with,” Bettman said of the early rooting of the Utah team. “They’re literally drinking from a fire hose, and they’re doing it unbelievably well.”

The Arizona franchise will be reactivated and added back to the league should former Coyotes owner Alex Meruelo is able to develop [[link removed]] a new arena in the Phoenix market.

More NHL Business

In other matters Bettman addressed in his state-of-the-league address:

The league and NHL Players Association set the 2024–25 salary cap at $88 million—up by $4.5 million from this season and slightly higher than previously projected—with a floor of $65 million. The latest figure, like those in the NBA and NFL, is a reflection of where league revenues are. “It means that the revenues are as robust as we’ve been telling you all along,” Bettman said. “I predict [the salary cap] will continue to go up. I believe we’ll continue to have robust growth in the cap.” The NHL is considering staging a game at LoanDepot Park, the home ballpark of MLB’s Marlins. After next season, only the Panthers and Utah franchise will not have played in a NHL stadium game. “I’m not going to break any news, but we are mindful of the fact that at some point it would be good for the Panthers to be in an outdoor game.” The commissioner appeared with NHLPA executive director Marty Walsh to discuss the 4 Nations Face-Off, a new international tournament set for next year involving players representing the U.S., Canada, Finland, and Sweden. Competition will be held at Bell Centre, home of the Canadiens, and the Bruins’ arena, TD Garden. Bettman praised the relationship with the union that helped lead to the creation of the event, as well as the broader interplay between the two organizations.

“It’s very open, candid dialogue,” Bettman said. “I think we have a good relationship, the best it’s been in the history of labor relations between the NHL and NHL Players Association. We’re collaborating on lots of important initiatives.”

ONE BIG FIG Skyrocketing Salary Cap

Jeffrey Becker-USA TODAY Sports

$300 million

Minimum projected NFL salary cap by 2026, according [[link removed]] to NFL agent Henry Organ of Disruptive Sports. Such an estimation is by no means official. But underlying the anticipated figure is fast-rising league revenue, particularly in media, which in turn has already been reflected in record-level player contracts, such as the one signed [[link removed]] last week by Vikings wide receiver Justin Jefferson (above). The ’24 NFL salary cap figure jumped [[link removed]] to $255.4 million, an unprecedented increase [[link removed]] of more than $30 million compared to the year before. If the league maintains that pace of 13.6% annual growth each of the next two years, the $300 million figure will be easily cleared.

SPONSORED BY HOKA

Racing Toward Change

In the evolving landscape of NIL, HOKA [[link removed]] is reshaping athlete-brand relationships beyond one-off deals.

The renowned athletic brand, in collaboration with Foot Locker, revitalized the USATF National Club Cross Country Championships in December, exemplifying a broader vision for a robust NIL ecosystem [[link removed]].

Unlike short-term deals, HOKA focuses on ongoing growth, mentorship, and community engagement. Examples include University of Colorado runner Kole Mathison and the mentorship between Summit High School’s Ella Hagen and triathlete Heather Jackson.

HOKA’s strategy emphasizes personal development and professional opportunities, ensuring athletes benefit beyond financial gains. By pushing the boundaries of NIL, HOKA aims to inspire the next generation and make a lasting impact on the sports world.

Read the full article [[link removed]] to delve into HOKA’s visionary approach to NIL.

U.S. Open Is Making Changes On and Off the Course [[link removed]]

USGA/John Mummert

The best players on the PGA Tour and LIV Golf were not playing together [[link removed]] over the weekend, but this week, they will all be making their way to Pinehurst, N.C., for the U.S. Open, which begins Thursday. The tournament will mark the 1,000th championship hosted by the United States Golf Association, so it’s fitting that the event will bring new ways to watch golf, both on and off the course—if you can afford it.

Cost of Doing Business

When the famous Pinehurst No. 2 course last hosted the U.S. Open in 2014, there were no luxury suite boxes or other hospitality build-outs on the course; all the premium offerings were built around the driving range. That’s not the case this year, as 11 such areas are scattered throughout the 18 holes, resulting in the second-most-ever corporate hospitality sales for a U.S. Open, behind only last year’s record tournament at Los Angeles Country Club.

A source tells Front Office Sports those sales will total just over $23 million. Large companies with strong contingents in nearby Raleigh and Charlotte are responsible for most of those incoming dollars, but organizers are also benefiting from the growing trend of some golf fans becoming more and more willing to spend ultrahigh dollar amounts on premium tickets.

The USGA this week is rolling out its highest-end product available to the public, the 1895 Club. Entry into the 400-person space next to the 18th green costs $2,500 per day during tournament rounds. For that price, buyers receive all-day gourmet dining, a top-shelf open bar, and complimentary golf cart shuttle service for entrance onto the grounds. Sales of 1895 Club tickets would bring in $1 million per day if completely sold out, which is already the case for Thursday and Friday.

The new premium ticket follows a similar concept launched at the Masters this year. Augusta National unveiled its first official hospitality experience, Map & Flag [[link removed]], priced at $17,000 for a weekly pass, equating to about $4,428 per day.

Some Odd (and Even) Changes

For golf fans watching the U.S. Open from home, the coverage from NBC Sports will look, and especially sound, different than years past. After moving on [[link removed]] from former lead golf analyst Paul Azinger, NBC has rotated its top color commentators during PGA Tour events this season.

At the U.S. Open, the network is deploying [[link removed]] two lead announcing teams: Dan Hicks and Brandel Chamblee will have the call on the even-numbered holes, and Mike Tirico and Brad Faxon on odd ones. There will also be alternating hole announcers, utilizing NBC’s full arsenal of commentators, during the non-prime hours of the tournament.

It’s certainly a unique idea, and could be perceived as a temporary stopgap while NBC searches for a permanent replacement for Azinger. During a preview call for the U.S. Open, FOS asked NBC Sports executive producer Sam Flood if this approach could become temporary. “We’re big fans of it at this point,” he said. “So, we’ll look forward to a long future with it.”

The same strategy will be used for coverage of the Open Championship next month, but former world No. 1 Luke Donald, an Englishman, will step in for Chamblee’s duties. NBC has USGA rights for two more seasons under its current 12-year, $1.1 billion contract that it took over from Fox in 2019.

FRONT OFFICE SPORTS TODAY Intriguing NBA Offseason Looms

James Snook-USA TODAY Sports

As the NBA Finals showcase two models to build championship contenders, teams are looking toward the draft at the end of June. European talent is expected to once again be a major factor, as is the coming explosion in the salary cap, following the league’s next media-rights deals. Bronny James (above) stands as a wild card, with the potential to bring LeBron James to any team that picks him. ESPN’s Bobby Marks breaks down all of these dynamics on today’s show.

🎧 Watch, listen, and subscribe on Apple [[link removed]], Google [[link removed]], Spotify [[link removed]], and YouTube [[link removed]].

LOUD AND CLEAR NWSL’s Talent Development Issues

Troy Wayrynen-USA TODAY Sports

“It’s a system that is still finding its way, and I think we have to be really careful.”

—Meghann Burke, executive director of the NWSL Players Association, to The Washington Post [[link removed]] about the state of talent development in women’s pro soccer. The NWSL does not have a network of academies and developmental leagues that exist widely in men’s soccer and, as a result, players as young as 15 have signed [[link removed]] pro contracts. The league is implementing a series of protections for teen players, like 17-year-old Chloe Ricketts (above, left), including an optional separate changing area—moves that arrive against the backdrop of the NWSL recently grappling [[link removed]] with a widespread sexual abuse scandal.

FUTURE OF SPORTS

Investing in Sports

Want an inside look at the incredible rise of private equity in sports? Front Office Sports has you covered with our latest event—Future of Sports: Private Equity.

On June 12 at 1 p.m. ET, you’ll get unprecedented access to the minds behind the deals.

The event will feature a range of conversations between investors and team executives about how private equity is reshaping the financial landscape of sports. We’ll discuss everything from why this movement got started in the first place to how we can expect it to evolve in the future.

Participating speakers are from Sixth Street, SC Holdings, Raine, Blue Owl Capital, and more. Check out the full program [[link removed]].

Conversation Starters Nike celebrated Carlos Alcaraz, the youngest man to win a Grand Slam title on all three surfaces, with a new ad following his French Open victory. Check it out [[link removed]]. Eagles owner Jeffrey Lurie is considering selling a minority stake in the franchise at a $7.5 billion valuation, and actor Rob McElhenney—whose Wrexham Red Dragons recently clinched a promotion and are now two tiers away from the Premier League—has expressed interest [[link removed]]. Michael Jordan and Denny Hamlin’s new North Carolina headquarters for 23XI Racing features a weight room, sauna, memorabilia, and a conference room with 45 pairs of Air Jordans. Take a look [[link removed]]. Editors’ Picks ‘Bound to Happen’: The Age of the Sports Betting Scandal Has Arrived [[link removed]]by A.J. Perez [[link removed]]A banishment, betting scheme, and guilty plea all in one scandal-filled span. ‘Experimental in Nature’: The Rapid, Confounding Rise of Streaming Bundles [[link removed]]by Eric Fisher [[link removed]]Here’s why confusion continues to outweigh solutions in the streaming package boom. Adam Silver Says NBA Is Happy With Its 65-Game Participation Policy [[link removed]]by Alex Schiffer [[link removed]]The commissioner backed the NBA’s participation policy despite a slew of injuries. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Catherine Chen [[link removed]]

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