INTRODUCTION
The Maple Leaf Sports and Entertainment company (MLSE) was founded in 1998 when the Toronto Maple Leafs merged with the newest NBA team at the time, the Toronto Raptors. This amounted to one of the best motivators for Toronto pride and was one of the most beneficial merges for the city. Since their start in 1927, the Maple Leafs have been able to fill arena seats and hold onto their fans’ loyalty. They clinched five Stanley Cups in the 1940s and were able to win 4 more cups throughout the 50s and 60s. Despite a three decade drought that followed, their loyal fan base kept supporting them. However, the Maple Leaf Sports company is much more than players on the ice, the Stanley Cup wins and losses, and the fan base; the team has
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a lot more going on than what merely happened on the ice. COMPANY HISTORY The Maple Leaf tradition was founded by Conn Smythe and decided to make it a public company in order to pay for a place for the team to practice and play. In 1931, Maple Leaf Gardens opened after a mere 6 months of construction. When Smythe died, only a month later, Ballard was given access to his shares of the company.
The Ballard Family Holding held a majority advantage in Maple Leaf Gardens Limited for two decades until Ballard was served jail time for defrauding the company. In the interim, Ballard’s son Bill took his place until he was released. Bill decided to focus on concert promotion in the venue while the Leafs kept declining in NHL standings. Once Ballard was back in control he continued to gain more control over the company but ran into several complications with loans which ultimately reduced his estate holding when he died in 1990. Nevertheless Ballard owned 80 percent of MLG. The estate was put into the hands of Donald Crump, Steve Stavro and Donald Giffin. This naturally led to a war between the three over who would gain the most control. Stavro was ultimately victorious by claiming 60.3 per cent of the company. After Stavro took over as chair and CEO of MLG in 1991, he put two million dollars into the arena, doubled the annual salary budget, and allowed the team a chance to actually win. “Under Stavro, revenue for the club increased from $37.5 million in 1991 to $56.2 million in 1993” (Funding Universe, 2004). However, the increase in players’ …show more content…
salaries resulted in a decline in profits from 7.5 million dollars to 5.3 million dollars, in the same time span (Funding Universe, 2004).
The company needed to start promoting more, having more events and venture into the world of broadcasting. In 1996, Stavro brought in Larry Tenenbaum, an investor, to invest 21 million dollars for a 25% share in the company (Funding Universe, 2004). In 1998, the company spent 600 million dollars to acquire the Toronto Raptors, build the Air Canada Centre (ACC) which would house both teams and have luxury suites and pay the Leaf’s salaries and management (Funding Universe, 2004). Richard Peddie, former University of Windsor Odette School of Business Graduate, was then named CEO and President of Operations as well as continuing on as President for the Raptors (Funding Universe, 2004). Peddie used his expertise to re-vamp various websites and obtain licenses to run a pair of TV specialty stations for both teams. He also created a deal where corporate sponsors must invest in both the Leafs and the Raptors rather than just the Leafs. During this time, ticket sales matched player’s salaries one-to-one for both teams, so profits were made in the form of advertising sponsorships, corporate sponsorships, broadcasting rights, merchandising, concessions and event
rentals. In 2003, Stavro sold his shares and the result was a new company with an entirely different ownership configuration known as Maple Leaf Sports and Entertainment (MLSE). At this time, MLSE was valued at about one billion dollars (Funding Universe, 2004). In 2005, MLSE acquired both a major league soccer team, Toronto FC, and an AHL team named the Toronto Marlies. MLSE created the Maple Leaf Square, a five-hundred million dollar project, to enhance the fan’s experience. Currently the company is also very invested in the MLSE Foundation. Their vision is to, "change lives through the spirit and power of sports", while their mission is, "to improve the lives of youth by building facilities, giving to sustainable programs and empowering youth through sports and recreation” (Maple Leaf Sports and Entertainment, 2015). Overall, MLSE is a dynamic company that has consistently improved with the ever-evolving needs, wants, interests, and trends in the market. MLSE has been able to provide a modern approach to value creation and has also been able to keep their competitive advantage in the industry. VALUE CREATION AND COMPETITIVE ADVANTAGE There are numerous examples of how the Maple Leaf Sports and Entertainment company has been able to approach value creation with a modern perspective throughout its existence. The major strategic move for MLSE was diversifying the company by expanding from NHL hockey into basketball, soccer and minor-league junior hockey. They were able to gain greater value through the establishment by offering more teams to sport lovers in the GTA. Through this process MLSE was able to build and introduce the Air Canada Centre which houses the Toronto Maple Leafs and Toronto Raptors as well as Entertainment events, as well as the BMO field where the Toronto FC professional soccer club plays. In a highly clever marketing move, MLSE built the Maple Leaf Square with two towers and a major television screen to allow fans to watch games outside the ACC, doubling as a “meeting ground” or “hub” of sorts for Toronto sports fans. The company grew extensively under Richard Peddie’s reign since he allowed the business to transition from one focused on hockey and basketball, to a business focused on numerous initiatives as well as additional sporting teams and sporting venues. Peddie was strategic in capitalizing on the Maple Leaf’s fame by putting the brand front and centre into websites, magazines, TV networks and other media. He introduced the brand to much brighter days and a much healthier future, especially when it came to value and value creation. While it is difficult to determine an exact dollar value on MLSE, the August 2012 sale by the Ontario Teachers’ Pension Plan to Canadian telecommunications giants Bell and Rogers provides a good idea of its worth. The new consortium assumed 75% ownership of MLSE for 1.32 billion dollars. Being a private holding, there is no way to gauge its current value, although the previous noted value of nearly two billion dollars is a fair estimate. Maple Leaf Sports and Entertainment can be easily split into four different value-creating sectors: professional sports teams, sports venues, sports channels and commercial real-estate. Professional Sports Teams: MLSE controls the Toronto Maple Leafs, the Toronto Raptors, the Toronto Marlies and Toronto FC soccer team. The range of professional hockey, basketball and soccer teams, as well as a minor league hockey team represents prudent diversification. The company is not afraid to invest money into their assets that are not performing to the standards they expect and strive for. For instance, in 2014 they put 100 million dollars toward salaries and extra trading costs for three professional soccer “super-stars” for the Toronto FC due to their declining success on the field. Based on equity plus net team worth plus arena debt, the Toronto Maple Leafs are the highest valued NHL team in the league, for nine-years straight (Forbes, 2015). However, one of their most powerful sources for value creation is their dedicated fans that will sell out the ACC for every home game despite how the Leafs play. Sports Venues: To provide for bother their sports teams and the fans, MLSE tends to build and fund some of the most popular sporting venues in Canada and the World. The Air Canada Centre is the longest standing facility the company has owned, located in the heart of downtown Toronto. In May 2014, the venue became number one on the Billboard charts and is noted as one of the top seven busiest sports and entertainment venues in the world. It also acts as a widely-popular entertainment venue, hosting performances by some of the most acclaimed acts in the world. The facility is very well taken care of, going through complete renovations after only ten years of being open to enhance both communication and sponsor awareness. This venue has been a wise investment in terms of brand awareness, brand loyalty and positive fan experience, which keeps them coming back despite how the teams are performing. Sports Channels: In addition to sports teams and numerous facilities around Toronto, MLSE has ventured into the world of sports broadcasting. MLSE Live is a brand created to bring all of the company’s live events to fans under one roof and create excitement for these events. In addition to this, for a considerable amount of time MLSE has owned both Leafs TV and NBA TV. These expenditures and investments have allowed the company to create a bigger empire, as well as connect with the strong fan base that all of teams uphold. Commercial Real-Estate: In each facility, there are numerous amenities that can be found, including: MLSE’s E11even, Real Sports Bar and Grill and Real Sports Apparel. E11even caters to the finer-dining market. Real Sports Bar and Grill is the ultimate sports pub in Toronto which houses 198 HDTV screens and was voted the North America’s Number One Sports Bar by ESPN (Maple Leaf Sports and Entertainment, 2015). Real Sports and Apparel offers exclusive merchandise with recognized brands to create exclusive collections that fans cannot invest in anywhere else. Finally, although technically not a “commercial property”, is MLSE’s philanthropic foundation which creates value through the concept of goodwill. The company invests in local athletic facilities to allow more local sporting opportunities for a wider range of kids in the GTA. The Maple Leaf Sports and Entertainment organization can be analyzed through the PESTLE framework. Politically, MLSE does not interfere with anything and the city of Toronto usually helps fund the building of new arenas. Economically, the economic health of Canada is a huge factor in MLSE because it is so dependent on the people who watch the sports. If the people in Toronto have no disposable income, the price of the tickets will have to lower to accommodate. Socially, the better one of their teams is doing, the better the ticket sales will be because of word-of-mouth. Technological factors tend to now have a huge impact on MLSE since their business does not rely heavily on technology. The legal side of things would only pertain to the sale and purchase of sports teams and following certain municipal, provincial, federal laws such as liquor sales and noise by-laws. And lastly, environmental considerations are very small for the MLSE but issues can arise if their venues are not meeting the environmental friendly standards. It’s clear that through all of these ventures MLSE is dedicated to both their fans and their teams. All of these investments allow a far greater competitive advantage for MLSE and have allowed the company to maintain a competitive advantage in the industry throughout the majority of their years. MLSE further allows their value to increase by making prudent investments in its own operations, properties, the community and future sporting/entertainment ventures.
Fortunately for the NHL, they had/ have the Chicago Blackhawks, the Franchise to bring hockey back. The Chicago Blackhawks started the 2012-2013 series with a 24 point streak, meaning that they went 24 games with at least 1 point gained in each game. As many people don’t pay attention until the season has hit 20 or so games, the Hawks, had come to break the lockout of that particular attention span causing more attention towards not only the NHL , but for the Blackhawks themselves. As fans joined the progressing bandwagon, the NHL was gratefully coming out of the “drought” with numourus sponsorships with companies, and gaining profit from their
Loonie is still upset about Cal being their new coach. He is so upset that he doesn’t even show up for practices. One night Cal knocks on Loonie’s front door.”I just hate to see a guy with a game as yours throw it away’. This quote makes a huge difference in the history. Loonie starts to feel more confident with his new coach around but he also comeback for practices and he finally decides to play for him.
In 1993, the Toronto Blue Jays went to the World Series as the American League Champion against the National League Champion the Atlanta Braves, the Series opened in Atlanta where Toronto lost their game one of the Series 3-1, faith was not lost as the Jays went on and win the next three games 5-4, 3-2, 2-1. By this time, the fans had real high faith, and even though the Braves dominated the fifth game 7-2, if the Blue Jays win one more the title is theirs, and so it was when the Jays won the sixth game 4-3 winning the 1992 World Series. Canadian Baseball had never been so successful before. When the 1993 season comes, the Blue Jays once again end up first place in their division with a 96-67 record and won all the playoffs games to advance to the World Series for a second time in a row against the National League Champions the Philadelphia Phillies. Th...
In 1988, Gordy sold-out Motown to MCA and investment group Boston Ventures for $61 million. That very same year, he was inducted into the Rock and Roll Hall of Fame. Today, Gordy remains active within the show biz, writing songs, producing records and dealing with the new established Motown Historical museum in Motown.
Shortly after he retired, he was named the Executive Director for Canada’s Men’s Olympic Hockey team. Gretzky used his great leadership skills to help guide the team to winning Gold Medals in 2002 after a 50 year drought. It is easy to see that Gretzky’s presence helped end the streak and earn Canada a medal. While Gretzky had acquired his position with the Canadian team, he also took a position for the N.H.L.’s Phoenix Coyotes. He first bought part of the Coyotes before eventually becoming the team’s head coach in 2005.
Canadiens Hockey Club has a positive impact on the city of Montreal as a whole.
When I think of what it means to be Canadian, one of the first things that come to mind is hockey. This is true for many Canadian’s as hockey was and is an integral piece of the formation of the national identity. However, when people think of playing hockey their attention usually turns to the men in the National Hockey League or other top men’s leagues and tournaments. Even so, Canada has come a long way from its beginnings, when women were not even considered persons under the law until 1929. While it has taken many decades for women to receive more recognition in the world of sport, today shows great improvements from the past. A key reason that women are not treated the same way as men in regards to hockey is due to how the game began;
The National Hockey League was founded in 1917. It started in Montreal and Quebec in Canada. There are thirty teams from the USA and Canada. Although the teams are based in Canada and the United States the players come from about twenty different countries from across the world.
Jackson, T., "NHL's Heroes and History - 1880 -1926 ," July 2, 2011, Web, http://www.youtube.com/watch?v=bg9qBRs8sX4&feature=related.
The 125 year history of the Stanley Cup is very rich and intricate. The Stanley Cup was donated in 1892 by Lord Stanley of Preston. He was the Governor General of Canada in 1892 and the son of the 14th Earl of Derby (Rourke). Lord Stanley donated the
Samantha Ureno Professor Zia English 99 22 January 2016 The Science Behind Sports Authority “Nothing in a grocery store is where it is by accident. Every item on a shelf has been planned” (Paco Underhill). In the articles, “The Science of Shopping” by Malcolm Gladwell and “How Target Knows What You Want Before You Do” by Charles Duhigg, these authors exemplify effective marketing strategies which were composed by Paco Underhill and Andrew Pole. Underhill is an environmental psychologist; additionally he employs the basic idea that one’s surroundings influences ones behavior and invented structuring man-made environments to make them conducive to retail purposes.
Based on the information provided in the document, The new Economics of the NHL, by T. Keller, it states, “Only one 5fth of the NHL’s teams are Canadian, yet the country’s fans account for nearly one third of the league’s revenues” (Keller, 2011). This demonstrates that despite Canada’s relatively low population to the United States and lower team numbers in the country, Canada still accounts for one third of the NHL’s revenues. Even when Canadian dedication is compared to hockey in the United States, who has more NHL teams and higher population, Canadians still contribute significantly to the leagues overall sales. If Canada had even more teams in different locations, such as Quebec, this revenue contribution could possibly grow even more and further establish the bond Canada has with hockey
On Sundays in the fall people all over the world are watching pro football. But do they know how it came to be or how the rules have gotten to be the way they are today? Most people don’t, so I am going to tell you all about it.
Being an athletic director seems like an amazing job because of the interaction with people and being around athletics. A lot of kids are involved in at least one sport, if not more, during their life time. Being an athletic director would give the opportunities for the kids to enjoy the sport or sports they are in by having an organized program and making it a good experience for them. An athletic director’s job is very important, they make sure every thing is in tact and organized. They make the schedules and let everyone know what is going on.
...alaries and lower ticket prices, the NHL should concentrate on where they are wanted and loved, the northern U.S. and Canada. Hockey means a lot to Canadians and children. It does not make any sense that the NHL is concentrating on the South and not helping out teams in Canada or bringing more teams to Canada. When the NHL realizes where hockey matters and where people want hockey, they will be able to be profitable and increase fan support. There is no point trying to force hockey on the southern U.S. because it is not wanted there. Time and money should be spent on helping loyal fans go to games in the North, rather than trying to lure in new fans in the South. The Southern hockey experiment should end now before loyal fans become fed up with pro hockey. If the NHL does not do something soon, it may be too late and NHL fans will be lost forever.