‘Holy cow. What’s going on in Utah?’ Inside the Hockey Club’s plan for long-term success
More Videos
Published
3 months agoon
By
admin-
Ryan S. Clark, NHL reporterNov 6, 2024, 07:00 AM ET
Close- Ryan S. Clark is an NHL reporter for ESPN.
SALT LAKE CITY — There are two versions of Ryan Smith. There’s the public-facing 40-something billionaire tech mogul who answers questions in a way that can be direct, earnest and open to admitting he might not have the right answer … or an answer at all.
That’s the version most people see. But there’s also another version of Smith that’s unapologetically Utahn. That version comes out in the way he talks about Salt Lake City, the state of Utah and the preconceived beliefs many people have about a place that they’ve likely never visited.
While the first version of Smith is the reason the Utah Hockey Club exists, it’s the second version that is hell-bent on ensuring that the franchise is going to thrive in the most Utah way possible.
“I put everything in Utah. They said we couldn’t build tech here, and we’d have to move to the Bay Area,” Smith said. “We couldn’t get venture funding here. We couldn’t IPO a company from here. We couldn’t sell. We proved every single person wrong.
“Then I think that people started believing, ‘Holy cow. What’s going on in Utah?’ That’s incredibly gratifying when you’re fighting for a bigger cause.”
This is the mission facing the Utah Hockey Club when it comes to achieving success long term. While the UHC is a new venture, the team relocated from Arizona where they were the Coyotes. Before that, they were the original Winnipeg Jets, relocating to the desert in 1996.
The club is trying to prove that Salt Lake City and Utah as a whole can support the NHL. It’s trying to prove that it can make hockey a staple, just like the Utah Jazz have been doing in the NBA for several decades.
Perhaps the most important point the Utah Hockey Club could make is that as Salt Lake City keeps growing, so could the city’s professional sports landscape.
“Utahns especially want to show they are more than a flyover state,” said Josh Furlong, a broadcaster and the sports director for KSL. “They recognize they are not going to be Los Angeles, Seattle or New York. They want to showcase what Utah has to offer. You have a rabid fan base that will support your team. I think you have a bunch of people who want to showcase that. I don’t know if it is some type of FOMO situation where they feel like they’re not being included. But they want to be in that mix among the best places.
“You want people to feel what you see. You have this beautiful landscape, friendly people and a great atmosphere for sports culture.”
Clayton Keller: Today was a great day for Utah Hockey Club
Utah Hockey Club’s captain Clayton Keller joins “SportsCenter” to discuss what the team’s NHL debut felt like following a 5-2 win over the Blackhawks.
“Utah! Getting bigger and better. Utah! Always leading the way. New technology is here. Growing faster each year. This is the place!”
Those are lyrics from “Utah … This Is The Place.” Written in 1996, it later became the state song in 2003. At the time of the song’s creation, Utah was on the verge of announcing itself to more of the world, using sports and entertainment as a mechanism.
The Jazz reached three straight Western Conference finals from 1996 through 1998, with two NBA Finals appearances. Salt Lake City received international exposure during the 2002 Winter Olympic Games. In 2005, the University of Utah was the first school to have the No. 1 picks in both the NBA and NFL drafts in the same year, with Andrew Bogut and Alex Smith. The state’s fortune was also extended to film in 2004 when a few graduates of BYU’s film school made the coming of age cult classic “Napoleon Dynamite.”
Decades later, it appears Utah could once again be following a similar path, but with more to gain.
Utah Hockey Club president of hockey operations Chris Armstrong didn’t quote the lyrics from the state song when asked about the future. But his words resemble a similar sentiment when he mentions Utah having the nation’s No. 3 economy and the youngest state based on median age (30.7 years old).
“It’s a unique moment in time where we’re building something new from the ground up and we get to do it with everybody here,” Armstrong said. “So that is why we see a successful and thriving future. It’s only continuing to grow that outpaces most cities in North America, and we think that’s a great opportunity for a new sports franchise.”
The history of sports fandom in Utah began with major college programs BYU and the University of Utah establishing athletic programs. Smaller schools such as Southern Utah, Utah State, Utah Valley and Weber State have also built followings in various sports.
Professional sports came on the scene in 1979 when the Jazz relocated from New Orleans and eventually became one of the NBA’s most successful franchises throughout the 1980s, 1990s and early 2000s.
MLS came to the area in 2004 with Real Salt Lake, which averages 20,291 fans per game, and extends to the Utah Royals of the NWSL, a team that was revived in 2024. The Royals’ first game drew 20,370 fans which set a state record for the most fans at a women’s sporting event.
Both RSL and the Royals are owned by Smith, a BYU graduate, along with Philadelphia 76ers and New Jersey Devils managing partner David Blitzer.
In 2034, Salt Lake City will join Athens, Beijing, London, Los Angeles and Paris as one of the few cities to host multiple Olympics when the Winter Games return.
“Utah is crazy for sports,” said Eric Schulz, a senior lecturer in marketing and strategy at Utah State. “I think it will probably be the same pattern that Denver had. Denver just had the Nuggets and the Broncos for a long time. Then the Rockies came to town and then the Avalanche came to town. There’s been a lot of growth in Utah over the last 20 years with people who have come from other parts of the country. Look at Las Vegas. Who thought a hockey team in Las Vegas would do so well?”
Armstrong said the Utah Hockey Club received more than 30,000 season-ticket deposits. It’s a similar figure to that of the Seattle Kraken when they garnered more than 32,000 deposits ahead of their first season.
Armstrong also said that the franchise “feels very confident” in that it could finish this season as both a top-20 revenue team and a top-20 ticketing team in the NHL despite playing in at a basketball-first venue that has around 5,000 obstructed view seats.
“I don’t know too much about what the perception is, but I can tell you that on the ground that all you see is growth around you,” Armstrong said. “I think the culture of hockey lends itself to the community of Greater Salt Lake and of Utah. Hard-working, honest, passion, camaraderie, pride in team, pride in state. … I think that speaks to the response that we’ve received with season-ticket deposits.”
THERE WILL BE challenges along the way.
Those Jazz teams with Karl Malone and John Stockton created a generational fandom that has played a role in why the Jazz still continue to be such a massive draw.
Harnessing that fandom became an instant priority for the Utah Hockey Club. Exactly a week after the Coyotes’ last regular season game, the team was flown to Salt Lake City, where they were greeted by 12,000 fans at the Delta Center.
In the offseason, the club organized an online poll encouraging fans to vote on its future team name. In June, the SEG announced 520,000 fans had participated, before narrowing it down to six potential options.
Chris Barney, the Smith Entertainment Group’s president of revenue and commercial strategy, said the club will market to everyone. But they’re concentrating on attracting young people so that they can grow those generational fans.
Part of that plan is creating a youth hockey program. Many of the NHL’s teams playing in nontraditional markets — especially Western Conference teams — have used these programs over the past 30 years. The short-term goal is to drive new, young fans to the sport. The long-term goal is to make the youth of today the season-ticket holders of tomorrow.
What makes the Utah Hockey Club’s plan different is their connection to the Jazz. The Junior Jazz is the NBA’s largest youth basketball program, with more than 60,000 members spread across Utah, Arizona, Idaho, Montana, Nevada and Idaho.
Barney, who grew up playing in the Junior Jazz, said that the Jazz designate 1,800 tickets every home game for program participants.
“Our goal is to develop a youth hockey program in which there’s an Auston Matthews playing somewhere in the NHL [in the future] that’s a product of Salt Lake City with the infrastructure that we have built,” Barney said. “That might be one of the most important things. It’s not right in front of our face, but we have a five-year strategic plan. Developing and building it out is darn near the top.”
Barney explained that there are county recreation departments that are incubators for youth who end up playing sports in the community. With SEG already having those relationships in place through the Junior Jazz, they hope to do the same with the Utah Hockey Club when it comes time to introduce ice hockey and street hockey throughout the community.
The most recent USA Hockey membership numbers show that Utah had a combined 4,869 players between males and females. Of those 4,869 registered players, there were 3,168 who were younger than 18, while 2,073 were under 14. In 2016-17 — the final period before the Golden Knights arrived — the state of Nevada had 1,699 combined registered players. In 2023-24, there were a combined 5,560 male and female players, with 2,861 of them being 18 and younger.
“We’re all in,” Barney said. “We’re not going to dip our toe in. We’re all in.”
ANOTHER CHALLENGE IN building a fan base is that while Salt Lake City and Utah as a whole are growing, growth does not come cheap, which sets up a dichotomy that exists for many franchises in 2024.
“Utah has a ton of rising costs. Especially in real estate,” Furlong said. “There is a real pain point here with things being overpriced, and the housing market being really tough. Utahns love to get things for free or for cheap. The cheaper you make it, the better it is going to be. That said, you have someone like Ryan Smith who is trying to appeal to other people in the tech world who have limitless amounts of cash.
“The general fan wants it to be as cheap as possible because there are other factors, but tech people want to showcase this as a premier destination.”
Chris Hartweg is the publisher and CEO of the Team Marketing Report, which produces the Fan Cost Index, a model that calculates what the cost would be for a family of four to attend a sporting event.
Hartweg said recent history shows that new teams — whether they be expansion or relocation — were more expensive than the league average when they debuted. He said that the Nashville Predators (1998-99), Columbus Blue Jackets (2000-01) and Minnesota Wild (2000-01) were all within 3% above the league average ticket prices in their first season. Those are the outliers in recent NHL history.
The Atlanta Thrashers (1999-2000) were 34% above league average. The Vegas Golden Knights (2017-18) were 30% higher, while the Seattle Kraken (2021-22) were 58% higher.
“With dynamic pricing, (teams) know where all the price points are,” Hartweg said. “They know they want to move this many more season tickets if they go to this level. They know going in what’s the most that they could get before diminishing returns. That’s business. It happened in Seattle.”
Hartweg pointed out that the Kraken lowered their prices for the second season, but were able to charge a hefty premium for two main reasons that could also apply to the Utah Hockey Club: a new team, and a new venue.
Hartweg said it’s possible that UHC’s fans could be in store for a pricey first season, with the possibility of an uptick in prices once the Delta Center renovation project is completed in 2027.
Then there’s the role of the secondary market. Hartweg said the average family looking to go to a game might purchase tickets on the secondary market, and they might not know where to find the strongest deals.
Utah’s upcoming three-game home stand against the Carolina Hurricanes, the Vegas Golden Knights and the Washington Capitals offers a wide range of price points for the cheapest available ticket.
A cursory glance across numerous secondary ticketing sites shows that the composite least expensive ticket at Delta Center for the Nov. 13 game versus the Hurricanes is $37, while the least expensive ticket for the Nov. 18 game against the Capitals is $58, should fans want to watch Alexander Ovechkin continue to chase Wayne Gretzky’s all-time goals record.
It’s a contrast compared to the demand ahead of the Nov. 15 game against the Golden Knights, a perennial Stanley Cup contender that could become one of the UHC’s chief geographic rivals. Those sites list the least expensive ticket for the game on Nov. 15 against Vegas as $119.67. The composite cheapest lower-bowl tickets with an unobstructed view is $248.
“When a new team comes in, it’s Christmas Day,” Schulz said. “They can come in and buy the best seats and put in orders for blocks of a hundred and resell them on the secondary market. If they can get their hands on them, they only have to resell a quarter of the season and they already have their money back. If a team goes to the playoffs, it’s like 12 Christmases having those tickets.”
Barney said the franchise has a “multiyear strategy” when it comes to how ticketing will work for fans from various economic backgrounds.
He said that adding 6,000 unobstructed seats once the Delta Center renovation is completed will help with making the UHC more accessible. Another step is to work with community partners to ensure they’re getting UHC tickets in the hands of fans from underrepresented groups so they can also have access.
They’ll also continue to sell those obstructed view seats that Barney also called the “partial ice” seats or “single-ice seats” — in reference to the steep angles behind each goal — that will start at $19 per game.
“We want to make sure we’re being strategic about how the tickets are being distributed,” said Barney, who grew up in nearby Kaysville. “I think the move to make sure that concessions are also more affordable for people was also really important.”
Hartweg said it’s common for teams to provide more cost-effective food and drink offerings to help offset the price of a game ticket. He said there are places that offer $5 beers, but it might come with the caveat that it’s in the 700 section of the arena.
Delta Center has what’s called a “Mountain Menu” which is a fan-friendly pricing option in which a bottle of water is $2 while hot dogs, ice cream, nachos and popcorn are $3. There were also other options such as Chick-fil-A, with 30 nuggets for $30, while a chicken sandwich and waffle fries cost $16.
“It’s worth the price,” said Christian Priskos, who grew up in Salt Lake City. “We have a Tier 1 NHL team that’s in downtown Salt Lake City. It’s not only boosting the local economy with local business, local bars and local restaurants and everything you want to do. But it’s also boosting the social scene as well. People want to say ‘Salt Lake is a sleepy town.’ But, we’re not. We’re a Tier 1 city and the Utah Hockey Club is another step toward showing that.”
WHILE THE FOOD and drink prices might be new to Utah Hockey Club fans, those are the prices that Jazz fans have grown accustomed to paying over the years. And the SEG can take components of its playbook from running the Jazz to serve Utah hockey fans.
On the ice, they are boosted by a strong collection of young talent — and the ninth-best prospect pipeline. A playoff appearance in Year 1 is a real possibility.
From a fan engagement perspective, both Armstrong and Barney shared how going to the Delta Center for a Utah Hockey Club game could be a first for a number of people in the area. At present, the Jazz are in a rebuild yet have sold out for 296 consecutive games. Delta Center, which holds 18,306 fans for basketball, had more than 14,000 fans attend a preseason basketball game less than 24 hours before the first game in UHC history.
Armstrong said that element of demand coupled with how historically engaged fans across Salt Lake City and the state of Utah have been could also play a role in the Utah Hockey Club having long-term success.
“There’s a lot of Utahns who haven’t been able to experience a live sporting event in the building because the Jazz have sold out so many consecutive games,” Armstrong said. “It gives people another opportunity to be part of this world-class venue in Salt Lake they have not been able to access with the Jazz. … Now we’ve given them that new product that gives them that chance.”
You may like
Sports
Ichiro wants to have drink with lone HOF holdout
Published
1 hour agoon
January 23, 2025By
admin-
Associated Press
Jan 23, 2025, 05:51 PM ET
COOPERSTOWN, N.Y. — Ichiro Suzuki wants to raise a glass with the voter who chose not to check off his name on the Hall of Fame ballot.
“There’s one writer that I wasn’t able to get a vote from,” he said through an interpreter Thursday, two days after receiving 393 of 394 votes from the Baseball Writers’ Association of America. “I would like to invite him over to my house, and we’ll have a drink together, and we’ll have a good chat.”
Suzuki had been to the Hall seven times before attending a news conference Thursday with fellow electees CC Sabathia and Billy Wagner. The trio will be inducted July 27 along with Dave Parker and Dick Allen, voted in last month by the classic era committee.
Suzuki struggled to process being the first player from Japan elected to the Hall.
“Maybe five, 10 years from now I could look back and maybe we’ll be able to say this is what it meant,” he said.
BBWAA secretary-treasurer Jack O’Connell recalled Suzuki was at the Hall in 2001 when he called to inform the Seattle star he had been voted American League Rookie of the Year. Suzuki received 27 of 28 first-place votes, all but one from an Ohio writer who selected Sabathia.
“He stole my Rookie of the Year,” Sabathia said playfully.
Sabathia remembered a game at Safeco Field on July 30, 2005. He had worked with Cleveland pitching coach Carl Willis in a bullpen session on a pitch he could throw to retire Suzuki, which turned out to be a slider.
“I get two strikes on Ichi and he hits it off the window,” Sabathia said of the 428-foot drive off the second-deck restaurant in right field, at the time the longest home run of Suzuki’s big league career. “Come back around his next at-bat, throw it to him again, first pitch he hits it out again.”
Suzuki’s second home run broke a sixth-inning tie in the Mariners’ 3-2 win.
As the trio discussed their favorite memorabilia, Suzuki mentioned a mock-up Hall of Fame plaque the Hall had created — not a design for the real one — that included his dog, Ikkyu.
“Our dog and then Bob Feller’s cat are the only animals to have the Hall of Fame plaque. That is something that I cherish,” Suzuki said, referring to a mock-up with the pitcher’s cat, Felix.
Sabathia helped the New York Yankees win the World Series in 2009 after agreeing to a $161 million, seven-year contract as a free agent. Sabathia started his big league career in Cleveland, finished the 2008 season in Milwaukee and was apprehensive about signing with the Yankees before he was persuaded by general manager Brian Cashman.
“Going into the offseason, I just heard all of the stuff that was going on, the turmoil in the Yankees clubhouse,” Sabathia said. “Pretty quick, like two or three days into spring training, me and Andy [Pettitte] are running in the outfield, I get a chance to meet [Derek] Jeter, we’re hanging out, and the pitching staff, we’re going to dinners, we’re going to basketball games together. So it didn’t take long at all before I felt like this was the right decision.”
Sabathia was on 342 ballots and Wagner on 325 (82.5%), which was 29 votes more than the 296 needed for the required 75%. While Suzuki and Sabathia were elected in their first ballot appearance, Wagner was voted in on his 10th and final try with the writers.
Even two days after learning of his election, Wagner had tears streaming down his cheeks when he thought back to the call. His face turned red.
“It’s humbling,” he said, his voice quavering before he paused. “I don’t know if it’s deserving, but to sit out 10 years and have your career scrutinized and stuff, it’s tough.”
Wagner, who is 5-foot-10, became the first left-hander elected to the Hall who was primarily a reliever. He thought of the words of 5-foot-11 right-hander Pedro Martínez, voted to Cooperstown in 2015.
“I hope kids around see that there is a chance that you can get here and it is possible, that size and where you’re from doesn’t matter,” Wagner said. “I think Pedro said it first, but if I can get here, anyone can get here.”
Sports
Braves sign outfielder Profar to 3-year, $42M deal
Published
1 hour agoon
January 23, 2025By
adminOutfielder Jurickson Profar and the Atlanta Braves agreed on a three-year, $42 million contract Thursday, uniting the veteran coming off a career year with a team that has struggled in recent years to find a suitable left fielder.
Profar, 31, was a revelation for the San Diego Padres last year, hitting .280/.380/.459 with a career-high 24 home runs and 85 RBIs. Once the top prospect in all of baseball, Profar made his first All-Star team and won a Silver Slugger — all on a one-year, $1 million deal.
He cashed in with the Braves, who outbid a number of teams interested in Profar’s on-base skills as well as his energy that invigorated Padres supporters and infuriated rival fan bases.
Profar will join center fielder Michael Harris II and right fielder Ronald Acuña Jr., the former National League MVP coming off a torn left ACL just three years after tearing the ligament in his right knee. Without Acuña for most of last season, the Braves’ offense suffered a deep regression from 2023, when they set a single-season team record with a .501 slugging percentage.
The switch-hitting Profar can slot almost anywhere in the lineup, though he figures to begin the season toward the top as Acuña continues to rehab his knee. Beyond Harris and Acuña, Atlanta’s lineup includes All-Star third baseman Austin Riley, second baseman Ozzie Albies and first baseman Matt Olson. Profar will receive $12 million this year and $15 million in 2026 and 2027.
Atlanta is typically one of the most aggressive teams in baseball, striking early in free agency and with trades. After trading slugger Jorge Soler in late October, the Braves dabbled in minor league deals and watched as starter Max Fried went to the New York Yankees, starter Charlie Morton went to the Baltimore Orioles and reliever A.J. Minter went to the New York Mets.
Profar is Atlanta’s first real addition this winter after sneaking into the postseason at 89-73 and promptly getting swept by San Diego. He has spent all 11 years of his major league career in the West divisions, debuting at 19 with the Texas Rangers. Profar never fulfilled his potential there and went to Oakland in 2019 before settling with the Padres, where he became a full-time outfielder. Over 1,119 games in his career, Profar has hit .245/.331/.395 with 111 home runs and 444 RBIs in 4,291 plate appearances.
Sports
Are the Dodgers ruining baseball? Inside the Roki Sasaki signing — and a spending spree that has rocked MLB
Published
1 hour agoon
January 23, 2025By
adminSIX YEARS AGO, when the world knew next to nothing of a gangly 17-year-old pitcher in Japan, a Los Angeles Dodgers evaluator sat in the stands at his high school games with a video camera to capture the splendor. Roki Sasaki’s fastball regularly reached 100 mph, his right arm a whirling force of nature. The Dodgers were smitten. Sasaki could eventually be the best pitcher in the world, team officials told one another. And when the time came for his inevitable move to Major League Baseball, they wanted to ensure he felt as strongly about them as they did him.
In the time since, the Dodgers have conquered baseball in nearly every fashion imaginable. Armed with immense wealth from their owners and buoyed by the largest local television contract in the game, the Dodgers have spared no expense in trying to win. Their major league payroll consistently ranks at the top of the game, yes, but other line items are best-in-class, too, from their technology infrastructure to their coaching staff’s compensation to the quality of the food they serve their minor league players.
When this winter arrived and Sasaki, now 23, declared his intentions to come to MLB, the Dodgers didn’t need a sales pitch because the allure for players is obvious: If you covet winning, come join a burgeoning dynasty. Since being sold to the Guggenheim Baseball Management group in 2012 following the disastrous ownership of Frank McCourt that led the team to file for bankruptcy, the Dodgers have remade themselves into conquerors: of the National League West (11 titles in 12 years), their October demons (two World Series championships in five years), and the Japanese baseball market (the signings of Shohei Ohtani and Yoshinobu Yamamoto for more than $1 billion guaranteed).
Every front office pined for the latest Japanese ace this offseason. Eight teams were granted an audience with Sasaki. Three became finalists. The Dodgers were one. The San Diego Padres, Los Angeles’ chief rival in the NL West and another team whose early scouting of Sasaki won favor, were the second. The third came down to the Toronto Blue Jays, Texas Rangers, Chicago Cubs and New York Yankees — four other teams whose years of work in Japan and history with Japanese players spoke to an understanding of Sasaki and his desires. The rapport built with Toronto’s international scouting apparatus won the Blue Jays the third finalist slot.
Toronto impressed Sasaki with its answer to a burning question: Why had his sizzling fastball lost velocity in 2024? The explanation from Frank Herrmann, a Blue Jays baseball operations staffer who had pitched in the big leagues and was Sasaki’s teammate with the Chiba Lotte Marines, and Sam Greene, the Blue Jays’ assistant pitching coach, blended a discussion of data, mechanics and feel that boosted their pursuit. Sasaki spent multiple days in Toronto, and as he departed, the Blue Jays were confident that whatever advantages the Dodgers might have, they were surmountable.
The visit to San Diego left the Padres similarly assured. Star third baseman Manny Machado held a gathering at his house, where a Japanese chef cooked familiar cuisine. Jackson Merrill, the Padres’ 21-year-old center fielder expected to blossom into a superstar in coming seasons, attended, as did Ethan Salas, the 18-year-old catcher seen as a linchpin in future seasons. And San Diego had an ace in the hole: Yu Darvish, the progenitor of modern Japanese pitching, whom Sasaki regards as a mentor with peerless knowledge.
The successful meetings put that much more pressure on the Dodgers, who hosted Sasaki Jan. 14 at minority owner Peter Guber’s Bel Air home and summoned an array of players, all locked up to long-term deals: superstars Ohtani, Mookie Betts and Freddie Freeman, catcher Will Smith, and super-utility man Tommy Edman. Ohtani, knowing Sasaki loves dogs, brought his Dutch kooikerhondje, Decoy, to the presentation.
With the international signing period opening Jan. 15 and the window for Sasaki to sign closing Jan. 23, the decision zone arrived and forced action. All three teams lined up trades to acquire more international bonus money to help their pursuit. San Diego was eliminated first. Toronto, attempting to demonstrate its willingness to go above and beyond for Sasaki, struck a deal with Cleveland to take on $11.75 million remaining on center fielder Myles Straw‘s contract along with an additional $2 million in international money even before Sasaki had made his decision.
Soon thereafter, he did — and it wasn’t the Blue Jays. What so many in baseball saw as a fait accompli — to the point MLB did a preemptive investigation into whether Sasaki had any sort of prearranged deal (and determined he didn’t) — played out. While some teams in meetings asked if Sasaki wanted to be Kevin Durant or Michael Jordan — to join a superteam or help build one — the allure of the Dodgers was impossible to ignore. All of their games are broadcast on national TV in Japan. The stores at Nippon Professional Baseball stadiums that include racks of Dodgers gear will now feature jerseys with his name on them. The Dodgers’ plan when they signed Ohtani — “One of our goals is for baseball fans in Japan to convert to Dodger Blue,” president of baseball operations Andrew Friedman said — had borne fruit.
In executing that vision, the team has set off alarms inside the sport. The Dodgers’ signing of Sasaki for $6.5 million — a sum artificially deflated by MLB’s rules on international amateurs that offers Los Angeles hundreds of millions of dollars in surplus value — left front offices and fans alike gobsmacked. Watching the Dodgers pick off free agent after free agent with heavily deferred deals has built a wave of frustration. Seeing them land one of the most valuable contracts in the game — the sort typically reserved for the worst teams via the draft — reinforced something that has become increasingly clear.
The Dodgers are no longer just a team chasing championships. They are a stress test for the game itself.
THE ANGER — from disillusioned fans, from dispirited front offices, from owners made to look as if they don’t care — is very real. And it’s growing to the point that people at the highest levels of Major League Baseball acknowledge it concerns them. Most worrisome is the rhetoric that fans are done with the game. That what L.A. is doing is unfair. That the financial imbalance ruins the sport.
A villain around which people can rally is tolerable; an unbeatable monolith is not. An exemplar for how teams can operate is instructive; an extinguishing of hope is not. With every transaction pushing the Dodgers further from the former and more toward the latter, MLB faces growing cynicism that has reignited calls for a salary cap — and made collective bargaining discussions set to start a year from now, before the current basic agreement expires following the 2026 season, that much more fraught with peril.
Over the past 13 months, the Dodgers have morphed from a large-market, big-money jewel franchise that spent exceptional sums of money and didn’t have much to show for it into a referendum on the state of MLB in 2025. Because baseball is the last of the major North American professional sports leagues without a salary cap or floor, the difference between the Dodgers — who carry a payroll in the $375 million range — and the next-highest team, the Philadelphia Phillies, is nearly $70 million. That’s to say nothing of the gap between the Dodgers and the 30th-ranked Miami Marlins: around $300 million. The $120 million or so the Dodgers are in line to pay in luxury tax penalties on top of their payroll is more than the projected Opening Day payroll of 10 teams.
In the past 411 days, the Dodgers have:
-
Signed Ohtani to a 10-year, $700 million contract, with $680 million deferred
-
Traded for right-hander Tyler Glasnow and signed him to a five-year, $136.5 million contract extension
-
Signed right-hander Yamamoto to a 12-year, $325 million contract
-
Signed Smith to a 10-year, $140 million contract extension, with $50 million deferred
-
Signed two-time Cy Young winner Blake Snell to a five-year, $182 million contract, with $66 million deferred
-
Signed Edman, acquired at the 2024 trade deadline, to a five-year, $74 million contract extension, with $25 million deferred
-
Signed outfielder Michael Conforto to a one-year, $17 million contract
-
Signed reliever Blake Treinen to a two-year, $22 million contract
-
Signed outfielder Teoscar Hernández to a pair of deals totaling $89.5 million over four years, with $32 million deferred
-
Signed Korean infielder Hyeseong Kim to a three-year, $12.5 million contract
-
Signed Sasaki
-
Signed closer Tanner Scott to a four-year, $72 million contract, with $21 million deferred
In total, they have guaranteed $1.778 billion — nearly half of it ($874 million) deferred. For a team that already had Betts and Freeman under contract — a team that over its six previous full seasons won at least 100 games five times — to turn over more than half its roster and add nearly a dozen impact players registered as baseball gluttony.
A day after Sasaki’s signing, Chicago Cubs owner Tom Ricketts told 670 AM in Chicago that “it’s really hard to compete” with the Dodgers. Ricketts bought the Cubs for $845 million in 2009. They are worth around $5 billion now, according to a person who values professional sports franchises. The Cubs, according to Forbes, have the third-highest revenue in MLB, behind the Yankees and Dodgers. They are the epitome of a big-market, high-earning franchise. Ricketts said the Cubs attempt to break even every year. Forbes estimates they have earned more than $585 million before interest, taxes, depreciation and amortization over the past decade in addition to the more than $4 billion appreciation of the team.
At the time, the Cubs were attempting to sign Scott, among the most coveted relievers this winter. The next day, with a final offer of four years and $66 million — $6 million shy of where the Dodgers landed — they lost. The $18 million-a-year salary Scott received fell in line with those of other elite closers.
This is not a chicken-and-egg situation. Teams like the Cubs and Boston Red Sox — should-be powerhouses — earn reputations quickly among players by not spending. When franchises show they care about winning, players take note. The flocking of talented players to the Dodgers is not a function of a willingness to overpay. The vast majority of the long-term deals handed out by the Dodgers are market price or club-friendly. Betts’, Freeman’s, Smith’s. Ohtani’s deal — with $68 million of his annual $70 million salary deferred for a decade — was proposed by him to the Dodgers as well as to the other teams that pursued him: Toronto, San Francisco and the Los Angeles Angels.
While the Dodgers are among the rare teams that can carry three $300 million-plus deals (and four other nine-figure pacts on top of that) without bleeding money, they also thrive in the middle market. They took advantage of Ricketts’ unwillingness to push — he has limited the Cubs’ budget this winter, even after trading for Kyle Tucker — and won the bidding for Scott. Any team could have pursued Hernández, whose deal this winter was at market value. Every team passed on signing Snell to a long-term deal in the 2023-24 offseason. Edman was widely available at the trade deadline.
Every MLB club, even those with the lowest revenues, can compete for that sort of talent. So many operate with unbending devotion to their computer models, though, that the simple act of spending has become an even greater advantage for the Dodgers. With a history of teams on limited budgets annually performing among the best in the game, those franchises could fare even better stretching themselves financially and investing in winning, at the very least proportionally to those who devote a higher percentage of revenue to payroll. The Dodgers’ willingness to spend in grand sums and success with it should motivate other teams to keep up, not preclude them from doing so.
THREE DECADES AFTER the longest work stoppage in MLB history, the inequity baked into the game’s financial system remains. MLB’s pursuit of a salary cap in 1994 led to the cancellation of the World Series that year. The rekindling of a cap conversation has already begun — particularly by owners peeved by the Dodgers’ spending and the sheer size of Juan Soto‘s 15-year, $765 million, no-deferred-money deal with the New York Mets. Proposing a cap in next year’s CBA negotiations would be tantamount to a declaration of war by MLB — and already those owners are prepared for commissioner Rob Manfred to lock the players out Dec. 1, 2026.
It’s clear, by now, that the punitive elements the most recent collective bargaining agreement put in place — the luxury tax, the qualifying offer system, draft-pick punishment — are anti-spending measures that just don’t apply to some. The Mets have spent exceptional amounts of money and been OK. The Dodgers clearly see money as a competitive advantage they’re willing to flaunt. There is room to incentivize other teams to spend without having to institute a cap and a floor.
For now, though, this is the game. These are the rules. Players overwhelmingly supported the collective bargaining agreement that governs baseball. Owners voted unanimously in favor of it.
The Dodgers are the symptom, not the cause.
Players will point out that a cap is not a panacea. Without one, baseball has found parity on par with or better than capped leagues. In the past quarter-century, the team with the largest payroll in baseball has won the World Series just four times. Over the past 15 years, it’s just twice. No team has captured back-to-back championships since the Yankees won three straight 1998-2000. MLB’s postseason this year featured teams from Kansas City, Milwaukee, Detroit, Cleveland, Baltimore and San Diego. Perhaps most important: The randomness of baseball’s postseason typically serves as an equalizer, keeping even the most talented teams from their most dynastic aspirations.
As the Dodgers exceed the base luxury tax threshold of $241 million by more than 50%, it’s worth remembering that baseball has seen financial disparity like this before. There’s little solace to take in that this year, though, because the team the Dodgers have put together is genuinely great, extraordinarily deep, and prepared to weather injury, ineffectiveness and the other vagaries that would torpedo opponents’ seasons.
For all of the Dodgers’ advantages, it’s worth acknowledging the most overblown element of their approach. The deep misunderstanding of deferred money has painted it as a tool to avoid paying salaries for long periods of time and lessen a team’s luxury tax payroll. Neither of these is true.
Within two years of agreeing to a contract with deferred money, teams must place cash to cover future payments in an account and show statements annually to the league, according to the collective bargaining agreement. Deferrals are regarded by MLB the same way any business in any industry would: accounting for the time value of money. A dollar tomorrow is not worth as much as a dollar today. And a dollar 10 years down the road is worth much less than it is today. While Ohtani’s contract will ultimately pay him $70 million a year, its present-day worth is closer to the $46 million he counts against the luxury tax. This is not a loophole. It’s math. So is the fact that what they pay under luxury tax accounting — which uses the average annual value of a contract — exceeds the cash they’ll spend on payroll this year. The reality: They’re paying more in luxury tax this year.
An actual loophole does exist in the California tax system, incentivizing players who don’t live in the state to defer money and secure large signing bonuses, both of which allow them to skirt state taxes. This is nothing new for professional athletes across sports. Teams in Texas and Florida have been using a lack of state taxes to their advantage for decades. It’s not a particularly significant advantage — except for Ohtani, who California lawmakers said could avoid around $90 million in state taxes as they pursue legislation to fix the law.
What’s undeniable — and undeniably frustrating to fans and owners alike — is that despite the inflated dollar figure, Ohtani’s contract is the team-friendliest free agent deal in baseball history. Between his production and the revenue he helps the Dodgers generate, he is worth well over $100 million annually, not $46 million. And once the Dodgers were able to secure his services for the next decade, the franchise could still turn around and spend more than a billion dollars however it saw fit, perfectly content to pay the luxury tax.
Under McCourt’s ownership, the Dodgers were directionless underachievers. They became a fury-inducing juggernaut when they sought to maximize themselves, and that is the ultimate endgame of the stress test: Have they mastered this system to the point that it must be overhauled?
As the 2025 season unfolds and attempts to answer that question, they will wear the boos and the chirping and all of the nastiness in opposing ballparks. But this is not their fight. It is the commissioner’s and the owners’ and the union’s. Those stakeholders need to find an answer that isn’t just kicking the can down the road for five years but actually, actively changing baseball’s economic structure so players continue to make what they’re worth and fans see a tolerably fair system.
The greatest drug of sports fandom is belief, and right now, belief in baseball is waning. October has always been the great equalizer, a time when hot teams regularly beat more talented teams. If that happens to the Dodgers in 2025, the schadenfreude will be strong enough to part the Red Sea. Should the Dodgers become repeat champions, though, the chorus will grow louder and the distrust deeper. The stress test has arrived, and for all of the game’s resiliency, baseball’s future depends on its ability to navigate a situation of its own making.
Trending
-
Sports2 years ago
‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports10 months ago
Story injured on diving stop, exits Red Sox game
-
Sports1 year ago
Game 1 of WS least-watched in recorded history
-
Sports2 years ago
MLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years ago
Japan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years ago
Game-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years ago
Bank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway