The Allure of Smaller Markets in Professional Sports: A 2024 Perspective

Remember when the coolest thing a city could do was snag a pro sports team from some other, less-deserving metropolis? Yeah, those days might be going the way of the dodo bird.

While the bright lights and big bucks of major markets used to be the holy grail for sports franchises, a curious thing is happening: smaller cities are muscling their way onto the scene, proving that they can be just as enticing – if not more so – for leagues looking to plant their flag. It’s a potent cocktail of financial perks, cutting-edge facilities, and a fanbase that’s so passionate, it could melt steel. Buckle up, sports fans, because the game is changing.

The Reign of Large Markets: A Historical Perspective

For decades, the major sports leagues operated with a pretty straightforward game plan: follow the money. And where was the money? You guessed it: sprawling urban jungles teeming with potential ticket buyers, deep-pocketed sponsors, and enough eyeballs glued to screens to make a network executive salivate.

Motivating Factors: The Big-City Trifecta

The logic was pretty ironclad, really. Big cities meant:

• Ticket Sales Maximization: More people equals more butts in seats, which translates into – you guessed it – more cash.
• Lucrative Sponsorship Opportunities: Big-time corporations love a captive audience, and those shiny skyscrapers tend to house more than a few companies with money to burn on brand exposure.
• Broadcaster Appeal for Maximum Viewership: Let’s be real, networks care about one thing: ratings. And a team nestled in a major media market is like a siren song to advertisers chasing those coveted viewership numbers.

The Rise of Smaller Markets: A Paradigm Shift

But hold on a sec – is the ground shaking? Because it feels like the tectonic plates of the sports world are shifting. Lately, we’ve seen a growing number of teams packing their bags and setting up shop in smaller cities, leaving many to wonder: are big markets losing their mojo?

Examples: David Slays Goliath (With a Slam Dunk and a Touchdown)

Don’t believe it? Just look at the evidence. Oklahoma City, once considered a flyover state for professional sports, snatched the Seattle Sonics and turned them into the beloved Oklahoma City Thunder. Las Vegas, a city once synonymous with casinos and showgirls, is now a legitimate sports town, boasting the Golden Knights (NHL) and the Raiders (NFL). And let’s not forget about Winnipeg, Canada, a city that welcomed back its beloved Jets (NHL) with open arms after they flew the coop for Phoenix years earlier. These are but a few examples of a trend that’s turning the old order on its head.

Driving Forces Behind the Shift: Why Smaller is the New Bigger

So, what’s fueling this exodus from the concrete jungles to greener pastures? It’s not just one thing, but a confluence of factors that are making smaller markets seriously attractive:

• Attractive Financial Incentives: Think of it like a welcome wagon, but instead of cookies, it’s overflowing with tax breaks, sweetheart stadium deals, and other financial goodies. Smaller cities are willing to pull out all the stops to lure in a team, making it a financially tempting proposition.
• Access to Newer, Modern Arenas and Stadiums: Nobody wants to watch their favorite team play in a dilapidated stadium that smells like stale popcorn and broken dreams. Smaller cities, often with newer infrastructure, can offer state-of-the-art facilities that rival those in their bigger, more established counterparts.
• The Promise of a More Passionate and Dedicated Fan Base: In smaller markets, a sports team isn’t just entertainment; it’s a source of pride, a rallying point, a part of the community’s DNA. This translates into a fanbase that’s ride-or-die, showing up week after week with a level of fervor that’s hard to match in larger, more jaded cities.

Case Study: The Arizona Coyotes Relocation to Salt Lake City

The NHL world was rocked in 2023 when the league approved a $1.2 billion sale of the perennially struggling Arizona Coyotes to a group headed by billionaire businessmen Ryan and Ashley Smith. But the real shocker? The team would be pulling up stakes and heading north to Salt Lake City for the 2024-2025 season, leaving behind the desert and their temporary home in Arizona State University’s tiny arena.

Their new digs? The venerable Delta Center, a familiar stomping ground for NBA fans as the home of the Utah Jazz—also owned by, you guessed it, the Smiths. At first glance, this move might seem like a head-scratcher. Why ditch the allure of the desert for, well, more desert, but colder? To understand the method behind the apparent madness, we need to look beyond the surface.

Superficial Analysis: A Step Down?

On paper, the move from Phoenix to Salt Lake City looks like a downgrade in terms of sheer market size. Let’s break it down:

• Metropolitan Area: Phoenix boasts a sprawling metro area with over 5 million people, while Salt Lake City clocks in at a more modest 1.2 million. That’s a pretty significant difference, right?
• Media Market Ranking: When it comes to media markets, Phoenix shines brighter at number 11, while Salt Lake City sits further down the list at 29th. This disparity reflects the potential reach a team has to advertisers and viewers, a factor that can’t be ignored in the world of pro sports.
• NHL Experience: While Phoenix had its dalliances with the NHL (remember the Coyotes’ previous life as the Winnipeg Jets?), Salt Lake City is a fresh face when it comes to hosting a team in the league. There’s no guarantee that hockey will resonate in a city better known for its basketball fandom.

Deeper Analysis: The Power of Demographics

But hold your horses before you write off the Coyotes’ move as a death knell for the franchise. A closer look at Salt Lake City’s demographics reveals a city ripe for the picking—and a savvy business decision by the Smiths.

• Mirroring Phoenix: Just like Phoenix, Salt Lake City is experiencing a period of rapid growth, attracting new residents—and their wallets—at an impressive clip. This influx of people translates into potential fans, customers, and a larger tax base that benefits everyone, including sports franchises.
• Tech Boomtown: Salt Lake City has quietly transformed itself into a tech hub, luring in a young, affluent workforce with high-paying jobs and a penchant for spending their disposable income on things they love, like, say, hockey tickets and merchandise.
• NHL’s Target Audience: This demographic of young professionals and tech-savvy millennials aligns perfectly with the NHL’s target audience. The league has been making a concerted effort to appeal to a younger generation, and what better place to do it than in a city brimming with them?

A New Era for Smaller Markets: What the Future Holds

The Coyotes’ relocation to Salt Lake City is a microcosm of a larger trend sweeping through professional sports: smaller markets are no longer content to sit on the sidelines while their bigger siblings hog the limelight. They’re stepping up to the plate, armed with financial incentives, state-of-the-art facilities, and a secret weapon that can’t be replicated: a rabid, passionate fanbase that bleeds team colors.

Redefining Success: It’s Not Just About Size Anymore

The old metrics for measuring a “successful” sports market—population density, media market rankings, and corporate clout—are being challenged. Smaller markets are proving that there’s more than one way to thrive in the cutthroat world of pro sports. Factors like:

• Passionate Fans: In smaller markets, a sports team isn’t just a form of entertainment; it’s woven into the fabric of the community, a source of pride and unity. This translates into a level of fanatical support that’s hard to come by in larger, more transient cities.
• Financial Viability: With attractive tax breaks, stadium deals, and a lower cost of living (which translates into cheaper tickets and concessions), smaller markets offer a path to financial stability that can be elusive in larger, more expensive cities.
• Thriving Local Economy: A booming local economy, fueled by growth industries like tech, healthcare, and renewable energy, is crucial for supporting a sports franchise. Smaller markets, often with lower barriers to entry for businesses and a more affordable cost of doing business, are becoming hotbeds for economic growth.

The Future is Bright (and Maybe a Little Smaller)

As the landscape of professional sports continues to evolve, one thing is clear: smaller markets are here to stay. They offer a unique value proposition that goes beyond sheer size, and leagues are starting to take notice. The days of automatically assuming that bigger is always better are over. The future of pro sports is looking bright, and it might just be a little cozier than we thought.