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NHL MEDIA CONFERENCEOctober 29, 2018Gary BettmanJim MurrenNew York, NY GARY BETTMAN: Thank you all for joining us here in person today and for those of you watching the live stream or broadcast of this media availability. We are here to make an announcement that is both exciting and groundbreaking for our league. I am delighted to let you know that the National Hockey League has entered into our first league-wide sports betting partnership, and we've done so with a company that in many ways is already part of the NHL family. Today, the NHL and MGM are proud to announce that we've entered into a multi-year partnership that designates MGM as an official gaming partner of the NHL, as well as an official resort destination of the NHL. This strategic alliance will enable MGM to have access to the NHL's intellectual property, including our league and 31 team logos for use in marketing and promotion, and to have access to advanced game data which is being developed as we speak. In addition, by combining the league's robust database with MGM's M life rewards program, this partnership will provide NHL fans with an opportunity to enjoy once-in-a-lifetime experiences at league tentpole events. Of course, as I've previously mentioned, working together is not new for us. As part owner of the T-Mobile Arena in Las Vegas, home of our Vegas Golden Knights, MGM has hosted major NHL events, including the NHL Awards and last season’s Stanley Cup Final. So today, we enter a new phase in our relationship, and it's going to be exciting to see where we go together. With that, it is my pleasure to turn it over to chairman and a good friend, Jim Murren. JIM MURREN: Well, thank you, Gary. I think you know how much I admire you and what you have accomplished with the NHL, and I know you know how excited I am about being here today. Our love affair with hockey began over 20 years ago. It was then in 1997 that Mr. (Philip) Anschutz brought the LA Kings to Las Vegas, and for the next 20-odd years, we hosted Frozen Fury at the MGM. It was our relationship with Mr. Anschutz and AEG that formed the basis of a partnership that we formed back in 2012, when AEG and MGM scoured the globe looking for the best ideas to build an arena. We found those great ideas and formed that partnership and broke ground on T-Mobile back in 2014. It was that year that the commissioner and I sat down in these very offices, and the commissioner had a very pointed question, and I don't know if you guys know this, but he can be a little intense sometimes, and he said, "Would Las Vegas, with the local community, support a hockey franchise?" And I thought so. I didn't know for sure. I said, I'll get back to you. The MGM employees got to work. We went to schools and club hockey programs, and we contributed to the fact that we sold thousands upon thousands of season tickets. And of course, the storybook season of the Golden Knights last season. Because of that, we saw a lot, the NHL did, and MGM, about hockey in the desert. We saw the kind of engagement that we could create together. We saw the excitement, and we saw the potential of a partnership with the NHL. Today was a natural extension really of that journey, and I think about the idea that now we can communicate to those great 2.3 million fans of the NHL's growing database and help our fan base and our loyalty of 31 million members in our M life program. Fan engagement, sports alignment is really one of the pillars of this relationship. The idea of puck and player tracking, which the commissioner and I have talked about, is incredibly exciting, innovative, the first of its kind, and providing yet more opportunities for fans to enjoy the game that they love. But also in that first meeting, we talked about integrity, responsible gaming, and the idea that first and foremost, integrity had to be a pillar of a relationship, and I hope the commissioner believes, as he did then, that MGM has tried at every step of the way to be a leader in that area. We take pride in our leadership in responsible gaming. And so for the NHL fans, for the fans of sports and entertainment, for the fans of the NHL and MGM, this is indeed a historic day, and I couldn't be more proud than to be here today with the commissioner of the NHL. Thank you. GARY BETTMAN: Thank you. Q. Gary, you said "a" partner. Is the sponsorship exclusive? GARY BETTMAN: No, it's not. It's the first, and obviously because of our long-standing relationship and the number of things we've done together, we were most comfortable moving forward together, MGM and the NHL, at this point in time. Q. And then I'd also ask, the data is obviously not exclusive, as well, correct? GARY BETTMAN: That's correct. Q. One more question. In a way, at least publicly, you have kind of been against this. It was reported last year that you asked MGM to take the Knights -- originally, the Knights off the board at the Monte Carlo and New York, New York, and in a deposition you said in 2012, I know that was six years ago, that it just didn't match with the game and kind of opposed the family-friendly atmosphere you're looking for. What changed? GARY BETTMAN: The Supreme Court, obviously. And I think many of you know this, I was integrally involved in the passage of PASPA 25 plus years ago, but the fact of the matter is the world has changed. The way people consume sports has changed, and frankly, whatever views anybody had a year ago have been changed by the fact that the Supreme Court ruled on PASPA, and sports betting, subject to state enactment, has found a new road and a new life. And I believe that there was an opportunity here, since it was happening anyway, but more importantly, to the extent this may provide a vehicle for more fan engagement and connectivity to the game, it's something that we had to embrace. Our methodology I think has been a little bit different because instead of seeking legislation at the federal level or even at the state level, our approach has been to work directly with the industry, and it was easiest, most sensible for us to start with somebody who was already a partner and somebody we already had a working relationship with, namely MGM. JIM MURREN: And if I could add, the commissioner and I did talk about this, and the commissioner first and foremost was concerned about the integrity of the game, the league and the game. He wanted to ensure that we felt the same way. So those I thought were really good, candid discussions to have, and like everything in life, it takes time to develop trust and relationships, and I believe we've done that with the NHL. GARY BETTMAN: I think just because a lot of terms get thrown around like integrity fees and the like, which is something we've never pursued, I never worried, and I don't worry about the integrity of our game. The integrity of our game has been strong throughout a period where virtually all of the betting has been not through legal sports books. But my view was that we were the first team and first league in Las Vegas, and we all needed to get a comfort level as to how it was going to work. But we've been comfortable from the outset. But again, the integrity that we talk about is integrity in a relationship, integrity as it relates to their sports book, but I've never expressed an issue with the integrity of our game and our players, for which I have total confidence. Q. Commissioner, you mentioned the advanced game data. What is the status of either partnering with or developing a tracking system, and what will be included in this relationship? GARY BETTMAN: A lot of the data in our game and most games is static, and you pick it up at any time, particularly if you want to bet on it. It's finite, it's concrete, it's definitive, particularly at the end of the game. The data that we're looking at is real-time data that doesn't exist currently. We've been working, actively involved and investing in the process of inventing it. We've tested it. We have other tests planned for later in the season. We've used it in some form or another, either in the World Cup of Hockey or in All-Star Games, and we're anticipating that it should be ready for prime time for next season. Q. You've mentioned the integrity aspect. Are there mechanisms in place in this deal to protect the integrity of the game? GARY BETTMAN: We monitor all of the games anyway through third-party resources. We've watched what goes on, whether or not betting lines shift and the like, which is anybody -- with anybody who's involved in a business that there's betting on would do. It hasn't been an issue, and we don't anticipate it being an issue. The concerns that others may have aren't applicable to our game. Q. Commissioner Bettman, the money that you're getting from MGM and maybe as other casinos get on board, is this money that would increase the salary cap? Would players be seeing some of this in their pockets? GARY BETTMAN: It is revenue that's part of hockey-related revenue, so the players will share in it 50/50. This is not revenue, to be clear, that comes out of the take. This is fixed revenue that is separate and apart from any betting that actually goes on. Q. Does this deal include the potential for MGM to install physical wagering stations in arenas, and what is the league's position on individual teams potentially reaching agreements? GARY BETTMAN: That's a very good question. A couple of things: There can be opportunities in a building in a segregated area for there to be a sponsored lounge of the sort, but there are mobile apps where people can bet from their seats. So the fact is whether or not there's a segregated area that happens to be a lounge that's sponsored doesn't distinguish it from a lot of other areas that already exist in arenas. It's more about branding than anything else. Q. MGM has a deal with the NBA. Does this partnership follow that, or were you already in talks beforehand? JIM MURREN: We were in talks with the NHL from the very beginning. The deals are different deals. We're not getting into all the details of them. This is a very specific deal with the NHL, and it was a product of some really good discussions back and forth, what's collectively important to ourselves and to the league. One of the aspects that the commissioner mentioned earlier that I want to address: If you've gone to a Golden Knights game at T-Mobile and you see at Toshiba Plaza or in the park, the thousands upon thousands of fans of all ages, the question of whether or not we could provide a family-friendly environment has been answered. It was answered certainly last season. That's really what the focus of our conversation was between the commissioner and myself: Could we create a healthy, productive, positive environment to enjoy hockey, and of course we have at T-Mobile. And so working with what the NHL found important, what we found important, we created something that's very comprehensive, but at no point did we ever say, as the commissioner said, it's exclusive. MGM believes in the free market. We believe that there are going to be winners and losers in sports betting. We intend to be the winner. We intend to be the winner because of our brands, because of our relationships, because of our analytics, because of our loyalty programs. We don't want to be the winner because someone else is boxed out of the opportunity, and we'd like to win on the ice or on the field or on the court, and that's what we hope to do. GARY BETTMAN: And if the impression you get from what Jim just said is this is broader than sports betting, it is, which includes MGM's designation as an official resort designation for the NHL. This is a broad, encompassing relationship between two powerful brands. Q. You have a couple teams that have sponsorships with outside sports books. Does this deal allow other teams to work out individual deals? GARY BETTMAN: The way we've structured the framework for the league and the teams, not unlike television arrangements, there's a national component, and we provide for the ability of clubs to have a local component. And if you happen to be in a jurisdiction that has sports betting, your opportunities are going to be very great for the club in the local market. Q. Given the fact that north of the border, of course, federally they don't allow for single-game sports betting, does today's announcement have any implications as far as the franchises in Canada? GARY BETTMAN: The answer to that is the clubs in Canada have been working with the lotteries who control gambling on a provincial basis, and I think that will continue. I know there have been a lot of discussions about going to single-game betting as opposed to parlay, which is what currently exists, and as the law evolves, you'll see our evolution in dealing with it, which is what we've done here in the United States. A year ago, we wouldn't have been having this discussion, but the world changed, and we're adapting to it. And we've also had the experience of having the Vegas Golden Knights in Vegas, and you see after we decided that Vegas presented a great opportunity and was a wonderful growing city with people who were interested in professional sports, other leagues started taking a look at it. Q. This question is for both of you guys. Would this be happening without the Golden Knights' super successful first season, and would you both say that exceeded expectations? JIM MURREN: Well, I don't want to speak for the commissioner, but I surely would have wanted this transaction to move forward without the Golden Knights. We built T-Mobile to be pro ready, but to be very clear, we had no expectations of a pro hockey team at that time. We have always longed to bring content to Las Vegas. That dates back to our founder Mr. Kirk Kerkorian, who always brought the big fights. We always brought the big sporting events, and that's in our DNA. Absolutely. Are we surprised with the Golden Knights? Who couldn't be surprised with the storybook season that they had? But the quality of the men that I've met, I've had the honor to meet, the hockey players that play for the Golden Knights and in fact play in professional hockey, are the highest quality individuals I've met in any sport, and so as ambassadors in our community and particularly in a fairly uncertain time, the Golden Knights have been a godsend to Las Vegas. GARY BETTMAN: Particularly from last year. I agree with Jim. Let me just focus on a couple of other things. We certainly, in light of what the Supreme Court did and the decision and the way the world has changed vis- à-vis betting in sports, we would have been having this conversation. Would our arrangement have emerged as quickly as it did and be as encompassing as it is in the absence of the fact that we already had a relationship? Probably not. But we did have a relationship -- and in the lead-up to the Vegas Golden Knights, the events of last October, which was a terrible tragedy in Las Vegas, and I think that the team played a part in helping the city heal -- our relationship got closer, and we, both organizationally and personally, had a relationship that we not only were comfortable in, we trusted each other, and we could relate to each other. As it relates to your question of if we surprised by the Golden Knights, I will say that as it relates to the on-ice performance, I think everyone knows we provided for a deeper expansion draft than we ever had before, and we expected the team to be competitive. The fact that they went to the Stanley Cup Final was a little bit of a surprise. The fact that the team was successful in the community, incredibly so, was not a surprise. This was a city that we believed was ready to embrace NHL hockey, and at every step of the way, we were either proven right or vindicated in our belief in the city. But a lot of it had to do with the fact that Bill Foley created a great organization, and there was great support in the community, not just by the fans but from organizations local to Vegas such as MGM and people like Jim, who embraced the vision. Q. Gary, can you quantify the revenue opportunity for the league, at a league level, as you sort of step into this space? GARY BETTMAN: You know, the AGA published something a week or so ago saying that the impact of sports betting would increase league revenues $200 to $300 million. Well, based on our overall revenues, that's not a be-all and end-all. To the extent that it can create more fan connectivity, more fan engagement and even bring some new fans in, I think the impact that we will see from sports betting are more indirect but all positive in that respect in terms of fan connectivity and fan-based growth. Q. How granular would you like the player data to go in terms of data that you guys would use in your apps or other sort of games? And Gary, what's been the conversation with the PA thus far in terms of using player skating speed or shot speed, things like that? JIM MURREN: Well, I'll start. Data is the key. The more data a player has, the better. And that data has to be trusted. It has to be specific. It has to be endorsed. It has to be real-time. And we've seen the power of data outside the United States. You look at World Cup soccer, for example, in the UK or throughout Europe. In terms of the player experience, I'd have to echo what the commissioner said. We believe it's our responsibility to help the League, the teams and the individual players build their individual brands, and it's one reason why I brought a WNBA team to Las Vegas and named them the Las Vegas Aces, to help elite athletes develop their individual brands. The more data you can have on an individual athlete on his or her skills, the more connection a fan will have to that athlete and therefore build the brand equity of that athlete. We believe fully in a wholesome accumulation of data, which is also why we do not support exclusive data. We want the data to be available to the world. We never sought an exclusive relationship with this league or any league because we think the end game is to provide the best fan experience, whether you're a social bettor, a for-cash bettor or love the game and want to be a data junkie, like I was growing up and having to read the newspaper every morning to figure out what's going on with my favorite players and favorite teams. Now it's all digitized and available, and the more data, the better. GARY BETTMAN: What I think is interesting from our standpoint is the fact that the data that we're in the process of inventing the mechanism to collect, this is a process we've been involved with for years, and it wasn't initially our vision to develop it for sports betting. It was as a broadcast enhancement and as a second-screen data collection device to bring fans closer to the game. As we've said, the amount of revenue that we're going to generate is secondary to the fan engagement, and in fact, the technology we're going to use to create the data we think will be using with our national broadcast partners both in Canada and the U.S. and the regional broadcast partners and on streaming digital platforms. So the fact that we may be in a position to create data that you can only get from us in real time is a plus in the sports betting environment. And the NHL Players’ Association, we've been in discussions throughout so that they understand what we're doing, and one of the benefits of us having a direct relationship as opposed to waiting for either the federal or state legislation that may or may not come is we have the ability to have input exactly as to what's being bet on, to make sure that we're comfortable with the types of bets that are being placed on what's taking place in the game. So all of this kind of came together, and again, the last point, it was the question before, any revenues that we generate from this, either directly or indirectly, go into hockey-related revenues, and players share 50 percent. So this is a collaborative effort across all platforms, but it's also an opportunity by us having a relationship that we have created directly with an important industry partner is what we think will enable us to move forward in a sensible way. Q. Right now with the Devils, you'll be able to bet within the arena because it's in the state of New Jersey. Do you ever envision actual kiosks where you can bet? GARY BETTMAN: Actually, as I said, you don't need them because of the mobile apps. Most of the betting that goes on now in Nevada and in New Jersey, as well, is going to be done on your phone, and unless you're going to confiscate people's phones as they come into the buildings, which we're not going to do because there are other uses for them, including data and video replay and other streamed elements of the game or other things you want to be doing while you're sitting there including taking a picture and putting it on Instagram. That's just a fact of life. That's what has been unleashed with overturning PASPA, and we have to adjust to it. Q. Gary and Jim, speaking about the player data aspect, will this deal lead to the league kind of creating an NFL-style injury report? GARY BETTMAN: I don't know about that. We're comfortable with the way things are because it's important for the well-being of our players. We don't want them targeted when they're playing injured, and obviously we don't want them playing too injured, because that's not good for them, either. Q. Now that there's the official resort sponsor, what changes, if any, does that mean for the resort itself? JIM MURREN: Well, we're investing about $700 million all around T-Mobile right now. We've taken a property that used to be called Monte Carlo, and we brought in Sydell Group, from here, from New York, and we're doing a Nomad and a Park MGM product. We built a $100 million park outside of that, a nice art collection. So we are improving the neighborhood because we own the neighborhood, and we want that fan engagement to be very robust and as high-quality an engagement as possible. We're focusing a lot of our capital dollars in that general area between Park MGM, Bellagio, Aria, to create connectivity, so when people come to Las Vegas to see their favorite hockey team play against the Golden Knights, we hope that they stay at one of our 10 resorts and go to T-Mobile from there. GARY BETTMAN: A from a league standpoint, the relationship contemplates what we have in our major sponsorship relationships, so MGM has the right to use our collective trademarks for the clubs. They actually have run in the past year an ad for MGM properties that had some footage from an NHL game, from the Vegas Golden Knights, which you don't get to do if you're not a league sponsor. They're going to merge their database with ours so that the M life loyalty program that they have can use the connectivity that we have with our fans to provide opportunities for fans to compete for tentpole event invitations sponsored by MGM. In many ways, and this is why I said this is broader than just a sports betting relationship. This involves us having a major sponsorship with each other. JIM MURREN: I think it's worth noting that in Las Vegas, 70 percent of revenue is non-gaming. We're talking about sports betting, I guess, today, but really we don't view ourselves as a betting company. We view ourselves as an entertainment company, 42,000 hotel rooms, millions of square feet of convention space, three arenas, dozens of theaters, food and beverage outlets. And we know PR pretty well. So if you go to a Knights game, you get a sense of the energy around that. And working with the NHL globally, so we can help promote the NHL around the world, and that is something we believe is our responsibility to do as a partner. Q. To piggy-back off a previous question, it seems a lot of this is mainly focused on Vegas, but with the non-exclusivity factor, do you potentially see this going to places, as well, like Atlantic City and building relationships there like with the Devils and potentially other cities and teams around there? GARY BETTMAN: Well, this is a national -- this is an international sponsorship relationship, but a lot of the answer to your question will be determined by two factors: Which states decide to legalize sports betting and where MGM has properties. JIM MURREN: And we have been -- that's a good point. We've been focused on Las Vegas, but recall that we own Borgata in New Jersey. We own MGM Grand Detroit in Detroit. We own MGM National Harbor, which you can walk to a Capitals game from our property. We just opened an MGM Springfield in Massachusetts. So we feel that this is an important relationship around the world, and certainly one that we intend to maximize between the database of the NHL and the M life database with MGM. FastScripts Transcript by ASAP Sports   |
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