Multimillion-dollar upgrades at Honda Center during the off-season were in clear view for Anaheim Ducks fans as they walked through the turnstiles of the south entrance before last Thursday’s home opener against the Arizona Coyotes.
The improvements, intended to build on a surge in the Ducks’ popularity after a strong season last year, were spread throughout the venue, from eats to views.
Thousands of feet were added to the main concourse, freeing up congestion at concession stands as others checked out new gear and memorabilia at the expanded team store.
The Standing O restaurant is no longer,having been replaced by the craft-brew Sierra Nevada Draft House, one of several food and drink concepts to debut this season.
The concourse also welcomed a spin on Southern cuisine with a touch of Southern California flare, offering up Po’boys and buttermilk beignets. An express eatery was added for on-the-go patrons.
The Shock Top Terrace had been outfitted with new furniture, and the entire club level was refreshed.
To shed more light on it all, a new multi-million-dollar lighting system was installed throughout the 650,000-square-foot venue.
All together, Ducks owners Henry and Susan Samueli invested $10 million to $12 million in the up-grades, aiming to capitalize on a particularly successful era on and off the ice.
The power couple have poured millions into renovations nearly every year of their ownership, which dates back to 2005 when they purchased the then-Anaheim Mighty Ducks for $70 million from Walt Disney Co.
It’s part necessity, given the fickleness of Southern California hockey fans and concert goers, and part love the Samuelis have for professional sports.
“They see that experience and understand how important it is,” said Aaron Teats,vice president and chief marketing officer for Anaheim Ducks Hockey Club LLC. “We won’t ever let the building become old.”
An aging or neglected stadium not only turns off fans but can be a harbinger of bigger issues down the road, such as potential relocation.
The Rams and Chargers wouldn’t have left St. Louis and San Diego for the Los Angeles market if they’d played in newer stadiums. The 24-year-old Honda Center “looks like a 5-year-old building,” Teats said.
The City of Anaheim runs Honda Center and the Samuelis’ management company operates the arena.
Creative Ticketing
The Ducks’ deep playoff run last year, which ended in the Western Conference finals two wins shy of returning to the Stanley Cup championship, has positioned the franchise for its best financial year on record.
It entered opening week with the most added season ticket sales in the National Hockey League, excluding the Vegas Golden Knights expansion team and the Detroit Red Wings,which christened their new ice at Little Caesars Arena.
Ticket prices, on average, rose 5% from last year.Credit an assist from Ducks sales and marketing executives who crafted a few new seating initiatives, including the Terrace Saver, which offers buyers a long stretch of seats at the top, eastern end of Section 400.
“We created this program for the cheapest season tickets in the house,” Chief Commercial Officer Bill Pedigo told the Business Journal.
The $450 plan, which equates to about $10 per ticket, sold out before the home opener.
Club seats, considered one of the best vantage points in hockey for their above-the-ice perspective, are selling at an all-time high volume, according to Pedigo. Holders have access to every event held at the Honda Center, including concerts, but not multiple-date runs, like Disney on Ice beyond one show per event.
The venue’s 84 corporate suites are also nearing sellouts.
And there’s a newer option for those who want to rub shoulders with players, refs and media partners.
The Toshiba Between the Benches seats,available for about 20 games per season, put the viewer on center ice, providing a “rare opportunity for fans to experience the speed and precision of NHL hockey from an amazing viewpoint,” said Bill Melo, chief marketing executive at sponsor Toshiba America Business Solutions in Irvine.
The package goes for $6,000 and includes four seats next to the benches, a behind-the-scenes tour of the Honda Center,and dinner for four in the Jack Daniels Old No. 7 Club.
“We are down to only a handful,” Pedigo said.
It’s part of an expanding partnership with the local printer and digital signage unit,which inked a three-year deal to supply the hockey club with 17 highly customizable multifunctional printers for the venue, team offices across the street, and its training facility in Anaheim.
Financial terms were undisclosed.
Money Factor
The bench seats and Toshiba’s designation as the Ducks’ official document solutions provider are among several new sponsorship deals this year.
The hockey club recently announced five new corporate sponsors—Bodhi Leaf Coffee Traders, Wawanesa Insurance, Cut-water Spirits, Jerome’s Furniture Warehouse and All Nippon Airways—and plans to announce a few more this week (read more in Marketing column, page 11).
The Ducks have renewed nearly every sponsor from last year, expect Chipotle and Yellow Pages, which are facing different challenges on several fronts.
Cox Communications for the first time will provide a virtual reality experience onthe concourse that will put viewers inside the Ducks locker room and on the ice, plus other unique content.
The Ducks posted $121 million in revenue last year, according to Forbes. The team, like several others in the NHL, is generally thought to break even in good years and lose money in bad ones. Hockey doesn’t have lucrative multibillion-dollar broadcast deals or revenue sharing as the NBA and NFL.
The Samuelis have scored with their investment on paper. Forbes pegged the value of the Ducks at $415 million in November.
The Ducks are locked into a 10-yearbroadcasting deal with Fox Sports that began in 2014 and pays the franchise about $13 million a year, with annual increases, according to news reports.
They enter the 2017-18 season on a business hot streak, posting record highs in sponsorships, ticketing and premium packages, such as suites and club seats, according to Pedigo.
Call it a hat trick, of sorts.
“After a strong year, we typically see an uptick, but this year has been particularly strong,” he said. “We feel it’s a very hot product right now.”
