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SALT LAKE CITY — Could a new sports team be headed to Utah? That's the goal for the Smith Entertainment Group.
In the last couple years, the group led by Ryan Smith has purchased the Utah Jazz and bought a stake in Real Salt Lake. Now, it has its eyes set on adding a third team to the mix.
On Friday, it was announced Arctos Sports Partners, a sports-focused private-equity firm, had bought a minority share of SEG, a move the Smith group believes is a critical step to bringing in an additional sports franchise to the state.
For Arctos, the deal brings the Jazz into a growing portfolio that includes six MLB teams, three NHL teams, and two other NBA franchises. In all, Arctos has invested in over 20 professional sports groups and franchises; Arctos already had a stake in Real Salt Lake.
For SEG, it brings in a partner that shares its lofty expansion goals.
Smith Entertainment Group, a source said, wants to build something similar to Fenway Sports Group. The Boston-based group is the parent company of the MLB's Boston Red Sox, English soccer's Liverpool FC and NHL's Pittsburgh Penguins. Fenway obtained the Penguins in November following an investment from Arctos.
But unlike Fenway, who has accumulated assets outside of its home base, Smith Entertainment Group wants to build a sports hub in Utah — and Arctos is committed to helping them achieve that.
"We believe in Utah and all the amazing things happening in the state, and we believe SEG is poised to be the next big sports and entertainment group," said Chad Hutchinson, partner of Arctos Sports Partners. "Ryan Smith has an eye for opportunity and innovation, and we look forward to supporting his vision for Smith Entertainment Group and Utah sports fans."
Now, is anything imminent? No.
There won't be an announcement in the coming days that the NFL, MLB or NHL are expanding into Utah. According to one source, there is not a set timeline to bring in the third sports franchise, but Smith Entertainment Group sees Friday's announcement as a step needed to get to that point.
In May, Arctos raised $1.1 billion for a second investment fund, bringing the firm's total assets to more than $5 billion, according to Sportico. The firm is well funded and well connected.
"My wife Ashley and I are passionate about the state of Utah and are committed to building organizations that can be a unifying force in our community. Few things do that as powerfully as sports," Smith said in a statement. "We are excited to partner with Arctos. They are committed to Utah and to investing in this community and our sports teams and facilities.
"As SEG continues to build out the professional sports landscape in the state, the Arctos partnership brings strong commitment to Utah sports and a deep connection across all major sports leagues."
So the desire (and, presumably, the funds) is there to bring in a new franchise. But are there any options?
Last month, MLB Players' Association executive director Tony Clark said, "We are hopeful ... that we can find ourselves in a world of 32 teams rather than 30." And that came less than a month after MLB commissioner Rob Manfred said he'd "love to get to 32 teams" in an interview with ESPN. Manfred, however, recently said expansion can't be seriously considered until new stadium deals are worked out for the Tampa Bay Rays and Oakland Athletics.
In November, there was a report of the NFL having talks of expanding to as many as 40 teams. That would mean as many as eight new franchises could be added to the mix. But considering the league "bars professional investment in teams," according to the Financial Times, rules would have to change in order for the Smith-Arctos partership to work in the league.
After the NHL announced the Seattle expansion franchise in 2018, commissioner Gary Bettman said the league would not expand any further for the foreseeable future. Deputy commissioner Bill Daly walked that back a bit later in the year, stating: "Not sure there is any magic about 32. Expansion is appropriate when a convincing case can be made that it will be beneficial and add value to the league as a whole."
In May, the Arizona Coyotes signed a three-year deal to play in a 5,000-seat arena at Arizona State University as it looks for a new permanent home. Things are moving forward for a proposed permanent arena and entertainment district in Tempe; but if that can't be completed, a team that is often rumored to be up for sale could be looking for a new home.
And Utah isn't too far away.
It's all speculative at this point; as of now, it's a waiting game. But Friday's announcement made the idea of a new sports franchise in Utah much more plausible.
