SBJ Unpacks: NHL’s international opportunity

The NHL and the NHL Players’ Association are back in the business of international competition, restoring a revenue opportunity that has been dormant for nearly a decade.

From Feb. 12-20, the NHL will pause its season for the 2025 4 Nations Face-Off , a new event featuring teams of NHL players representing Canada, Finland, Sweden and the U.S. in a round-robin tournament. The seven-game competition at Bell Centre in Montreal and TD Garden in Boston replaces All-Star festivities on the calendar this season. 

For the league and the union, 4 Nations Face-Off is an opportunity to restart owned-and-operated international competition — similar to the MLB and MLBPA’s World Baseball Classic — ahead of the 2026 Milan-Cortina Winter Olympics, which will feature NHL players for the first time since the 2014 Sochi Games. While returning to the Olympics has been a priority for the players, the NHL and NHLPA see little business upside from their participation. 

Hosting their own international competition in non-Olympic years offers the league and union an opportunity to capture revenue from broadcast rights, sponsorship, ticket sales and merchandise. The long-term goal is to revive the full World Cup of Hockey (which has featured eight teams and was last held in 2016) quadrennially in even-numbered, non-Olympic years, beginning in 2028. Rather than wait until then to restart, however, the league and union under new Executive Director Marty Walsh have devised, planned and sold commercial rights to 4 Nations Face-Off in less than two years. 

“When we get to 2028, partners that weren’t able to act in such a short sales window to really get the most out of this event will be able to see it, experience it and work with us as we get back to a full World Cup,” said Kyle McMann, NHL senior vice president of business development. “While it’s a different entity, we’re seeing mutual benefits between the players’ association and league on how we can grow our business collectively by focusing on these international events on a regular cadence.” 

Like the World Cup of Hockey, 4 Nations is a joint venture between the NHL and the NHLPA. All profits from the event will be split 50-50 between the league and the union. Neither the International Ice Hockey Federation nor the national governing bodies, such as USA Hockey and Hockey Canada, have any commercial rights around the event. 

The NHL declined to share specific financial projections for the event, but revenue is expected to be four to five times higher than a typical All-Star Weekend. Total revenue is unlikely to reach the roughly $110 million Sports Business Journal reported the 2016 World Cup generated, due to the smaller number of games (seven for 4 Nations vs. 16 for the 2016 World Cup) for which to sell tickets and broadcast rights. However, McMann said sponsorship revenue for 4 Nations Face-Off will be on par with what the league generated for the 2016 World Cup, despite the smaller number of games. 

4 Nations Face-Off is a distinct commercial property from the NHL or the NHLPA. While the league’s national broadcast partners in the U.S. (Disney and Warner Bros. Discovery) and Canada (Rogers Sportsnet) are carrying the event, Keith Wachtel, the NHL’s president of business, said they paid additional rights fees, which were not disclosed. Disney will air two games on ABC/ESPN+ and two on ESPN/ESPN+, including the championship, while WBD Sports will carry three games on TNT, truTV and its Max streaming service. 

The league and union also have sold broadcast rights for the event in the two participating Nordic countries, as well as other international markets such as Czechia, Denmark, Greece, Norway, Portugal, Slovakia and Spain. Rob Zepp, senior director of international strategy and growth for the NHLPA, said distribution deals are also in the works with select airlines and cruise lines. 

NHL and NHLPA sponsors that opted into 4 Nations have also made additional financial commitments. Those that would have been All-Star Game sponsors, such as U.S. title sponsor Honda and Canadian title sponsor Rogers, either received credit toward a 4 Nations Face-Off buy or another event on the league calendar. 

The league and union, which worked collaboratively on commercial efforts, also had the opportunity to engage new corporate partners for 4 Nations Face-Off. Zepp said of the 35 sponsors that have signed on so far, eight had no existing commercial relationship with either the league or the union. Newcomers include Disney Studios, Molson and Ozempic in Canada, as well as clothing brand Perry Ellis in the U.S. Tylenol, an NHL sponsor in Canada, also has expanded its rights for 4 Nations Face-Off to include the U.S. 

McMann pointed to the collaborative sales process between the league and the union, along with the cooperation of the event’s broadcast partners, as a key to providing partners with a comprehensive marketing platform. Proof of concept and sales sophistication around digital dasherboard inventory, which the league first experimented with at the 2016 World Cup, also has provided the event a major boost.  

“We could go to market as one entity with one sale that could include spots, intermission reports, tournament IP, in-game arena assets, activation space at our fan festivals, dasherboards, in-arena features and the group player rights to the single best group of players in the NHL representing these four countries,” McMann said.  

The union also has helped facilitate opportunities for brands to work with individual players, such as Perry Ellis with Panthers and Team USA winger Matthew Tkachuk and Rogers with Oilers and Team Canada center Connor McDavid. 

Four years after the industry shutdown catalyzed a licensing show where masks were uniformly worn and supply-chain concerns were paramount, the sports licensing trade seemed to have shaken off all those concerns, with demand accelerating past pre-shutdown levels and no sign of a slowdown. Categories such as collectibles and trading cards have even reversed their traditional roller-coaster sales fluctuations to a consistent uphill line.

“COVID was an accelerator, and we haven’t seen any slowdown,” said Zohar Ravid , newly appointed Fanatics Commerce president of specialty businesses and new ventures. “When fans couldn’t attend games, cards and memorabilia became the last available touch point and it created additional awareness, which has endured.”

“Coming out of COVID and the shutdown, the leagues all had three record years in licensing — consumer demand for sports in almost any form went way up,” said FOCO founder and President Michael Lewis . “Business is still good, but the question is whether we’re coming to the end of that cycle with a consumer group that bought so much over the past three years. If so, it will require a lot more innovation to comp those numbers.”

Considering the amount of licensed products that is manufactured offshore, the prospects of punitive tariffs from the new presidential administration also were much discussed on the show floor and across the industry.

“There’s uncertainty about the impact of potential tariffs and how they’d impact pricing and consumer demand, so we’re all looking closely there,” said Joe Ruggiero, NFL senior vice president, head of consumer products. “We all had a great rebound from COVID, and those next few years unlocked new and additional growth across demos and [retail] channels.” Added Steve Gallo , New Era GM for North America: “We’re well diversified in our sourcing and production, but we have to be prepared for that [tariffs], so there have been a lot internal conversations. … We all had explosive growth coming out of COVID, but if we don’t continue to innovate, how are we going to get someone like a Bills fan to buy their fifth or six cap?”

MOVES AT THE TOP: Fanatics used the occasion of leadership meetings in Florida to unveil some new senior executives within its Fanatics Commerce unit.

Ravid has been elevated to president of specialty businesses and new ventures, where he will head non-apparel licensing, including memorabilia and trading cards. Ravid, who was based in Europe and leading global business development, is relocating to Miami and will report to Fanatics Commerce CEO Andrew Low Ah Kee, who started that position in September. Victor Shaffer and Stefan Tesoriero, who share responsibility for memorabilia, will now report to Ravid, as will WinCraft Senior Vice President John Killen.

Said Ravid: “Those businesses [trading cards and memorabilia] are hundreds of millions today [combined]. We view this as potentially a billion-dollar-plus business within Fanatics Commerce, especially with geographic growth, additional rights and additional product categories.”

Meanwhile, Jack Boyle , a 13-year Fanatics employee, retired as president of buying and North America, a top merchandising position. Boyle’s replacement is Sam Archibald , who joins as chief merchandising officer after 15 years and two different stints at Macy’s, where he was most recently senior vice president and general business manager of apparel. Archibald will be based in New York and report to Low Ah Kee.

“THE” HOT MARKET: Ohio State licensing chief Kevin Griffin was all smiles at the Buckeyes’ booth, with the school just days from winning its ninth national championship. Locker room and media day product from Nike and Fanatics sold out almost immediately. An interesting collab through licensee Homage (one of 300-plus) resulted in apparel combining school IP with an “Ohio Against the World” tag. “Early on, we’ve been outpacing the other [CFP] champions and we hadn’t won since 2014,” Griffin said, adding that he’s anticipating big sales lifts for premium products and women’s, which saw a 35% uptick last year.

HOW MUCH IS TOO MUCH? Properties and other licensors perennially face the problem with any fad: Should they overlicense the category and exploit it while they can, or stick with an original licensee or two to show loyalty and keep a new category alive?

Generally, it’s the former approach. Just a few years after Stanley’s “Quencher” water tumbler became an Instagram and sales sensation, generating endless knockoffs, one couldn’t walk 50 feet within the halls of the Las Vegas Convention Center without seeing another row of sports-logoed tumblers. It’s not a T-shirt or a cap, so one wonders how many people need — or could fit in their kitchen.

Not to say we didn’t see any innovation even within that crowded category.

After glittery mugs were its top-selling line last year, homegoods licensee The Memory Company was displaying tumblers adorned with all the big-league logos and Swarovski crystals. The items were so new, CEO Charles Sizemore hadn’t set retail pricing yet. “It’ll be over $100 for sure,” he said. “There’s still life in that category.”

Also in the most overlicensed category are fan chains, which just keep getting bulkier and adding accessories, like dangling LED lights and photo images.

FANTASTIC FIFA: Outerstuff is placing one of its biggest bets ever on a line of FIFA licensed togs, in time for the 2026 men’s World Cup in North America. It’s a big enough fan apparel/headwear line, with adult and youth sizes and rights in the U.S., Europe and Australia, that the catalog for it at the show booth was a weighty 400 pages. “It’s our biggest opportunity,” said Josh Feinstein, executive vice president of new business and strategic partnerships.

BRAND IN HAND: Antigua Apparel’s reputation for quality and service has always exceeded the renown of its brand. Brendan McQuillan, vice president of sales, says that’s changing. “The products have been elevating, and we’re getting better at fashion,” he said. “A lot of people own and wear Antigua, but don’t know it. Across the board, we’re gradually increasing marketing spend so we can support the brand, along with our messages of quality and domestic sourcing.”

FEMALE FOCUSED: Franklin Sports is confident enough in the continued growth of women’s sports that it has new licenses and products from the NWSL, WNBA, Pro Volleyball Federation and USA Softball, with products at retail beginning this spring. On display were WNBA “over the door” indoor hoops and replica NWSL soccer balls ($25 MSRP).

“We don’t know yet how big these fan bases are or will be, but retailers including Dick’s and Target are giving them an opportunity, so that gives us confidence,” said President Adam Franklin , who also is eyeing PWHL rights and perhaps even that embryonic women’s baseball league, the WPBL, scheduled to launch next year.

REPEAT AFTER ME — ‘IT’S NOT APPAREL, IT’S A NOVELTY’: Venerable hard-goods king Wincraft was showing what might be considered apparel. It’s a wearable 3-by-5-foot “Hoodie Flag,” for those who want to wave their favorite team’s colors while wearing it, as it has a hood and thumb loops. It claims to be waterproof, so almost a poncho, but not quite. It should be at retail by midyear, with an MSRP of around $30.

Also new in Wincraft’s booth: Sports-licensed versions of Bogg Bags , an accessory sensation last year as a beach carryall, inspired by Crocs and made from the same EVA material. Bogg Bags topped $100 million in sales last year. MSRPs for the licensed versions range from $70 to $120, so we assume they frequent nice beaches.

Terry Lefton can be reached at tlefton@sportsbusinessjournal.com.

Southern Cal athletics is issuing an RFP seeking a third-party food and beverage provider for its athletic venues within the next two weeks. The RFP is for F&B service at six USC facilities -- including Galen Center (basketball and volleyball), the school’s under-construction soccer/lacrosse and baseball stadiums, and several Olympic sports venues that don’t have permanent F&B setups -- but does not include L.A. Coliseum. The famous football stadium uses Legends for F&B service and USC Senior Associate Athletic Director (Operations & Capital Initiatives) Jeff Fucci expects the company to bid for the new business, too. Additionally, Galen Center F&B has been handled by Aramark Sports + Entertainment since 2006, and Fucci encouraged it to also participate in the RFP. The RFP, which includes training table service for USC sports teams, marks the first time USC will have all its athletic venues’ F&B handled by a third party. Fucci is hoping to have a decision made by April. 

“It’s that blue sky opportunity to bring a concessionaire on and get some of their creativity,” he said.

USC becomes the latest major Division I college athletics program to shift from university-run dining services to third party F&B providers that have traditionally operated in the pro sports realm.USC worked with consultancy Food Service Matters for more than a year, conducting an analysis of the school’s potential business, how to package it, and how to structure the RFP. As a private school, USC has some flexibility in procurement and RFP processes compared to public schools.

For the F&B providers, college athletics have become increasingly interesting in the last few years as schools suddenly needed new revenue streams which led to, for example, selling alcohol at games (which USC does at all its venues). Fucci wouldn’t say how long Legends’ deal at the LA Coliseum has left to run but said that the remaining term is short enough that the stadium’s F&B future is also being considered. The Coliseum business could be earned by the RFP winner down the road, should they do well enough with the six venues currently on offer.

“For USC Athletics, the food and beverage piece has not been vertically integrated, and it’s been disparate in terms of the level of service and providers,” said Fucci, who is overseeing three simultaneously active facility projects, including the Bloom Football Performance Center. “Create economies of scale, provide something for all our fans we think is going to be quality and cost-effective and give us that one entity to go back to (for accountability). And for both parties as you package the venues with the exclusivity, it’s financially beneficial for everyone. We want to grow revenue; we want to grow revenue with a partner.”

For all the energy around international games and the global markets program, the Super Bowl broadcast is still the most important way a big chunk of people outside the U.S. experience the NFL. The game has been televised throughout most of the world for decades, but what’s new is that the league is positioned to actively leverage it for sustained fan growth and brand awareness.

“Even five years ago, we didn’t have the year-round presence in the [overseas] markets that allows us to ramp up significantly to take advantage of the Super Bowl,” said NFL EVP Peter O’Reilly, whose portfolio includes both the international strategyand the game itself. 

The league will conduct at least 21 watch parties in eight key markets, including a three-day long festival in São Paulo, Brazil, presented by sponsor XP. There's also a ticketed event for 2,000 in Paris sponsored by Bitpanda, New Era and beIN Sports, as well as 14 events in sports bars in the U.K. 

Beyond the watch parties, O’Reilly, said more sponsors and consumer-product licensees are activating overseas (see below for a pic my friend in Berlin sent from a Lidl supermarket flier). For instance, hotel sponsor Marriott ran a sweepstakes to award Super Bowl tickets in Germany, the U.K. and Spain, while Visa did the same in Mexico. 

The league and teams have also secured influencers in the key markets to create social content around the Super Bowl -- you can count on Eagles starting tackle Jordan Mailata to generate a lot of conversation in his native Australia -- and the league brings some foreign business leads to the game itself. 

“It is an event that everybody, we say humbly, knows around the world, and is this gathering point for us to bring people in,” O’Reilly said. “Not just the game itself, but the cultural significance of the halftime show, the advertising, all the cultural elements of that, and it plays a critical role.”

• The Colgate Women’s Games finals are Saturday at The Nike Track & Field Center at The Armory in New York City. The event, founded in 1974, is the nation's longest-running indoor track and field tournament for girls and women. There are 2,170 registered participants this year The meet has been overseen since 2015 by Brooklyn native Cheryl Toussaint, who won a silver medal in the 1972 Olympic Games, even after an early mishap forced her to run with only one shoe. At least 29 CWG alum have become Olympians, and hundreds have become national champions.

• Tennessee has further renovation plans in store for Thompson Boling-Arena at Food City Center, AD Danny White told SBJ's Ben Portnoy. These include the “Riverside Club” premium space in the arena’s lower bowl.