Business of Sport Ep.9: Ryan Smith, Owner @ Utah Jazz & Real Salt Lake, 'We're going to bring the NBA Championship to Utah'
Sep 26, 2023
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Ryan Smith, Owner of Utah Jazz & Real Salt Lake, discusses transitioning from tech to sports ownership, building a sustainable organization, creating a culture of passion, team building on and off the court, the business of the NBA, transforming media strategy, short-form content and personalized experiences for fans, streaming revenues for champion players, investing in Utah, and owning and managing a sports team.
The podcast highlights the changing dynamics of owning sports teams and the impact of individual owners versus funds or wealth funds.
Ryan Smith's journey from being a successful tech founder to becoming the owner of the Utah Jazz showcases the importance of seizing opportunities and pursuing passions.
The Utah Jazz's decision to control their media rights and create their own content distribution model demonstrates the significance of controlling distribution and providing a better viewing experience for fans.
Deep dives
Ownership of Sports Teams and the Changing Landscape
The podcast episode discusses the changing landscape of owning sports teams, focusing on the increasing prices of franchises and the changing dynamics in the market. It explores how these factors affect the purchasing and ownership of teams, including the role of individual owners versus funds or wealth funds. The episode highlights the importance of allowing different funds and wealth funds to enter the market, as it can significantly impact the game. The discussion revolves around the NBA and its ownership structure, but also references other sports leagues like MLS and Premier League to provide further insights.
Ryan Smith's Journey from Tech Founder to Sports Team Owner
The podcast delves into Ryan Smith's transition from being a successful tech founder to becoming an owner of sports teams. Ryan Smith shares his personal journey, emphasizing that there was no grand plan to become a tech founder or a team owner. He attributes his success to being open to opportunities that came his way and making the best out of each situation. The episode highlights Ryan Smith's passion for basketball and how it ultimately led him to purchase the Utah Jazz. It also discusses the challenges, decisions, and strategic moves he made in managing the team.
The Business Side of Owning Sports Teams
This podcast episode delves into the business side of owning sports teams, exploring the financial implications, strategies, and decision-making involved. It discusses the necessity for sports teams to turn into thriving businesses to remain competitive in today's market. The episode highlights the importance of growing revenue streams and managing costs effectively, particularly in leagues with salary caps like the NBA. The discussion also addresses the importance of communicating goals and strategies to fans, although it acknowledges that not all decisions can be publicly shared due to player personnel considerations. The episode concludes by discussing the significance of team valuation, the potential impact of different funds entering the market, and the future prospects for team ownership.
Expanding media distribution and reach
The podcast episode discusses the Utah Jazz's decision to take control of their media rights and create their own content distribution model. Previously, they relied on a third party to handle their media rights, but this resulted in limited viewership and a negative trend due to cord cutting. Now, the Jazz have developed their own media network called SEG Media, allowing them to produce and broadcast their own games. They have also partnered with a local provider to make games available over the air and introduced a streaming option at an affordable price. As a result, the Jazz have significantly increased their reach, going from showing games to 1.2 million people to reaching a potential audience of almost 5 million people. This move highlights the importance of controlling distribution and providing a better viewing experience for fans.
Personalized fan experiences and brand activation
The podcast episode emphasizes the importance of personalized fan experiences and brand activation in the sports industry. The conversation touches on the need to cater to different fan profiles and media consumption preferences. The Utah Jazz, for example, acknowledge that fans have diverse preferences, from those who enjoy watching games on TV to those who prefer short form videos on platforms like TikTok. To accommodate these preferences, the Jazz have launched Jazz Plus, a platform that aims to engage different fan groups on various digital platforms. The discussion also explores the significance of partnerships and collaborations with tech companies, leveraging their reach, marketing expertise, and innovative solutions to enhance the fan experience. The ability to activate the brand across different arenas, including digital, tech, and real estate, is seen as crucial for long-term success and growth in the sports industry.
This week, we are delighted to welcome Ryan Smith. Ryan is the owner of the NBA’s Utah Jazz, and co-owner of Real Salt Lake in the MLS. He is also founder and executive chairman of Qualtrics, an experience management software company he built from the ground up, and the co-founder and chairman of Smith Entertainment Group.
Ryan and his wife Ashley purchased the Utah Jazz in late 2020 as part of the launch of Smith Entertainment Group (SEG), which also includes the Delta Center, SEG Media, Real Salt Lake (MLS), the Utah Royals (NWSL - coming in 2024), America First Credit Union Field, Salt Lake City Stars (NBA G League), Utah Jazz Gaming (NBA 2K League), Real Monarchs (MLS NEXT Pro), and other Utah-centric business ventures.
On today’s show, we discuss:
From tech to sports ownership:
How to apply learnings from business and entrepreneurship into a sports environment.
What does it take to buy an NBA franchise and how to make sure you can run a sustainable organisation without compromising on success?
Building a culture everyone can get behind and the importance of passion to drive performance.
What are the responsibilities of an owner? How to build a team on and off the court to match your ambitions.
Utah Jazz and the NBA:
The business of the NBA and franchise development: is team ownership a good way to spend your money?
Ryan’s passion for sport in Utah and using it to build value in the state.
How the ownership model has changed: a rise in price means we are seeing more ‘group’ acquisitions rather than wealthy individual control.
Fan experience is everything. The importance of building an occasion that is tailored to exceed the expectations of everyone in attendance.
New media deals at the local level to take control of content distribution and access.
The rise of MLS
Messi’s contract with Inter Miami has changed the game for MLS. How are the other franchises gaining from his participation?
A new age of athlete contracts: how a deal with Apple and global promotion takes the product to a new level.
From owning the Jazz to Real Salt Lake. The importance of David Blitzer to Ryan’s ownership and how he manages his time between the two.
The opportunity offered by the security of the franchise system vs the open league that is great for competition but not for overall asset value.
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