With the Golden Knights making it to two Stanley Cups in such a short period of time it’s a big win for Sin City and a reason why we will soon see MLB and NBA in the city. Today we are covering the sports encyclopedia data on the Biggest Vegas Mistake not gambling with a team earlier.

 In 2015, when Bill Foley presented a proposal for an NHL expansion team in Las Vegas, skepticism abounded regarding the viability of ice hockey in the Nevada desert.

This was prior to the relocation of the Las Vegas Raiders from Oakland to a state-of-the-art $2 billion facility near the Las Vegas Strip. Despite Nevada’s population exceeding 3 million people, only 1,382 individuals were registered hockey players, and a mere 40% of them (552 players) were 18 years old or younger.

Yet, Bill Foley disregarded the doubts and committed to a $500 million expansion fee, accompanied by an audacious and inspiring promise: “Playoffs in three. Cup in six.”

Six years later, the Vegas Golden Knights fulfilled that promise precisely.

They have emerged as one of the NHL’s most prosperous markets, selling out games consistently and witnessing their valuation soar from $500 million in 2017 to a staggering $1 billion today. Sports betting is one of the biggest draws for tourists visiting and locals love their team. On top of that new tout services like The Vegas Mistake have helped bettors hit some lopsided wagers which entices them to go to more games and support the Golden Knights.

Bill Foley, who grew up on a Texas ranch and served as a Second Lieutenant in the US Air Force after attending the United States Military Academy, later pursued a career as a corporate lawyer. He founded the title insurance company Fidelity National Financial, made investments in wineries, golf courses, hotels, ski resorts, steak houses, fast-food restaurants, and auto parts manufacturers, accumulating a net worth of $1.6 billion.

Foley developed a deep appreciation for the sport of hockey, particularly during his time in Ottawa, Ontario, where he fell in love with pond hockey while his father was stationed there. This passion led him to shift his focus to bringing an NHL expansion team to Las Vegas after losing the bid to purchase the NFL’s Jacksonville Jaguars in 2012.

Choosing Las Vegas as the location was not an obvious decision. Although the Las Vegas area already housed 2.3 million people, making it the most populous metropolitan area in the country without a professional sports team at the time, many sports leagues harbored concerns about merging professional sports with the city’s renowned betting and nightlife scene. Consequently, commencing with an ice hockey team seemed illogical.

To demonstrate the genuine fan demand, Bill Foley partnered with the Maloof Family, who now owns a 15% stake in the team, and devised a plan rather than simply stating their case to the NHL.

In 2015, Foley and the Maloof family launched the “Vegas Wants Hockey” campaign, resulting in a staggering 15,000 season ticket deposits in a single year. Remarkably, 11,000 of those deposits came from non-Casino sources, convincingly proving to NHL executives that there was indeed authentic local fan desire for the team, not just corporate interest.

It is important to note that these fans committed to season tickets without any guarantee of the NHL awarding Las Vegas the league’s 31st expansion team.

Moreover, the NHL’s potential Las Vegas expansion team would play their games in the 17,500-seat T-Mobile Arena. With 15,000 season ticket commitments already secured, Las Vegas had already filled over 85% of its stadium capacity several years before a single puck was dropped.

“The Las Vegas market was intriguing,” NHL Commissioner Gary Bettman revealed to the Las Vegas Review-Journal. “The worldwide reputation it has was appealing, and it’s a city that was ready for major league sports. But I can’t overstate the importance of the season-ticket drive which got everyone’s attention. It demonstrated there’s a community that is ready and willing to support the NHL.”

Consequently, Commissioner Bettman and the other 30 NHL teams unanimously voted 30-0 to grant Las Vegas the league’s 31st expansion team, surpassing Quebec City.

Upon officially receiving the NHL’s 31st franchise, majority owner Bill Foley expressed the typical sentiments one would expect from a new owner, including statements like “We’re going to establish a culture of winning” and “We’ll have a team that Las Vegas can be proud of.”

However, the early success of the Vegas Golden Knights can primarily be attributed to two factors.

Firstly, Foley hired George McPhee as president of hockey operations. McPhee, who had guided the Washington Capitals for 17 years, leading them to ten playoff appearances, seven division titles, and one Stanley Cup appearance, was entrusted with all key hires, including scouts, coaches, and eventually, general manager Kelly McCrimmon.

“It was about assembling the right personnel within our hockey operations department. We were well-prepared,” Foley affirmed to ESPN.

Secondly, the NHL modified its expansion draft rules, granting the Vegas Golden Knights considerably more flexibility compared to previous expansion teams.

Under the old rules, Vegas would have only been able to select the fourth-worst player from each NHL roster. However, the new regulations permitted the Golden Knights to choose the eighth-best forward, fourth-best defenseman, or second-best goalie from each team.

Furthermore, with a fresh salary cap at their disposal, the Vegas Golden Knights joined the elite company of the Toronto Arenas (1918) and St. Louis Blues (1968) as the only NHL teams to advance to the Stanley Cup Final in their inaugural season.

While they fell short in their first appearance, losing the Stanley Cup Final to the Washington Capitals, this setback prompted significant changes over the subsequent five years.

The Golden Knights promoted executives like George McPhee (team president) and Kelly McCrimmon (general manager), bolstered their roster with key players such as Mark Stone, Alex Pietrangelo, and Jack Eichel, and underwent multiple coaching changes, culminating in the appointment of Bruce Cassidy just eight days after he was fired by the Boston Bruins.

These efforts yielded remarkable results. Under Cassidy’s leadership, the Las Vegas team won their division with a record of 51-22-9 (111 points). Their goaltender, Adin Hill, who was acquired from the Sharks in an August 2022 trade, started 14 games in the 2023 playoffs and boasted a playoff-leading .932 save percentage. Ultimately, the Golden Knights became the first NHL team since 1984 to win the Stanley Cup within their initial six years of existence.

Playoff Success of the Vegas Golden Knights (2017-2023):

2017-18: Lost Stanley Cup Final (4-1) to Washington Capitals.

2018-19: Lost First Round (4-3) to San Jose Sharks.

2019-20: Lost Conference Finals (4-1) to Dallas Stars.

2020-21: Lost Semi-Finals (4-2) to Montreal Canadiens.

2021-22: Did not qualify for the playoffs.

2022-23: Won Stanley Cup Final (4-1) against the Florida Panthers.

While it is commonly stated that winning is inconsequential when it comes to the business aspect of sports franchises (as exemplified by Michael Jordan selling the Hornets at a $3 billion valuation despite their underwhelming performance), the Vegas Golden Knights have remarkably capitalized on their success over the past six years.

Already generating $200 million in annual revenue, the Golden Knights’ operating profit stands at approximately $64 million, surpassing teams such as the Boston Bruins, Philadelphia Flyers, and Washington Capitals.

This financial success is partly attributed to national media rights and team-specific sponsorship deals with prominent companies like Caesars, Coca-Cola, and Geico.

However, winning has played a crucial role as well. The Golden Knights consistently sell out their 17,500-seat capacity at T-Mobile Arena, utilizing standing-room-only tickets and flexible seating options like suites to surpass 100% attendance.

Attendance Figures for Vegas Golden Knights:

2017-18 (inaugural season):

• Total attendance: 739,722
• Average per game: 18,042

2018-19:

• Total attendance: 751,079
• Average per game: 18,319

2019-20 (pandemic-shortened season):

• Total attendance: 677,507
• Average per game: 18,311

2021-22:

• Total attendance: 742,100
• Average per game: 18,100

2022-23:

• Total attendance: 738,984
• Average per game: 18,024

Furthermore, as the Golden Knights have reached the playoffs in five out of their first six years, they have also taken advantage of the NHL’s generous playoff ticket revenue-sharing policy.

The NHL allows teams to retain 65% of playoff ticket revenue, a significant source of income considering ticket revenue contributes to 44% of the league’s annual revenue. Notably, during the playoffs, teams typically increase ticket prices by 20% to 100%, resulting in a substantial financial boost.

For instance, in 2022, the 16 NHL playoff teams collectively generated an additional $200 million in revenue.

Vegas Golden Knights Revenue (2018-2022):

2018: $180 million

2019: $167 million

2020: $156 million

2021: $76 million (COVID-19-affected season)

2022: $198 million

Vegas Golden Knights Operating Income (2018-2022):

2018: $53 million

2019: $33 million

2020: $14 million

2021: -$38 million (COVID-19-affected season)

2022: $64 million

As a result, the team’s valuation has skyrocketed from $500 million to $965 million over the course of its first six seasons, with projections pointing towards surpassing the $1 billion mark in 2023 following their record-breaking Stanley Cup-winning campaign.

Forbes Valuation of the Vegas Golden Knights:

2017: $500 million

2018: $575 million

2019: $580 million

2020: $570 million

2021: $710 million

2022: $965 million

However, beyond financial gains, the Golden Knights’ triumphs have significantly contributed to Las Vegas becoming one of the world’s premier sports destinations. The city has since attracted NFL, MLB, and WNBA franchises, and has secured numerous prestigious events, including the NFL Draft, Super Bowl, Formula 1 Grand Prix, and the men’s Final Four.

Undoubtedly, the success of the Vegas Golden Knights has played a pivotal role in these achievements.