Four Major Sports Business Moves in Utah over the First Two Days of July 2024

In case you missed it, the state of Utah saw four significant sports business announcements made in the first two days of July: Two from the University of Utah, one from Utah State University, and last but not least, the announcement with the biggest potential financial impact, news involving Smith Entertainment Group, the Delta Center, the Utah Jazz, the Utah Hockey Club, and Salt Lake City (not counting several other entities).

AUTHOR'S NOTE: Outlined below is a summary of four separate (and fairly significant) news items about the business of sports in Utah, each of which occurred in the first two days of July 2024.

ITEM NO. 1: No Surprise, Morgan Scalley is Named the "Head Coach in Waiting" for the University of Utah Football Team

To the surprise of absolutely no one, the University of Utah has formally named Defensive Coordinator, Morgan Scalley, as the "Head Coach in Waiting" for its Football Team.

Specifically, Utah Athletics announced on Monday, 1 July 2024, that the UofU has " ...entered into a new employment agreement with Utah Football defensive coordinator Morgan Scalley ... that formally designates Scalley as the football program's head coach in waiting."

Why did it take the UofU some seven months to make this announcement after it signed the actual agreement with Scalley? I have no idea. Whatsoever.

But Scalley is clearly the real deal, given that during his 16-year tenure with the team he has

• Directed the Pac-12's top rushing defense five times in the last eight years, including top-five national rankings in 2018, 2019 and 2023;
• Coached the defensive squad to three top of the conference finishes in sacks and tackles, most recently in back-to-back seasons in 2021 and 2022; and

• Has coached
  — 13 All-Americans (four consensus or unanimous),
  — 19 first-team all-conference selections, and
  — Five freshmen All-Americans.

• Additionally, Scalley has seen 29 of his players reach the National Football League.

Bottom line, kudos to Coach Scalley and the UofU.

ITEM NO. 2: The Utes are Picked by the Media as Conference Favorites for this Coming 2024 Football Season

In another no-brainer announcement, this one shared on Tuesday, 2 July 2024, the University of Utah "Running Utes" have been named by sports journalists as the pre-season favorite to come out on top as the No. 1 team in the conference this fall.

Clearly, with all of the off-season, conference realignment movements last year, this fall marks the Utes' inaugural season in the BIG-12 Conference.

So as a BIG-12 newcomer, the selection of the Utes as the top dogs in football in the conference speaks volumes to the visibility and respect the UofU has generated over the past decade-plus on the gridiron.

But No. 1?!?!?!

In my opinion, let's just say, such an outcome would NOT surprise me — at all.

That said, we shall see.

ITEM NO. 3: Utah State University Announces Massive Shakeup in its Football Program and Athletics Department

Utah State University announced late Tuesday morning, 2 July 2024, that it has

• Notified USU's Head Football Coach, Blake Anderson, that it intends "... to terminate his employment agreement," and that it has
• "... also dismissed ... "Associate Vice President & Deputy Athletic Director of External Affairs Jerry Bovee (Interim Athletic Director, 2023) and Utah State Football Director of Player Development & Community Austin Albrecht ...."

According to the USU news release, terminations of Bovee and Albrecht tie back to alleged "... violations of university policies related to the reporting of sexual and domestic violence and failures of professional responsibilities" (actions that it says occurred in the spring of 2023).

Similarly, the "intent to dismiss" Coach Anderson also ties back to his alleged "... actions taken in spring 2023 ... (that) violated both his employment agreement and university policy."

Due to the terms of his employment agreement, Coach Anderson has 14 days to respond to USU about its termination proceedings against him.

USU also says it cannot and will not respond to any questions about its pending actions against Coach Anderson until after the 14-day period granted to Anderson to respond.

Although not clearly detailed within the university's announcement, it appears to this author that the alleged violations against the three individuals are connected to the same actions/events in the spring of 2023.

As explained in the USU announcement:

"This decision comes after a thorough external review of alleged noncompliance with university policies that implement Title IX, which require full and timely reporting of disclosures of sexual misconduct — including domestic violence — and prohibit employees from investigating disclosures of sexual misconduct themselves."

During his three-year term as Head Coach of USU's Football Team (from 2021 to 2023), Coach Anderson led the team to a 23—17 record, while leading the Aggies to a bowl game in each season.

The university also disclosed in its news release that "... Defensive Coordinator & Defensive Ends Coach Nate Dreiling will serve as USU's interim head football coach for the 2024 season."

Obviously, tough times for the Aggie football program, Coach Anderson, and Bovee and Albrecht.

ITEM NO. 4: Multiple Parties have taken Another Step Toward "Revitalizing" Salt Lake City's "sports, entertainment, culture, and convention district" and the Delta Center

Last of all, although we may still be as much as one year away from final resolution on a massive, multilayered sports business agreement(s), the Salt Lake City Council moved a step closer last night (Tuesday, 2 July 2024) to approving a $900 million bond to help fund the revitalization of "... portions of the two blocks east of Delta Center as a sports, entertainment, culture, and convention district" as well as the Delta Center itself.

In a nutshell, Smith Entertainment Group (SEG), the Utah-based sports and entertainment conglomerate owned/led by Ryan and Ashley Smith,

• Acquired the rights to a professional hockey franchise from the National Hockey League in mid-April 2024; and
• That franchise, now known as the Utah Hockey Club, will play its home games in the Delta Center, which is also owned by SEG, as is the Utah Jazz (a franchise of the National Basketball Association).

Earlier this year, prior to SEG's acquisition of the NHL franchise, Utah's governor signed into law recently passed legislation authorizing Salt Lake City to issue a bond of up to $900 million (and enact a temporary sales tax to pay for the bond) that would be used to help pay for revitalization of a sports, entertainment, culture, and convention district near, and adjacent to, the Delta Center, as well as the Delta Center itself.

With this as a backdrop, on 04 April 2024 (even before it had acquired the NHL franchise), "... SEG applied to the City requesting the City impose (a) Revitalization Tax to support a proposed remodel of Delta Center and construction of a sports, entertainment, culture, and convention district in downtown Salt Lake City."

If approved by the City Council, Salt Lake City would impose a 30-year, 0.5% sales tax to cover the cost of a 30-year, $900 million bond designed to fund the proposed revitalization of the sports, entertainment, culture, and convention district and the Delta Center.

As outlined in seven-page CITY COUNCIL TRANSMITTAL of 07 July 2024 regarding an "Initial Discussion Regarding Major Terms in Capital City Revitalization Zone Participation Agreement,"

• SEG would receive the monies from Salt Lake City's bond of up to $900 million,
• Salt Lake City would generate $300 in profit from the $1.2 billion it's anticipated the City would receive over the proposed 30-year-term of the 0.5% sales tax.

Additionally, as reported by multiple news media sources, SEG would spend an additional $3.0 billion (on top of the up to $900 million bond) to meet its end of the bargain to

• Remodel, and upgrade, the Delta Center, especially to meet NHL standards for playing professional hockey games;
• Initiate apprenticeship, college internship, and high school shadowing programs;
• Launch annual lectures/speaking engagements at Salt Lake City middle and high schools featuring NBA and NHL players and coaches, as well as personnel from both franchises and SEG;
• Develop and implement Salt Lake City-based youth athletic programs for both basketball and hockey;
• Provide free and subsidized NBA and NHL tickets to economically disadvantaged families from Salt Lake City;
• To design and operate gathering/event/plaza spaces in the revitalization "zone," and produce two, three-day events/festivals each year;
• Revitalize/redevelop the Japantown community in this revitalization zone;
• Provide a public safety area within the revitalization zone for Salt Lake City Police Department officers and security personnel; and
• The creation of a Public Art area within the revitalization zone for the design, fabrication, installation, and maintenance of various pieces of public art, including iconic art, in the Zone. 

As outlined in the City Council's transmittal from last night, the soonest that I expect that there will be a "final" Participation Agreement approved and signed by the various parties will be upwards of 45 days from now.

Even so, as noted in the Transmittal document, SEG has up to 1 July 2025 to negotiate/sign a property Lease with Salt Lake County for County lands within the revitalization zone.

So how long is all of this going to take? Who knows?

My sense, however, is that SEG and Ryan & Ashley Smith are highly motivated to get this agreement/these agreements locked down as soon as possible.

But ... we shall see.

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Nearly $4 billion in spending on the line for the revitalization of Salt Lake City's sports and entertainment district:

See https://www.deseret.com/utah/2024/07/02/salt-lake-city-downtown-project-utah-hockey-ryan-smith/

AND

https://www.deseret.com/opinion/2024/06/21/salt-lake-city-needs-downtown-hockey-revitalization-plan/

AND

reimaginedowntownslc.com

USU Announces Its Plans to Fire its Head Football Coach

See https://utahstateaggies.com/news/2024/7/2/usu-makes-significant-changes-in-football-program.aspx

In the USU news release, the university also announced that

"Associate Vice President & Deputy Athletic Director of External Affairs Jerry Bovee (Interim Athletic Director, 2023) and Utah State Football Director of Player Development & Community Austin Albrecht have also been dismissed for violations of university policies related to the reporting of sexual and domestic violence and failures of professional responsibilities."

The future looks quite bright for Utes football.

Utah Names Defensive Coordinator, Morgan Scaly, as its "Head Coach in Waiting"

See https://utahutes.com/404-1.aspx?url=%2fstory.aspx%3ffilename%3dmark-harlan-announces-future-succession-plan-for-utah-football-leadership%26file_date%3d7%2f1%2f2024

and

https://

A look at Utah defensive coordinator Morgan Scalley’s new contract

Here’s how much Scalley will make as Utah’s defensive coordinator — and details of his future head coaching contract.

Yahoo SportsJoe Coles

A look at Utah defensive coordinator Morgan Scalley’s new contract

Here’s how much Scalley will make as Utah’s defensive coordinator — and details of his future head coaching contract.

Yahoo SportsJoe Coles

A look at Utah defensive coordinator Morgan Scalley’s new contract

Here’s how much Scalley will make as Utah’s defensive coordinator — and details of his future head coaching contract.

Yahoo SportsJoe Coles

In their inaugural season in the BIG-12 Conference,