The Economics Behind the Toronto Maple Leafs Auston Matthews Promotion

The Toronto Maple Leafs decision to promote Auston Matthews responds to a business move. Like all private companies, the Leafs understand they must promote their most popular product, even if nothing else changes in the company.

Newly named Toronto Maple Leafs captain Auston Matthews now faces pressure to live up to the hype as the team's new flagship product.
Newly named Toronto Maple Leafs captain Auston Matthews now faces pressure to live up to the hype as the team's new flagship product. | Bruce Bennett/GettyImages

The Toronto Maple Leafs are, like everything in pro sports, first and foremost, a business. Otherwise, pro sports would be like the Olympics. Athletes would compete for the glory of being the best in their field. Governments would subsidise arenas and stadiums, while athletes would have to work day jobs to put food on the table.

The reality is that unfathomable amounts of money flow through pro sports teams. Just think about the Toronto Maple Leafs valuation. Sportico recently released information on the values for all North American franchises, with the Leafs sitting 66th, valued at $2.12 billion.

This situation means that pro teams operate like companies. They make decisions based on facts and figures. The companies that make decisions based on feelings generally lose big time. As such, the most profitable companies make savvy choices based on market share and sales data, not the warm and fuzzy feelings that come from what management may think was a smart move.

That brings us to Auston Matthews. Naming Matthews was a business decision. It’s evident that that decision will change little on the ice. The Toronto Maple Leafs are not suddenly going to steamroll through the NHL on their way to a four-straight Cup just because Matthews is the captain now.

The decision had to be made because the fans and media wanted to see a big change. The club knows that if it doesn’t do something now, market share will decline. So, rather than waiting too long, the team jumped the gun and revamped the team’s image. The hope is that the change will go beyond jersey sales, generating hype as fans look forward to the Matthews Era.

Auston Matthews Is the Toronto Maple Leafs Flagship Product Now

Major brands generally have multiple product lines. Think about computers, phones, cars, fashion, and so on. These brands often have one item that’s the flagship product. That product is the real money-maker. It’s the one item that all consumers flock to when consuming that brand.

However, there are times when brands need to move away from a declining flagship product and elevate a more popular one.

That’s what happened to John Tavares. The Leafs made him the flagship product when he wasn’t clearly the most visible candidate. In hindsight, the Leafs should have played one more year without a captain and then named Matthews captain in 2020.

However, that was not the case. Now, the Leafs were forced to move on from an unpopular flagship product and anoint a new one.

This time around, the announcement didn’t come with hype and anticipation. Most view this move as long overdue. Sure, season tickets will sell, sponsors will jump on the bandwagon, and jersey sales will spike.

But the Leafs are overlooking a fundamental aspect of business. No matter how good a product looks, it has to deliver value. If it doesn’t deliver value, customers will drop it like a ton of bricks. In this scenario, Matthews needs to deliver a championship.

He’s got four years to do it.

If he does, he’ll go down in history as one of the all-time greats. If he doesn’t, he’ll become a footnote in NHL annals.

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