Indianapolis, Kansas City, and the changing arena economy

3 Comments

What do you look at to tell if a team is doing well? Attendance, right? After all, the way to tell how good a team is if they have fans coming to games.  Low attendance means you’re not making money. Sure, the Clippers are the exception, but it’s L.A. Everything’s overpriced. But attendance is still the real determining factor in success.

Right?

In the words of Dwight Schrute, “False.”

The real key to a franchise’s success is a more complicated algorithm that factors in sponsorships, partnerships, and attendance. But the attendance piece isn’t built on sheer numbers, but in quality.

The Dallas Morning News’ Mark Francescutti has an excellent article today outlining the success teams are having by doing something counter-intuitive. Slashing prices. The Mavs are obviously the centerpiece, with this money quote from Mark Cuban:

“Bottom line is that the upper bowl is becoming a smaller and smaller
part of our total revenue,” owner Mark Cuban
wrote in an e-mail to The Associated Press. “So we would rather
have a full house than make a couple dollars more. More fans means a
better home-court advantage, it means a better fan experience, which in
turn means more sales.”

The reason that the Mavs can make those kind of cuts is because the modern arena economy is now dependent on corporate suites and club seating. By focusing on those tickets, it allows the teams to fill out the big house.

This is why so many owners are requesting new arenas (outside of sheer greed). The modern economy has shifted to a sleeker, more efficient model and many older arenas are simply not fitted to that model.

Which brings us to the case of Indianapolis versus Kansas City. We told you yesterday about the Pacers potentially being sold for dirt cheap (that’s right, $230 million is cheap in what we’re talking about). One of the reasons a potential owner may want to relocate the team is because of the way the arena is configured.

Conseco Fieldhouse has 69 luxury suites. To put that in perspective, American Airlines Center in Dallas has 144 suites. Geez. Even smaller markets like the Rose Garden in Portland has 70 suites. Arco Arenas is severely behind with only 30 suites, one of the reason a new arena is a major issue in Sacramento. The Toyota Center in Houston has 80 suites.

Now, market size is going to be a huge factor, but so is how new the arena is, as well as what kind of club level seats are available. Kansas City has been a place discussed as a potential arena location for years, because they have a brand new arena, the Sprint Center, with no tenant. Huge building, no tenant. The arena also features 72 suites and a higher capacity for club seats than Conseco. So you’d have a similar overhead structure in a cheap city, with a building that maximizes profit, if you can fill it.

The arena itself is beautiful. When I spoke with Hornets’ guard Chris Paul at a preseason game in KC, he remarked that he “couldn’t believe how nice the arena was.” Everyone that attends an event there is stunned it’s so nice and even more amazed it has not regular tenant, outside of whatever Miley Cyrus/Jonas Brothers/Nickelback merchandise-fest is in town.

The public funding issue is going to be a problem anywhere in this country during the recession, but somewhere like Indiana with traditional Midwestern values is going to be even less likely to pony up for some new owner to build an arena he can charge more for to see a team that won’t be good for some time.

The Pacers are an institution. But this situation become representative of the changes going on in modern arena structuring.

UPDATE: Some interesting numbers on a few other arenas. The new Amway Center for the Magic will only feature 56 suites with 10 specialty suites. Similarly Charlotte features 67 suites, but does feature another 60 “lodge boxes.”

Additionally, a commenter points out that Conseco features two hosptiality suites, making for a total of 71 suites in Conseco to 72 at Sprint Center. It’s easy to argue that moving from Indiana to KC would be a lateral move, and a costly one at that.

Raptors starting Norman Powell over Patrick Patterson against Heat

Toronto Raptors' Norman Powell (24) runs back up court after the Raptors scored against the Indiana Pacers during the second half of Game 5 of an NBA first-round playoff basketball series, Tuesday, April 26, 2016 in Toronto. (Frank Gunn/The Canadian Press via AP) MANDATORY CREDIT
Frank Gunn/The Canadian Press via AP
Leave a comment

Raptors coach Dwane Casey got a taste of changing his starting lineup.

Now he can’t stop.

Matt Devlin of Raptors.com:

Norman Powell replaces Patrick Patterson (who replaced regular-season starter Luis Scola in the first round). This makes the Raptors smaller and increases their ability to switch among their three starting wings – Powell, DeMarre Carroll and DeMar DeRozan.

Luol Deng gave the Hornets plenty of trouble as a stretch four in the last round. Toronto countered that advantage before falling victim to it.

The key will be the Raptors holding their own in the paint, rebounding and defending, and maintaining a reserve advantage that boosted them all season.

Stephen Curry wins Magic Johnson Award

OAKLAND, CA - MARCH 29:  TNT report Craig Sager interviews Stephen Curry #30 of the Golden State Warriors after their game against the Washington Wizards at ORACLE Arena on March 29, 2016 in Oakland, California. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Ezra Shaw/Getty Images)
Ezra Shaw/Getty Images
1 Comment

NEW YORK (AP) — Stephen Curry has won the Magic Johnson Award, given by the Professional Basketball Writers Association to an NBA player who combines excellence on the court with cooperation with the public and media.

Curry led the NBA with 30.1 points per game and a record 402 3-pointers in leading the Golden State Warriors to a 73-9 record, best in league history.

The reigning MVP beat out teammate Draymond Green, Portland’s Damian Lillard, New York’s Carmelo Anthony and Atlanta’s Paul Millsap on Tuesday in voting by the PBWA, made up of approximately 175 writers and editors who cover the league on a regular basis.

The award was created in 2001 and named for Hall of Famer Earvin “Magic” Johnson, whom the PWBA regards as “the ideal model for the award.”

Report: Chris Bosh petitioning union to get Heat to allow him to play

Miami Heat players Josh Richardson, left, Chris Bosh, center, and Tyler Johnson, right, look up as they watch a video replay during the final seconds of the second half in Game 5 of an NBA basketball playoffs first-round series against the Charlotte Hornets, Wednesday, April 27, 2016, in Miami. The Hornets defeated the Heat 90-88. (AP Photo/Wilfredo Lee)
AP Photo/Wilfredo Lee
3 Comments

Chris Bosh, who was sidelined due to blood clots for the second straight season, clearly wants to play.

The Heat maintain the same stance: There’s no timetable for his return.

Dan Le Batard of ESPN, as transcribed by Jason Lieser of The Palm Beach Post:

This is complicated and it’s not great,” Le Batard said. “They are not in agreement here. The two sides—This runs the risk of getting problematic here at a bad time, because Chris Bosh wants on the court… It’s obvious that Chris Bosh wants on the court and that he’s pressuring the organization…and that his wife is pressuring the organization. They were wearing the #BringBoshBack shirts (Sunday). There is a tension happening.

“I don’t know exactly what to believe here, OK, but I do trust the organization and I trust the people in the organization who tell me things because I’ve never been lied to by them about much of anything. They’re telling me that they’re protecting him from him, but he doesn’t feel any symptoms. This doesn’t feel like the last time. All the doctors the Heat are talking to are saying, and they’re the foremost authorities on this stuff, ‘Hey, a second recurrence of a blood clot situation could be catastrophic, where you’ve got a death on the court.’”

Le Batard added that the Bosh family is trying to get the NBPA involved to allow him to play again.

Kevin Draper of Deadspin:

https://twitter.com/kevinmdraper/status/727611100305350656

I don’t think this will get Bosh anywhere. Teams have tremendous control about playing time, and the Heat have deemed Bosh unfit to play. The union can’t do anything for a benchwarmer who believes he deserves more minutes. This is substantively similar. Bosh is still getting paid, and unless sitting will prevent him from reaching contract incentives, the union would have a tough – probably impossible – case.

If Bosh is still on blood thinners, I can’t imagine doctors clearing him to play. The risk is far too great.

It’s valiant Bosh so badly wants to play (at least if you don’t believe discretion is the better part of valor). The Heat could use him as they enter their second round series against the Raptors.

But Miami appears to be doing what’s best for Bosh, even if it hurts the team on the court. There’s valor in that, too.

NBA: Spurs got away with two key fouls in crunch time BEFORE final play (videos)

San Antonio Spurs' Danny Green, left, LaMarcus Aldridge, and Manu Ginobili (20) watch Tim Duncan (21) strip the ball from -Oklahoma City Thunder's Steven Adams (12) during the first half in Game 2 of a second-round NBA basketball playoff series, Monday, May 2, 2016, in San Antonio. (AP Photo/Eric Gay)
AP Photo/Eric Gay
2 Comments

The final play of Thunder-Spurs Game 2 was pure mayhem – five missed calls in the final 13.5 seconds.

But what if that high-stakes ending were avoided completely?

If officials had gotten previous crunch-time calls correct, it might have been.

The last play mattered only because San Antonio was charging back from a five-point deficit with a minute and a half left. The Spurs trailed by only one when Dion Waiters inbounded the ball.

San Antonio probably shouldn’t have been that close.

The Last Two Minute Report featured three missed calls before the final play, each favoring the Spurs and two crucial.

LaMarcus Aldridge scored with 1:27 left, but only after getting away with offensively fouling Russell Westbrook. NBA:

Since Westbrook (OKC) is stationary, Aldridge (SAS) can establish himself in his path without giving him room to avoid the screen. However, Aldridge does not maintain his legal position when he pushes Westbrook off balance.

That doesn’t look like a clear offensive foul from the angle TNT showed, but the league reviews these plays from multiple angles. There’s enough obscured to believe an alternate view would show an illegal screen.

A correct call would’ve ended San Antonio’s possession and given the Thunder the ball up five instead of three.

On the ensuing possession, the Spurs forced a miss, but Tim Duncan got away with a loose-ball foul of Steven Adams to get the rebound. NBA:

Duncan (SAS) clamps the arm of Adams (OKC) and affects his ability to retrieve the rebound

A correct call would’ve given Oklahoma City the ball with 1:11 left – another opportunity to run clock and add to its lead.

Duncan also committed a three-second violation with 55 seconds left, but the Spurs missed and Oklahoma City rebounded on that possession, anyway.

Especially considering that Manu Ginobili crossing the sideline should’ve been a violation before Waiters pushed him, the Spurs and their fans can’t reasonably claim officiating cost them this game