Indianapolis, Kansas City, and the changing arena economy

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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.

Monty Williams is back coaching with Team USA, ready to get back on NBA sidelines

LAS VEGAS, NV - JULY 18:  Draymond Green #14 of the 2016 USA Basketball Men's National Team drives against assistant coach Monty Williams of the 2016 USA Basketball Men's National Team during a practice session at the Mendenhall Center on July 18, 2016 in Las Vegas, Nevada.  (Photo by Ethan Miller/Getty Images)
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Watching Monty Williams back on the court at the USA basketball camp/practices in Las Vegas, you could see he was at home. He’s easily the best 44-year-old defender on the planet — he went toe-to-toe with Kevin Durant, Jimmy Butler, and the rest, was physical, and made them work for buckets. Then he’d instruct. He’s just a natural.

Back in February, Williams’ wife was killed in an auto accident. It devastated the devout family man, in ways it’s hard for us to understand who have never experienced it. He walked away from coaching the rest of the NBA season with the Thunder, and nobody questioned it for a second.

Now, after getting his feet wet with Team USA (where he is an assistant to Mike Krzyzewski), he told Darnell Mayberry of the Oklahoman he is ready to get back on the sidelines.

“I wouldn’t even think that if I didn’t know, one, my wife would want me to; my kids talk about it all the time. And there have been some things that have happened in my life lately that have allowed me to get that back. I’m so juiced up and ready to get back into it again.”

He is one of the better respected assistant coaches in the league, and a guy who will get another shot at a top spot someday. Soon. Can’t wait to see him back on the sidelines.

Ben Simmons says he plans to work on shooting, handles, getting stronger before camp

Philadelphia 76ers' Ben Simmons cheers from the bunch during the first half of the team's NBA summer league basketball game against the Brooklyn Nets, Thursday, July 14, 2016, in Las Vegas. (AP Photo/John Locher)
Associated Press
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The leap from college — even high-level college programs — to the NBA can be hard to describe. Now everybody is bigger, longer, and far more athletic — the guy at the end of the bench barely getting any burn was one of the best players on his college team.

Players get their first taste of that at Summer League. The Sixers’ No. 1 pick Ben Simmons looked pretty good when he got that taste, but you can see the development that needs to go on as well.

He’s spending the time between now and the start of training camp working on his shooting and getting stronger, among other things, he told Jessica Camerato of CSNPhilly.com.

“I think just getting in the gym and making sure I’m getting reps up, shooting-wise, dribbling,” Simmons said earlier this week after an appearance at Sixers Camp in Wayne, Pennsylvania. “The weight room as well, making sure I get my strength back and my weight up.”

All good things. Handles and shooting in particular — he’s about to start seeing much better defenders nightly. It’s going to take time, and we’ll see how far he can go, but Simmons unquestionably brings a lot of skill and potential to the table. That he’s putting in the work is a good sign — that was one of the concerns about him heading into the draft.

New GM Bryan Colangelo is going to benefit from Sam Hinkie’s process. So long as he doesn’t screw it up.

Report: Warriors sign JaVale McGee to make-good training camp contract

JaVale McGee
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JaVale McGee is getting another shot in the NBA.

He played just 34 games off the bench for Dallas last season. He played 23 games the season before that due to injury.

But the Golden State Warriors are thin up front — Zaza Pachulia will get the bulk of the minutes at the five (when the Warriors use a traditional center), and there is the often-injured Anderson Varejao behind him. The Warriors could use another big. So they are giving McGee a look, reports Marc Stein of ESPN.

This is a low-risk move by the Warriors, and it’s worth the gamble. Vintage McGee, for all his Shaqtin’ a Fool flaws, is far more athletic and a better rim protector than any of the guys the Warriors now have at the five. If it doesn’t work out — and the odds are it will not — they cut him, if it does they pay him a minimum deal.

I hope he makes it, just because the league is more fun when McGee is in it.

Russell Westbrook laughs off question about Kevin Durant

LOS ANGELES, CA - DECEMBER 21:  Russell Westbrook #0 of the Oklahoma City Thunder and Kevin Durant #35 discuss play during the first half against the Los Angeles ClipperLos Angeles Kingsat Staples Center on December 21, 2015 in Los Angeles, California.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and condition of the Getty Images License Agreement.  (Photo by Harry How/Getty Images)
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At some point, Russell Westbrook will sit down with members of the media and discuss Kevin Durant leaving the Thunder, how he felt about the move, and how it impacted him both personally and professionally.

But not right now. He remains silent.

This Vine making its way around, where Westbrook laughs — probably at the question, although read into that whatever you want — when asked about Durant sums up where we are.

https://platform.vine.co/static/scripts/embed.js

In the full Facebook clip, Westbrook walks away, too. It’s his right. He can talk about it on his schedule.