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.

Report: Kyrie Irving believes LeBron James leaked trade request

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Kyrie Irving reportedly requested a trade from the Cavaliers, noting his desire to leave Cleveland was based on parting ways with LeBron James.

That all remained under wraps for a couple weeks.

Why did it become public now?

Stephen A. Smith on ESPN:

According to my sources, they believe LeBron James had everything to do with news getting out that Kyrie Irving wants to be traded, because Kyrie Irving and his representation and others met with the Cavaliers a couple weeks ago, and not a word got out until recently. They believe that LeBron James got word of it and was put off by it and leaked it. I’m not going to accuse LeBron of such a thing. I don’t know that to be true at all. But I know that’s what Kyrie Irving believes.

To reemphasize, Smith is not reporting that LeBron leaked Irving’s trade request, just that Irving believes LeBron did. That alone speaks to their disconnect.

Why would LeBron leak it?

Just speculating, but maybe to ruin Irving’s chance at a smooth exit. Irving is trying to bail on LeBron, and LeBron might take that personally. Leaking the trade request would be in character for LeBron as a passive-aggressive response.

But the trade request becoming public also hinders Irving’s trade value – which hurts LeBron’s team. However, people don’t always act logically when they’re upset. And maybe the Cavs won’t be LeBron’s team long enough for it to matter.

Again, though, nobody is reporting LeBron actually leaked it. Irving’s reported accusation means enough in itself.

Cavaliers really lamenting non-trade for Paul George

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The Cavaliers were reportedly close to trading for Paul George before the Pacers sent him to the Thunder.

Just how close?

Ramona Shelburne, Dave McMenamin and Brian Windhorst of ESPN:

a text message from Indiana Pacers general manager Kevin Pritchard undid an agreement on a blockbuster deal for George the Cavs were just starting to celebrate, a moment that now lives in infamy within the organization.

On draft night, as the Chicago Bulls were finalizing a deal with the Wolves to move Butler, the Cavs were feverishly trying to assemble a three-team trade with the Pacers. The Denver Nuggets had a strong desire to acquire Kevin Love and became a legitimate trade partner with Indiana. The Nuggets were willing to include wing Gary Harris and the No. 13 pick in that night’s draft to get Love, and the Cavs would reroute the assets to Indy for George, sources said.

But they couldn’t complete the deal. Indiana was working on another option with the Portland Trail Blazers, sources said, as they were offering a package with three first-round picks for George. Eventually, everyone moved on and the Nuggets traded the No. 13 pick to Utah in a package for Trey Lyles.

On the afternoon of June 30, the sides thought they had a deal. On a conference call between the teams, everyone tentatively agreed. George to the Cavs, Love to the Nuggets, Harris and other pieces to the Pacers, sources said.

Plans were put in place for a call to be arranged between George and Gilbert, an important step before the trade would become final, sources said. The front office began making other plans to complement George as free agency was about to begin.

But then Pritchard, who had been on the conference call when the deal was tentatively agreed to, sent the message that his team was backing out, sources said. There was no deal.

The teams tried to save it, but shortly thereafter, news broke that George was being traded to Oklahoma City.

I’m always skeptical of reports that a trade that never happened was close. Just because one team – or two teams in a three-team trade – thought the deal was close doesn’t mean the other team was actually close.

Heck, just because one team thought the trade was agreed upon doesn’t even mean the other team actually agreed.  According to this report, Pritchard “tentatively agreed.” What does that mean? The Cavaliers and Nuggets might think that was purely a procedural delay. Pritchard might have considered it contingent on other factors. A simple misunderstanding could easily be painted as something more nefarious – one team backing out of an agreed-upon trade.

But there are a lot of details here, lending credence to the notion a deal was actually close. So, let’s break down each team’s involvement:

The Trail Blazers entered the draft with three first-rounders – Nos. 15, 20 and 26. But they lacked cap room for George, so they would have had to send salary to Indiana. With Portland’s numerous bad contracts, maybe that offer wasn’t as good for the Pacers as it appears here.

The Nuggets wound up signing a star power forward (Paul Millsap) without losing Gary Harris, so they came out ahead by not completing this deal. Given how much of free agency is decided before July 1, did Denver really not know it’d land Millsap or just prefer Love that much?

The Pacers probably missed out. I’d prefer Harris (younger, cheaper and arguably better) to Victor Oladipo, and I’d prefer the No. 13 pick to Domantas Sabonis.

And then there are the Cavs, who have been thrown into disarray since this trade fell through. Would Kyrie Irving still have requested a trade with George in Cleveland? The Cavaliers would have had a better chance of winning a title, but Irving would have been further overshadowed – a key component of  his trade request. Would LeBron have been more likely to re-sign next summer? There was so much on the line.

Whether or not Pritchard actually agreed then backed out, it’s easy to see how the Cavs are having a hard time letting this one go.

Draymond Green adds attention to Conor McGregor’s gag about Floyd Mayweather Jr.’s domestic violence

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Conor McGregor and Floyd Mayweather Jr. are showing nearly no limits in their effort to promote their upcoming fight.

McGregor has repeatedly stoked the flames of racism, making himself a villain to some and a hero to others – but, more importantly, drawing attention from both sides. He also wore a No. 23 Warriors jersey.

Hey, I wear No. 23 for the Warriors, Draymond Green apparently thought to himself. So, Green posted on Instagram to inform everyone he was supporting Mayweather:

We rocking with Floyd bro not you… take that off bruh @thenotoriousmma

A post shared by Draymond Green (@money23green) on

McGregor responded in the comments:

screenshot-imgur.com-2017-07-23-15-11-32

C.J. Watson previously wore No. 23 for the Warriors, and this isn’t the first time McGregor has referenced the guard in relation to Mayweather:

Why does McGregor keep bring up Watson?

Martin Rogers of Yahoo Sports in a 2013 article on Mayweather domestic-violence victim Josie Harris:

The altercation happened when Mayweather returned to Harris’ property at 5 a.m. on September 9. Police had already been summoned following a verbal dispute hours earlier, but Mayweather came back. Harris says she was asleep on the living room couch when she woke up to Mayweather, holding her cell phone, yelling at her about text messages from NBA guard C.J. Watson.

Mayweather and Harris were no longer together; the boxer had by then installed Jackson in his home and as his main love interest. But, according to Harris, it was not acceptable to Mayweather for her to see other men while living in a house he owned.

“Are you having sex with C.J.?” Mayweather yelled at Harris, according to the arrest report.

“Yes, that is who I am seeing now,” she replied.

Mayweather then grabbed her by the hair and punched her in the back of the head “with a closed fist several times,” according to the report. He then pulled her off the couch by her hair and twisted her left arm.

“All I heard is, ‘Who is C.J. Watson, C.J. Watson the basketball player?’ ” Harris says. “From there it was just … bad. I was powerless. He was holding me down. I couldn’t fight back. The kids were screaming and crying, ‘You’re hurting my Mom.’ ”

At one point, Mayweather yelled, “I’m going to kill you and the man you are messing around with,” Harris told police. “I’m going to have you both disappear.”

According to the arrest report, when Harris screamed for her children to call for help, Mayweather turned to them and warned he would “beat their ass if they left the house and called police.”

I don’t think Green realized the context. He responded to McGregor in the comments by hyping his superiority to Watson and talking about boxing:

Knowingly or not, making light of domestic violence is on brand for the NBA.

What’s Kyrie Irving’s problem with LeBron James?

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Kyrie Irving reportedly requested a trade from the Cavaliers because he no longer wants to play with LeBron James.

But what does that actually mean?

Ramona Shelburne, Dave McMenamin and Brian Windhorst of ESPN:

Much of Irving’s disenchantment with James was rooted in game play, sources said. James, as a once-in-a-lifetime talent, controlled the ball more than any other forward perhaps in league history.

But there were ancillary issues that bothered Irving, too, such as how James’ good friend Randy Mims had a position on the Cavs’ staff and traveled on the team plane while none of Irving’s close friends were afforded the same opportunity.

Adrian Wojnarowski of ESPN:

In registering his preference for a trade, league sources said, Irving divulged to Cleveland Cavaliers owner Dan Gilbert that he’s become increasingly uneasy about a future that includes a roster constructed to complement LeBron James — a roster that could be devoid of James come free agency in 2018.

Joe Vardon of Cleveland.com:

Irving wants to take his show away from James so he can grow his career (his on-court acclaim and notoriety, his brand, his voice) outside of James’ shadow.

Numerous people who’ve talked to Irving over the past month have said to cleveland.com that he told them he wanted to leave to grow his career, and it was the message Irving sent to Cavs owner Dan Gilbert when he asked to be traded last week.

These can all simultaneously be true. There needn’t be one singular reason Irving wants a trade.

It can also be true that former general manager David Griffin might have soothed Irving’s discontent. It can also be true that the Warriors’ dominance influenced Irving, as he might have been more willing to remain in a secondary role if it were more likely to result in a championship.

But so much of this comes back to LeBron, a massive presence around whom everything in Cleveland revolves.

Being the top player on a team means so many things – dictating on-court action, having the supporting cast built around you, influencing team staff, building a larger sponsorship presence. Irving can’t get any of that while playing with LeBron.

Irving led the Cavs in shots and usage percentage last season, but that happened only because LeBron allowed it. LeBron obviously retook control in the playoffs. There’s no question whose team this is.

There is also no indication Irving is fighting that. He’s not trying to usurp LeBron’s power, and Irving has molded his game the last few years to fit with LeBron.

But now Irving his exercising his own power so he can get even more the only place possible – somewhere away from LeBron.