Indianapolis, Kansas City, and the changing arena economy


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.


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.

Clippers seeking deep playoff run to erase past failures

PLAYA VISTA, CA - SEPTEMBER 26:  L-R; Paul Pierce #34, Austin Rivers #25, DeAndre Jordan #6, J.J. Redick #4, head coach Doc Rivers, Blake Griffin #32, Jamal Crawford #11, Luc Mbah A Moute #12 and Chris Paul #3 of the Los Angeles Clippers pose for a photo during media day at the Los Angeles Clippers Training Center on September 26, 2016 in Playa Vista, 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. Mandatory copyright notice.  (Photo by Jayne Kamin-Oncea/Getty Images)
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LOS ANGELES (AP) — The Clippers’ regular-season record of 166-80 in Doc Rivers’ first three years as coach proves they’re one of the better teams in the NBA.

Their postseason results, however, suggest something else.

They’ve never gotten past the second round of the playoffs in pursuit of the franchise’s first-ever NBA championship.

Now, time is ticking on Blake Griffin, Chris Paul and DeAndre Jordan, who enter their sixth year together. Griffin and Paul will be free agents at season’s end, while J.J. Redick is also in the final year of his contract.

If the Clippers don’t at least make the Western Conference finals, speculation is rife that the team could be broken up and rebuilt.

“We have the talent, leadership, tangibles and coaches,” Griffin said, “we just have to put it together.”

The Clippers went 53-29 in the regular season and lost to Portland in the first round of the playoffs, when Paul broke his right hand and Griffin reinjured his left quadriceps tendon, forcing both to miss the last two games of the series, which the Clippers lost in six.

It was the latest in a series of playoff failures for a team whose potential has yet to be fully realized.

In 2015, the Clippers lost to Houston in seven games in the Western Conference semifinals after blowing a 3-1 lead. In 2014, they bowed out in six games to Oklahoma City in the second round.

“This is the deepest, most talented group we’ve had since I’ve been here,” Rivers said. “That’s why this year should be great.”

Los Angeles opens the season on Oct. 27 at Portland in a rematch of last season’s playoff series and opens at home against Utah three days later.

Some things to watch for this season with the Clippers:

HOW GRIFFIN GOES: After missing much of last season because of a broken hand and the quad injury, he figures to have extra motivation. Griffin averaged 21.4 points, 8.4 rebounds and 4.9 assists while limited to 35 regular-season games. His hand injury was the result of a fight with a former staff member and landed him a four-game suspension and a loss of pay. Besides demonstrating greater maturity, Griffin needs to stay injury-free and boost a shooting percentage that has declined five consecutive seasons.

FIFTH STARTER: Who will join Griffin, Paul, big man Jordan and shooting guard J.J. Redick as a reliable fifth starter? The small forward options are Luc Mbah a Moute, Wesley Johnson, veteran Alan Anderson and Austin Rivers. The elder Rivers may pick one or rotate depending on the need in a particular game. Mbah a Moute started 61 games last season, Johnson shot 33 percent from 3-point range last season, and the younger Rivers can guard an opposing team’s top guard, giving Paul a chance to focus on offense.

ADDING VETERANS: Rivers, who also serves as director of basketball operations, went after veterans during the offseason to add depth. He brought in 12-year pro Dorell Wright, 11-year pros Brandon Bass and Raymond Felton, eight-year pro Marreese Speights, who left Golden State, and seven-year pro Anderson. Along with three-time sixth man of the year Jamal Crawford, they’ll comprise a talented bench. “We all understand what we’re playing for,” Crawford said. Starting the season, they all appear to have bought into the vision of Rivers, who will have to juggle minutes among veterans who might have found more playing time had they gone elsewhere.

PIERCE’S FINALE: Paul Pierce is playing his 19th and final season before retiring at season’s end. He turned 39 earlier this month and is the NBA’s only active player with 25,000-plus points, 7,000-plus rebounds and 4,500-plus assists. He and Doc Rivers won the 2008 NBA Finals together in Boston, and Rivers enjoys having him around as a veteran presence in addition to the Big Three of Griffin, Paul and Jordan. Pierce started 38 of 68 games last season and he’d like to improve his averages of 6.1 points, 2.7 rebounds and 1.0 assists before calling it a career.

D’Antoni says Rockets’ Patrick Beverley to miss about 20 games

HOUSTON, TX - MARCH 18:  Patrick Beverley #2 of the Houston Rockets walks to the bench during their game against the Minnesota Timberwolves at the Toyota Center on March 18, 2016 in Houston, Texas.  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 Scott Halleran/Getty Images)
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Patrick Beverley is going to have a key role with the Rockets — he is their best defending guard. And it’s not close. He can help space the floor as a three-point shooter, he can work off the ball on offense and serve as a backup playmaker, but mostly what he brings is fearless, physical defense.

Except he’s not going to bring it for a while.

Following rumors he might knee surgery comes this from Houston coach Mike D’Antoni, via Calvin Watkins of ESPN.

Rockets coach Mike D’Antoni said he expects guard Pat Beverley to miss at least 20 games with a left knee injury. His absence “complicates” some roster spots.

The Rockets are going to have one of the best offenses in the NBA but whether they finish fourth or seventh or out of the playoffs completely in the West will come down to a combination of health and how well they defend. This is a setback on both counts.

Expect to see more Eric Gordon, Tyler Ennis, and P.J. Hairston. Gordon has a real chance here. This is going to be an interesting year in Houston.

Jimmy Butler shrugs off idea he’s a “diva”

Chicago Bulls' Jimmy Butler goes up for a dunk past Charlotte Hornets' Marvin Williams during the first half of an NBA preseason basketball game Monday, Oct. 17, 2016, in Chicago. (AP Photo/Charles Rex Arbogast)
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The Chicago Bulls traded Derrick Rose to New York, in hopes that the locker room, “whose team is this?” drama would head East with him. This is Jimmy Butler‘s team, with Dwyane Wade now assisting.

But the drama isn’t gone yet.

On their way out the door, the camps around Rose and Joakim Noah tried to paint Butler as a Diva who was the real problem. When Joe Cowley of the Chicago Sun-Times asked Butler about it, he basically laughed off the idea.

“Am I a diva? I don’t call it that,’’ Butler said before Thursday’s 97-81 loss to Atlanta in their final preseason game. “My will to win rubs people the wrong way sometimes. I can blame it on that, but won’t apologize for it. Never will.

“As far as that talk goes, I don’t care. I’m going to keep working and if people don’t like it, people want to say what they want to say, that’s fine. I know, and I think these guys know, where my heart is and how I want to do right by everybody.’’

Rose and Noah thought Butler tried to jump the line to be the leader of the team, which they saw as still their right as the veterans. Butler didn’t care what they thought then, he certainly doesn’t now.

What matters more, Nicola Mirotic and Doug McDermott and Bobby Portis don’t care, and they are the guys still there.

Who will finish with the better record, Bulls or Knicks, is one of my favorite subplots of the NBA season.

Spurs Danny Green has strained quadricep, out three weeks

SAN ANTONIO,TX - APRIL 30: Fans celebrate a three with Danny Green #14 of the San Antonio Spurs against the Oklahoma City Thunder during game one of the Western Conference Semifinals for the 2016 NBA Playoffs at AT&T Center on April 30, 2016 in San Antonio, Texas. 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 Ronald Cortes/Getty Images)
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The Spurs are counting on Danny Green to regain his top-flight “3&D” form this season and give them another defender and weapon when they go up against that potential juggernaut out West. And the Clippers, too.

But that comeback is getting off to a slow start, the team announced Friday.

This likely means a little more run for Manu Ginobili and Kevin Martin to start the season, plus some funky lineups from Gregg Popovich.

Green played great defense last season but struggled from three (where 60 percent of his attempts are taken). Green shot 33.2 percent from deep on the season, which is well below his career average of 40.3 percent (and last year’s down numbers were buoyed by a red-hot January, he was much worse the rest of the season).

It’s something for Spurs fans to monitor, they need to get his legs right before his shot can return.