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Comparing markets, attendance and ownership in Sacramento and Seattle

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We’ve discussed the issues that will determine whether or not the Sacramento Kings stay in California’s capitol or go to Seattle, including the impact of public subsidy support in both cities, the race between the two cities for an arena deal, and what lawsuits pending in Seattle mean to the process.

Next we take a look at markets, attendance, and ownership groups for both locations.

Sources with knowledge of the league’s thinking tell PBT that neither city will have a discernible advantage in these areas heading into meetings with the Board of Governors joint committees on April 3.

Seattle enjoys the nation’s No. 12 television market but shares that market with up to six sports teams, an issue that has come under great scrutiny when comparing Seattle with Sacramento, something the Sacramento side brings up often.  David Stern pointed the issue out at All Star weekend, Chris Hansen’s group reported the same idea in its market analysis, and Sacramento’s group highlighted the same thing this past week when they unveiled their market analysis to the press.

A potential Sonics franchise would share Seattle’s larger market with the Mariners, Seahawks, Sounders, and University of Washington football, in addition to an NHL team if Hansen’s group can make it happen.

That would reportedly position Seattle closer to Sacramento’s No. 20 television market, where the NBA enjoys 100 percent market share.

Think Big Sacramento, the city’s arena task force, put out a report this week contending that they are a better market than Seattle, which is what they’re supposed to say, but when you look at a similar report put out by Chris Hansen’s group the two sides aren’t necessarily squabbling over the details.

Hansen’s report indicates that Sacramento has 1.4 million TV homes per team (NBA, NFL, NBA, NHL), compared to 937,000 TV Homes for Seattle under the current scenario of two sports teams (Mariners and Seahawks) already in town.

Under this metric, Sacramento ranks No. 2 and Seattle ranks No. 4.  Orlando is ranked No. 1, L.A. is ranked No. 3, New York is No. 5, and from there it goes Atlanta, Philadelphia, Houston, Chicago and Dallas — mostly large markets.

Should Seattle secure both an NBA and NHL team they will fall to No. 15 on Hansen’s report.  If you add the successful Seattle Sounders MLS franchise to the metrics as Hansen’s group does, then Seattle falls to No. 21 assuming they land two new pro sports franchises.

League sources say the TV Homes per team metric is one of the reasons small-to-mid markets like Orlando, Sacramento, and Seattle are coveted by the league.  Networks understand the competitive impact of multiple sports teams in a region that steal away eyeballs and ratings, and they include such analysis in their bids for rights packages and the like.

Otherwise, leagues would contend that ‘TV Homes’ never watched any of the other sporting options available to them, and instead just the games that a particular league is selling to a network.

Still, Hansen’s report states that Seattle (84) has 30 more businesses than Sacramento (54) with 1,000 or more employees, and Seattle’s household median income is ranked No. 6 ($66,500) compared to Sacramento at No. 8 ($63,618). However, if you use the 2011 federal numbers for the counties of these cities (King County and Sacramento County, and work to draw fans outside the city limits) that gap grows to more than $15,000 a household.

Just like other professional teams cut into the NBA’s TV viewership in Seattle, sources say the same issue mitigates the advantage the Emerald City has in terms of potential sponsors.  The issue was summed up by longtime Seattle writer Art Thiel, as he said in a recent roundtable discussion between local pro- and anti-arena groups that competition for sponsorships in Seattle could be a problem.

“Which team in Seattle is the sixth ticket in town? When you consider Seahawks, Mariners, Sounders, University of Washington sports and then these two new teams that might occupy Hansen’s arena … the complicated business problem in Seattle is that our major companies here like Amazon and Microsoft are either bit or ‘no’ players in the sports sponsorship scene. They don’t buy the suites, they don’t do the sponsorships at least at the same degree as you find elsewhere with Fortune 500 companies.”

At his State of the City address last week, Sacramento Mayor Kevin Johnson revealed that he had sponsorship commitments of $50 million over five years from local businesses, which is similar to the $10 million Johnson secured when the Maloofs tried to leave for Anaheim in 2011.

It is unclear what Seattle has presented to the league on that front, as Seattle supporters have maintained that Hansen is under a gag order and cannot talk about his proposal to the press.

As for Hansen’s arena task force marketing itself or leaking information to the media about sponsorship support in Seattle, league sources do not expect the group to be public about their position.  As they put it, “when you’re trying to take a team from another city, particularly one that is fighting as hard as Sacramento is, it pays to be quiet.”

Past attendance will likely be a moot point or favor Sacramento, as Kings fans have turned out at the gate more frequently than their Sonics counterparts over the years.

Given the constant relocation threats and substandard ownership over the past five years, sources say the league is impressed that Kings fans continue to show up the way that they did, just as the league was impressed with Sonics fans when they showed up for the last two years under Clay Bennett prior to the team’s move to Oklahoma City.

Sources say the league won’t be overly critical of attendance in either city once public relations became a nightmare.  This was the case starting in 2006 in Sacramento after the Maloofs torched an arena deal and in that same year when Bennett took over ownership of the Sonics.

Ownership groups are another area in which sources tell PBT that the league is likely to conduct itself with some ambivalence.

Steve Ballmer is ranked No. 51 on Forbes’ top billionaires list, while Chris Hansen, Ron Burkle, and Mark Mastrov are not listed.  Each ownership group is “overly qualified” to own an NBA franchise, and the sports connections each group brings to the table are regarded as second-to-none.  Burkle is a finalist to purchase sports and entertainment powerhouse AEG, while Ballmer’s wealth alone is enough to make most owners blush.

Sources with knowledge of the league’s thinking said this is a great problem for the NBA to have, but pointed out that the league is highly unlikely to make this a question about which ownership group is better, instead letting the other factors decide the matter.  “There are only so many yachts these guys can water ski behind, and while Hansen and Ballmer are a dream team when it comes to ownership, it’s doubtful the NBA is going to downgrade Burkle and Mastrov.”

The source added that it didn’t make sense for the league to pit the ownership groups against one another, noting the association still wants to do business with both well into the future.

After David Stern’s press conference on Friday in which he said the Sacramento offer needed to be increased, and subsequent votes of confidence from Mastrov and Johnson that they would be able to deliver, the framework for discussion among owners is all but laid out.

Assuming Sacramento can provide the right offer, with the two cities drawing toward a tie on the issues of markets, attendance and ownership groups, the source said that with the advantage Sacramento has on the public subsidy issue, “Tie should go to the runner.”

Report: Steve Ballmer in talks with Rams’ owner Kroenke to move Clippers to Inglewood

LOS ANGELES CA - OCTOBER 29: Steve Ballmer (C), owner of the Los Angeles Clippers, cheers for his team with his wife Connie Ballmer (L) at his side during pre game ceremonies before the home opener against Dallas Mavericks at Staples Center October 29, 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 conditions of the Getty Images License Agreement. (Photo by Kevork Djansezian/Getty Images)
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Since he bought the Los Angeles Clippers for a cool $2 billion, Steve Ballmer has been looking for ways to get them out of the shadow of the Lakers. While Los Angeles is big enough — and has enough corporate interests — to support two NBA teams, the city’s heart belongs to the Lakers. It’s still a wide chasm. You can take my word as a lifelong Angelino, or you can go look at the television ratings — the Lakers are in the worst stretch of on-court basketball in franchise history, the Clippers are loaded with stars and are one of the better teams in the NBA, and yet the Lakers still win the ratings battle.

One way to get out of the shadow — get out of sharing the same building. The Clippers moved to Staples Center with the Lakers when it opened (Donald Sterling loved having the team closer to his offices) but Steve Ballmer is talking about getting out, reports the Los Angeles Times.

Representatives of Steve Ballmer and Stan Kroenke, two of the richest owners in professional sports, have had multiple discussions about the Clippers joining the Rams and Chargers in the sports and entertainment district Kroenke is building in Inglewood.

Five people with knowledge of the conversations told The Times the arena could either be on the 298-acre site or an adjacent parcel. Either way, an arena would drive traffic to the planned mixed-use development and share parking with the $2.6-billion football stadium scheduled to open in 2019.

The Clippers are on a lease that runs through 2024 at Staples, but Ballmer and company have not-so-subtly been looking at potential sites for a new venue. There isn’t a question if the former Microsoft CEO has the money to finance such a building, but there could be both an economy of scale and joint energy joining the new football facility.

The project in Inglewood — on the former Hollywood Park horseracing location, right across the street from the Forum where Magic Johnson and the Showtime Lakers reigned — is designed like many modern arenas to bring dining, entertainment, and housing to the area with the arenas providing foot traffic. Staples Center did that for the L.A. Live development in downtown Los Angeles, helping spark a renaissance of the entire area. However, there are a lot of questions from parking to who actually would own the land and arena.

If nothing else, it’s a sign Ballmer gets what the previous owner either never did or simply never cared enough to try to fix — he has to get out of the Lakers’ shadow. One step in that path is getting out of the same arena.

Rockets’ Ryan Anderson gets engaged

WASHINGTON, DC - NOVEMBER 07: Ryan Anderson #3 of the Houston Rockets celebrates a three-pointer against the Washington Wizards during the second half at Verizon Center on November 7, 2016 in Washington, DC. 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 Patrick Smith/Getty Images)
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Ryan Anderson‘s girlfriend, Gia Allemand, committed suicide in 2014. I can’t even imagine having to handle that.

But it seems Anderson has found happiness.

Jonathan Feigen of the Houston Chronicle:

Fantastic news!

Carmelo Anthony says he doesn’t understand Knicks’ direction

PHOENIX, AZ - DECEMBER 13:  Carmelo Anthony #7 of the New York Knicks sits on the bench during the second half of the NBA game against the Phoenix Suns at Talking Stick Resort Arena on December 13, 2016 in Phoenix, Arizona.  The Suns defeated the Knicks 113-111.  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 Christian Petersen/Getty Images)
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Carmelo Anthony said he’d consider waiving his no-trade clause if the Knicks want to rebuild, which could be welcome news considering that’s what Phil Jackson reportedly wants to do.

But, after letting the trade deadline pass without a move, New York must convince Anthony of a plan — any plan — before getting him onboard.

Ian Begley of ESPN:

New York Knicks star Carmelo Anthony said he doesn’t understand management’s vision for the future after the club’s inactivity at Thursday’s trade deadline.

“No, not now. No, to be honest with you,” Anthony said late Thursday night. “I think they were kind of planning on the trade deadline, whether they were trying to make moves. I think that was one plan. Now they’ve got to get back to the drawing board and come up with another plan about the future of this team.”

It seems the Knicks want to rebuild around Kristaps Porzingis, but they’re already down another road with long-term money tied to Anthony (32), Joakim Noah (31), Courtney Lee (31) and Lance Thomas (28). There’s no simple way to pivot into a new direction — especially with Anthony possessing a no-trade clause.

Maybe Anthony will never waive it, but appears the Knicks continue to approach this the worst way possible.

Report: Kristaps Porzingis out several days with ankle injury

CLEVELAND, OH - FEBRUARY 23: Carmelo Anthony #7 and Kristaps Porzingis #6 of the New York Knicks walk off the court during a timeout during the first half against the Cleveland Cavaliers at Quicken Loans Arena on February 23, 2017 in Cleveland, Ohio. The Cavaliers defeated the Knicks 119-104. 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 Jason Miller/Getty Images)
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Of all the players the Knicks could have shed at the trade deadline — including Carmelo Anthony, Derrick Rose, Courtney Lee, Brandon Jennings and Kyle O'Quinn — New York is losing the one it values most.

Kristaps Porzingis sprained his ankle in the Knicks’ loss to the Cavaliers last night, but at least it doesn’t sound too serious.

Adrian Wojnarowski of Yahoo Sports:

The Knicks — 23-35, five games and four teams out of playoff position — were already going nowhere. Now, they’ll be a little less watchable while going nowhere.

As long as there are no lasting effects or indications of Porzingis being especially susceptible to injury, this is no big deal.