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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.”

Kevin Durant gets first taste of playing with Warriors teammates in USA exhibition

LAS VEGAS, NV - JULY 22:  Kevin Durant #5 of the United States drives against Facundo Campazzo #7 of Argentina during a USA Basketball showcase exhibition game at T-Mobile Arena on July 22, 2016 in Las Vegas, Nevada. The United States won 111-74.  (Photo by Ethan Miller/Getty Images)
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LAS VEGAS — It wasn’t the highest of stakes, but after a heavily hyped announcement and all the fallout that resulted from it, Kevin Durant has now played organized basketball with some of his new Golden State Warriors teammates.

In a 111-74 blowout win over Argentina in an exhibition game at Las Vegas’ brand-new T-Mobile Arena, Durant shared the court with Klay Thompson and Draymond Green, who will make up three-fifths of the most formidable starting lineup in the NBA. Durant looked plenty comfortable, leading all scorers with 23 points on 7-of-12 shooting and making four three-pointers. Thompson and Green came off the bench, but the three Warriors shared the court in the second quarter.

Not that Durant was really thinking about it.

“I was just lost in the game,” he said afterwards. “I didn’t really notice, I was lost in the game and trying to play the right way. We worry about what Coach K wants us to do. I’m sure they felt the same way. We didn’t talk about it.”

Green concurred.

“It was great,” he said of playing with Durant for the first time. “You don’t really pay attention to the fact that we’re teammates [in the NBA]. We’re all teammates. We’re all going for the same goal.”

To be sure, these exhibition games — and even the real games in Rio next month — are nothing like what the Warriors will experience playing together when the regular season kicks off in the fall. The Olympics feature the top talent from all over the world, but the disparity in talent between the USA’s group and any other country is so staggering that most of the games are likely going to turn out like this one.

Green didn’t want to compare this experience with something like the NBA Finals.

“It’s a little different,” Green said. “Because when you’re in the Finals, No. 1 you play a team seven times, No. 2 you already know the guys. We know [Manu] Ginobili, [Andres] Nocioni, [Luis] Scola. We’ve played against those guys a bunch of times, but not at a level where you know everything they do. When you’re in the Finals, I know everything Kyrie does. It’s just a matter of, can you stop it or not? Just because you know he’s gonna do it doesn’t mean you can stop it. Here, it’s a little different because of these guys we’ve never played before.”

Next week, Durant will play his first game at his new home when the USA faces off with China on Tuesday in Oakland. They’re all looking forward to it, especially Green.

“Definitely looking forward to getting back home,” Green said. “I think it will be something special, especially with the KD announcement. Him coming in there for the first time with a USA jersey. It’ll be pretty unique.”

The last time Durant played at Oracle Arena, the circumstances were very different. Durant’s Oklahoma City Thunder took an unexpected 3-1 lead over the Warriors in the Western Conference Finals before dropping three straight games, leading to a Warriors trip to the Finals and, ultimately, Durant’s exit from Oklahoma City.

This time around, Durant will have the fans at Oracle on his side. Not that he needs any preparation.

Said Green, with a smile: “He knows all about Oracle.”

NBA, New Orleans ‘deep in negotiations’ for 2017 All-Star game

NEW ORLEANS, LA - FEBRUARY 16:  Western Conference Stephen Curry #30 of the Golden State Warriors moves the ball across mid court during 2014 NBA All-Star game against the Eastern Conference at the Smoothie King Center on February 16, 2014 in New Orleans, Louisiana. The East defeated the West 163-155.  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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NEW YORK — As the NBA looks for a new home for the 2017 All-Star Game, cities are lining up with open arms to welcome LeBron James, Stephen Curry and the hundred million or so dollars the festivities would bring to the local economy.

New Orleans is the favorite, a person close to the situation told The Associated Press. The person said the league and city are “deep in negotiations” to stage the game there for a third time. The person spoke to AP on condition of anonymity because the details of the discussions have not been publicly announced.

The league moved the game out of Charlotte on Thursday because of its objections to a North Carolina law that limits anti-discrimination protections for lesbian, gay and transgender people. The league also said it hoped to announce a new location for next February’s events shortly and will reschedule the 2019 game for Charlotte if there is a resolution to the matter.

Even before the announcement, the league had heard from cities that were available and interested in taking over the weekend – which has grown into more like a week.

Besides having open dates in arenas, cities would need to have necessary hotel space. Officials from several have expressed interest, including Boston and Atlanta.

But New Orleans, with its good February weather and endless entertainment options, is the “heavy favorite,” the person told AP.

Louisiana Gov. John Bel Edwards has said in a statement it would be an “honor” to have the game return to New Orleans.

“Louisiana is rich in diversity of heritage, culture, cuisine and people, and we believe the NBA could not select a better place for everyone to come and enjoy this spectacular sporting event,” he said.

Besides multiple Super Bowls and college football bowl games, New Orleans hosted the 2008 and 2014 NBA All-Star Games. The city is easily walkable and has moderate temperatures that time of year, a bonus after frigid temperatures the last two years in New York and Toronto.

The NBA announced plans for the 2008 game just nine months after Hurricane Katrina devastated the city in 2005. The weekend brought about $100 million into the city to aid its recovery, and now New Orleans could benefit again because of Charlotte’s loss.

The National Basketball Players Association said Friday it supported the league’s decision to move the game that would have been in Curry’s hometown.

“North Carolina is home to a sizable number of current and former NBPA members. They and our entire membership looked forward to participating in the All-Star week activities in the Charlotte community,” the union said in a statement. “However, the enactment of legislation that challenges the right of all Americans from discrimination threatened the ability of every attendee to enjoy the All-Star festivities.”

Northern cities were excluded for years due to owners’ preferences for warm weather. But with the league being open to those locations under Commissioner Adam Silver, cities such as Cleveland, Portland and Boston have shown interest in hosting an All-Star Game.

Orlando held the 2012 game, boasts loads of hotel and entertainment options, and could be a fitting choice for the LGBT community after a gunman killed 49 patrons at a gay nightclub in the city last month.

But with the league hoping to announce a new destination in the coming weeks, New Orleans is “well on its way” to being selected, the official said.

“It would be an honor to have this event return to New Orleans, and we look forward to sharing our hospitality with basketball fans from around the country,” Edwards said. “My office will support and assist Tom Benson and the New Orleans Pelicans in any way possible to help bring the NBA All-Stars back.”

Hornets president: NBA assured Charlotte 2019 All-Star game if North Carolina law changes

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When pulling the 2017 All-Star game from Charlotte, the NBA said it hoped to hold the 2019 event there. (2018 is already scheduled for Los Angeles.)

It seems the 2019 plans are more concrete than just hoping.

Katherine Peralta and Rick Bonnell of The Charlotte Observer:

Hornets President Fred Whitfield told the Observer the NBA has no plans to put 2019 – the next available All-Star Weekend – out to general bid.

“We’ve been assured if the HB2 situation is resolved, we’ll be hosting” All-Star Weekend, Whitfield said.

I wonder whether this was before or after the league office read Hornets minority owner Felix Sabates’ email.

Even beyond Sabates — no small thorn — there’s no guaranteed North Carolina’s anti-gay law is satisfactorily modified. The state’s lawmakers have dug in their heels.

But no matter what’s happening now, 2019 is a long way off. It seems the NBA will — once again — give Charlotte as much time as possible to be a suitable location for the All-Star game.

Jae Crowder told Al Horford not to sign with the Wizards because they couldn’t beat Celtics

ATLANTA, GA - APRIL 19:  Al Horford #15 of the Atlanta Hawks battles for a rebound against Jae Crowder #99 of the Boston Celtics in Game Two of the Eastern Conference Quarterfinals during the 2016 NBA Playoffs at Philips Arena on April 19, 2016 in Atlanta, Georgia.  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 Kevin C. Cox/Getty Images)
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Celtics forward Jae Crowder is going scorched earth.

Kevin Durant and the Warriors? Check.

Raptors? Check.

Wizards?

Crowder on newly signed Boston center Al Horford, who also considered the Wizards, via Tom Westerholm of MassLive:

“He’s a perfect fit,” Crowder said. “That’s what we were telling him. He had Washington and some other teams looking at him, but we beat them four times this year. You don’t want to go there.

This is the tamest of Crowder’s rampages. Bust lest you think it’s just an innocent statement of facts — the Celtics were 4-0 against Washington this year — Wizards center Marcin Gortat seemed to take it more personally:

Interestingly, Gortat is probably still starting only because Washington missed out on Durant. Starting over Ian Mahinmi is one thing. Gortat probably would’ve had to move to the bench for Horford.

Whatever his role, Gortat will have a little more motivation against the Celtics — just like the Warriors and Raptors will.