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.”

Magic Johnson on drafting Lonzo Ball: “what I needed was a leader”

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Nobody, not even his critics with the Lakers, question that D'Angelo Russell had talent. What they questioned from the start was his work ethic and maturity. I was told by sources with the team he often was the last one to team meetings, often one of the first out of the gym, and the whole Nick Young thing spoke to the maturity question. Byron Scott took a lot of heat as Lakers’ coach for benching him, and Scott’s communication skills were lacking, but he had reasons. Russell also just 21 and maybe he finds his way, but the Lakers weren’t willing to wait anymore.

Which is why the Lakers were willing to move him to Brooklyn in the Brook Lopez trade, and why the Lakers went after Lonzo Ball in the draft, Magic Johnson said, via Baxter Holmes of ESPN.

Is Lonzo Ball a leader? Only time will tell, he has the potential.

Will players want to play with him? Yes, if the passing skills he showed in college transfer to the NBA. If guys know they will get the rock if they run/cut, then they will do just that. It’s some simple B. F. Skinner stuff here — if players are rewarded they will keep doing it. Get them the rock in transition and they will get out there every time.

Ball has flaws in his game, there are certainly questions about his defense, and how that awkward shot translates remains to be seen (it goes in but his time to get it off will decrease at the NBA level)? Will he be a scoring threat in the half-court? He’s got work to do. But answer those questions and the Lakers may have the key piece to help anchor a franchise he’s been looking for.

Sacramento Kings waive guard Arron Afflalo

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SACRAMENTO, Calif. (AP) The Sacramento Kings have waived guard Arron Afflalo one year after signing him as a free agent.

The Kings cut ties with Afflalo on Friday before his entire $12.5 million contract for 2017-18 would become guaranteed. Afflalo will get $1.5 million instead.

Afflalo averaged 8.4 points and 2 rebounds in 61 games this past season for Sacramento. He has averaged 11.3 points per game in his 10-year career.

 

Frustrated fan: John McEnroe says Knicks a ‘total train wreck’

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NEW YORK (AP) — John McEnroe had a ringside seat for the ugliest bout at Madison Square Garden last season.

He was sitting just feet away when former Knicks star Charles Oakley was surrounded by security officials at his seat, shoving them away before being handcuffed and arrested while watching a game in February.

Even before that, the tennis great had begun to lose patience with his favorite team.

“It’s like a total train wreck,” McEnroe said.

The low point during a miserable 2016-17 season came when Oakley was dragged out of MSG in the first quarter of a game against the Los Angeles Clippers. A fan favorite as a player, he had fallen out of favor with the organization in retirement after critical comments about the team and MSG chairman James Dolan.

McEnroe, who often travels for his tennis or other obligations, wasn’t aware of the history between Oakley and Dolan.

“I didn’t even realize at the time that Charles had said bad things about him,” McEnroe said. “I hadn’t been up on that, so it wasn’t awkward for me when he sort of poked me in my back, Charles, right before the incident happened. I was like, `Hey Charles, how are you? This is my son, Kevin.’ He was with me.

“So I didn’t put 2 and 2 together and I didn’t know what had happened or really what had transpired,” he said. “So maybe Jim was already uncomfortable because of past history or whatever and then when Charles and the security guys started to go at it, even before they started to come up to him I was like, `Uh oh, this is not going to go well, at all.”‘

McEnroe is clearly visible in replays of the skirmish that were shown that night and throughout the next day.

“To see Charles Oakley have handcuffs put on him was horrible. Like, I was sick to my stomach, as well as almost every other fan that was in there watching this as it took place,” McEnroe said. “I bet you Jim Dolan – this is just my opinion – had to feel terrible about what that was.”

McEnroe grew up in and still lives in New York, and considers MSG his home arena. The inside cover of his new book, “But Seriously,” is decorated with ticket stubs from games and concerts at the arena, including a Knicks playoff game. But like many Knicks fans, he’s getting fed up with what he sees.

“I mean I’ve been a Knicks fan since I was a kid, so this is just getting beyond belief,” he said.

McEnroe has owned a home in Malibu, California, for more than 30 years. He often trained in Los Angeles as one of the world’s top players during the early-to-mid 1980s, befriending Lakers executive Jeanie Buss and Linda Rambis, whose husband Kurt played for the great Lakers teams of that era that were led by Magic Johnson and Kareem Abdul-Jabbar.

“Watching this was like, I’m sitting there going, why the hell am I a Knick fan again?” McEnroe said, “because this is just absolutely unbelievable, watching Showtime.”

Dolan hired Phil Jackson, who won five titles as Lakers coach, as Knicks president in 2014. But the team has missed the playoffs every season under Jackson, who feuded with Carmelo Anthony last season and didn’t speak to reporters at all while the team went 31-51.

“I mean, he’s known as the Zen Master, like a master talker, and then he’s not talking to anybody,” McEnroe said of Jackson. “So this whole thing seems to have gone completely off the rails.”

Jackson is still hoping to trade Anthony, who has a no-trade clause. McEnroe said he was never the biggest fan of Anthony’s game, but that the All-Star forward didn’t deserve the treatment he received last season.

“It’s crazy to treat a guy that way,” McEnroe said. “It seems like, even if it would be better for both guys if they weren’t there – the Knicks and him – the whole thing just seems, I can’t believe how bungled this has gotten.”

Chris Paul re-elected president of the NBPA

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NEW YORK (AP) — Chris Paul has been re-elected president of the National Basketball Players Association.

Paul’s new four-year term begins immediately. He will be assisted by the union’s newly elected vice president, Garrett Temple of the Sacramento Kings.

In his first term as president, Paul most notably helped the players and the NBA come together on a new Collective Bargaining Agreement that goes into effect on July 1.

Paul says he’s “humbled that my fellow players have voted to have me continue.”

Temple has a three-year term as vice president, which also begins immediately. He replaces Kyle Korver in that role.

The other members of the NBA’s Executive Committee are First Vice President LeBron James, Secretary-Treasurer James Jones, and Vice Presidents Carmelo Anthony, Stephen Curry, Andre Iguodala, Pau Gasol and Anthony Tolliver.