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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.”

CJ McCollum, Bismack Biyombo to headline 2017 NBA Africa Game this summer

Portland Trail Blazers' C.J. McCollum pumps his fist during the final moments of their 127-123 overtime win over the Boston Celtics in an NBA basketball game in Boston Saturday, Jan. 21, 2017. (AP Photo/Winslow Townson)
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NEW ORLEANS (AP) The NBA is going back to Africa.

The league and the National Basketball Players Association announced Saturday that NBA Africa Game 2017 will be held on Aug. 5 in Johannesburg. It’s the second time the NBA is playing on that continent, after a sold-out event there in 2015.

Among the players planning to take part so far are Orlando’s Bismack Biyombo, Portland’s CJ McCollum and Denver’s Emmanuel Mudiay.

The game will have a Team Africa vs. Team World format and will support of UNICEF, the Nelson Mandela Foundation and SOS Children’s Villages South Africa.

NBA Commissioner Adam Silver says going back to South Africa “is part of the league’s continued commitment to bring the authentic NBA experience to fans around the world.”

Report: Nuggets received $2.85 million from Trail Blazers in Mason Plumlee-Jusuf Nurkic trade

Denver Nuggets center Mason Plumlee is congratulated after making a basket against the Minnesota Timberwolves in the first half of an NBA basketball game Wednesday, Feb. 15, 2017, in Denver. Plumlee was appearing in his first game for the Nuggets since being acquired from the Portland Trail Blazers for center Jusuf Nurkic. (AP Photo/David Zalubowski)
AP Photo/David Zalubowski
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The Nuggets traded Jusuf Nurkic and the Grizzlies’ first-round pick to the Trail Blazers for Mason Plumlee and a second-rounder — a deal that didn’t appear to provide Denver enough value.

But it seems we omitted a key piece of the Nuggets’ return.

Eric Pincus of Basketball Insiders:

Teams rarely trade that much in a single transaction. They’re capped at both receiving and sending out $3.5 million this season.

But this is the advantage of an owner willing to spend. Paul Allen is allowing Portland to assemble a more-talented roster.

Denver still got the best player right now in the trade, and Plumlee will upgrade the bench and maybe even fit OK starting with Nikola Jokic. But it’s hard to overlook owner Stan Kroenke’s cash influx.

Rumor: Kings reignite trade talks for DeMarcus Cousins; Cousins agent denies

AUBURN HILLS, MI - JANUARY 23: DeMarcus Cousins #15 of the Sacramento Kings looks on while playing the Detroit Pistons at the Palace of Auburn Hills on January 23, 2017 in Auburn Hills, Michigan. Sacramento won the game 109-104. 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 Gregory Shamus/Getty Images)
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The Sacramento Kings may be looking to move center Boogie Cousins. Stop me if you’ve heard this rumor before.

According to The Vertical’s Adrian Wojnarowski, Kings management has reportedly engaged in talks during All-Star Weekend to move the talented, fiery center.

If moved, Boogie would be the biggest player dealt thus far this season.

Via Twitter:

It didn’t take long for Cousin’s agent to try and kill those rumors.

That Cousin’s agent denies it doesn’t make it false, however, this move would be a huge change of directions for the Kings organization.

It may also be one they may need to consider. The Kings have said they would offer Cousins the “designated player” max extension (likely around at $213 million over five seasons), and Cousins has said he would sign it. If the Kings really wanted to make him happy, they could do a Russell Westbrook style renegotiation of his contract for the coming season, then have the extension kick in after that (Boogie would sign that, too). However, do that and they have no cap space to bring in players around Cousins, they stay the same team they are right now for years.

The Kings have been reluctant at times to even engage in discussions with teams, in part because owner Vivek Ranadive doesn’t want to move the big man knowing they will go a decade before getting a player that talented on the roster again. The Kings were frustrated when former coach George Karl was insistent on moving him, and they dismissed interest from both the Boston Celtics and Cleveland Cavaliers.

But there’s also been recent talks around Boogie and the Phoenix Suns, and the situation from an outside-of-California view seems to be ripe for a split.

Cousins, for as good as he’s been, has not shown he’s enough to take the team into the playoffs. Kings management, meanwhile, has been an absolute disaster during his time there and has not done much to compliment him. The relationship seems to have soured, even as owner Ranadive has backed Cousins.

Whatever the outcome, if Cousins gets traded by the Feb. 23 deadline it will go down as one of the biggest mid-season moves this season. It’s going to be hard for Sacramento to move on from a franchise player like Boogie, but perhaps it’s time to look for a different path. For Cousins, a breath of fresh air and a little help might put his career in a new perspective as well.

Report: 76ers sat Jahlil Okafor because they were close to Trail Blazers trade

PHILADELPHIA, PA - OCTOBER 26: Jahlil Okafor #8 of the Philadelphia 76ers controls the ball against the Oklahoma City Thunder at Wells Fargo Center on October 26, 2016 in Philadelphia, Pennsylvania. 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. The Thunder defeated the 76ers 103-97. (Photo by Mitchell Leff/Getty Images)
Mitchell Leff/Getty Images
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The 76ers sat Jahlil Okafor for two games last week, openly acknowledging they were discussing trading him. Then, they played him in their final game before the All-Star break.

That prompted speculation that no deal fell through, but that Philadelphia was bluffing being close in order to drum up interest.

But maybe there actually was a near-trade.

David Aldridge of NBA.com:

On the surface, this makes sense. We know the Trail Blazers were interested in a cost-controlled center, because they traded for Jusuf Nurkic.

But that trade also makes Portland perfect cover if the 76ers are just trying to deflect from a gambit gone wrong. Not only were the Trail Blazers plausible trade partners, they already made their deal. So, there will be no questions about revisiting discussions.