Tag: Seattle Supersonics


Comparing markets, attendance and ownership in Sacramento and Seattle


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.”

Friday And-1 links: Rally in Seattle to support new stadium


Here is our regular look around the NBA — links to stories worth reading and notes to check out (stuff that did not get its own post here at PBT) — done in bullet point form. Because bloggers love bullet points.

• Plans for a new arena in Seattle, one that could house an NBA team, got a boost of local support with a rally where thousands of Seattle residents showed up to support the idea. Seattle’s mayor also met with David Stern last week. The process is off to a good start but has a long way to go.

• In a good sign, it was announced Microsoft CEO Steve Ballmer and Peter and Erik Nordstrom will be part of the investment team looking to build the arena and bring an NBA team to the city.

• Detlef Schrempf said that Seattle gave away it’s team.

• Jay-Z is opening a new 40/40 club in the Barclay Center in Brooklyn when the Nets move in next year. No, you won’t be able to get in that one either.

• After Game 1 of the finals in Oklahoma City ‘lil Wayne again thought he was treated poorly by the Thunder organization. My sense is that the people of Oklahoma really don’t care.

• Serge Ibaka is a shot blocking machine — he’s gotten all of Miami’s big three so far in the finals — but it leaves him out of position sometimes.

• Current Lakers/former Cavaliers coach Mike Brown hopes LeBron wins his first ring.

• Soon to be top-5 pick Thomas Robinson loves the idea of playing for the Wizards.

• Sonny Weems played last season in Lithuania this year but is ready to return to the NBA.

• David Stern does an interview without getting in an argument with the host. He talks lockout and playoffs.

• We told you Jeremy Lamb rolled his ankle working out for the Raptors. It caused him to miss his workout with the Blazers.

• Another report that Dwight Howard still wants a trade. This is getting old.

• Dwyane Wade’s personal chef spills the beans. Figuratively.

• Celtics’ restricted free agent Greg Stiemsma wants to stay with the team. Safe bet that happens.

• The Bulls are moving ahead with a plan to move their practice facility into the city near the United Center.

• The Bulls plan to bring back Omer Asik, the restricted free agent other teams are eyeing. The Bulls can match any offer.

• Grizzlies owner Michael Heisley talks about the sale of the team to Robert Pera.

• Don’t expect Nikola Mirotic, the Bulls’ No. 23 overall pick in 2011, to come to the NBA until 2014 at the earliest.
• The 911 call from when Chris Bosh’s masseuse died at his house has been released.
• The best point guard in the draft, Damien Lillard, is putting together the “Licenced to Lillard videos about his runup to the draft.

Seattle groups lay out arena plan: it starts with finding team


It’s a start. A good start.

Details of the NBA arena plan for Seattle were laid out by Seattle’s mayor and the money behind it, hedge fund manager Chris Hansen, in a press conference that sounded more like a pep rally. They bathed the plan in glowing terms as filled with private investment and risk free to the taxpayers.

But the truth is that it has a long way to go. It has a lot of moving parts and any number of things can kill it. That it starts with Hansen taking on the challenge of buying an NBA team.

The Associated Press explains it this way:

Hansen submitted a proposal to (Seattle) on Thursday that calls for $290 million in private investment, plus the cost of acquiring an NBA franchise, to help construct a facility that would cost between $450 million and $500 million.

According to a letter submitted by the Seattle native to the city, the remaining construction and development costs would be financed by the city and King County using taxes and revenues generated by the new facility and rent charged to the teams playing in the arena. City officials are adamant that there will be no new public taxes needed for the building.

Basically it works like this: The city will go through the process — environmental impact reports and the like — and get everything in place. Then all Hansen has to do is buy an NBA team and recruit an NHL team to play in the building. Once he does that, he will put his money in, the city will put its money in and construction will start.

The NBA is not going to expand, so Hansen would have to buy an existing team and move it. That is where Sacramento rumors come in, as there have been rumblings that a new investor (at the least) could come in there and the team almost moved to Anaheim last summer. The league has a team for sale but doesn’t want it moved out of New Orleans. Yet. And other teams do come on the market — it’s usually just not that easy to move them

But Seattle has a start on getting the Sonics back. It’s a long, long road but the first steps have been taken.

Plans for Seattle NBA arena to be announced Thursday

Seattle SuperSonics v Denver Nuggets

Seattle fans are dreaming of the Kings becoming the Sonics (it’s not likely, smart money has them staying put in Sacramento), but it’s not really about the occupant of an arena just yet…

If you build it, some team will come.

Seattle sports fans want a new home for an NBA (and NHL) team built. And Thursday the plans for a new, state-of-the-art arena in Seattle will be unveiled, reports the Seattle Times.

Christopher Hansen, the wealthy San Francisco mystery man who wants to build a sports arena in Seattle to lure NBA and NHL teams, will unveil his proposal at a news conference Thursday, according to two city sources.

“We’re very close to announcing our offer to the city. That’s why I’m here,” the 44-year-old hedge-fund manager said in a Wednesday interview with The Seattle Times, though he declined to discuss the timing He met with three Seattle City Council members Wednesday to talk briefly about his desire to bring an NBA franchise to Seattle.

Hansen told The Times he is only reluctantly stepping forward now because of the intense interest and speculation around his arena proposal, the details of which are still not known.

With this announcement we’ll get a sense of where this proposal really stands, how close to reality it is. How much the people of Seattle should get their hopes up.

There likely will need to be shovels in the ground before an NBA team is fully committed. But Seattle is a fantastic spot for a team — big television market, plenty of corporations and people with money who can pay the luxury box/ticket prices, committed fan base — and if they build it, an NBA team will come.

Sacramento one vote away from losing the Kings last night, but still in control of their destiny

team maloof with stern

If you build it sticky-fingered shooting guards will come.

And if Sacramento doesn’t approve an arena for the Kings quickly then Seattle has no problem playing Kevin Costner.

And let’s not bury the lede here, Seattle almost got their wish Tuesday night as the Sacramento City Council narrowly voted 5-4 to bury a resolution that would have sent the Kings packing for all intents and purposes. But let’s couch that for a second and start from the top.

Seattle mayor Mike McGinn has been working with multimillionaire Christopher Hansen to bring an NBA team back to the Emerald City, and it’s clear Hansen has been in long-term discussions with power brokers in the Seattle area and probably David Stern and the NBA. How far they are along is debatable, but this week at least some in the Seattle media have gone as far as to say that there is a “70/30” chance the Kings play in Seattle next year and that the announcement could come in April.

That sounds like wishful thinking, because there are way more questions in Seattle than there are answers, and Sacramento appears to control its own destiny when it comes to the Kings.

McGinn, who said he has met with Hansen face-to-face just once, has admitted as much in his various media appearances, refusing to give too much hope to Seattleites that the Kings could indeed be coming. “A lot of things have to align for this to work, and I can’t predict whether everything will align or not,” he said, trying to manage expectations of listeners on ESPN 710 in Seattle.

“My expectation, and this isn’t my side of the equation, that’s gotta come from the folks that are looking to own a team – I don’t think they’re moving forward unless they feel they have commitments from the NBA and the NHL, but that’s their business, and I think that’s one of the things that has to align, as well. They’ve gotta make sure that they have a pathway. My understanding is that given the way that these things work, they probably have some type of pathway but I can’t give you any information about what that looks like.”

That pathway is for the Kings arena effort to fall flat on its face. One way to help agitate the process is to leak news of the city’s very real plans to snatch the next available NBA team in the weeks leading up to Sacramento’s critical stretch run.

Sacramento mayor Kevin Johnson was unfazed in comments made to the Sacramento Bee’s Ryan Lillis.

“I don’t blame them for trying to build an arena. I just don’t think it’s going to be Sacramento,” said Johnson, in reference to which NBA team could move to Seattle. “We have a laser focus on our business at hand, we’re controlling our own destiny and that’s what we’re focusing on.”

If Seattle cannot cash in on the Kings then the next most viable option would be the league-owned Hornets, as the NBA is closer to contraction than it is to expanding anytime soon.

Sacramento has until March 1 to present a viable funding plan to the Maloof family and the NBA, or it’s widely believed that the league will allow the Maloofs to move the team. Anaheim, like Seattle, has taken a wait-and-see approach and has appeared to be elbowed out by Seattle, and one doesn’t have to think hard to figure out what Jerry Buss and Donald Sterling think about that.

The Maloofs, for their part, have appeared committed to keeping the team in Sacramento and multiple sources have indicated that they have no plans to sell the team. They also said in December that they would be willing to be flexible with the deadline if arena talks were moving in the right direction. Regardless, assuming that anything is set in stone on their end is a fool’s errand right now.

While there have been many rumors to the effect that the Maloofs are struggling financially, nobody truly knows how they’re doing. Their sale of the Palms in June could be seen as both a sign that they freed up money to operate the Kings, or a sign that the ship is sinking. And even if they were to sell the Kings, it’s not beyond the realm of possibility that the NBA could continue to work with Sacramento in coordination with another buyer, as the league has spent tremendous time and resources helping the team regain its footing in the California capitol.

Going back to the lede, Kevin Johnson and his Think Big Sacramento coalition are nearing a conclusion to the year-long fight, and they had a critical vote last night that was closer than any arena insiders, including myself, thought it would be.

Councilwoman Sandy Sheedy, the unofficial figurehead of the anti-arena effort on the council, made a motion to bring the Kings arena issue to a vote in June. Her motion would ask the public to vote up-or-down on whether or not the city should turn over its parking assets to a private operator for upward of $200 million to go toward a new arena. This, of course, is a disingenuous position knowing that the NBA’s March 1 deadline would render any June vote useless – and the prevailing belief in and around the city political scene is that she is exacting political revenge upon Johnson. As the story goes, he did not give her a seat in his inner circle after she endorsed his mayoral run. Sheedy has since drawn numerous competitors for her district seat amidst plummeting popularity, and last week announced that she would not seek re-election next cycle.

In following the commentary made by council members throughout the past few months, only two had made strong statements against using public funds for an arena, and I had handicapped the total vote to be in favor of Kings fans. What we saw last night was the most recent ‘call’ in arena poker, with one anti-arena leaning vote (Kevin McCarty) making his position clear after supporting Sheedy’s resolution, one swing vote (Jay Schenirer) swinging hard to the pro-arena side and voting against a public vote, and one arena cheerleader (Bonnie Pannell) going completely off-script with a vote to support Sheedy’s resolution.  The resolution ultimately failed by a 5-4 vote, so there will be no deal-breaking public vote and the decision to keep the Kings will be made by the council itself in the coming weeks.

Combining the new projected anti-arena votes with the old ones, there are four councilmembers that have acted to send the Kings packing, including Sheedy, Darrell Fong, McCarty, and Pannell. Arena supporters Rob Fong and Angelique Ashby join Steve Cohn and Schenirer as leaning yes votes on the eight-person panel, with mayor Johnson as the tie-breaking ‘yes’ vote.  While I suspect this is a group that votes ‘yes’ to keep the Kings in Sacramento, this situation is much too close to call with just one more defection needed to kill the deal.

They will meet on February 14 to discuss the finalized list of parking lot operators that the city will request final proposals from.  Chances are at some point KJ is going to have to get an extension on the March 1 deadline. With those parking numbers in hand, the last step is for all of the public and private funding sources to get in a room and decide finally, once and for all, what everybody is going to contribute to the estimated $400 million price-tag of the new Entertainment and Sports Complex.

Multiple sources tell me that number is going to be reached, and the pieces of the puzzle are falling into place quickly. Earlier Wednesday James Ham of Cowbell Kingdom reported that Sacramento is going to ask the NBA and the Maloofs for $80 million and his cohort Rob McAllister reported that two executive level sources with the Kings have a “strong belief” that if the “numbers are close” that the league will come up with the balance.

While things are coming into focus, for now there will be speculation, and with last night’s close city council vote the vultures will descend and you’ll find more reports trying to pry the Kings from Sacramento’s nowhere-near-dead hands.

“Stern is one of the guys who the group in Seattle is talking to, and he wants a team (in Seattle), and he’s apparently told them that they can play in Key Arena while an arena is being built,” said Steve Kelley of the Seattle Times, who also made the 70/30 comment tying a Kings-to-Seattle announcement to April.

Stern was more diplomatic when speaking to Brian Smith of the Salt Lake Tribune.

“Obviously, we certainly have been supportive of Mayor [Kevin] Johnson’s efforts with respect to the building and we sure would like to see that happen,” Stern said. “But we cannot guarantee or [assume] it, and we’ll have to deal with the realities as we find them.”

Surely the commissioner could take umbrage to Kelley’s reports that he is knee-deep in talks with Seattle, but I’m betting he lets the Emerald City flex its arms and scare the cow poop out of Kings fans and councilmembers alike.

The irony here is that Sonics fans were exactly where Kings fans were when Clay Bennett moved their team away, and the producer of the acclaimed documentary Sonicsgate: Requiem for a Dream, Jason Reid, was outspoken in supporting Kings fans last April – showing up at a Thunder playoff game ringing cowbells for all the cameras to see. But all is fair in love and sports.  When news broke about Seattle’s interest they tweeted out an old 2010 video that states, “No Team Is Safe,” and at the end shows a Seattle Kings logo. Colin White, web and graphic designer for Sonicsgate said, “It is what it is. We want (their) team.”

So, no, Stern won’t put a blanket on the bidding war at this late hour. If anything he’ll ratchet it up. The only difference here is that Kevin Johnson has the ball in the final seconds, and as long as he gets four council members to agree with him he’ll probably hit the game-winning shot.