Indianapolis, Kansas City, and the changing arena economy

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What do you look at to tell if a team is doing well? Attendance, right? After all, the way to tell how good a team is if they have fans coming to games.  Low attendance means you’re not making money. Sure, the Clippers are the exception, but it’s L.A. Everything’s overpriced. But attendance is still the real determining factor in success.

Right?

In the words of Dwight Schrute, “False.”

The real key to a franchise’s success is a more complicated algorithm that factors in sponsorships, partnerships, and attendance. But the attendance piece isn’t built on sheer numbers, but in quality.

The Dallas Morning News’ Mark Francescutti has an excellent article today outlining the success teams are having by doing something counter-intuitive. Slashing prices. The Mavs are obviously the centerpiece, with this money quote from Mark Cuban:

“Bottom line is that the upper bowl is becoming a smaller and smaller
part of our total revenue,” owner Mark Cuban
wrote in an e-mail to The Associated Press. “So we would rather
have a full house than make a couple dollars more. More fans means a
better home-court advantage, it means a better fan experience, which in
turn means more sales.”

The reason that the Mavs can make those kind of cuts is because the modern arena economy is now dependent on corporate suites and club seating. By focusing on those tickets, it allows the teams to fill out the big house.

This is why so many owners are requesting new arenas (outside of sheer greed). The modern economy has shifted to a sleeker, more efficient model and many older arenas are simply not fitted to that model.

Which brings us to the case of Indianapolis versus Kansas City. We told you yesterday about the Pacers potentially being sold for dirt cheap (that’s right, $230 million is cheap in what we’re talking about). One of the reasons a potential owner may want to relocate the team is because of the way the arena is configured.

Conseco Fieldhouse has 69 luxury suites. To put that in perspective, American Airlines Center in Dallas has 144 suites. Geez. Even smaller markets like the Rose Garden in Portland has 70 suites. Arco Arenas is severely behind with only 30 suites, one of the reason a new arena is a major issue in Sacramento. The Toyota Center in Houston has 80 suites.

Now, market size is going to be a huge factor, but so is how new the arena is, as well as what kind of club level seats are available. Kansas City has been a place discussed as a potential arena location for years, because they have a brand new arena, the Sprint Center, with no tenant. Huge building, no tenant. The arena also features 72 suites and a higher capacity for club seats than Conseco. So you’d have a similar overhead structure in a cheap city, with a building that maximizes profit, if you can fill it.

The arena itself is beautiful. When I spoke with Hornets’ guard Chris Paul at a preseason game in KC, he remarked that he “couldn’t believe how nice the arena was.” Everyone that attends an event there is stunned it’s so nice and even more amazed it has not regular tenant, outside of whatever Miley Cyrus/Jonas Brothers/Nickelback merchandise-fest is in town.

The public funding issue is going to be a problem anywhere in this country during the recession, but somewhere like Indiana with traditional Midwestern values is going to be even less likely to pony up for some new owner to build an arena he can charge more for to see a team that won’t be good for some time.

The Pacers are an institution. But this situation become representative of the changes going on in modern arena structuring.

UPDATE: Some interesting numbers on a few other arenas. The new Amway Center for the Magic will only feature 56 suites with 10 specialty suites. Similarly Charlotte features 67 suites, but does feature another 60 “lodge boxes.”

Additionally, a commenter points out that Conseco features two hosptiality suites, making for a total of 71 suites in Conseco to 72 at Sprint Center. It’s easy to argue that moving from Indiana to KC would be a lateral move, and a costly one at that.

Giannis Antetokounmpo matches career high with 44 against Cavaliers (VIDEO)

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CLEVELAND (AP) — Giannis Antetokounmpo played as if he had a point to prove.

The Milwaukee star rebounded from his worst game of the season to match his career high with 44 points and the Bucks beat the Cleveland Cavaliers 114-102 on Friday night despite missing two starters.

Two nights after being held to a season-low 12 points in a loss to Indiana, he was 14 of 19 from the field, made 16 of 21 foul shots, and had 14 rebounds and eight assists.

“You’ve got to put that game in the past,” Antetokounmpo said. “You put it in the past and move forward.”

Khris Middleton, the Bucks’ second leading scorer, was out with a sprained right finger. Malcolm Brogdon, fourth on the team in scoring, didn’t play because of a sore left hamstring.

Bucks coach Mike Budenholzer wasn’t surprised Antetokounmpo took over with his team short-handed.

“Obviously, a monster game for Giannis,” he said. “We kind of rode him pretty hard tonight. He was ultra-aggressive. He’s a competitor. He wants to be great.”

Asked what a team can do to slow down Antetokounmpo, Cavaliers coach Larry Drew said, “There’s not an answer to that. He’s a terrific player. He’s elevated his game over the years. He can hurt you in so many different ways.”

Not only was Antetokounmpo coming off a subpar game, Wednesday’s 113-97 loss was Milwaukee’s largest margin of the season.

Antetokounmpo made an instant impression after Milwaukee won the opening tip when he dunked on Osman on a set play in the halfcourt offense. He ended the half by finding Pat Connaughton for a 3-pointer.

Antetokounmpo, who had his 20th double-double of the season, admitted he was aware of his numbers.

“At some point in the game, you realize you’re scored a lot, so you look up at the scoreboard, but usually I don’t even look at it,” he said.

The Bucks never trailed and held off a late Cleveland spurt. The Cavaliers cut the lead to five midway through the fourth quarter on Cedi Osman‘s 3-pointer, but Antetokounmpo had a three-point play and an assist on Brook Lopez‘s basket that beat the shot clock, pushing the lead to 111-99.

Lopez scored 19 points and Eric Bledsoe had 16 for the Bucks, who have the second-best record in the Eastern Conference.

Jordan Clarkson scored 23 points, and Larry Nance Jr. had 14 for Cleveland. Rookie point guard Collin Sexton had five points after scoring in double figures in 18 straight games.

Cleveland played its second game without Tristan Thompson, who could be out for a month with a sprained left foot.

Dwyane Wade, Gabrielle Union aiding student seeking reinstatement to school

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PLANTATION, Fla. (AP) — Dwyane Wade and Gabrielle Union are backing attorney Benjamin Crump in an effort to help an expelled student and family friend get back into high school.

Wade and Union released a statement Thursday supporting senior Cyrus Nance, who was a basketball player in his first year at American Heritage High until he was expelled last month after a verbal altercation with a coach of another team at the school.

Crump says “every fact in this case points to discrimination.” Nance would like to return to school.

Zaire Wade, the oldest son of the longtime Miami Heat star, also plays at the school. Nance is friends with Zaire Wade and the Wade family.

Crump says the school has refused to release Nance’s transcript until his mother signs a non-disclosure agreement and pays a fee. Wade and Union say they will stand by Nance until he and his mother “get the transparent due process” that they seek.

School officials, citing privacy concerns, did not directly respond to the allegations.

Report: Wizards-Suns-Grizzlies Trevor Ariza-Kelly Oubre trade falls apart due to Brooks confusion

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The Wizards, Suns and Grizzlies, according to multiple reports, agreed to a three-team trade:

Wizards

Suns

  • Give: Trevor Ariza
  • Get: Austin Rivers, Wayne Selden, Brooks

Grizzlies

  • Give: Wayne Selden, Brooks, 2019 second-rounder, 2020 second-rounder
  • Get: Kelly Oubre

But it was unclear which Brooks – Dillon Brooks or MarShon Brooks – Memphis would send to Phoenix. It was initially reported as Dillon then “corrected” to MarShon. But that correction didn’t provide much clarity.

John Gambadoro of Arizona Sports 98.7:

Chris Herrington of The Daily Memphian:

Adrian Wojnarowski of ESPN:

Tom Haberstroh of NBC Sports:

This is AMAZING. Humans are smarter and more connected than ever before. And a few NBA general managers couldn’t keep their Brooks straight.

Dillon is a 22-year-old with 3-and-D skills and potential to become more of an all-around contributor. MarShon is a ball-dominant 29-year-old who’s generally not efficient enough to justify his high usage.

No wonder Phoenix wanted Dillon. And no wonder Memphis wanted to part with MarShon.

This could leave hurt feelings on all sides. What will Oubre, Ariza, Rivers, Ariza and even the Brooks think now? There’s plenty to clean up after this mess.

Including the tears streaming down my face from the laughter.

Is part of Markelle Fultz’s problem a too-tight, family-dominated inner circle?

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There needs to be context with this story. A lot of context. First, whatever is going on with Markelle Fultz, it cannot be traced to just one thing. It’s never that clean and simple. His agent and lawyer Raymond Brothers is trying to pitch his issues are all physical when clearly there are mental aspects and more involved.

Next, a close-knit family where the mother/dad/uncle is very protective of the elite basketball prospect and is deeply involved in everything is far, far, far from a new story in the NBA. It’s more the norm.

All that said, it’s fair to ask if Markelle Fultz’s family situation is impacting him. The amazing Candace Buckner of the Washington Post delved into this topic, interviewing Fultz’s former trainer Keith Williams among others.

“He’s a sensitive young kid, and I think emotionally he went through so much,” Williams said….

Fultz is now a professional on a four-year contract worth $33 million, but close associates said [his mother] Ebony still goes to great lengths to shield him. During Fultz’s first season in Philadelphia, Ebony had cameras installed inside his New Jersey home, according to several people familiar with the setup who described the indoor surveillance as unusual. The cameras have since been removed. Multiple people said Ebony has asked some who have dealt with Fultz to sign nondisclosure agreements for reasons that are unclear to them…

“There’s definitely crazy [expletive] going on with the mom and how involved she is and how overprotective she is,” said a person with a close connection to Fultz. “The best possible situation is if the mom just backs off for a period of time and gives him a chance to breathe.”

Again, overprotective parents are not new in basketball circles. NBA teams have dealt with it before and generally understand how to make that less of a problem. Just like your parents don’t get to follow you to your first real job after college, NBA parents don’t either. Just ask LaVar Ball.

That said, this concern it adds to the things making it hard to move him in a trade.

Ultimately, what Fultz needs is to be traded to a smaller market where he can develop out of the spotlight and demands that came in Philly. The Sixers are testing the market, but so far no deal has come close. That team will have to deal with everything going on around and with Fultz. And it’s not going to be just one thing.