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.

Mike Budenholzer no fan of Drake’s free run on Toronto sideline

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Drake is the Mayor of Toronto.

Actually, he does fewer drugs than some former mayors of Toronto, and Drake was not elected, but he’s The Mayor in any meaningful way. The man can do whatever he wants.

Such as walk up and down the sidelines of a Raptors game with impunity, and give Nick Nurse a massage during the game.

Bucks coach Mike Budenholzer has much bigger things to worry about — such as were Eric Bledsoe misplaced his shot — but somehow during his conference call with the media on Wednesday, before a critical Game 5, Drake was the topic of discussion. Budenholzer is not a fan of Drake getting to patrol the sidelines. Via ESPN:

“I will say, again, I see [Drake talking to Raptors] in some timeouts, but I don’t know of any person that’s attending the game that isn’t a participant in the game a coach,  I’m sorry, a player or a coach, that has access to the court. I don’t know how much he’s on the court. It sounds like you guys are saying it’s more than I realize. There’s certainly no place for fans and, you know, whatever it is exactly that Drake is for the Toronto Raptors. You know, to be on the court, there’s boundaries and lines for a reason, and like I said, the league is usually pretty good at being on top of stuff like that.”

My guess is the league (and maybe the referees before Game 6 in Toronto) will reach out to Drake and tell him he can’t go Joe Biden on a coach during the game, and to stay near his seat. This is precisely the kind of distraction from the game that fans love to talk about and annoys the league office, which wants the focus on the court.

Personally, the more personality around the game, the better. It’s entertainment people, enjoy the show.

Knicks president Mills says Porzingis threatened to return to Europe if not traded in seven days

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If you thought the Knicks thrashing or Kristaps Porzingis on his way out the door was over, well, you haven’t been paying attention to the Knicks.

Team president Steve Mills was at a Knicks fan forum on Wednesday and was asked about the Kristaps Porzingis trade and dropped this bomb: Porzingis gave the Knicks the ultimatum of “trade me or I’m going back to Europe.”

“When he walked into our office, my office, and Scott [Perry, Knicks GM] was sitting there with me, and point blank said to us, ‘I don’t want to be here, I’m not going to re-sign with the Knicks, and I’ll give you seven days to try and trade me or I’m going back to Europe.'”

To be clear, Porzingis had to mean going back to Europe to work out and hang out, he could not have played professionally. European clubs honor commitments to NBA contracts — they will not sign and play a guy under an NBA contract — the same way the NBA does with European clubs (as well as China and all FIBA leagues).

Saying he wasn’t going to re-sign makes things clear, it’s one of the reasons the NBA touted the “super-max” contract extensions because teams would find out earlier about player intentions. The Europe part, if Porzingis really said that, is a toothless threat.

For the Knicks brass, speaking in front of Knicks fans, this was the chance to make themselves look good — “see, we already had a good trade in place” — and thrash the guy they had been selling as the franchise savior a year before. It’s all about perception.

The Knicks have a lot of cap space this summer and their perception as a front office will hinge on what they do — or do not do — with it.

Porzingis landed in a good spot with Luka Doncic in Dallas, and the Mavericks will give Porzingis a max contract. Then it’s on him to earn it.

New Suns coach Monty Williams: ‘I’m here at the right time, and I’m here with the right people’

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PHOENIX (AP) The Phoenix Suns have gone through coaches like tear-away racing visors, the count up to five in five years.

The instability has hurt them on the court, the run of playoff-less appearances stretching to nine straight seasons with this year’s 19-63 finish.

Monty Williams, the man GM James Jones hired to coach the Suns, hopes to change the trend.

“Continuity, having a staff here for a while and putting in a system that the players can rely upon, but ultimately it will come down to James, myself and the players pushing this thing forward,” Williams said during his introductory news conference Tuesday. “The players are going to have to embrace a level of work and commitment that it takes to be a champion.”

Williams was hired on May 3 to replace Igor Kokoskov, who was fired after one season in the desert.

Williams’s arrival in Phoenix was delayed while he finished out the playoffs as an assistant to Philadelphia coach Brett Brown. The 76ers were eliminated from the playoffs last week by Toronto on Kawhi Leonard‘s hang-on-the-rim buzzer-beater in Game 7 of the Eastern Conference semifinals.

Williams’ name had been linked to numerous head coaching jobs, including the Lakers, but he wound up in the Valley of the Sun after multiple discussions with Suns owner Robert Sarver.

“In my conversations with Mr. Sarver, I saw someone who didn’t duck the tough questions,” Williams said. “We both had tough questions for each other and in this day and age where people throw each other under the bus, make excuses, blame, I didn’t see that. I saw a man who really wants to bring success to this city and I mean that with all of my heart or I wouldn’t have come here.”

Williams had a previous stint as an NBA head coach, leading New Orleans from 2010-15. A year after he was fired, Williams’ wife, Ingrid, was killed in a car crash.

He didn’t know if he wanted to get back into coaching after her death, but was pushed by his kids to return to coaching the sport he loves.

“When everything happened to my family, my focus was just take care of my children,” said Williams, who has remarried. “That led me to believe I might not ever be able to coach again, and I was cool with that. But they weren’t. And to have your children want you to go back to doing what you love to do gave me even more confidence, more strength. Hopefully that translates and the players can pick up on that.”

The Suns have been known as a dysfunctional franchise, but were lauded for landing Williams, a well-respected, well-rounded coach.

Williams played nine NBA seasons with New York, San Antonio, Denver, Orlando and Philadelphia. He’s been a head coach, an assistant and spent two years in San Antonio’s front office.

“His experience in all facets of basketball as a coach, player development on the offensive side of the ball and the defensive side of the ball, in the front office gives him a unique perspective that I think is well suited for our franchise,” Jones said.

In the Suns, Williams takes over a young team with two star-quality players at its core: Devin Booker and Deandre Ayton.

Booker has developed into one of the NBA’s best scorers, leading the Suns with 26.6 points per game. He had five 40-point games the final month of the season, including 50 and 59 in consecutive games.

Ayton was the No. 1 overall pick in last year’s NBA draft and didn’t disappoint, shooting 59% while averaging 16.3 points and 10.3 rebounds.

Phoenix should add to its talent base with the sixth overall pick in this year’s draft.

“There’s so much room to grow,” Williams said. “I think we have a young team that’s learning how to win and they will and I have to do my job. I have to enhance the strengths but be honest about our weaknesses and get the players to consider a new way of doing some things. I think I’m here at the right time and I’m here with the right people.”

Hornets’ Miles Bridges on All-Rookie: ‘I didn’t get snubbed. I played like a— all year’

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The NBA released its All-Rookie teams yesterday. Hornets forward Miles Bridges missed out, getting only one first-team vote and four second-team votes.

Bridges:

I love this attitude. Bridges didn’t deserve to make it. It’s silly to for anyone, including him, to pretend otherwise.

He’s obviously being too hard on himself. He had an OK rookie year. It just wasn’t one of the NBA’s 10 best this season.

Players often hold inflated opinions of themselves. That might help them succeed in a high-pressure job, and that’s obviously their priority. To be clear: I’m not criticizing them for adopting an approach that helped them reach this high level. But it leaves them as lousy analysts of their own performance.

Bridges doesn’t have that problem. It’s easy to see how this will drive him to improve.

His humility won’t work for everyone. But it works for him, and it’s a refreshing change of pace.