Indianapolis, Kansas City, and the changing arena economy

3 Comments

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.

Luol Deng retiring by signing with Bulls

Gregory Shamus/Getty Images
Leave a comment

Luol Deng will be remembered for being the subject of then-Hawks general manager Danny Ferry’s racist statement and signing an exorbitant contract with the Lakers.

It’s a shame.

Deng was a very good player on some strong Bulls teams. He’s returning to Chicago to say goodbye.

Bulls:

Deng’s prime was cut short by health issues. He played hard in big minutes with Chicago, including deep playoff runs, and was never the same after leaving there.

But he made an All-Rookie first team then had eight more good seasons with the Bulls. He made two All-Star games, providing steady defense and nice complementary offense. We only remember Deng as leaving something on the table because he entered the NBA as a teenager and it feels like someone still so young should have continued to thrive.

As he began to decline, Chicago traded him to the mess that was the post-LeBron James Cavaliers. Then, Deng left for the post-LeBron Heat. Deng had some good moments in Miami, but his body was continuing to break down.

The four-year, $72 million contract in Los Angeles followed. He just couldn’t play effectively anymore. That wasn’t his fault. Blame should fall onto Mitch Kupchak and his crumbling regime for signing Deng to that deal. The Lakers bought out and stretched Deng, who will collect paychecks from them through 2022.

He spent last season with the Timberwolves, barely playing. At 34, he’ll return to the Bulls for what’s surely an unguaranteed contract then waiver.

Deng played 15 years in the NBA. His prime last eight years and peaked at All-Star status. Don’t dwell on the woulda/coulda/shoulda. Appreciate what’s in front of you.

That’s a fulfilling career.

Most NBA GMs pick Clippers or Bucks to win 2020 NBA title in annual survey, Lakers third

Gary Dineen/NBAE via Getty Images
1 Comment

The top of our 50 best players in 5 years list:

1. Giannis Antetokounmpo

2. Anthony Davis

3. Luka Doncic

Apparently, NBA general managers hold similar views. Though they answered a slightly different question in their annual survey on NBA.com, the polled general managers had the same top three:

If you were starting a franchise today and could sign any player in the NBA, who would it be?

1. Giannis Antetokounmpo, Milwaukee — 86%

2. Anthony Davis, L.A. Lakers — 7%

Luka Doncic, Dallas — 7%

Antetokounmpo won this category last year, but with just 30% of votes. An MVP season will certainly spark consensus.

The Bucks forward is the first player to claim a majority of votes in this category since Anthony Davis in 2015. Davis’ reign was short-lived. Karl-Anthony Towns claimed the top spot the following two years (though with just a plurality of votes).

Other interesting results:

Which team will win the 2020 NBA Finals?

1. LA Clippers — 46%

2. Milwaukee Bucks — 36%

3. Los Angeles Lakers — 11%

Also receiving votes: Golden State Warriors, Portland Trail Blazers

I’d favor the Clippers (though not over the field) followed by the Lakers. But the Bucks have an easier path from the East. They also don’t engender the resentment the Lakers do.

Who will win the 2019-20 Rookie of the Year?

1. Zion Williamson, New Orleans — 68%

2. Ja Morant, Memphis — 29%

3. Darius Garland, Cleveland — 4%

Which rookie will be the best player in five years?

1. Zion Williamson, New Orleans — 68%

2. Ja Morant, Memphis — 18%

3. Cameron Reddish, Atlanta — 7%

Also receiving votes: Jarrett Culver, Minnesota; Darius Garland, Cleveland

Will Zion Williamson win Rookie of the Year? Will he have the best career of this rookie class (which is essentially what the second question asks)? Neither are locks against the field. But I don’t understand naming another rookie ahead of the generationally athletic and productive No. 1 pick.

Yet, a full third of responding NBA general managers did just that. Wild!

I’m guessing (hoping?) some just wanted to give a contrarian take. Show me the general manager who’d actually trade Williamson for Morant, Reddish, Culver or Garland.

Who is the best head coach in the NBA?

1. Gregg Popovich, San Antonio — 55%

2. Erik Spoelstra, Miami — 17%

3. Mike Budenholzer, Milwaukee — 10%

4. Steve Kerr, Golden State — 7%

Also receiving votes: Steve Clifford, Orlando; Doc Rivers, LA Clippers; Quin Snyder, Utah

There’s nothing crazy about these results… except last year’s leader – Celtics coach Brad Stevens, who received 47% of the vote – got no votes this year. That’s a steep drop, especially for a category that isn’t even about performance this season. The best coach probably doesn’t fluctuate that much annually.

Only perception did, which says something about how long to hold onto these survey results.

Buddy Hield calls Kings’ extension offer ‘insult’: ‘Name one big free agent that came to Sacramento’

Rocky Widner/NBAE via Getty Images
4 Comments

Buddy Hield hinted about leaving the Kings in free agency next summer if they don’t sign him to a contract extension by Monday’s deadline.

He and Sacramento remain apart in negotiations. The Kings have reportedly offered $90 million over four years. Hield reportedly wants $110 million over four years.

So, Hield is intensifying his rhetoric.

Hield, via James Ham of NBC Sports California:

“I just know where my value is at, and I’m not going to budge for nobody,” Hield said. “I work hard. I come in here every day and I do my job.”

“It’s not frustrated, I’m just speaking to my heart,” Hield said. “I feel like people get mixed up with being frustrated. I’m just speaking what I believe and what I think. Like I said, there are 30 teams out there. If they don’t want to give me what I think I deserve, some team will give it to me. They’ll have the ability to match, or they’ll have the ability to let me go.”

“The goal is to be here,” Hield told a larger contingent of media. “I love Sacramento, but if they don’t want me here, if they don’t feel like I’m part of the core. … I like respect and loyalty, and I feel like I’m part of the group that’s getting the team back to where it needs to be.”

“Name one big free agent that came to Sacramento,” Hield said in the scrum. “I’ve been here three years trying to grow the program, grow the organization, and I feel like I could be rewarded close to that. But that’s just me. That’s my gut feeling.”

Hield, via Jason Anderson of The Sacramento Bee:

“I see it like an insult,” Hield said. “I feel like I’m worth more than that. If you say I’m your guy and you want to build around me, I just need you to show it. Actions speak louder than words. If you’re just talking and not showing nothing, I’m not going to respect it. I love playing here. I want to be here. This is my home. I’m trying to buy a house here, but everything is on stall mode because I don’t know if they’ll really commit to me.”

“I don’t know if things are going to get done,” Hield said while standing in front of his locker with more than a dozen reporters gathered around and three team staffers hovering nearby. “If it don’t get done, me and my team will look for something else — probably another home. Until then, we’ll see if they really want me here.

Chris Webber re-signed with the Kings in 2001, when he was the biggest free agent on the market. But that was back when they were good. They’ve been in a long rut since.

Sacramento appears on the verge of breaking through now. That’ll make the team more attractive to free agents.

Of course, Hield is a big part of the Kings’ rise. They might fear disrupting chemistry if he’s unhappy without an extension. He’s clearly trying to prey on that potential concern. That’s his leverage.

But Sacramento has far more leverage. Without an extension, Hield would be a restricted free agent, the Kings able to match any offer he signs. He can’t unilaterally leave next summer.

Hield could accept the $6,484,851 qualifying offer and become an unrestricted free agent in 2021. But that will be a stronger free-agent class, and Hield will be 28 then. That’d be quite risky.

The Kings also have another good young shooting guard in Bojan Bogdanovic. That gives them even more leverage with Hield.

There’s just not much Hield can do now except make waves through the media. So, that’s what he’s doing.

If he doesn’t get an extension, will it get worse? Sacramento should be wary of that. However, there’s also a chance the perceived slight motivates Hield into even better play. That’d be the Kings’ gain, because – again – they can still pay him next summer with no risk of losing him until 2021 at the very earliest (and that’s only if Hield is willing to take an unprecedentedly risky route with the qualifying offer).

There’s still plenty of time for Hield and Sacramento find common ground. He’ll likely keep applying pressure until a deal is reached or the extension deadline passes.

Did JaVale McGee feign injury to set up open dunk? (video)

1 Comment

I’m extremely reluctant to accuse anyone of faking an injury, but…

1. It’s JaVale McGee, who has a history of antics.

2. There’s no obvious cause of an injury.

3. McGee recovered incredibly quickly.

If he weren’t actually hurt, this was an illegal play by McGee. Healthy offensive players can’t run off the court like that. The penalty is loss of ball, but I don’t envy officials who had to determine whether the injury was real.

It’s also inconclusive whether McGee established himself in-bounds before catching the pass it. It’s close.

Another debatable point if McGee did this deliberately: Did he waste a clever play in the preseason? Even a sharp defender, Draymond Green, understandably lost track of McGee once McGee limped off. Or was the preseason the only time to have fun like this?

What is clear: The Lakers had another nifty play in their exhibition win over the Warriors last night. LeBron James switched hands mid-air to throw a kickout pass to a wide-open Danny Green: