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.

Rudy Gobert re-energized ahead of Jazz at Thunder

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ASSOCIATED PRESS — Rudy Gobert didn’t hide his disappointment at not making the NBA All-Star Game for the first time despite averaging 15.2 points and 12.9 rebounds while leading the league in field-goal percentage.

But coming off the 10-day break, the Utah Jazz center says he’s re-energized heading into Friday’s game against the Oklahoma City Thunder.

“Just recharge, completely — mentally, physically,” Gobert said. “For me, I was able to get a little bit of sun and feel a lot better when I get back.

“The next two months, I feel like, will be a lot better.”

The Jazz, who have won 13 of their last 16 games, come out of the break sixth in the Western Conference but with one of the NBA’s easiest schedules down the stretch.

Utah plays just eight of its final 25 games against teams that are above .500.

One of those, though, is Friday night’s game in Oklahoma City, which sits third in the West after winning 11 of 13 before the break.

The Thunder, on the other hand, have one of the league’s most challenging schedules moving forward. Oklahoma City plays 17 of its remaining 25 games against teams above .500 including each of the first five out of the break.

The Thunder have won the first two meetings between the teams, including a 122-113 win on Dec. 10 in Oklahoma City.

An Oklahoma City win would clinch the season series for the Thunder after Utah eliminated Oklahoma City in the first round of the playoffs last season.

The Thunder’s Russell Westbrook has a streak of 10 consecutive triple-doubles. During that stretch, he’s averaged 21.9 points, 13.3 rebounds and 13.5 assists.

Utah is hopeful backup point guard Dante Exum, who has missed the last 17 games with a left ankle sprain, will be able to return against the Thunder.

“I think when he’s playing well, he can have a big impact for us and having him back soon is going to help us a lot,” Gobert said.

The Thunder could have forward Markieff Morris available for the first time. Morris signed with Oklahoma City over the All-Star break after being waived by New Orleans following his trade from Washington on Feb. 7.

Morris was averaging 11.5 points and 5.1 rebounds for the Wizards this season before suffering a neck injury in late December that has kept him out since. Morris was cleared to play two weeks ago.

“We got a big piece in Markieff that we’re excited for, and we’re going to be ready for the second half after this break,” Oklahoma City’s Paul George said.

Thunder coach Billy Donovan said, “We’ll see,” when asked Thursday if Morris would play against the Jazz.

The Thunder also figure to have both starting forward Jerami Grant and backup point guard Dennis Schroder back after each missed the last two games before the break, Grant with an ankle injury and Schroder after the birth of his child.

Friday’s game is the start of a back-to-back for both teams, with the Jazz hosting Dallas on Saturday and Oklahoma City hosting Sacramento.

 

Raptors fans welcome DeMar DeRozan back with loud, standing ovation

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DeMar DeRozan was the greatest Raptor ever. He was an All-Star, he presided over the best seasons in franchise history, and he’s the one guy who re-signed and stood up for a city that has an inferiority complex around its basketball team.

Toronto fans understood the trade that brought Kawhi Leonard to the team — it’s an upgrade on the court — but their love for DeRozan is real.

They showed that on Friday night when DeRozan returned to Toronto for the first time as a member of the Spurs — he got a raucous ovation upon his introduction.

Early in the game he gave them a taste of what he did for them for years, getting the and-1 bucket on the drive.

Marcus Smart hits halfcourt shot at practice, celebrates with a back flip

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The celebration is more impressive than the shot.

After a tough loss to Milwaukee on Thursday, the Celtics traveled to Chicago to take on the Bulls on Saturday. Friday they had a practice in the Northwestern University facility.

It’s there Marcus Smart drains a halfcourt shot. Impressive. But not nearly as impressive as the backflip celebration.

I did not know Smart had that in him.

Clippers owner Steve Ballmer reportedly tells organization he still wants playoff push

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When the Clippers traded their best player — Tobias Harris — right before the trade deadline, it was a move generally seen as throwing in the towel on this season’s playoffs, but it was applauded around the league because of the haul it brought back to L.A. It set the Clippers up with one max cap slot this summer and a reasonable path to a second one, plus the Clippers landed rookie shooting guard Landry Shamet, Philadelphia’s 2020 first-round pick (lottery protected) and the Miami Heat’s 2021 first-round pick unprotected.

Except then the Clippers not long after traded for Garrett Temple and JaMychal Green — boosting the roster’s depth in needed spots. Not a move a team looking to fall out of the playoffs makes.

That’s because owner Steve Ballmer doesn’t want them to fall out of the playoffs, reports Sam Amick of The Athletic.

Sources say Clippers owner Steve Ballmer has let it be known throughout the organization that he wants to keep making this playoff push. Never mind that such an accomplishment would cost them their first-round pick this season.

The coach and players should never be told to lose games, they need to go all-out every time they are on the court. That goes to the culture of an organization. If a decision is made to focus on the future, then it’s about roster decisions at the GM level. That is what the Clippers did, and there is nothing wrong — or even strange — about the owner telling them to push and try to make the playoffs.

Either way, it works for Los Angeles.

Make the playoffs as the eight seed and the Clippers are likely just the first-round appetizer for the Warriors as they chase a three-peat, but it shows potential free agents the role players on the team have grit and just need a star and leader. Their young stars would gain a little playoff experience. While the Clippers would lose this year’s first-round pick, giving up a late teens pick in what is considered a down draft (especially after No. 1) is not that painful a loss. It’s one less asset to throw in a potential trade (Anthony Davis anyone?), but it’s not devastating.

Miss the playoffs and they get a late-lottery pick and things go as expected.

Make or miss the playoffs, the Clippers are focused on July 1 and landing a couple of free agents, with Kawhi Leonard at the top of the list (and a lot of sources around the league think that’s where they are headed).