Comparing markets, attendance and ownership in Sacramento and Seattle

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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.”

Report: Knicks will roll over cap space if they don’t sign Kevin Durant, Kyrie Irving, Kawhi Leonard

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The Knicks are chasing Kevin Durant and Kyrie Irving. New York will reportedly get a meeting with Kawhi Leonard.

But Irving appears headed to the Nets, and Durant might follow. Leonard appears to favor the Raptors in a two-team race with the Clippers.

Stefan Bondy of the New York Daily News:

New York still believes it’s in the hunt for Kawhi Leonard, Irving and Durant. But, according to a source, the Knicks will punt their $70 million-plus in cap space if they can’t land one of those Tier A free agents.

This plan would require patience Knicks owner James Dolan has rarely shown. The Knicks have missed the playoffs six straight years. Twice during that span – including last season – they posted their worst record in franchise history (17-65). Dolan publicly proclaimed confidence New York would sign major free agents this summer.

He’d really allow the Knicks to delay winning even further?

New York is positioned to wait until 2020 free agency (though Joakim Noah‘s cap hit will remain on the books after an avoidable error). R.J. Barrett and Kevin Knox will still be on relatively cheap rookie-scale contracts. As a second-round pick, Mitchell Robinson is even lower-paid. If they sign players to only one-year contracts this offseason, the Knicks will once again have massive cap room.

But good players generally want multi-year deals. So, New York would be choosing among a far more limited pool of free agents. Another gloomy season would likely await.

And then the 2020 free-agent class looks weak. Especially with Anthony Davis already on the Lakers, there probably won’t be an attainable superstar for the Knicks. There might not even be an attainable star.

Then what? Sacrifice the 2020-21 season to gear up for 2021 free agency? Maybe Barrett, Knox and Robinson develop and send New York on a different track, but that’s far from assured.

The genius of this plan is it allows Knicks president Steve Mills and general manager Scott Perry to keep their jobs while the team continues to stink. There would be no expectations of winning anytime soon – as long as Dolan abides.

Report: Kyrie Irving doesn’t like living in Boston

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Has Kyrie Irving been in contact with the Boston Celtics about his free agency? We have reports that say that Irving has “ghosted” the Celtics… and of course we have counter reports that say just the opposite.

It’s hard to believe anything that swirls around Irving, one of the more enigmatic and tiring personalities in the NBA. At the very least, Irving has appeared to send signals that he is looking to sign with the Brooklyn Nets. Chief among them being that Irving recently fired his longtime representation and signed with Roc Nation, which has a close partnership with the Brooklyn front office.

Boston has had a hard time getting free agents to come to play for the franchise, and that’s before they had a standing beef with Klutch Sports. According to ESPN’s Jackie MacMullan, one of our Irving’s problems with the Celtics was that he simply didn’t like living in Boston.

Via ESPN:

“Kyrie Irving didn’t like Boston. I’ve been told this by many people. He didn’t like living in Boston — he just didn’t. By the end he had issues with Brad, by the end he had issues with Danny… by the end he had issues with pretty much all of us.”

We have heard rumors that things started to go wrong in the Celtics locker room when coach Brad Stevens seemed to openly favor injured star Gordon Hayward a bit too heavily (Hayward played for Stevens at Butler in college).

Meanwhile, Danny Ainge has the propensity to rub folks the wrong way. He makes whatever decision he thinks is the best from a basketball perspective, relationships be damned. We learned that with the Isaiah Thomas trade.

At this juncture it seems unlikely that Irving will return to the Celtics. Meanwhile, we will probably continue to get stories like this out of Boston.

Chris Paul: “I never asked for a trade” and says he’s happy to be in Houston

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With Golden State laid low by injuries (and maybe a defection), Houston should be the team stepping to the front of the line saying “it’s our turn” in the West.

Instead, the Rockets two stars — James Harden and Chris Paul — are feuding, ownership is turning coach Mike D’Antoni into a lame duck, and everyone without a fantastic beard hears their name in trade rumors.

The Harden/Paul feud is real, but Paul tried to downplay it at a charity event in Los Angeles over the weekend, denying a trade request and saying he was happy to be in Houston, as reported by Jonathan Feigen of the Houston Chronicle.

“I never asked for a trade,” Paul said. “I never demanded a trade.”

“I’ll be in Houston,” Paul said. “I’m happy about that. I’m very happy about that. I’m good.”

The report goes on to note Paul was asked if he had to work things out with Harden and he kind of danced around that question but said the issues were around a season-ending loss. Certainly, two straight years of being bounced by the Warriors has the Rockets frustrated. However, there is also a style issue: Harden dominates the ball and likes to work in isolation, Chris Paul can’t be as efficient that way anymore and prefers a more fluid offense (and more pick-and-roll for him). Coach D’Antoni gives a lot of leeway to Harden.

Harden and Paul need to work their issues out because Paul is nearly untradable (unless the Rockets want to throw in a sweetener with a pick or young player). Paul still has value on the court — a master floor general he averaged 15.6 points and 8.2 assists per game last season — but he is 34-years-old, lost a step last season, has an injury history (he played 58 games last season), and is owed $124 million fully guaranteed over the next three seasons. There simply are not teams interested in trading for Paul.

Houston could head into next season the favorites in the West. Part of that depends on how things shake out in free agency (does Kawhi Leonard come West, for example), but a lot of it is just the Rockets getting their act together. I expect Paul and Harden to figure things out, at least well enough to make it work. Mostly because they don’t have a choice. Paul isn’t going anywhere, whether he asked to leave or not.

 

Zion Williamson on Pelicans: ‘I’m ready to stay here’ (VIDEO)

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Zion Williamson is finally, officially a New Orleans Pelican. David Griffin and the Pelicans front office selected Williamson No. 1 overall in the 2019 NBA Draft on Thursday.

Now, we just have to wait for the Anthony Davis trade to be official and we can put this whole thing behind us.

Meanwhile, Williamson has been celebrating. According to TMZ, he had a big pizza party with his friends after the draft in New York. Williamson has since reported to the team in Louisiana, where he’s already saying all the right things to the media.

Speaking during a team event, Williamson said that something just hit him and that it was a gut feeling that he was glad to be in New Orleans.

“This is my home,” said Williamson. “I’m ready to stay here.”

Via Twitter:

Williamson could also be seen getting recommendations for the excellent cuisine in the Bayou.

As No. 1 overall picks and future franchise cornerstones go, Williamson already seems to have the temperament of a guy who’s willing to take over from the last one in Davis.