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.”

Mark Cuban’s plan for a restart, “I don’t think we can go the old tried and true way”

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Wild, fanciful ideas for restarting the NBA that would never fly in a typical year — 1-16 seeding, or maybe a soccer World Cup-style group stage — are getting an airing this season because everything is on the table. As the NBA moves closer to a restart plan, countless ideas are being floated.

Mavericks owner Mark Cuban has his own plan.

Shocking, I know. But it’s interesting.

“What I proposed is that we extend the playoff format to 10 teams from each conference, and play at least five games prior to going into playoffs,” Cuban said laying out is plan to NBC’s Mike Tirico on “Lunch Talk Live.” And if we do that, every team in the Eastern Conference would have a chance to make the playoffs, and all but two in the Western Conference would do it [Ed. note: Golden State and Minnesota].

“Then, what I would do, once we got 10 and 10, I would reseed them, and 17 would play 20, and 18 would play 19, in a one-game series. The winner then would take on the eighth-place seed in a five-game series, while the No. 1 seed in each conference would get a bye. Then you go ahead normally from there.

“That gives us a chance to have more meaningful games, it gives almost every team a chance when we come back for whatever is left of our regular season. I think we’ve got to change it up some, I don’t think we can go the old tried and true way.”

Cuban later added, speaking to ESPN’s Tim MacMahon, that he wants to see all 30 teams come to Orlando for regular season games, building excitement for the NBA’s return in every market. This dream, however, seems a long shot, and Damian Lillard spoke for a lot of players when he said he’s not playing if there is not a path to the playoffs for Portland.

Cuban’s point that this is the year to try something different, not to play it safe, has real validity. This season is already upside down due to the corona

Cuban’s plan is a long shot, but is it any longer a shot than any of the other ones out there?

 

Wizards’ Bradley Beal: Thunder considered trading James Harden for me on draft day 2012

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The first three picks of the 2012 NBA Draft, which was held in June:

1. New Orleans Hornets (now Pelicans): Anthony Davis

2. Charlotte Bobcats (now Hornets): Michael Kidd-Gilchrist

3. Washington Wizards: Bradley Beal

That August, the Thunder reportedly offered to trade James Harden to Washington for Beal. Washington reportedly rejected the offer due to Harden’s desire for a max contract extension (which Wizards owner Ted Leonsis denied). The Rockets were more than willing to pay Harden, and Oklahoma City dealt him to Houston that October.

Apparently, Washington had a chance to land Harden earlier that offseason.

Beal on “All The Smoke:”

We’re sitting in the draft room. Sure enough, my agent is tapping me. He’s like, “It’s possible you might go to OKC.” I said, “Damn, how am I going to go there? I ain’t even worked out for OKC.” I only worked out for three teams – Washington, Cleveland and Charlotte.

So, the deal was to trade James to Washington, right? OKC gets the third pick. It was either the second or third pick. They were going to trade up to 2 or 3, get me, trade James to Washington.

I would have been in OKC with KD and Russ.

That was a last-minute decision. It was almost done.

I can’t tell whether Beal is also revealing a Harden-to-Charlotte offer or just got mixed up on which teams held the Nos. 2 and 3 picks. Obviously, if Beal was the main prize to the Thunder, they would’ve cared only minimally whether they got him with the No. 2 or No. 3 pick. So, there might have been trade talks with Charlotte, too.

But I’m not convinced Oklahoma City valued Beal that way.

The Thunder were a championship contender. They had just lost in the 2012 NBA Finals to the Heat. Oklahoma City couldn’t have depended on a rookie Beal to contribute on that level.

That’s why – in addition to picks/young player acquired from the Rockets for Harden – the Thunder also got Kevin Martin. The veteran Martin was much better than Beal in 2012-13. (Ironically, the open title window was also a strong argument for just keeping Harden, whatever his contract status).

But the 2012-13 season didn’t go as planned for Oklahoma City. Russell Westbrook got hurt early in the playoffs, and the Thunder lost to the Grizzlies in the second round. Martin left for a lucrative contract with the Timberwolves the following summer.

Even with the long runway Kevin Durant and Westbrook provided, Oklahoma City never got back to the Finals. Beal could have grown into a third star whose shooting complemented the duo. The Thunder might have won a championship with this trade (or, again, just keeping Harden).

The Wizards almost certainly would have won more. Harden has perennially gotten the Rockets to the playoff. (They’ve gone further in years he has had more help.) Beal hasn’t singlehandedly carried Washington like that.

So, this is an interesting “what if?” – if you take it at face value.

Beal’s agent warning him of a trade possibility means something. But we don’t know which other pieces were involved.

The Thunder didn’t trade Harden until just before the rookie-scale-extension deadline, suggesting they wanted to give themselves time to extend him themselves before taking the drastic step of trading him. Would Beal have been enough of a return to give up in June (or even August) on keeping Harden? Maybe. Harden didn’t fully blossom until reaching Houston. But I’m skeptical. At minimum, Harden had already established himself as young and good. Beal was young, promising and under greater team control. There’s significant value in the certainty of a player being at least a near-star, and Harden – not Beal – had that.

Even in hindsight, we’re still revisiting the situation with only limited information.

Report: NBA games could resume in August, not July

Bucks center Brook Lopez and Raptors center Marc Gasol
Steve Russell/Toronto Star via Getty Images
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A week ago, the NBA was looking to resume games in July at Disney World.

Adrian Wojnarowski of ESPN:

In fact, there’s a possibility the first games played in Orlando could be in August, not July, sources said.

It’s good the NBA is being flexible on a start date. The coronavirus presents so much uncertainty.

The league is approaching its most lucrative time – the playoffs. The NBA should make every effort to play the postseason, whenever that can be done safely.

Everyone can figure out next season later, especially because there’s a willingness to delay the start.

Report: Pistons searching for new general manager

Pistons executive Ed Stefanski
Chris Schwegler/NBAE via Getty Images
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The Pistons hired Ed Stefanski as a senior advisor to owner Tom Gores in 2018. Among Stefanski’s duties: Assist in the ongoing search for a new head of basketball operations. But it quickly became clear Stefanski would just run the front office himself.

Now, two years later, Detroit is finally getting around to that general-manager search.

Adrian Wojnarowski of ESPN:

The Detroit Pistons are opening a search to hire a general manager to work with senior advisor Ed Stefanski, sources tell ESPN.

Stefanski will be working with Pistons and Palace Sports Vice Chairman Arn Tellem on the process to hire a GM, sources said.

Rod Beard of The Detroit News:

If Stefanski is still running the front office, a new general manager would be the No. 2 – equivalent to assistant general manager on many teams.

After taking over an inflexible roster left by Stan Van Gundy, Stefanski couldn’t do much. Stefanski’s big move was trading Andre Drummond to the Cavaliers just before the trade deadline. That positioned Detroit to have major cap space next offseason, but it’s unclear how much will actually materialize. The salary cap could drop due to the coronavirus pandemic.

The Pistons must determine whether they’re still building around Blake Griffin, the 31-year-old due $36,810,996 and $38,957,028 the next two years. Last season, he returned to stardom and carried Detroit into the playoffs. This season, he missed most of the year due to injury.

If they’re trying to win now with Griffin, the Pistons are short on quality complementary players. If Detroit is ready to rebuild, its pool of young talent – Luke Kennard, Sekou Doumbouya, Bruce Brown, impending free agent Christian Wood, its own first-round pick – is hardly assured of success.

After years of being stuck on a path charted under the Van Gundy regime, the Pistons can soon pick a new course. This is the time get the front office up to full staffing.