Dollars & Sense: NBA Rebranding in New Orleans and Charlotte

This week marks the beginning of the conference finals in the NBA playoffs – Memphis Grizzlies against the San Antonio Spurs (Spurs lead 2-0) in the west and the Miami Heat against the Indiana Pacers (Heat lead 1-0) in the east.  However, this week has been the week for the losers.  Between the NBA Draft lottery on Tuesday and the current rebranding efforts in New Orleans and Charlotte, the losers are becoming just a little bit more lovable.  Or at least they are trying to be anyway.

New Orleans Pelicans

The New Orleans franchise has been marred by weak performances over the years and even weaker stability.  Making their debut in the league as the Charlotte Hornets in 1988 alongside the Miami Heat, the Hornets were constantly struggling in their first three years.  Names like Larry Johnson, Alonzo Mourning, and Glen Rice helped build the franchise to the point where Rice led them to their first back-to-back NBA playoff appearances in the 1997 and 1998 seasons.

Rice, Bogues, and Mourning (Soletron.com)

However, attendance and fan base found themselves in rapid decline after the 1997-98 season.  Dropping from their peak in the 1995-96 and 1996-97 seasons where they averaged 24,042 fans per game, the Hornets found themselves averaging only 11,286 in 2001-02.  That was the final straw for the franchise in Charlotte.

The Hornets relocated their franchise to New Orleans searching for greener pastures and greener wallets.  What they found was a relatively small increase in attendance though.  In the 2003-04 season, the Hornets ranked 28^th in the NBA in attendance. 

When Hurricane Katrina hit in 2005, the New Orleans franchise split their time in Oklahoma City due to the destruction in their home city.  Though the Hornets played in Oklahoma City to wonderful attendance success – proven success that later aided the Seattle Super Sonics in their controversial relocation to Oklahoma City in 2008 – it was not their home town.

Now settled back into their home in New Orleans with a couple of high profile talents on their roster in Eric Gordon and Anthony Davis, the franchise is beginning to feel like they have an identity again.  One problem… The Hornets name is still from their Charlotte days.  They want their own.

Enter the New Orleans Pelicans.  Currently undergoing the transformation, the Pelicans are now official and awaiting game one of the 2013-14 regular season to show it off.  After walking away with the sixth pick in this summer’s NBA Draft after Tuesday’s draft lottery, the Pelicans will look to add some more fire power to their young squad.

ESPN.com

The early stages of the transition from the menacing Hornets to the seemingly friendly Pelicans has been met with its fair share of criticism.  Is the criticism warranted?  It is tough to say because anybody can sit back and criticize when they have not been in the driver’s seat on this type of decision.   Let’s just give them their credit in that the logo designers made the most intimidating pelican possible.  And let’s be honest, the New Orleans franchise was doomed for a unfitting name when the Utah Jazz – Utah! – took the Jazz nickname.

Charlotte Hornets

After the Hornets left Charlotte for New Orleans in 2002, the city was left without an NBA franchise.  However, despite the declining attendance numbers that pushed the Hornets to New Orleans in the first place, the NBA saw potential. 

NBA.com

The city was not without an NBA franchise for long as the Bobcats were born in 2004, two years after the Hornets left.  Expansion had been on the mind of the NBA for a little while, and Charlotte had supported a franchise in the past.  Had the NBA known the potential in Oklahoma City – potential that was not realized until after Hurricane Katrina in 2005 – maybe Charlotte would still be waiting for the NBA’s return. 

Problem was that bobcats are not really synonymous with the Charlotte areas, or many areas in the world, so the nickname seemed a little bit out of left field.  Sure it sounds fierce, but that is not the point.  In the NBA where there are so many classic team names - think Lakers, Celtics, Knicks, 76ers -  few people could envision the Bobcats (or the Pelicans for that matter) becoming a name of that stature.

But now, with the Hornets becoming the Pelicans in New Orleans, the window is now open for the Bobcats to return to their roots by switching back to the Hornets.  Basically, now instead of having two cities with confused nicknames, we have one wrong righted and one team still trying to figure it out and create their own identity.

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Regardless of how you feel about the Pelicans or the Hornets or the Bobcats, one thing will always ring true: winning cures everything.  Look at the opposite end of the spectrum in Major League Baseball last season with the Miami Marlins.  Known as the Florida Marlins since their first season in 1993, ownership decided to rebrand the team with new colors, a new ballpark, a new roster, and a more geographically narrowed home in Miami prior to the beginning of last season. 

Of course, we all know that the Marlins went on to completely implode last year finishing in last place in the National League East and resulting in the fire sale of players this past offseason, and now they are terrible again.  Oh, and attendance is back to its pre-Marlins Park numbers.  If the Marlins would have kept winning, then maybe they could have build on the momentum of the new park and the infusion of talent.  Now that would have been a rebranding success.

What has become a relatively quiet rebranding success is the Winnipeg Jets in the NHL.  With a rich history in the WHA and then the NHL from 1972-1996, the Jets were a relatively successful franchise before being moved to Phoenix to become the Coyotes in 1996.  Never missing the playoffs in more than two seasons in a row in their NHL days, the Jets were always in it.  In 2011, the Atlanta Thrashers relocated to Winnipeg and brought the tradition back to life.

This past season, the Jets found themselves four points behind the New York Islanders for the final playoff spot in the Eastern Conference, but they were certainly in it.  Also, and probably more importantly, the Jets averaged 100-percent attendance with just over 15,000 fans per game (remember that basketball attendance capacities in arenas are higher than hockey).  It is hard to ask for more from a team that just wrapped up their second season in a new city.

By now, it should be clear that the key to rebranding success for the Pelicans and the Hornets is to do exactly the opposite that the Marlins did.  Winning is a major player in building a loyal fan base, and winning is something that the Marlins are not doing but the Jets are.  Whether it is the NBA or the MLB or the NHL or any other professional sports league in the world, the formula is simple.  Just win, baby. 


Follow Kevin Rossi on Twitter @kevin_rossi.

What Kings Deal Means for the NBA

After much talk about the Kings future. A decision was finally made. After an apparent deal was done to move the team to Seattle, residents of Sacramento were not happy. The Maloofs brothers were being pressured to keep the team in Sacramento. The situation was tense because Seattle lost an NBA franchise and was hungry for a return team. Sacramento has been home to a loyal fan base that was supportive of its team.

The bid for the team to move to Seattle was in place, as I wrote about previously. Later Sacramento made a push to keep the Kings, an argument they ultimately won. The NBA owners officially voted to reject the bid to move the team to Seattle and keep the team in Sacramento. This decision was able to be made after billionaire Vivek Ranadive came to an agreement to purchase 65 percent of the Kings and keep them in Sacramento.

Dollars Behind the Deal
Ranadive will pay $348 million for his 65 percent stake in the team. Ranadive already put $200 million in an escrow account before the deal in anticipation of the deal getting done. The total valuation of the sale will be $535 million.

The team owed money to the city of Sacramento and the NBA, a total of $60 million. After taking that debt into account, the Maloff brothers were able to make about $200 million for their share of the team.

Ranadive secured about $250 million from Sacramento public officials toward a potential new Kings arena.

Vivek Ranadive

What it Means for the League
The sale of the Kings for $535 million set a record for the National Basketball Association. From the year 2012 to 2013, the average value of an NBA team rose 30%. A lot of the reason for the increase in value has to do with new stadiums and a television contract worth more money.

At the end of the 2011 calendar year, Joshua Harris and his group purchased the Philadelphia 76ers. It is diffiuclt to imagine that they paid only $280 million for the team. Looks like a pretty good investment right now.

Final Thought
With the rapid growth of the league, expansion has to be looked upon seriously. Although Sacramento was ultimately successful in winning the team, Seattle put up a good fight. The bid for the team to move to Seattle was more than respectable. The obvious interest in having a team in Seattle must be looked at seriously by the NBA. The NBA in the past has avoided talk of expansion but now is the time where it should be looked at because of the increasing revenue value of each team.

@dmrosen7

Broken News: Fox Sports 1 Takes Chance on TSN Duo

Regardless of what you think about the current format of ESPN's Sportscenter, one thing is true: the show is still a staple in millions of mornings across the country.  Has been for years.  Maybe viewers feel they are getting too much debate and not enough highlights, but either way, many have stayed.

Last year, NBC Sports Network launched its counter morning show called The Lights.  The show is fast-paced for the morning commuter looking to cram as many sports highlights into his or her morning bowl of cereal.  A stark contrast to ESPN's show, but certainly does not have the big-time personality or the ratings to back up the talk.

(Sports Illustrated sports media reporter Richard Deitsch talks with Onrait and O'Toole about the move to America)

Now Fox Sports 1 is less than 100 days until its August 17th launch date, Fox is planning their morning competitor to take on ESPN and NBC Sports.  Fox Sports 1 will be available in about 90 million homes at the time of the launch.  Fox Sports Live will be their morning show, and among their high profile hires for the network are the two men that will head the show.

Jay Onrait and Dan O'Toole have been heading Sportscentre on TSN in Canada to wild success.  Their cult following with America's neighbor to the north is one the ESPN has not seen since its earlier days of names like Steiner, Olberman, Roberts, Patrick and Mayne graced the Bristol, Conn. set.  Now those two bring their offbeat yet hilarious chemistry stateside.

What do you think of some of their top moments?

Quirky indeed, these two may really have a chance to change the morning sports viewing landscape.  With almost a sketch comedy feel to their delivery, they have proved to be extremely effective in presenting the important part.  You know, the highlights.  It should be interesting to see what Onrait and O'Toole bring to the table at Fox especially when considering that the former TSN duo is also bringing along their long-time producer.

(Here is a link to Fox Sports 1's opening day schedule)

The battle for ratings could be slow at first as Fox Sports 1 and Fox Sports Live begins to gain a footing, but the competition may not be as mountainous as one may expect.  Sportscenter's top rating on Monday - I would presume an average Monday with no huge news but NHL ad NBA playoffs running - was the 6:00 p.m. edition that attracted 850,000 viewers (0.4 rating among 18-49 year old viewers).  The Lights on NBCSN did not crack the 0.2 rating barrier among 18-49 year old viewers (although, to be fair, neither did the morning edition of Sportscenter).

Potentially dragging viewers away from Sportscenter and The Lights could be a revised approach to the morning show.  While Sportsenter has an all-around highlight, analysis, and debate focus and The Lights has a strictly highlight focus, Fox Sports Live will have a two desk element that will likely closer resemble ESPN's version than anything.  Onrait and O'Toole will be on highlight duty, while newly acquired former ESPNer Charissa Thompson will head a panel at a separate desk.

No word yet on whether they will be embracing the debate.

Or embracing Tim Tebow.

Either way, will you give Fox Sports 1 a chance?

TSN.ca

Follow Kevin Rossi on Twitter at @kevin_rossi.

Dollars & Sense - All Glass Everything

The latest wave of stadium renovations has brought about some imaginative ideas for how to build a mega sports palace.  When the pockets of billionaire owners are deepened by the seemingly endless yet also cash-strapped wallets of their city and state governments – and by extension, your wallet, if you live there – the imagination roams free with uninhibited reckless abandon. 

If you have not seen the designs for the Minnesota Vikings’ new stadium plan, then you should surely check them out.  The all-glass structure to let the beautiful sunlight in through its non-retractable roof looks to be on the same futuristic level as the Atlanta Falcons’ new stadium design.  Some say it looks like it should be on a Sandcrawler.  I think it looks like one of those robots from the old show Robot Wars.

 

Whatever your opinion is of the design, we can at least all agree that it is an ode to excess.  Just as the Falcons design is.  Just as is Marlins Park or Cowboy Stadium or the new Yankee Stadium.  

And as the rich get rich and we continue to privatize profits while publicizing debts, it is impossible to ignore the hefty price tag that will fall squarely on the shoulders of the Minnesota (namely Minneapolis) taxpayers. 

In total, the price tag of the new stadium is estimated to be in the $975 million range (I can’t imagine what they had to give up to keep the tag under $1 billion).  Almost half, $427 million to be exact, will come from the Vikings and a loan from the NFL.  The rest - $548 million – will come from the state of Minnesota ($398 million) and the city of Minneapolis ($150 million).  That means the Vikings’ new stadium will be 54% publicly financed, fourth most out of the last 10 NFL stadiums built.

According to Forbes, Minnesota senator John Marty estimated that under the current financing structure, the new Vikings stadium would cost the taxpayers $77.30 per ticket per game for 30 years.  And apparently the estimated does not even include the tax exemptions that the Vikings and the construction will receive in yet another sweetheart lease deal.

Funding for the project is already hitting a snag as the state tax on electronic pull tabs that was supposed to generate the first wave of revenue has come up short.  This is all coming from a state government that has already proposed $2 billion in new taxes and looked to cut $150 million from the state Health and Human Services budget that has already sustained over $1 billion in reductions in the past two years.  Oh yea, the state has a deficit of $627 million too (yes it is progress from the $1.1 billion that it was when Gov. Dayton took over two years ago).

Meanwhile, the anti-public-funding for the stadium oppositions continues to gain traction.  The problem is not necessarily that the rich get richer; it is how they are doing it.  We are living in a day and age where we pay more, get less, and are left wondering where exactly our money is going.  The people of Minnesota know where this money is going, and it is going straight into the pockets of Vikings owner Zygi Wilf and the NFL. 

With the government strapped for cash, their actions should be rooted in righting the course, not playing into billionaire profiteering.  If only the world were as transparent as the new Vikings’ stadium will be.

Follow Kevin Rossi on Twitter @kevin_rossi.