I'd love more details on this. I cant imagine the Cow Palace makes more sitting empty. There is probably a reason I am not a CEO, but if it was up to me, $15 admission, all seats, no parking charges, and advertise $5 PBR nights. People would go just for the cheap beer.
I'm NOT ... again, NOT ... saying this is what actually happened.. but I am saying it's possible..
While the team may have had problems meeting other obligations, there's a very real scenario in which a struggling team could not pay its arena..
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Normally, the day after a game there's a settlement for the event.. if the arena's box office took in more money on game day on behalf of the team (combined with team's concessions share if any, etc) than the rent and all other costs - the venue cuts a check to the team for the difference... if the venue doesn't take in enough money to cover the game's costs, the team needs to pay the venue.
When you look at the Bulls attendance, the first thing one wonders is how many of those tickets were already pre-paid TO THE TEAM in the form of season tickets, or tickets distributed as part of corporate packages.. comp tickets, etc.. and thus with little walk-up crowd, very little money would have never entered the VENUE'S accounts..
It's quite possible that the revenue from game-day ticket purchases at the box office were actually really low.. and given the attendance at the games, concessions revenue were potentially far below expectations as well.. so it's not like the venue would say "okay well, so what if the team isn't paying us because the fans are scarfing down our hotdogs and beer and we're profiting $25k/game due to our concession stands"
In cases like this, it's possible the team could be unable to pay the game day liabilities from game to game.. the venue makes a decision to let the games continue for awhile in the hope of eventually being paid.. (plus a team could be snowing the venue saying they have X or Y revenue coming in - or new owners who will settle any balance).
At some point the venue realizes they'll never be paid the money they're owed.. and they act by refusing any more events to occur unless all outstanding balances are paid either in full or at least a meaningful percentage to re-establish good faith..
The team may not even be able to pay travel and payroll expenses, let alone paying the venue..
So in a scenario like this, the venue does indeed lose less money sitting empty.. and the venue does what it has to do..
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NOT SAYING THIS IS WHAT HAPPENED IN SF WITH THE BULLS AND COW PALACE.