Metro Seattle: NHL, NBA and Arena - Part VII

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Shaz

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Jan 23, 2013
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They are in the same tier of revenue sharing, so I'm not sure how you can say they're not in the same realm. What were my ridiculous claims?

No they are not. Seattle would be a Revenue Contributer whereas Sacramento would be a Revenue Recipient.
 

sactown dude

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Apr 21, 2013
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I understand all that, but Seattle appears to be .... 50% bigger ... in terms of population, trending upwards, strong real estate market, and with some seriously wealthy/large companies and individuals. Sacramento just isn't in the same league, just like say Nashville in the NHL can't compete with Chicago in that sense.

I was asking how you decided that Sacramento's potential, even with the new arena, was as high or higher than Seattle's.

I wasn't answering that, because the discussion was related to the claims that Sacramento will be a "taker" rather than a "giver", and that somehow the rejection of revenue sharing payments was dirty pool because Sacramento will always be a taker and Seattle will always be a giver.

Sacramento's potential doesn't need to be as high as or higher than Seattle's for Sacramento to be a giver. It just needs to make a profit of $10MM. Likewise, if Seatlle doesn't make a profit of $10MM, it could be a taker. But it's all just speculation on both sides. One of Hansen's big selling points is supposed to be how Seattle will always be a giver and that's A-OK. Yet when Sacramento promises the same thing, it's dirty?
 

sactown dude

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No they are not. Seattle would be a Revenue Contributer whereas Sacramento would be a Revenue Recipient.

Is this written in stone somewhere? How do you know?

It is not in the same market size as Sacramento.

TV Media potential and rights:

12th Media market vs 20th media market

Yes, and the 12th and 20th media markets both fall in the same revenue sharing tier.
 
Feb 7, 2012
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Markets between 1MM and 2MM receive a full payment, if eligible (both Sac and Seattle are in this tier)

if eligible. That is the big difference. Seattle won't be eligible, Sacramento will be. Sure there will be a upswing because everyone is going to be excited about the Kings staying etc. But that doesn't change where the economy is or the amount of Fortune 500 companies in the Sacramento area.
 
Feb 7, 2012
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Its semantics. Seattle and Sacramento are lumped together based on number of TV sets. The key word is 'if eligible'

If a team is profitable without revenue sharing, it receives a smaller or zero payment. Any payments from revenue sharing that would lead a team to have a profit over $10 million are eliminated.
 

sactown dude

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Its semantics. Seattle and Sacramento are lumped together based on number of TV sets. The key word is 'if eligible'

You stated: "Would you call San Antonio a profitable market? They take money from the revenue sharing plan. ALL small markets do."

Now you say the key word is 'if eligible'. So which is it? Do ALL small markets take money, or only those that are eligible?

If a team is profitable without revenue sharing, it receives a smaller or zero payment. Any payments from revenue sharing that would lead a team to have a profit over $10 million are eliminated.

Yes, I linked to that and stated it more than once.
 

Fugu

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Far too many claims here without anything to back it up. Link it again if need be, but these circular arguments will stop.
 

sactown dude

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Far too many claims here without anything to back it up. Link it again if need be, but these circular arguments will stop.

Claim #1: Sacramento and Seattle are in the same revenue sharing tier. Source: http://www.cbafaq.com/salarycap.htm#Q24 As defined by the NBA, 1MM to 2MM households is one of four tiers (the next-to-lowest tier). Sacramento #20 market, 1.388MM households. Seattle #12 market, 1.819MM households. Source: http://tvbythenumbers.zap2it.com/20...market-universe-estimates-for-2012-13/146976/

Claim #2: Teams with greater than $10MM in profits do not receive revenue sharing payments. Source: http://www.cbafaq.com/salarycap.htm#Q24

Claim #3: Sacramento and Seattle are both promising that they will be ineligible for revenue sharing. This seems widely accepted by everyone.

Claim #4: Sacramento says it will not take revenue sharing payments even if eligible, putting their money where their mouth is. Seattle makes the same pledge. First part reported by many sources, second by Chris Daniels.

Claim #5: Nobody knows if Sacramento or Seattle will realize more than $10MM in profit per year.
 
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maruk14

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Claim #4: Sacramento says it will not take revenue sharing payments even if eligible, putting their money where their mouth is. Seattle makes no such pledge. This also seems widely accepted.

Not true:

Chris Daniels ‏@ChrisDaniels5 3h

Sources close to #NBASeattle group tell me they had, months ago, agreed to revenue sharing cap w/NBA.
Expand

Chris Daniels ‏@ChrisDaniels5 3h

Those same sources say #NBASeattle team would not be a revenue sharing recipient, and that was part of their original deal with NBA

https://twitter.com/ChrisDaniels5

So - it appears Seattle agreed to these provision months ago if it was part of the original deal with the NBA. Also makes you wonder how involved the NBA was in the original transaction between the Maloofs and the Hansen group - seems to me they were part of the negotiation based on that quote. Would also explain why Hansen hasn't backed down and wants to force this to a vote.
 
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sactown dude

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Not true:

Chris Daniels ‏@ChrisDaniels5 3h

Sources close to #NBASeattle group tell me they had, months ago, agreed to revenue sharing cap w/NBA.
Expand

Chris Daniels ‏@ChrisDaniels5 3h

Those same sources say #NBASeattle team would not be a revenue sharing recipient, and that was part of their original deal with NBA

https://twitter.com/ChrisDaniels5

So - it appears Seattle agreed to these provision months ago if it was part of the original deal with the NBA. Also makes you wonder how involved the NBA was in the original transaction between the Maloofs and the Hansen group - seems to me they were part of the negotiation based on that quote. Would also explain why Hansen hasn't backed down and wants to force this to a vote.

Although I would still say #4 was widely accepted, it looks like Chris Daniels has just today reported otherwise. That's very interesting. I'm not sure that indicates the NBA was part of the negotiation between the Maloofs and Hansen, but it does make one wonder. Alternatively, Hansen may have had the foresight to include it on his own originally, and the NBA insisted the Sacramento group do likewise with their offer. New news!
 

Shaz

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Jan 23, 2013
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Seriously I want expansion

As much as Sac and Sea are bickering over this, the NBA needs to do the right thing (They won't of course because Stern is a greedy ****)
 

EC09

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Jun 16, 2011
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Have to add 1 team to each conference. Seattle to the West, obviously. I'm thinking a team somewhere in Maine would do fantastic. Bangor perhaps?
 

Melrose Munch

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I'm not sure what you mean, MM. I was making the point that the NBA is interfering with the sale of a franchise by stacking the deck against the owner of that team in a way that lines the pockets of the owners who remain. They have the right to select owners, but the law gets murky when the Al Davis scenarios come up, insofar as market selection for relocation. Does the league have the right to disregard its own CBA in order to influence a franchise sale?



The facts show that only two teams received higher revenue sharing amounts than Sacramento this past year, and that a league high of $18 MM is expected for the next season.

That indicates to most casual observers that they are in the bottom group of the NBA revenue ranking.



If Seattle falls in the bottom half of league revenue, yes, the CBA would stipulate that they should receive funds. Last time I checked, the CBA wasn't something with sections you choose to ignore, unilaterally.

Secondly, someone already corrected you on the market sizes involved.

I feel that if Sac is going to prevent the NBA from getting a donor market from seattle they should not ask for help financially. NBA gains nothing besides good PR by keeping sac.
 

GuelphStormer

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i have to admit, im a bit concerned by all the various predictions that a team which does not even exist will be so successful financially that it will not only make a profit, but that it will contribute to revenue sharing. do these confident predictions also include the idea that seattle would easily sell out every night? that it would easily be able to charge top ticket prices? some pretty high expectations being painted here. :)
 

SharksFan1978

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Mar 29, 2012
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i have to admit, im a bit concerned by all the various predictions that a team which does not even exist will be so successful financially that it will not only make a profit, but that it will contribute to revenue sharing. do these confident predictions also include the idea that seattle would easily sell out every night? that it would easily be able to charge top ticket prices? some pretty high expectations being painted here. :)

As a non-Seattle SuperSonics fan (GO LAKERS!) who has lived in the Northwest for over a decade, I can assure you that, indeed, Seattle would sell out every game and could charge very unrealistic prices if they wanted to and people would still pay to go see them. People can talk about Seattle loving its Mariners and Seahawks all they want, but that city was a SuperSonics city first and it absolutely ripped the hearts out of their fans when that team was relocated. This is a city that had their team stolen from them and they have not gotten over it, so even though those expectations might seem high to you, they are realistic. It's not really even a prediction, in a way, but a statement of fact: if Seattle gets their team back at some point, they will sell out every game in short order and will be able to do so at virtually any price range they choose to set.
 
Feb 7, 2012
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i have to admit, im a bit concerned by all the various predictions that a team which does not even exist will be so successful financially that it will not only make a profit, but that it will contribute to revenue sharing. do these confident predictions also include the idea that seattle would easily sell out every night? that it would easily be able to charge top ticket prices? some pretty high expectations being painted here. :)

These are educated/best guesses predictions based on the economic vitality and corporate support of the area, as well as TV contract rates. No one can know for sure what the Attendance is going to look like 20 years from now. Thankfully the NBA market is less dependent on Gate revenue

I appreciate your 'concern' about the viability of the Seattle market as it pertains to the NBA.
 

maruk14

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I'll let you all chew on this piece of breaking news out of Sacramento.....

http://www.sacbee.com/2013/05/08/5405733/nba-encouraging-sacramento-suitors.html

Another interesting development to be sure.

Definitely - now we will see if the Sac group is willing to step up and put the full, original evaluation for the team in escrow or have they been playing all along hoping they didn't have to front the full amount and then negotiate a lesser amount after the NBA rejected the sale.

$525MM eval for the team in Sacramento is a big risk when the last Forbes numbers before the sale were $300MM.
 

sactown dude

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Apr 21, 2013
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Definitely - now we will see if the Sac group is willing to step up and put the full, original evaluation for the team in escrow or have they been playing all along hoping they didn't have to front the full amount and then negotiate a lesser amount after the NBA rejected the sale.

$525MM eval for the team in Sacramento is a big risk when the last Forbes numbers before the sale were $300MM.

Stern has already said their offer is binding in the NBA's eyes. The league will NOT allow them to negotiate a lesser amount. That was never an option.
 
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