Dec 16, 2013, 3:59 PM EST
Bucks fans will spend the next 2-3 years looking over their shoulders at Seattle, and that’s because they’re in jeopardy of losing their basketball team should owner Herb Kohl fail at securing a new NBA-approved arena.
For small and mid-markets, having a state-of-the-art arena to maximize revenues is a requirement and any city that isn’t willing to make that type of commitment to the NBA will be threatened by 5-10 other cities that are dying to get into the game. It’s simple supply and demand.
Kohl, the former Democratic senator who is 78, is reportedly looking for other investors to join him in his attempt to keep the team in Milwaukee.
With a net worth that’s better described with an ‘M’ for millions rather than a ‘B’ for the billionaire owners that the NBA is attracting these days, it’s understandable why Kohl needs to deepen the pockets and broaden the influence of his group.
First and foremost he needs to deliver on an arena, and having more investors will help that along in many ways. But just as important to Milwaukee will be the overall value proposition this ownership group will have to the NBA, whether Kohl wants to continue as owner of the Bucks or not. That’s because if there ever comes a time when their arena plans are in doubt, it will be this group that gets measured against Seattle and any other city that wants to get into the game.
The NBA, whether being led by Adam Silver or David Stern, does not like to relocate franchises. In this day and age of information, the damage that relocation can do their brand is much greater than it was when Seattle’s elected officials told the NBA to go kick rocks and thus Sonicsgate was born.
At the same time, the NBA has found a sweet spot in its public subsidy pitch, which has been the target of many economists’ ire over the last 30 years when suburban arenas were all the rage. Economists have maintained that arenas don’t increase local spending because of things like the substitution effect, which simply stated means that people spend money at the game but stop spending their limited funds everywhere else. In essence, they contend, there is no overall gain.
However, economists have recently found themselves at an impasse on the issue with even the most ardent oppositionists still researching newer findings, in an area of study that isn’t exactly brimming with ongoing research.
The new revelations highlight the difference between suburban arenas and what city planners call ‘high density civic attractions,’ which are more likely to be sought after in the small-to-mid market cities that are most susceptible to relocation. Instead of driving to a suburban arena, watching the game, and then leaving – a downtown arena can attract people for longer visits, attract all-important out-of-town dollars, and encourage use of mass transit.
In terms of increasing land value, a properly developed downtown arena district can increase surrounding land value by “hundreds of millions of dollars” according to a recent study by lead opposition subsidy voice Brad Humphreys. Arguments move into the both the micro- and mundane-levels from there, but an increase in land value around these downtown arenas stands on its face – it’s valuable for a reason.
The NBA has the cachet as an anchor tenant to bring in the private investment needed to make these downtown revitalization projects pencil out, particularly as public redevelopment dollars have dried up around the country.
With the NBA being the winner of over $3 billion in public funds since 1990, they have a massive financial stake in making sure they both polish that pitch and protect their reputation on that front.
For starters they have to maintain that they can be a loyal partner to any city engaging in good faith efforts to maintain a state-of-the-art arena. Long-term, by building a portfolio of downtown success stories like L.A. Live, downtown Indianapolis and the soon-to-be built arena in downtown Sacramento — the league can keep the public funding narrative from collapsing under a wave of antipathy toward millionaires and billionaires bouncing a leather ball for amusement.
So look for the NBA to work with Kohl and Milwaukee to find the political will (i.e. public dollars) to get an arena deal done. As expected, the league released a statement from David Stern moments ago expressing support for that process. “Senator Kohl bought the Bucks in 1985 in order to ensure the team would remain in Milwaukee. During his extraordinary stewardship his goal remained the same — to bring the fans of Wisconsin high-quality basketball from a team they would be proud to call their ‘home’ team. With this announcement, Senator Kohl continues his mission: to assure continuity of ownership by broadening its ownership base, and assuring that the fans of Wisconsin will enjoy NBA basketball and other events in a new state-of-the-art facility,” said Stern.
And while everything is going to sound fine for Bucks fans until it doesn’t, they’re not going to know that they are indeed keeping their team until much more has been revealed in this slow-moving story.
Mar 8, 2014, 9:30 AM EST
Even after three straight losses, the Indiana Pacers remain the team with the league’s best record, though they’re now tied with Oklahoma City for that honor while sitting at 46-16 in the standings. But the last two losses have been troubling. On Wednesday, Indiana lost by 22 points to a Bobcats team that is five…
Mar 8, 2014, 8:00 AM EST
Earlier this week I gave you a few highlights of my conversation with author Jeff Pearlman, who has a fantastic new book out on the Showtime era Lakers. Now, I bring you our entire conversation. In this latest edition of the PBT podcast myself and Eytan Shander of NBC Sports Radio discuss Phil Jackson and his…
Mar 8, 2014, 2:54 AM EST
The Lakers have lost a lot of games this season (42 to be exact), but the historic 48-point blowout loss to the Clippers Thursday night on national television hit the fan base hard. Many of these fans rooting for them to lose and get a better draft pick were embarrassed at the lack of defensive…
Josh McRoberts with an incredible behind-the-back pass to set up Chris Douglas-Roberts for three (VIDEO)
Mar 8, 2014, 12:02 AM EST
This pass was incredible in two distinct ways. First, the ability shown by Josh McRoberts to recognize that his teammate was wide open behind the three-point line from his position in the paint was fantastic. But the pass? It wasn’t just daring to attempt, but the physical level of skill required to get it there…
Sixers coach Brett Brown on whether we’ll see Nerlens Noel play this year: “It really is, ‘Who Knows?’”
Mar 7, 2014, 10:34 PM EST
Nerlens Noel was selected with the sixth overall pick in last summer’s draft, and the Sixers traded Jrue Holiday for him in order to jumpstart their rebuilding process. But we have yet to see Noel take the floor for Philadelphia this season, in much the same way that Andrew Bynum missed his entire year with…
Mar 7, 2014, 9:05 PM EST
It’s been a frustrating season in Milwaukee, and it’s gotten to the point where the team’s players are taking out those emotions violently against their opponents. Ersan Ilyasova received a suspension for the punch-shove combo he delivered to Reggie Evans, and we can expect the same punishment to be handed down to O.J. Mayo, who…
Mar 7, 2014, 7:55 PM EST
The nationally televised schedule of games that appear on TNT Thursday nights is apparently etched in stone. There’s no other way to explain the network keeping a Clippers-Lakers game on the air when a perfectly good Suns-Thunder matchup — one between two high-scoring playoff teams — was on the slate the very same night. Logistics…
Mar 7, 2014, 6:34 PM EST
Teams keep asking if Phil Jackson wants to come back to coaching. This is a guy who has had both hips and one knee replaced (with the other likely), who has spent too many years on the road sleeping in beds too short for his 6’10” frame, having showerheads hit him in the middle of…
Mar 7, 2014, 5:46 PM EST
According to every reliable source, Carmelo Anthony is going to opt out of the final year of his contract this season and look either to re-sign a five-year deal with the Knicks or move on to another team to be part of a contender. If Anthony wants to jump ship and go somewhere like oft-mentioned…
Mar 7, 2014, 4:25 PM EST
You can’t do that. Go ahead and argue that what Milwaukee’s Ersan Ilyasova really did was shove the Kings’ Reggie Evans if you want, you still can’t do that. The two were battling for rebounding position and after the play Ilyasova turned on Evans punch/shoved him and knocked him to the ground. I have checked the NBA…
Mar 7, 2014, 3:55 PM EST
The only time the Timberwolves seemed to take charge in their loss to the Knicks Wednesday night was in the third quarter when Nikola Pekovic took over. It’s not a shock if you’ve watched the Timberwolves this season — he averages 18 points a game on 53.9 percent shooting, the Minnesota offense is 4.7 points…
Woodson says ‘legally, no one can recruit anyone’ in response to Melo-Bulls talk. But that’s not necessarily true.
Mar 7, 2014, 3:23 PM EST
Knicks head coach Mike Woodson has enough to worry about, including whether he’ll even be employed by the team next season, before he can begin to think about what Carmelo Anthony may choose to do as a potential free agent this summer. The latest rumor, of course, had Anthony being told by the Bulls’ Joakim…
Mar 7, 2014, 2:11 PM EST
Here’s the real story: Kevin Love and Tyson Chandler are friends. They met as part of Team USA and like each other, text each other, have worked out together at points in the offseason. Like you with your friends, they like to poke fun at each other sometimes. So when Chandler said Love can’t play…
Mar 7, 2014, 1:29 PM EST
This drives some fans crazy. Maybe they live in a mythical world where they think the players their team should share a hatred of their rivals/opponents. They like to believe that kind of hatred used to exist among players, as if Michael Jordan and Charles Barkley didn’t used to hang out and party together. Players…
Mar 7, 2014, 12:46 PM EST
No matter how his NBA head-coaching career unfolds, Brett Brown will always have a first-season losing record on his résumé. His 76ers will finish somewhere between 15-67 and 36-46 – likely much closer to the former. The 76ers struggling was no surprise. In fact, they’ve probably exceeded expectations. So why did Brown put himself in…
Mar 7, 2014, 11:45 AM EST
Phil Jackson has always done enough to ensure he remains on the radar for coaching vacancies (and now, front-office positions, too). And why shouldn’t he? Jackson is definitely one of the best coaches of all time, maybe even the best. I’m not convinced he can still physically withstand the rigors of coaching, but every hire…
Mar 7, 2014, 11:37 AM EST
Rudy Gay was inefficient as a Toronto Raptor. This is not up for debate. He attempted 17.6 shots per game in Toronto, making just 42.8 percent of the 2-pointers and 41.1 percent of all attempts. The only remaining question was whether Gay, who’s clearly not too fond of stats, knew he was inefficient as a…
Mar 7, 2014, 11:08 AM EST
Joakim Noah is playing the best basketball of his career the past few weeks and the Bulls are the third best team in the Eastern Conference. With Derrick Rose down and Luol Deng traded Noah has become the fulcrum of the Bulls offense, and it’s working as Noah has had a triple double in two…
Mar 7, 2014, 10:30 AM EST
Let’s connect the dots. Joakim Noah is reportedly recruiting Carmelo Anthony to the Bulls. Melo has a son named Kiyan, who turns 7 years old today. Happy Birthday, Kiyan! Kyian’s favorite player is reportedly Derrick Rose. The missing dot: Derrick Rose. What does he think about all this? Chris Broussard of ESPN: One source also…
Mar 7, 2014, 10:01 AM EST
Is LeBron done with the mask, or is he just taking a break? Midway through the first quarter of the Heat’s loss to the Spurs, LeBron took his mask off during a timeout. He’d missed his only shot, and Miami trailed by eight. He didn’t exactly light the world on fire after that, shooting 6-for-18…
- Pacers players hold locker room meeting after getting crushed by Rockets 0
- PBT Podcast: Talking Showtime Lakers with author Jeff Pearlman 0
- After Lakers’ 48-point loss, Laker GM Kupchak, owner Buss met with coach D’Antoni 5
- Report: Knicks offer Phil Jackson a front office position 21
- Is Carmelo Anthony’s smart play to opt in and play out contract with Knicks? 16