Things sure don't look good in Charlotte . . .

[Guest_Randy]

this town used to be a GREAT NBA town -- did the Hornets kill that?

By Erik Spanberg
Charlotte Business Journal

It appears that neither basketball fans nor some hospitality leaders are buying into the new NBA arena -- at least for the moment.

According to industry sources familiar with the team's sales figures, the Charlotte Bobcats had sold 5,700 season tickets through Sept. 1, 33% less than the team had at the start of last season and 300 fewer than the Charlotte Hornets had before departing for New Orleans.

The Bobcats begin play at the publicly funded $265 million uptown arena Nov. 5.

"I would be very concerned if I were Bob Johnson," Marc Ganis, president at Chicago consulting firm Sportscorp, says of the Charlotte franchise owner. "Moving into a new arena should give you a big bump in both sales and pricing. If you have a decrease in overall sales, that should be a major red flag."

Published reports earlier this week pegged season-ticket sales at 7,000, still below the team's debut season at Charlotte Coliseum. However, figures obtained by the Charlotte Business Journal reveal a more difficult path to profitability for the team.

Bobcats officials decline to discuss the numbers.

"We're not going to play the numbers game," says Chris Weiller, Bobcats executive vice president. "We've said all along that we would not discuss sales figures."

Last season, the Bobcats sold 9,000 season tickets at Charlotte Coliseum. Industry experts estimate the franchise will be hard-pressed to sell more than 500 to 1,000 full-season equivalents between now and opening tip-off, putting Charlotte in the unique position of potentially losing support even as a new arena opens. In 2004-05, the Bobcats ranked 28th in the 30-team NBA for overall attendance, ahead of Atlanta and New Orleans.

Capacity at the new arena is 19,026, including suites and other premium seating. The industry sources with knowledge of the Bobcats' sales figures say the 5,700 sold for the upcoming season include all forms of seating. Ticket prices at the new arena are 25% to 100% higher, on average, than last season. Bobcats officials say better sight lines, improved concessions and other benefits justify the higher costs.

Mayor Pat McCrory says the city is protected from any financial struggles the Bobcats may have since the team assumes all operating costs at the new arena.

"If this were the old agreement like we had with the Hornets, I would be concerned," he says. "At the same time, we want the Bobcats to do well because when they profit we share in some of those revenues." McCrory says he has no plans to discuss ticket sales or other business issues with Bobcats executives. "That's not my line of work."

Professional sports franchises in the NBA and other leagues routinely increase season-ticket sales and overall attendance by healthy margins when they open new stadiums and arenas.

Ganis says possible problems here could include pricing, how the team is marketed and how the franchise is positioned against other sports properties. "You can't let that continue," he says. "That's a downward spiral for a franchise."

The NBA franchise dismissed nearly one-third of its ticket sales force in March in a move aimed at re-energizing demand. Six staffers were let go from the 19-employee staff in what Weiller at the time described as a restructuring. The team said then that it would hire additional ticket sales staff.

At NBA headquarters in New York, spokesman Tim Frank says league officials remain confident in the Bobcats and the franchise's management team.

He declines to discuss sales figures but says Charlotte is a tremendous NBA city.

"We think the management team is doing everything it can to engage the community with the Bobcats," Frank says. "We're confident Charlotte will grow into an attendance leader again."

During the Charlotte Hornets' 14-year run, the franchise became a perennial attendance leader and once boasted 20,000 season-ticket holders. Season-ticket sales slumped to 6,000 to 7,000 in 2001-02, the Hornets' final season here.

Hospitality industry executives offer mixed opinions on the Bobcats' sales. The bulk of the public funding for the new arena comes from taxes generated by hotels and restaurants, making the tourism sector a major backer of the NBA franchise and its new home.

The slow sales "concern me because our industry has more at stake with the success of the franchise and the arena than anyone," says Mohammad Jenatian, head of the Greater Charlotte Hospitality & Tourism Alliance. "I would like to see the Bobcats focus more on building relationships in the business community. Professional basketball isn't a form of entertainment people here want to go out and see. But if you have relationships, then you'll be supported."

Weiller declines comment on Jenatian's remarks.

Tim Newman, chief executive at the Charlotte Regional Visitors Authority, praises the Bobcats for becoming active in philanthropic causes and for working hard on grassroots initiatives with the YMCA, the school system and other groups.

"They've done a great job there -- now there needs to be more of an effort in the business community," he says. "And I think people need to see and experience the arena as well."

While Weiller declines to reveal specific sales figures, he says the Bobcats are closing more deals with tours of the soon-to-be-completed arena. He compares the arena to a car dealership: "Once people walk in the showroom and take a test drive, they're sold."

[westkoast]

Im sure the disaster in that region didnt help with season ticket sales.  People have been pretty generous in America recently.  If I had to choose to help a family or get season tickets to a team that is still a few years out from playing decent ball the whole season id help out.

[rickortreat]

IMO the economy is in a lot worse shape than people are letting on.  With the increase in gas prices, people just don't have that much surplus to spend on entertainment.

They've raised ticket prices, but haven't improved the team enough.  Not saying that Charlotte has to be a contender to fill seats, but they have to have a star that brings people in, and at least a chance to win some games.

I bet you they'd sell out if Shaq daddy was on the team!

[westkoast]

IMO the economy is in a lot worse shape than people are letting on.  With the increase in gas prices, people just don't have that much surplus to spend on entertainment.

They've raised ticket prices, but haven't improved the team enough.  Not saying that Charlotte has to be a contender to fill seats, but they have to have a star that brings people in, and at least a chance to win some games.

I bet you they'd sell out if Shaq daddy was on the team!

Or any star for that matter.  I think you hit it dead on.  They raised the price of tickets but did not raise the price of the game.  Sure the place they play is nicer but is the main product worth the increase?  

Another problem is they dont have the hardcore fan base (at least yet) as a Lakers, Celtics, Knicks, Sixers do.  Even in off years for teams like that people are still filling up the seats because they have fans who have followed the team for years (and decades).

[Joe Vancil]

Charlotte is going to be fine.  Basketball has always been alive and well in Carolina.

But raising the ticket price in the team's second season is STUPID.  And the fans in Charlotte are wary of another Hurricane George (my new nickname for George Shinn...hits New Orleans and leaves the place a disaster...Hurricane George).  Let the team show it's devotion to the fans of Charlotte for a while...not raise ticket prices in the second year of existence.