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June 6, 2011

 
 

YES, I SAID IT FIRST.  

Weekly Article and Sports Magazine

www.yesisaiditfirst.com

Monday, June 6, 2011
Volume 10; Article Number 17
Issue #248

FLEDGLING LEGACY

By Patrick Morand, Senior Editor, “YES, I SAID IT FIRST”


Now that the Atlanta Thrashers hockey team has been sold and is moving north to Winnipeg people are going to say that Atlanta is not a good sports town.

They are already saying that fans are fickle there and they can never be motivated in enough numbers to take interest in watching NHL hockey. They will say that Atlanta is a college sports (Georgia and Georgia Tech) town before any other pro sport. They will only support and build interest in a sport like baseball if their team is winning every year.

The thing is that many of those things can be said about any major US city.

In fact if you look closely at Atlanta’s loss of NHL hockey after 11 pretty uneventful years you will find that there is no particular glaring difference between the Thrasher’s fledgling support of a mediocre product than what fans in places like Chicago, Boston, Anaheim and Denver sometimes refuse to support. Except for that those places have all been boosted by winning.

The key word is ‘fledgling’ because when something is established long enough in the community there becomes an acceptance of it even if the visible support for it can ebb and flow from year to year and we acknowledge that will happen. A team in last place for years, with management making bad trades and with no inkling to generate excitement will result in less fan support across the board no matter which city it is with few exceptions.

PROBLEM WITH BAD OWNERSHIP

The problem with bad ownership and a lack of direction from the get go is that the invisible things that have to happen to make a sports team successful never get off the ground.

Those invisibles are things that create a thirst for the product. The community buying in as it falls in love with its team. It doesn’t usually happen overnight. It takes commitment from management and patience of those footing the bills and most important some buy-in from the corporate community.

You won’t get buy-in from a corporate base when fans and sponsors don’t trust in ownership. If they think they aren’t trying in a big city of over 5.5 million people there are better ways to invest money than long term commitments with failure.

This is where I find Atlanta hockey now after the Thrashers have moved.

They are not the first franchise run into the ground by people who had no interest in really owning a product that would take time and money to develop.

I am not the only one who thinks the notion preposterous that the city of Atlanta can’t support NHL hockey when much smaller cities with less going for them like Raleigh, Nashville, San Jose, and Tampa can.

The difference is most of those places (I will leave out Tampa because I think they are in the same battle as Atlanta just with better owners) have started grassroots love affair commitments with their teams. So if their teams ever decide to leave it will meet some protest first.

The disaster group, which so wrongly named itself Atlanta Spirit LLC that has owned the Thrashers since 2004 reports to have lost $130 million over the last six years, but would it surprise you to know that the first owners of the Thrashers made money in their first two seasons even when they were still coated with expansion glitter?

The franchise came into the hands of Sprit LLC in good shape but as well all know left on a respirator.

Time Warner headed up by Ted Turner brought hockey back to Atlanta successfully in 1999 and in those first two seasons he made money before selling to the Spirit LLC assets that included the Philips Arena and Hawks NBA team.

It was still pre-NHL lockout so arguably the excitement of Atlanta hockey was gutted by the NHL labour woes more so than by new owners, but the inside rumour is that the Spirit (that breaks the city spirits) were never really interested in owning the hockey team but they did want them as tenants. They may have been trying to sell off the hockey team from the start!

It wouldn’t be the first time that a sports venture just suffered bad timing.

Things were going along great for the Thrashers to kick off hockey being back in Atlanta all except for winning.

In 2000 the Thrashers had the eleventh best attendance (17206 fans per game) in the 30 team NHL.

COMPARING ATLANTA

By comparison, Denver’s Colorado Avalanche as Stanley Cup contenders had only 600 more fans than the Thrashers. Boston, a similar sports market in size and mix of teams but more established for decades of hockey history, in a northern city had 1000 fewer fans per game, the same as even colder Chicago. Weather had little to do with it.

Regardless of which sport it is Atlanta has to be compared to these other cities in all things.

The new Atlanta team should never have been outdrawing these established places if they aren’t supposed to care there. But at various times over the decade Atlanta was supported better in the stands than both Chicago and Boston.

Atlanta has things going for it that other places do not.

Of the 5 to 6 million habitants in the racially diverse metro Atlanta catchment there are 2.5 million people that moved there from other states, mostly northern states that would know about hockey. That group is akin to three Winnipeg’s with higher mean incomes and they are young and upward moving with an average age of 34 (according to the 2008 census) a little younger than the US national average urban age.

But they have choices, and if they are not inspired, they are as likely as fans anywhere to not catch on.

Hockey will work in the south.

It works in other big city markets with distractions like Dallas. But it can’t work with boobs as owners.

There are enough economic challenges with a recession economy and corporate cutbacks, but the road Atlanta travelled with hockey where in the end those who had money locally were a little shy to risk stepping in to save the team was not much different from the one travelled in Vancouver (Canada) with the National Basketball Association ten years ago.

A MORE GRIZZLY OUTCOME

The expansion Vancouver Grizzlies NBA franchise eventually moved because ownership did not want to keep owning them.

They were spooked by the rapidly deteriorating economics of owning professional sports teams and they couldn’t find lucrative local offers to keep the NBA in western Canada.

But it did not start out that way. When the NBA looked at expanding into Canada more than one group was interested in winning the bid.

When Vancouver got their franchise for 1995 they sold 12500 season tickets with fifty percent down on each one. This was better than expansion cousins in Orlando and Minnesota that struggled to reach the minimum 10000 season tickets requirement to be awarded teams.

The new Grizzlies averaged over 16000 fans right away, but three years in the NBA lockout ground things to a halt and the Grizzlies lost momentum.

They also were in last in their division for 5 of the 6 seasons they played. Everyone knew the owners, Orca Bay Sports and Entertainment who also owned the Vancouver NHL team, wanted out of the sports business because the Canadian dollar made it near impossible to run a franchise that sucked out American dollar expenses worth almost forty percent more than what the locals paid.

The average attendance following the NBA lockout in Vancouver for the 1998-99 season was lower at 13899, it was the excuse for pulling out and by 2001 the team was sold and moved to Memphis.

Would people in Vancouver like to be told that they aren’t a basketball town?

Canada is the cradle of basketball isn’t it?

Perhaps the circumstances of the time were just not great for starting an expansion basketball team, and to their credit just look at the NBA today and the Vancouver support at its worst might be considered acceptable these days.

The lack of a committed owner hurt the Grizzlies as well as the lack of enthusiasm that would have been contagious if they had a winner. If things were different it might have given somebody with deep pockets that likes sports reason to take a chance with that product, but again that team never had a chance.

By comparison up until the very end the Thrashers have done miles better in Atlanta than the Grizzlies did in Canada’s basketball hotbed.

NHL LOCKOUT HURT ATLANTA

The NHL lockout hurt hockey in Atlanta, because by the time it ended the Thrashers had to start rebuilding things from scratch. They were only six years old and had to miss a whole year, and even their turn at hosting the NHL All-Star game was delayed by the lockout.

In 2006-07 the Thrashers became division champs and pulled in 16240 fans a game, which was only a hundred less than the Anaheim Ducks who won the cup.

The Thrashers also drew 2000 fans better than Boston, 3000 better than Washington, and 4000 better than Chicago. This only shows that a winning team, Atlanta, drew more fans than what at the time were terrible teams that missed the playoffs.

The difference you would not see behind those attendance figures.

Washington, Chicago, and Boston were building young teams and had patient owners.

Atlanta was about to tear apart the team because the new economic reality of keeping a winner meant the Thrashers needed more corporate sponsorship, but the team wasn’t catching fire in the business community. Probably because they did not trust the ownership group of eight whom by that time already had started fighting over a legal issue where one partner wanted to buy out the other seven. It took three seasons for that to go to court and the money moves needed to keep the Atlanta hockey team competitive and build on that successful season when they made the playoffs was not really available.

Atlanta players knew it right up until the end.

We saw it unfold when any good player worth his weight was traded or left unsigned including Marian Hossa, Dany Heatley, and eventually Ilya Kovalchuk.

All the good players leaving and not a single playoff win in 11 years...what does that add up to?

In 2007-08 the Thrashers slipped another thousand fans, but still were on par with the Bruins, Capitals, and Blackhawks.

AVALANCHE OF WINNING

What difference does winning make?

After the 2009-10 season when Chicago won the Stanley Cup the fickle Chicago fans came back in droves as they averaged a league high 21356 fans which was up 9000 from the year that they were in the basement.

Washington and Boston, with conference leading exciting young teams recognized in the community had drawn in 18277 and 17305 in their more established markets basically playing to 100 percent capacity.

Atlanta had fallen to just below 14000 fans, just like the NBA Grizzlies ten years before. Out of neglect and no chance at winning they established zero marketing momentum.

Conspicuously the only other team on the Thrasher’s attendance support path in the NHL over the same eleven years were the Avalanche in Denver.

The city of Denver inherited their team on the cusp of a championship so they won in their very first year 1996, and for a second time in 2001.

When Atlanta began the Avs were still selling out every night.

By the time of the recession post NHL lockout and after some time in last place as their core team had dissolved/retired the Avs had lisped to have fewer than 14000 fans in the stands each night just a little better than Atlanta.

Two teams following the same support path but we tend to justify the Avalanche box office bust as just a letdown after winning, but write off the Atlanta one as a “bad hockey market”?

So winning does matter, and in the case of Colorado they know what they are missing but Atlanta does not.

Truth being told the corporate hit against the Avalanche bottom line was worse than Atlanta’s because the recession really hurt Denver more than it hurt diverse Atlanta.

The thing is most major sports markets in North America are like this now. They are markets of entertainment choices and potential fans need to be inspired and in some cases even taught to like the game.

Aside from the likes of the New York Yankees and Boston Red Sox (baseball), Toronto Maple Leafs and Montreal Canadiens (hockey) or Los Angeles Lakers (basketball) in non-NFL sports that is the norm in pro sports.

Win something or in the very least attempt to, or lose money.

If the fans aren’t excited the corporate community will tend elsewhere, and it’s a cycle that is hard to break because the corporate community also helps drives the fan interest.

BENEFIT THE COMMUNITY

It all starts with having stable ownership that people trust are in it for the long haul and benefit of the community which the Spirit group of Atlanta has never demonstrated since they stepped into the equation back in 2004.

Chris Mason is a goaltender with the Thrashers who was quoted on a newspaper blog (Atlanta Journal-Constitution) that even the players did not feel any support from ownership:

“The people getting shafted are the fans. No matter how much they want to keep the team, they don’t have a say in it...You know there are die-hard hockey fans in Atlanta. It’s hard to maintain the interest when you don’t have success, especially from the casual fan. … One trip to the playoffs is not enough. If you win more people will come...I don’t think we were given a legitimate chance. We made a couple of good moves for at the deadline. But it wasn’t enough. We were such a young team. It’s hard to make the playoffs. We believed we could win but sometimes you need someone who can score an extra goal or two or help on the power play. Our management was hampered by budget. It’s still hard to make the playoffs even if you have the money to spend. When you don’t have it, it’s even harder.” (blogs.ajc.com, May 24, 2011)

Mason’s frustration as a player in a market full of potential can be underscored over and over in several places with a handful of professional teams. The support is there in the low priced and low premium seating there are people buying seats, but often in the high end and corporate suites there has been a drop off of significance.

Sports like NBA and NHL draw more than two thirds of their gate income generated by those big spenders.

Out of neglect the ownership in Atlanta drove them away and left the diehard hockey fans and moderately priced casual followers with nothing to prop up at the end.

Any way you look at it ownership had no motivation to correct it. They did nothing to rally a ground swell of support that could have brought back some balance by shaming corporate supporters to buy some Thrasher vision.

It may be that the ownership plan of the Spirit LLC at the end was to not make waves or even appeal for help to save the team because what if it would have worked to generate love and caring in the community?

Would it they have opened some leverage for the city and community to demand more time to find a real owner that cares?

If there were more crying would Sprit LLC have had to take less money than the $110 million they walked away with so that an interested Atlanta bred investor like filmmaker Stephen Rollins could have stepped forward and reignited the interest that was squashed by this group eight years ago before they dismantled a young energetic competitive team by not caring?

Those who have watched other emerging geographically south situated franchises succeed with baby steps believe that Atlanta was given no chance to bloom.

ESPN hockey contributor Scott Burnside, who covers most of the US based NHL teams was more scathing of the ownership of the Thrashers for not even allowing a legacy to unfold in the Thrasher tenure. Such a focal point to cement the team in the community never happened, but it has in other places:

“The demise of the Thrashers should be a cautionary tale to markets everywhere. First, the Atlanta Spirit Group and its bungling of the team represents a blueprint on how to ruin a franchise, especially one in a non-traditional market...We were asked recently, what was the high-water mark for this franchise? Was it the two lone home playoff games in 2007, when netminder Kari Lehtonen dyed his hair blue before then-coach Bob Hartley yanked him en route to a four-game sweep by the New York Ranger? Dany Heatley, along with Kovalchuk, the team's first bona fide star, had a modicum of talent surrounded that duo, the Thrashers should have been able to generate something akin to a following in the city. But Heatley pleaded guilty to second-degree vehicular homicide in a 2003 car crash that took the life of teammate then asked to be traded in 2005.

And there was never enough of anything else -- goaltending, defense, structure. Eleven years of futility, mediocrity and, in the end, indifference.

Apparently ignorant of how to build a fan base, ownership made no inroads in selling the game. It had no commitment to build a minor hockey program in Atlanta the way Dallas did when the Stars first moved there. There was nothing in Atlanta to compare to the grassroots initiatives in Anaheim, San Jose and Nashville...In those markets, kids play the game, connect with the team... Home grown players' names from Texas and California and yes, Tennessee are called at NHL entry drafts every year. Ownership made sure...if those teams left, there would be a scar on the community...” (ESPN NHL, Scott Burnside, May 31, 2011)

The thing is people like those running the Spirit LLC should never have gotten to own a team in the first place, but of course it came with the package of things they wanted to own and were stuck with it.

However, if you look across the NHL, NBA, and baseball there are lots of teams for sale, and often the price for franchises is so artificially high that it limits who can enter the market to buy.

Leagues court guys with money before they really look for people interested in being involved. That is why so many owners are really absentee owners that don’t even live where they own teams.

If it’s the highest bidder that always wins out in an effort to keep all franchise values high then this is what we sometimes get. People looking to make back their return expediently just do not have the patience to let something lose money a little while until it builds something stable and worthwhile.

Actually most owners with deep pockets have choice where to invest for a return and unless they are in it for the thrill or passion of winning then it is hard to avoid the obvious about franchise ownership.

The richest guys are not always the best owners.

The Grizzlies original owners were very wealthy, but they were quick to divest themselves of the business because of the overall economic landscape of the Canadian dollar.

The groups that saved other Canadian small market NHL teams from moving south with the NBA Grizzlies were all local ownership consortiums that had a heart for the game and community.

The risk was shared in Edmonton and spread over twenty or more small caring investors long enough until stability returned and one wealthy investor was in position to buy outright their Oilers hockey team.

So economic and attendance failure can happen anywhere.

The sad part is that those in places saddled with the worst owners of convenience that do not understand the pro marketing game risk losing confidence of an entire sport.

Some will write off Atlanta as not capable of ever supporting NHL hockey, and that in itself is ludicrous given the population, facilities, and vitality of that city.

Not to take anything back from Winnipeg which is the small city that keeps proving it can, but you have to wonder if Atlanta ever really had a chance to keep its hockey team.

And now we wonder if that is the lasting legacy that will haunt any return the sport could have in the region.

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