The NBA in OKC Megathread

[betts]

Any idea where we can vote?

Your voter registration card will tell you where to vote. If you've lost it, here is a number for the country election board, and they can tell you where your precinct voting site is. (405)713-1515

If you don't have a voter registration card, it's a good idea to take a picture ID with you when you go to vote. Shockingly, they don't always ask for one, but they might.

[Doug Loudenback]

I've generally not been a big fan of Berry Tramel's fact predictions, but the article Betts quoted above is 4-square and hits the nail right on the mark, and whether Okc becomes an NBA city is truly in our hands. On March 4. On March 4, we will know. We will not see another March 4 in our lifetimes ... at least, I won't in mine.

This space in time presents one of those rare convergences of events that one rarely sees duplicated in one's lifetime and I think that our Mayor shares that perception. That sounds dramatic if not melodramatic, but I really think that it is really and actually just such a thing. Consider the following ...

1. In Okc, Mayor Ron Norick's Maps initiative was passed in 1993. In 1998, it became evident that the generated revenue would not fund the arena element of the plan. Norick's successor, Mayor Kirk Humphreys, was elected on the proposition of finishing Maps "right" and when the 6 month Maps extension passed what would become the Ford Center became funded. Construction started in 1999 and the arena opened June 8, 2002, as the Ford Center. But for this, all else which follows would be irrelevant and we'd not be having this discussion today. The NBA would be irrelevant to us as a city. But for some preliminary discussions between Mayor Cornett and the NBA Commissioner pre-Katrina, we weren't even on the NBA's radar -- David Stern suggested that we consider approaching the NHL instead. As it would develop, those early conversations lead to something completely unexpected and unforseen.

2. Katrina hit New Orleans in late August 2005 making it impossible that the Hornets play in New Orleans for the 2005-06 season . In September, a deal was struck that Okc would host the Hornets as the home for most home games during the season. Before that was agreed upon, the Commissioner suggested Okc to George Shinn who said, "Oklahoma where?" George learned where even though he could not remember the city's name at the opening regular season game (even though 2 pre-season games had already been played here). Season ticket sales in Okc amazed the NBA world. Corporate sponsorships did, too. As for the fans, the Hornets opening pre-season game in Oklahoma City occurred on October 23, 2005 ... my 1st NBA game.

3. The 2005-2006 Hornets season in Okc amazed not only the NBA world, but Oklahoma Citians, as well. Me included. Oklahoma City fans poured into the Ford Center with sellout and/or near sellout attendances for most of the games, despite the abysmal Hornets 2004-2005 season of 18 wins and 64 losses. "Loud City" was born. In time, Berry Tramel virtually promised Okc that the Hornets would not be returning to New Orleans. Why should they? A hidden gold mine had been discovered in Oklahoma City. Shinn wanted to stay .... at least for one more season but other reliable reports indicate that he wanted to stay permanently. They did stay one more season. An effort was made by Clay Bennett et al. during the 1st season to acquire an interest in the the Hornets. A "handshake" deal was announced by Berry Tramel. Whether so or not, the "deal" didn't happen. Oklahoma Citians owned nothing in and of the NBA.

4. Not until July 18, 2006. That's when Professional Basketball Club LLC (Bennett et al.) purchased the Sonics and Storm from Howard Shultz, Starbucks coffee magnate. Clay Bennett announced his intention and preference to keep the teams in the Seattle, but with conditions: A new arena (other than the Key) and a new contract were required to be agreed to by October 31, 2007. Otherwise, all bets were off.

5. Bennett's group spent a good bit of money, hiring perhaps the best arena designer firm in the country, to come up with a plan, and a location was found in Renton. Bennett did not initially want the matter be presented to a vote of the people, Seattle's Proposition 91 being fresh in memory. During the legislative session, he relented and agreed that the proposed legislation which would partially fund the new Renton arena be submitted to a vote of the people. Notwithstanding, in the Legislature, the proposal died in committee, and the legislative approach was dead.

6. Other not-very-serious initiatives occurred but nothing really happened as the October 31, 2007, "deadline" approached and, then, passed by. On November 2, 2007, Bennett's group petitioned the NBA Board of Governors to move the teams to OKC. Later, the Storm (the women's team) was sold to a Seattle group and then it was just down to the SuperSonics.

7. Without reviewing the history of the litigation which ensued, suffice it to say that Seattle's litigation to enforce a specific performance provision in the lease which expires in 2010 is set for trial in June 2008. The litigation will determine whether the Sonics can leave and pay monetary damages if they want to leave before the end of the lease, or whether the specific performance elements of the lease are to be enforced so that the team would be required to stay in Seattle through 2010.

8. In the meantime, the Sonics offered Seattle $26.5 M and the privilege of keeping the team's name in exchange for an early exit. Seattle declined. Whether additional buy-out negotiations will occur and/or succeed is anyone's guess.

9. In December 2007, Mayor Cornett who had been in discussions with the NBA (David Stern, Commissioner, and his aides, most probably) let the mayor know what Oklahoma City's "terms of entrance" into the NBA would be. Hence, the emergency March 4 vote was placed on the City Council's January 2008 agenda and it was decided that the pending measure, to be decided on March 4, would be put to a vote of the people, notwithstanding the haste with which the proposal had been put together.

10. Saturday, February 16, Commissioner Stern as much as said that the Sonics would be moving from Seattle, as soon as the pending litigation and/or settlement of that litigation would allow, and that could be as early as the 2008-2009 season. While the Commissioner was rather clear about that, he was less clear about where the Sonics might be moving to. While Oklahoma City may be inferred/presumed, if the March 4 vote does not pass, it may well be elsewhere than Oklahoma City.

11. The March 4 vote occurs.

12. The Board of Governors meets in April 2008 to determine its decision on Bennett's group's request to relocate to Oklahoma City.

Each of the above points is important in the chain which has led to today. The points range from "act of city" (Maps), "act of God" (Katrina) and the other "acts" by those described above.

Whether these events are serendipitous or fate or god based, I am not in a position to say. But, it is my very serious guess that the confluence of these events will not occur again for a very very long while.

What it all adds up to at this point is simple: Oklahoma City faces a door on March 4. If Okc opens that door, Okc has an NBA team. If it doesn't, Okc says goodbye to the NBA for the foreseeable future.

Tramel finally got it right.

[julieriggs]

The longer commercial featuring the Mayor is now posted on Home | Vote Yes March 4! as well as the Chamber/CVB YouTube channel at YouTube - VisitOklahomaCity's Channel
Thanks!

[Doug Loudenback]

Thank YOU, Julie!

[metro]

I'm really disappointed in the quality of this campaign thus far. I really think they could have done a better job with promotions and the graphic design on items. Oh well, I'll do everything I can to help get it passed.

[jbrown84]

I like the graphics.

[betts]

I've got bumper stickers, small and large bronchures and yard signs. If anyone wants stuff, let me know. I don't work for the Chamber, I'm just volunteering.

[Doug Loudenback]

See Sound Off | OKG News.com

Why I'm voting yes
Wednesday, February 20, 2008
By Bill Bleakley

On March 4, Oklahoma City voters will decide whether to extend the MAPS for Kids penny sales tax expiring in December 2008 for a year to fund improvements to the Ford Center and for another three months to fund a practice facility if the NBA selects the city for a team.

The first year is expected to generate $97 million for the Ford Center improvements and, if extended three months, an additional $18 million to build the practice facility.

I'm voting yes for the tax extension, and here's why: First, the Ford Center is a key element of our downtown economy. Although we depend on conventions to bring in people from outside Central Oklahoma to spend dollars downtown, it's the Ford Center that brings in folks from neighboring cities and counties to spend money while attending the multitude of events it hosts.

The Ford Center has always been considered a work in progress. While its basic infrastructure is adequate, there were not sufficient monies in MAPS to fully dress it out with the amenities that are necessary for a state-of-the-art arena. Whether or not we get an NBA team, the city still benefits from making these needed improvements.

Finishing the arena will attract more events and generate greater attendance, satisfaction and spending from all events. Landing an NBA team because of the improvements is more than icing on the cake.

An NBA team provides a level of recognition that would help Oklahoma City transcend the negative stereotypes with which we are usually associated, such as dust bowls, tornadoes and a bombing. Only 29 cities in the world have an NBA team, and we could be one of them.

Some opponents to the tax extension feel that the owners of the Seattle SuperSonics have more than enough money to pay for these improvements themselves and should do so. Such an approach is not realistic.

Locating NBA teams is a seller's market. Despite Seattle's reluctance, there are other cities ready to use public financing to get a team. Just over our shoulder is Kansas City, Mo., with a facility ready to go.

The bonus we get with the Sonic owners is that they are our rich guys, who, hopefully out of civic loyalty, will be less likely to pull up the team and move it to another venue in the future.

There's another important advantage to full-public ownership of the arena. The taxpayers' representatives can better negotiate at arms length on the rent to be charged to all users. Jim Couch, city manager, and Tom Anderson, who oversees Ford Center contracts, have made assurances that the city will be getting fair-market rent from all users, including an NBA team. They are honorable men and we take them at their word, although we'll still be watching.

Some voters question why just the citizens of Oklahoma City should pay for the improvements to the Ford Center arena when it is enjoyed by citizens throughout Central Oklahoma. This concern is lessened by considering that the city gets the sales tax revenues from the arena and surrounding businesses.

If the voters of Oklahoma City impose this sales tax upon themselves to upgrade the Ford Center arena to NBA standards, an important quid pro quo should be repealing the statute passed in 2006 to accommodate the temporary relocation of the New Orleans Hornets that exempted sales taxes on NBA ticket sales.

Oklahoma granted that exemption out of compassion for the unique - situation the Hornets were in. Now, let's get to business by extending the penny sales tax, making the improvements, rescinding the sales tax exemption, getting the team and playing ball. Everybody wins!

Bleakley is publisher of Oklahoma Gazette.

[Karried]

How can we get Yard Signs? I'll plaster them all over my yard if it would help .. but I'm in Edmond .... ugh

[Doug Loudenback]

How can we get Yard Signs? I'll plaster them all over my yard if it would help .. but I'm in Edmond .... ugh

As Betts said above, she has some ... that might be more convenient than going downtown to the Chamber's office on Park Avenue to get some.

[jbrown84]

Great piece from the Gazette!

and I just had to comment on something

As Baade and his peers point out, such economic impact projections have a few problems that are rarely examined. The first is a substitution effect: Many local sports spectators are merely shifting their available entertainment budget from other restaurants, movie theaters and retailers in the same area. Such spending is not truly new economic activity.

This doesn't hold water at all because it ignores the fact that the NBA games as well as other events draw people from outside of OKC, that would not be spending their money here otherwise.

[betts]

I posted this above, but it bears repeating. Zimbalist is one of the other major sports economists writing about arenas and their impact on cities.

Zimbalist says: "Indeed, it is noteworthy that statistically significant, positive team coefficients were found only in cities west of the Mississippi. It may be that western cities in the US are more geographically isolated in a sports sense (no other team is present within several hundred miles)and are therefore more likely to have a regional following. In other words, these cities are more likely to export their sports services and thus add to aggregate spending in the city."

In other words, we're more likely to get people in from Tulsa for an NBA game than they are in NewJersey, where the teams play less than 10 miles apart, and those people may spend money in Oklahoma City that would otherwise have been spent in Tulsa. Reportedly, 20% of the season ticket sales to the Hornets were to Tulsans, at least the first year.

One of the problems sports economists face is that they have such a small sample size. Then, they can't control variables. One city with a population of a million may be situated by mountains, but difficult to reach, another may have no attractive geographic features. One may have raw materials and transportation ease that encourages manufacturing and another might now. If you have 1,0000 cities with profesional teams, you'd be able to generalize better. There may not have been a city close enough in character to OKC to predict economic impact. There's no way to completely prove your hypothesis when you cannot control your variables.

[jbrown84]

very intelligent points on sample size betts. I hadn't thought of that. I think it's safe to say that OKC is very different from NYC or even Seattle when it comes to how major league sports will affect our economy.

[Kerry]

..and are therefore more likely to have a regional following. In other words, these cities are more likely to export their sports services and thus add to aggregate spending in the city.

Let me say this about that. I lived for a very short period of time in Altus. I drove to Norman one Saturday when OU was playing Pittsburgh. I noticed several cars with OU flags traveling from Altus to Lawton. When I got on I-44 in Lawton a large number of cars had OU flags (several with Texas tags). When I got off I-44 on to Highway 9 in Chickasha it was bumper to bumper cars with OU flags. All of those fans were coming from somewhere besides Norman.

I am not saying the NBA will have 75,000 per games (OU Capacity back then) but they will have 18,000 per games 41 times per season and a fair amount of them will come from outside OKC.

[brianinok]

Karried, I thought you live in that area north of Quail Springs that has an Edmond address and is in the Edmond school district, but is technically in OKC? I live near NW 164th and Western (Edmond address, Edmond schools), but I am in OKC. I will be voting YES!

[betts]

How can we get Yard Signs? I'll plaster them all over my yard if it would help .. but I'm in Edmond .... ugh

If you can tell me where you'd like them dropped off, I could do so. You can send me a PM.

[FritterGirl]

Just saw a trailer for tonight's 10 o'clock news on CBS/9. News9 is doing a sweeps package about "What we can gain if we do get an NBA team, what we might lose if we don't." (sorry, I don't remember the exact quote.) It sounds like they are going to talk to people in Houston about their experiences in trying to solicit an NBA team.

[glennp]

This was an interesting post found on a DFW Forum post. It is a study done by the University of Texas at Arlington economist....

Study: Pro games depress tax revenue
NFL, NBA cited, but hockey, baseball said to boost economic activity slightly



09:55 PM CDT on Saturday, June 24, 2006
By JEFF MOSIER / The Dallas Morning News


ARLINGTON – Football may be king in these parts, but that doesn't mean much at the cash registers.

A new statewide study co-written by a University of Texas at Arlington economist found that sales tax revenue drops by more than $560,000 every time a city hosts a regular-season NFL game.

NBA games lower sales tax revenue by $16,000 per game, the study found, while NHL and Major League Baseball games tend to boost average sales tax revenue by small amounts.

DallasNews.com/extra

Read the complete study
"When it comes to NFL games, that number seems awfully large and negative, but I'm convinced it's there," said UTA's Craig Depken.

Large traffic jams that accompany Dallas Cowboys and Houston Texans games also lead to what Dr. Depken calls the "hunker-down" and "skedaddle" factors. Fans might spend money in Irving during a Cowboys game, but more residents are likely to avoid gridlock by staying home or driving to a neighboring city to shop or dine.

The research released last week also found that NBA Finals games, like the ones held recently in Dallas, provide only a modest boost in economic activity. A Game 7 for the Dallas Mavericks would have been expected to increase sales tax revenue in Dallas by more than $65,000, based on the statewide average, the study said. But that bonus would not have made up for the average $128,000-per-game loss in the previous playoff rounds.

The study found that college football games aren't big moneymakers for larger cities but that they can boost the economy of small towns like Prairie View or Kingsville.

The study crunched sales tax data from 126 Texas cities from January 1990 to April and analyzed the effects of professional and college sporting events.

Critics of the study say it is too focused on sales tax revenue and doesn't take into account many benefits of professional sporting events.

Linda DiMario, president and CEO of the Arlington Convention & Visitors Bureau, said she's seen plenty of studies like Dr. Depken's in the past. Most have a narrow focus, she said.

The teams promote civic pride, attract millions of dollars in free publicity and help support adjacent businesses, Ms. DiMario said. Local sports teams generate hundreds – in some cases thousands – of jobs, she said. Arlington is home to the Texas Rangers and is building a stadium for the Cowboys.

"There is more at stake when a city hosts an event than the sales tax that accrues to the city coffers," Ms. DiMario said.

Previous research has shown that the average three-game Rangers homestand pumps about $2 million into Arlington's economy, she said. That's about half of what Dr. Depken's study estimated.

Arlington Mayor Robert Cluck said he doesn't believe the research – especially the data on the negative sales tax effects of football games.

"To me, it's implausible," he said.

Dr. Cluck said he trusts a city-commissioned study estimating that the new Cowboys stadium, which will open in 2009, will generate $1 million to $1.5 million in new sales tax revenue annually.

Maura Gast, executive director of the Irving Convention and Visitors Bureau, said that nothing in the study surprises her. Cowboys games attract few out-of-towners staying in Irving hotels, and traffic around Texas Stadium probably depresses the city's economy on game day.

"As a local, when you think about where you are going on the weekends and have errands to run, do I want to do it in a 50,000-person traffic sprawl?" she said.

Football has increased Irving's name recognition, Ms. Gast said, but all people know is that the Cowboys play there and it's near Dallas. That doesn't necessarily translate into a big boost in tourism.

Daniel Oney, economic development research manager for Dallas, said the study appears to be reasonable. He said that he would have projected a higher sales tax impact by the Mavericks but that the figures are still in the ballpark.

"The net impact is never as big as it's being claimed by the boosters," he said.

Dr. Depken warned that his research wasn't meant to predict the future, only to analyze the past. The study isn't a forecast for what will happen when the Cowboys leave Irving for Arlington in a few years.

The planned Glorypark shopping center, which will be wedged between the Cowboys and Rangers stadiums, could brighten the economic outlook on Cowboys game days if fans stick around after the game to eat, drink, shop or watch a movie, Dr. Depken said.

The study contains few explanations about why, among other things, NHL games boost sales tax and NBA games depress it. Dr. Depken said that he and his research partner are conducting further research to try to determine contributing factors.

Another study expected by the end of the summer will look at the "spillover" effect on cities neighboring a stadium's home city. That data has been collected but hasn't been analyzed.

One issue Dr. Depken won't tackle is whether a city should spend its tax dollars to build a stadium or how a stadium should be funded.

"Those are questions I'm not really qualified to answer," he said.

The study, which also was researched by Dennis Coates of the University of Maryland, Baltimore County, will be presented this week at the Western Economic Association International conference in San Diego.

E-mail jmosier@dallasnews.com


GAMES' ECONOMIC FOOTPRINT



Game Estimated sales tax impact per game *
NCAA football $22,346
NCAA bowl ($1,486,158)
NFL ($566,866)
NFL playoffs ($155,675)
Super Bowl $2,500,837
NBA ($21,208)
NBA playoffs ($128,709)
NBA All-Star $1,616,465
NBA Finals $65,578
MLB $22,216
MLB playoffs $461,383
MLB All-Star ($285,310)
MLB World Series $1,159,910
NHL $21,424
NHL playoffs $138,561
NHL Finals $341,267
Political convention ($1,491,518)

*Numbers in parentheses are negative

SOURCES: Craig Depken, Dennis Coates

[Kerry]

I guess it all depends on the size of the city the arena/stadium is in. When the Jags play in Jacskonville it has 0% impact on my shopping. I live 8 miles from the stadium and there is not any traffic at my house. Maybe in a small geographic city like Irving there might be a drop in shopping during the game but I seriously doubt someone in Dallas is saying "oh crap, we can't go the Galleria mall because there is a game in Irving." I also think the sample size of just using Texas sales tax data is more than a little misleading. Texas has 3 NBA teams. I don't think that is enough to make any kind of scientific claim one way or another. I guess you need to show some kind of research for that grant money though.

[HOT ROD]

Karried,

I think you should STILL post the VOTE YES signs in your yard, even though you live in Edmond and obviously can't vote.

This is MORE than JUST an Oklahoma City city issue, this is Oklahoma CITY as a brand (which is the whole central oklahoma area, if not the whole state).

I say, even people in Tulsa and Lawton (even Wichita and Ft Smith) should show their support for the Oklahoma City vote, definitely OKC suburbs should!!

The whole state benefits with Oklahoma City becoming a MAJOR LEAGUE CITY!!!

[betts]

glenn, I think you're trying to compare two completely disparate things, as I pointed out above. That's why economists findings have to be taken with a grain of salt. There are very big difference between Oklahoma City and Dallas that make it almost impossible to extrapolate data. Dallas has 4 teams, and Dallas has traffic patterns very different than ours. The traffic patterns created by MLB and NFL games are far different than those caused by NBA games, having gone to all of the above in Dallas, OU football and Hornets' games here. The point Zimbalist (above) was making is that in some cities, the fact that there is no other professional team closer than 200 miles away means that you pull people in to sporting events from a much farther radius, which does mean outside money coming in.

The other thing is that no one is talking about only economic factors. We've all been discussing the intangibles, which I believe exist. Although it wouldn't be the only factor, recreational options in a city are surely considered by people looking to relocate a business. If you've got two comparable cities you're considering, one has a professional team and one doesn't, that city with the team may be the one you choose. Especially since Oklahoma City doesn't have lots of natural features to attract people (such as mountains or ocean). In addition, advertising on ESPN runs about a million dollars a thirty second spot. During NBA season, your team (and city) are on ESPN probably close to 100, if not more, nights a year. If you host a nationally televised game, views of your city are featured when they cut away to commercials. Our city will be featured in every major newspaper in the country during NBA season. All of that is expensive advertising and "branding" for your city. Having a team can be a source of pride for a city an add to quality of life. In addition, we've got a better chance of landing the Big Twelve tournament again, which was a source of revenue, and great fun for the city.

When you list sales tax revenue generated by events above, that also fails to recognize that hotels, restaurants and stores are being utilized by visitors, and that supports the local economy. Why do you think the Bricktown and Western Avenue merchants are endorsing passage of the tax? It's good for business to have a team, especially if you get a chance to host playoffs, the NBA finals or an All Star game, as those are attended by people from all over the country. The latter two generate international attention as well. Those would all be great things for Oklahoma City.

[Doug Loudenback]

From the Oklahoman at NewsOK.com Article

Fri February 22, 2008
Questions and Answers with Jim Cowan

Q: The Bricktown Association's board of directors recently voted to endorse the March 4 sales tax vote to improve Ford Center. Why?

A: The Bricktown board voted to endorse the sales tax because of the huge economic role the Ford Center plays in the district year-around. From concerts to conventions, sporting events to Sesame Street, the Ford Center helps make Bricktown a destination.

Q: The new and improved Ford Center would include restaurants, clubs and family recreational areas. Won't these improvements be in competition with Bricktown merchants?

A: When you have in excess of 12,000 people attending an event at the Ford Center, it's hard for everyone to get into Bricktown. Not to mention that many people will go to Bricktown before or after an event, because they want the complete entertainment experience, not just a two-hour event.

Q: How much of an impact did the Hornets have on Bricktown during their two years in Oklahoma City?

A: The Hornets played a huge role in Bricktown. They brought business during the "off season.” November through February, Bricktown really appreciates business from the Ford Center, especially on weeknights.

Q: Is the absence of the NBA this winter having an impact on business?

A: Bricktown misses the NBA this year. The restaurants and clubs miss the extra people it brought, but we also miss the excitement it brought to the district. You never knew what players you would see walking the streets of Bricktown.

Staff Writer Steve Lackmeyer

[solitude]

From the Oklahoman at NewsOK.com Article

Good stuff. Bricktown is another reason I'm voting "YES". Business will come alive with the NBA downtown.

[Karried]

That's exactly what I wrote on the other thread.. Bricktown was an amazing place to be before and after the games.. I loved it.

There isn't really a huge reason for me to go there now other than the occasional concert.

[DavidGlover]

You can tell how much the Mayor and council loved it.