Just after the NBA pulled the '17 All-Star Game out of Charlotte, THE DAILY spoke to Hornets Exec VP and Chief Sales & Marketing Officer Pete Guelli about the decision and its impact on the franchise.
Q: When did the league let you know of the decision and how was it conveyed?
Guelli: The NBA office reached out to [Hornets President & COO] Fred Whitfield mid-afternoon yesterday. Fred then contacted our owner. Michael Jordan was aware because of the discussions we had at the recent BOG. Then we started to build our communication plan. You can’t count the number of people involved in this event. We had nine separate committees; we contacted our season-ticket holders and all our sponsors. We wanted to make sure everyone was aware of the decision.
Q: How prepared were you given that NBA Commissioner Adam Silver had been threatening to move the game for months and yet no changes to the law were made?
Guelli: The NBA from the beginning said it was going to be problematic, but they wanted to do everything they could to keep the game here. We were still hopeful, but at the same time we completely understood the NBA’s position. We have 29 other partners and we try to look at the decision from the big picture perspective. We support the league. We are most disappointed for the city. The game has a legitimate $100 million impact. It’s broadcast in over 200 countries. It is a showcase for the city and the team. That is the most disappointing part.
Q: How involved were you, Michael Jordan and Fred Whitfield in the league’s process of making the decision?
Guelli: From the beginning, as soon as there were challenges, there was an incredible amount of dialogue. It was an exhaustive effort to galvanize support. Fred personally spent months trying to navigate all the different relationships to put the game on. Michael was aware of every step and every decision. Fred kept Michael apprised each step of the way.
Q: The team over the past two years has made good business traction. What business fallout will this decision have?
Guelli: There is no denying that it is a more difficult business environment than it was just six months ago. Just from the arena, we have had a number of shows withdraw. For us, the focus is now to pivot out of this situation and make sure that everyone understands that Charlotte is still an important place to do business.
Q: How does the loss of the game damage the Hornets brand?
Guelli: Cleary there is some reputational fallout. But we have been able to build and resurrect an incredible brand and there is an enormous amount of value there.
Q: What will the team do to battle the issue?
Guelli: We are in the process of putting a strategic reaction plan in place and hope to have it done by next week. The biggest thing is that our event business continues to grow. We operate the arena and the expectation is that we will continue to host high-level events.
Q: Does losing the All-Star Game make it harder to sell to sponsors, especially for large deals like the jersey patch that could attract business from perhaps national brands?
Guelli: That is a fair question. It can portray Charlotte in a negative light, but it is a great, forward-thinking and inclusive city. Obviously a key market in the southeast, and I think most people recognize that. We are going to have a lot of discussion to make sure we are galvanizing the team in the market. We’ve already touched base with every one of our sponsors. Everyone has been supportive and understands the position we are in. We have raised $1.5 million in sponsorship for the game. I have already spoken to all 10 of the All-Star committee sponsors and they have all said they will be back on board if we get the game in 2019.
Q: How do you position yourself to get the game back in 2019?
Guelli: We already have spoken to the league and they have made it clear that we will have every opportunity to host the game as long as the environment is conducive. We have spent a huge amount of human capital preparing for the game, and hopefully we can apply some of it to the 2019 game.
Q: Is there an impact to the ongoing $30 million renovation of Time Warner Cable Arena?
Guelli: The All-Star Game was one of the reasons that the city was willing to invest in the renovation. But it was not the only reason. The arena typically hosts between 150 and 200 events per year. There will be no changes to the renovation projects.
