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SBJ/January 30-February 5, 2012/FranchisesPrint All
Cleveland Cavaliers owner Dan Gilbert’s northeast Ohio sports franchise shopping spree is over after his recent purchase of the Arena Football League’s Cleveland Gladiators.“We have gone from a dead stop from the NBA lockout to launching a new D-League team and now the Gladiators, so we are going to work on making what we have as good as we can,” said Cavaliers President Len Komoroski.
The Jan. 17 acquisition of the Gladiators comes after Gilbert bought an NBA Development League team last summer. His Cavaliers Holdings now owns four teams — his flagship Cavaliers, the D-League’s Canton Charge, the American Hockey League’s Lake Erie Monsters, and the Gladiators. The Cavs, Monsters and Gladiators play in Quicken Loans Arena, with the Charge in the Canton Memorial Civic Center, an hour’s drive from Cleveland. Those are enough assets at least for now for the Cavaliers front office, which oversees all of the teams.
Komoroski said the Cavs’ senior management team will run the Gladiators, but the organization will also hire 12 new staff members, including a chief operating officer, dedicated to the indoor league team. Most of the new hires will be in sales and marketing.
The Gladiators begin their home season March 26, giving the Cavs about two months to market the team that last year drew an average of 6,507 fans per game, substantially below last year’s AFL average attendance of 8,363 per game.
“We will rapidly put in place our infrastructure and we will do a tremendous amount of cross-marketing between our different entities,” Komoroski said.
Financial terms of the AFL sale were not disclosed, but Gilbert has bought 100 percent of the team from former owner Jim Ferraro, who owned the franchise since 2000. The team has played in Quicken Loans Arena for the past three seasons, giving the Cavs a close view of the AFL business.
“The AFL made sense,” Komoroski said. “We have seen firsthand the team operating in our building and ultimately we feel we can help put the team in a situation to thrive.”
“The Gladiators are another asset for the Cavaliers, and while in some aspects they are starting anew, there is a fan base and there is name recognition,” said AFL Commissioner Jerry Kurz. “[The Cavs] know they can do better and they wouldn’t have come in unless they saw the upside.”
The Detroit Pistons are eyeing the elimination of nearly half the 178 suites at the Palace of Auburn Hills as part of a major overhaul under new owner Tom Gores, who is working to put his own imprint on the franchise.
A plan under discussion calls for the team to convert 80 suites on the penthouse level, the arena’s highest point, into more profitable spaces with ideas of a restaurant, social media gathering sites, and a sports hall of fame all under consideration.
The project is in the early stages of development, said Dennis Mannion, president of the Pistons and Palace Sports & Entertainment, the team’s parent firm. No decisions have been made on what could be
The recession left the Pistons with open suite inventory in the arena’s upper level.
Photo by:JOSEPH CRACHIOLA (2)
The Pistons have not hired an architect for the revamp. Rossetti designed the Palace and has been involved in the more than $200 million in renovations over the past 23 years.
“We just have too much [suite] inventory,” Mannion said. “Changing those suites will be rated against numerous capital-intense projects we are reviewing.”
Under Gores and a new top front office staff led by Mannion, the Pistons are starting to roll out new marketing strategies to rebuild a fan base in decline over the past few years after the death Bill Davidson, former owner of the team and the arena.
Through Jan. 25, the Pistons are drawing an average of 12,481 fans over 10 games at the 22,076-seat Palace, down 25 percent to date from last season and last in the 30-team NBA.
Mannion, former president of the Los Angeles Dodgers, was hired by Gores in September after Gores bought the team in April for a reported $325 million. It’s been an uphill climb for Mannion and the Pistons to breathe new life into the franchise.
“We all came a little late to the traffic plan,” Mannion said. “There are things you should be setting up in March but I came in mid-September and we didn’t set up our full [executive] team until the past few weeks.”
Changes already made at the arena under Gores include new locker rooms and player lounges, new lighting, a new playing floor and a rebranding of the arena’s west atrium to include a new video wall and color scheme.
“We are looking at everything,” Metzger said. “Our vision is to continue to lead the way not only in our marketing but in our in-arena facilities and fan experience.”
But finding better use of the arena’s upper reaches is a major priority. “The focus is on the third level with a full revisiting of the space,” Mannion said.
The Palace, viewed as a trendsetting building when it opened in 1988, was one of the first arenas to put suites midlevel in the seating bowl and its 178 suites are still the most in the NBA. Newer arenas have 60 to 70 suites due to shifts in the premium seat market over the past several years.
Ironically, about 25 years ago when the Pistons first developed the Palace, the team added those 80 skyboxes to the arena design after selling out about 100 midlevel units before the building opened. The suites on all levels were a hot commodity during the team’s championship years in the late 1980s and 2004.
When the recession hit in late 2007, the Pistons found themselves with open suite inventory at the arena’s highest level. With Detroit’s automakers devastated by the downturn, fewer long-term suite deals were renewed.
In late 2008, under the leadership of former Palace Sports and Pistons President Tom Wilson, the team considered building an all-inclusive club on the penthouse level. But the club project never moved forward, said Jeff Corey, Palace Sports’ vice president of public relations. The recession and Davidson’s death in 2009, which preceded massive turnover in the front office, most likely were factors, Corey said.
As the Pistons revisit the penthouse level with a renewed commitment under new ownership, they can look to other big league arenas for ideas, keeping in mind the space limitations up top for one of the few remaining single-concourse NBA facilities.
In New York, Madison Square Garden’s three-year transformation includes the elimination of 71 suites on the 10th floor at the top of the arena. MSG will fill that space with the Chase Bridges, two catwalk-style platforms suspended high above the floor with 500 premium seats on each bridge. The prices have not been determined for those seats, which will open in the fall of 2013, said Stacey Escudero, an MSG spokeswoman. They are sponsored by Chase Bank, one of MSG’s biggest partners.
At Staples Center in Los Angeles, AEG tore down the walls of eight single-game rental skyboxes on the upper suite level to build Hyde Lounge, a space modeled after a Sunset Strip club by the same name. Now in its third season, the 175-person lounge has proved to be a “home run” for the Lakers, Kings and Clippers now that all three tenants are competitive on the court and on the ice, said Lee Zeidman, the arena’s senior vice president and general manager. The revenue model is tied to $5,000 annual membership fees for the club, which is open until 2 a.m. on event nights.
The nightclub retrofit may not work in gritty Detroit, still recovering from the downturn, but closer to home, Chicago’s United Center consolidated skyboxes into 40- and 80-person super suites on the penthouse level at both ends of the facility six years after the arena opened in 1994. More than 10 years later, they continue to sell successfully. The joint venture operating the arena for the Bulls and Blackhawks later developed the Bud Light Legends Lounge, another super suite on the penthouse level.