SBJ/December 10-16, 2012/FranchisesPrint All
One of the NBA’s best teams on the court this season is also seeing strong success off the court — not that anyone at Memphis Grizzlies headquarters wants to talk about it.
The Grizzlies are flying higher in ticket sales, sponsorship and ratings.
NBAE / GETTY IMAGES
Grizzlies executives, for their part, are taking a cautious approach. The team confirmed their business metrics to date but declined to comment on the reasons for their gains, or what they’re expecting the rest of the season.
Those metrics, however, show some key growth for a team playing in one of the league’s smaller markets. The Grizzlies’ full-season-ticket sales have increased by 20 percent compared to the end of last season. Their full-season-ticket renewal rate of 90 percent is also the highest since the Grizzlies began playing in Memphis in 2001.
The number of partial-season tickets sold is up 30 percent, and sales of both full and partial plans hit record marks in November.
On the sponsorship side, the Grizzlies have a 91 percent renewal rate and have added $1.4 million in new sponsorship revenue with 16 new deals.
So what happened?
Much of the groundwork leading to these gains dates to the summer, not long after the team’s 2011-12 season ended with a seven-game, first-round series loss to the Los Angeles Clippers. In June, Pera and his ownership group agreed to a deal (which closed in October) to pay a reported $377 million for the franchise. Included in that group are Justin Timberlake; NFL star Peyton Manning and his wife, Ashley; and former NBA star Penny Hardaway.
Robert Pera (above) recently bought the team from Michael Heisley.
NBAE / GETTY IMAGES
By drawing in Timberlake, the Mannings, Hardaway and others, all with Tennessee ties, the young, 30-something entrepreneur who had built a billion-dollar company that manufactured wireless equipment immediately curried favor with the locals.
Also helping the Grizzlies was the simple ability to sell during the summer. Such efforts weren’t possible last year, with the lockout. Having a full offseason to work made a difference for moving tickets and securing sponsors.
Of course, more recently, the wins have helped too.
According to Nielsen, Grizzlies games on Fox Sports South through Dec. 5 were averaging a 4.2 rating, up from last year’s 3.2 season-average rating. Local ratings for ESPN’s national broadcasts of Grizzlies games hit all-time regular-season highs last month, as well. The Grizzlies’ Nov. 14 game against Oklahoma City generated an 8.2 local rating, followed by an 8.3 local rating for Memphis’ Nov. 16 game against New York, also on ESPN.
But not all the numbers are top-line, and that’s in part where team executives are taking a cautious approach. Through Dec. 5, the Grizzlies were averaging 16,165 fans per game at FedEx Forum, up from the club’s 15,710 average for last year’s lockout-shortened season, but still only No. 19 in the 30-team NBA.
With two more nationally televised games and five home dates still ahead this month, eyes are on Memphis to see if the early gains can be sustained — and if the cautious optimism becomes, perhaps, a little less guarded.
Pittsburgh Steelers insiders are poised to buy much of the 12.5 percent of the team Cleveland Browns owner Jimmy Haslam is selling, sources said.
The sale of the stake is on the agenda for this week’s brief NFL owners meeting in Irving, Texas.
Haslam bought the Browns in October but has been allowed to carry his four-year-old Steelers stake until he found a buyer. His stake will be consumed by existing Steelers’ limited partners. However, the transaction, even though part of it will be voted on this week, will not fully close for a few months.
“The divestiture process continues and should be complete over the next few months,” Haslam said in a statement. An NFL spokesman confirmed that the “sale of an additional portion of his stake is on the agenda.”
In 2008, the Rooney family, which still owns the team, began bringing in a series of limited partners as part of a buyout of two family members who owned racetracks. The racetracks violated NFL ownership rules. Among the new LPs were Thomas Tull, Robert Paul, Paul Evanson and Bruce Rauner, along with Haslam.
The purchase of the Haslam stake is coming from LPs who have come in since 2008 and not from the Rooneys, sources said. The sale will not affect control of the team.
The owners meeting is scheduled to last four hours Wednesday. In the morning, the league’s finance committee also will meet, as will the head, neck and spine committee. The full meeting will include reports on labor, lawsuits against the NFL, and a preview of the coming postseason, said a source who had seen the agenda.