The Philadelphia 76ers have been among the worst performing teams in the NBA, going just 19-63 and 18-64 respectively in the past two seasons.
The team last season ranked last in NBA average attendance (with a mark of 13,941 fans per game) and their local TV ratings were the second worst in the league (0.68 average rating on CSN Philadelphia) amid a complete teardown of the franchise.
But on the business side, the team is now making strides as it rebuilds its roster by shedding cap space and trading for top future draft picks.
Even with the past few seasons of futility, the Sixers enter the 2015-16 season with a 90 percent season-ticket renewal rate and have added more than 2,000 new full-season tickets with a projection to reach a total of 7,500 full-season tickets, which would be double the number from 18 months ago.
It’s a number still far below the league’s 10,000 full-season benchmark, but consider it progress given how bad the basketball team has been in the past two years under owner Josh Harris.
“When we go to market, we say we don’t want to wallow in the middle,” said Sixers CEO Scott O’Neil. “This is how we are going to do it and it will cause some pain on the court. But this is a smart basketball market. Our season-ticket base is up. People are saying that this may not be a team that I need to come see tonight, but for season-ticket buyers, it is beachfront property.”
This year O’Neil and the league’s largest full-time sales staff of 101 employees are trying to revitalize the tradition-laden franchise with new primary and secondary logos, a new “Since 1776” marketing campaign that harks back to the city’s revolutionary roots, and an open approach in running the business area of the franchise.
“We have been transparent of what our plan is and we have stuck to it,” said Sixers Chief Revenue Officer Chris Heck. “That has been a big help in convincing fans to invest with us now for what is coming around the corner.”
The Sixers have seen a 30 percent increase in sponsorship revenue, creating new tiers of corporate investment levels
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The teardown of the Sixers has tested fans’ trust and patience in the franchise.
Photo by: Getty Images |
to draw in new partners. “An average sponsorship deal in professional sports is around a year and a half, but our average is now around 3 1/2 years,” Heck said. “The pitch is: Come with us and buy into the future and get in before anyone else. In the past few months, we have generated $22 million in revenue spread over the next five years.”
Despite the revenue gains, the Sixers are one of a handful of NBA teams such as the Boston Celtics and Los Angeles Clippers that are tenants in their buildings.
“It hurts revenue,” Heck said of the lack of arena ownership. “We can’t sell suites, concourse signage and other simple stuff.”
Not owning the building also has created some friction. Comcast owns the team’s home in the Wells Fargo Center, but Wells Fargo isn’t a team sponsor and you won’t hear team executives use the Wells Fargo name when speaking publicly about their home.
Despite the limitations that come with being a tenant, the Sixers are building their business operations for better days to come on the court — whenever it happens.
“We will capitalize when the team does win,” Heck said. “We will be ready for it.”
