Cavaliers Maintain Financial Success As Economy Slams NBA
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Komoroski Says Cavs Have
Seen Record Ticket Sales |
The Cavaliers are "doing relatively well financially" as the "shockwaves from last year's financial meltdown slam the NBA," according to Brian Windhorst of the Cleveland PLAIN DEALER. While several NBA teams have seen layoffs and/or salary cuts this offseason, Cavs officials indicate the club "is not planning any layoffs or salary reductions" and in fact has been "adding to their staff." Cavaliers and Quicken Loans Arena President Len Komoroski: "We have been very fortunate, our fans have continued to show us tremendous support. We have seen it in many different levels from record ticket sales, television ratings and Web hits." NBA sources indicated that the Cavaliers "just about broke even operationally" last season, despite having a payroll in excess of $100M including luxury taxes. Windhorst reports the team's payroll this season is expected to be about $10M less, and "season ticket sales have increased over the last year." However, the Cavs still are "watching expenses," electing not to replace former CEO Mark Stornes, who resigned last year, or assistant coach John Kuester, who became head coach of the Pistons. The team also will scale back the "printing of media guides this year and will look to increase efficiency in other areas." But plans are to continue investing in "game presentation, promotional giveaways and additions to the roster if needed" (Cleveland PLAIN DEALER, 9/17).
ROCKET FUEL: In Houston, Jonathan Feigen reports the Rockets are "ahead of their usual ticket sales pace." Rockets CEO Tad Brown: "We are not only ahead of where [we] would previously be, we have sold more tickets to date than any other year we have been in Toyota Center." The team last season won a playoff series for the first time since moving to the arena in '03, and "much of the Rockets' good start on ticket sales comes from their postseason success." The team's average home attendance of 17,504 ranked 17th in the NBA for the '08-09 campaign, but Brown said, "I think we're going to end up 12th, 13th, maybe 14th this year." The Rockets this offseason have "cut a few costs -- with a slight staff reduction and a cut in the marketing budget -- but Brown said neither change was driven by the economy" (HOUSTON CHRONICLE, 9/17). Meanwhile, the Rockets yesterday announced a new partnership naming Continental Airlines the official airline of the franchise and Toyota Center. The exclusive agreement includes advertising and joint marketing fan promotions (Rockets).
MOTOWN BLUES: In Detroit, Ted Kulfan reports the "economic hardship that's continuing to grip the region is going to affect the Pistons this season." Pistons Principal Owner Karen Davidson yesterday said, "We're going to have to work harder. Everything has to be better and we have to give more for the dollar. ... We've always given away tickets -- it's good to get them in the house, so to speak -- but we have to get them (fans) out" (DETROIT NEWS, 9/17).
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