SPURS PROJECT LOSSES OF OVER $3M FOR UPCOMING YEAR
In a presentation yesterday, the Spurs projected a $3.26M
loss of '95-96 while reporting earnings of $4.51M for the '94-95
season (which includes more than $4M from the playoff alone),
according to this morning's SAN ANTONIO EXPRESS-NEWS. The
projected loss is based on the team not making the playoffs.
Spurs President & CEO Jack Diller: "Somehow, we've got to work
with the city to obtain a revenue stream to make this viable."
Diller was referring to contracts with the city involving
concessions, parking, luxury boxes, rent, and other costs at the
Alamodome. San Antonio Mayor Bill Thornton opposes any changes
in the Spurs' lease, but is open to adding new seating and
portable luxury suites. EXPRESS-NEWS business columnist David
Hendricks writes, "City Hall would be smart to start
renegotiating its Alamodome contract." He points out the Spurs
are limited in areas of broadcast revenues and the lack of a
corporate presence in San Antonio. The city is the NBA's
smallest TV market, but the fact the Spurs get only 24% in
revenue from corporate accounts "remains the most threatening."
NBA teams average 76% of revenue from corporations. The team is
now targeting "corporate-rich" and "high-tech" Austin (SAN
ANTONIO EXPRESS-NEWS, 9/21).