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This Weeks Issue

Teams set goals for new marketing plans

The Atlanta Hawks and New Orleans Hornets are launching major marketing efforts in hopes of rising from the depths of the NBA’s attendance ranks. The Denver Nuggets, conversely, are already on the rise, thanks largely to last season’s rookie sensation Carmelo Anthony and the team’s first playoff appearance since 1995.

SportsBusiness Journal this week examines these three teams as part of its continuing look at NBA offseason marketing efforts.

Atlanta Hawks

New ownership group Atlanta Spirit LLC begins its first full season of Hawks control with aims on a complete overhaul of the franchise.

“We have to demonstrate that we are changing everything,” said Bernie Mullin, president and chief operating officer of Atlanta Spirit, who is spearheading the changes. “We are coming out of the worst period in franchise history.”

The Hawks last year ranked last in the league in attendance, averaging 13,798 fans a game, and some games found far fewer people in the stands than that. Atlanta ranked first in the league in distribution of complimentary tickets, and those giveaways were counted as part of the team’s nightly attendance totals.

The Hawks earlier this year hired Huntersville, N.C.-based branding agency Brandthink to review the organization. While the review isn’t yet complete, the Hawks are forging ahead with a bridge marketing plan titled “New Management, New Coaches, New Players, New Game. Restart.”

There is at least one sign of life: The Hawks’ season-ticket renewal percentage is in the low 80s, up from 67 percent last year.

The retooling efforts also come with a marketing budget 12 percent less than last season, but a more focused campaign.

“Last year, it was a mass media campaign that wasn’t well-targeted,” Mullin said. “What we have done this year is take away the seven figures spent on mass media advertising and [replaced it with] a more targeted and sophisticated program.”

Some season-ticket prices have gone up, but the Hawks are countering those increases by offering concessions coupons to ticket holders. The Hawks also have moved up seats behind the baskets to be on the baselines and are installing loge seats behind the seventh row of baseline seats.

“We are improving the quality of seats and creating new inventory with an incremental impact of $1 million per year,” Mullin said.

New Orleans Hornets

The Hornets begin their third year in the Big Easy hoping it’s not seen as a third strike.

The team last season saw attendance fall 8.4 percent to an average of 14,332 fans per game, ahead of only Atlanta. The offseason has brought concerns that the city, one of the league’s smallest markets, may not be able to support the former Charlotte franchise.

“There are league concerns, and we understand the challenges,” said Jack Capella, chief operating officer of the Hornets.

This year’s marketing strategy is built around a “Shake It Up” campaign that features new coach Byron Scott and casts Hornets games as a key attraction in an event-driven city.

Capella would not disclose the team’s marketing budget but said owners George Shinn and Ray Wooldridge have increased the marketing budget by 25 percent over last season. The Hornets held ticket prices steady and are offering season-ticket holders of club seats one free single-game seat in the upper bowl of New Orleans Arena for every club seat purchased with a three-year contract.

The team’s season-ticket renewal rate is about 80 percent.

The Hornets hope regional interest builds with the resolution of a cable television carriage battle between Charter Communications and Cox Communications that produced game blackouts during the team’s entire first season in Louisiana and half its second season.

All Hornets fans will see a new set of regular opponents for their team this season, with New Orleans moving from the league’s Eastern Conference to the Western Conference.

“The big key is that we have identified our market,” Capella said. “We are putting together weekend packages and are designing programs to attract interest from individuals from Baton Rouge to Biloxi, [Miss.]”

Denver Nuggets

The resurgent Nuggets have leveraged Carmelo Anthony’s stardom into a stunning 95 percent season-ticket renewal rate despite raising ticket prices by an average of 14 percent.

“The renewal rate is the highest since 1995 and compares to some years that have been as low as 70 percent,” said Tom Andrews, chief marketing officer for the Nuggets. “Our full-season-ticket sales will be up between 20 percent and 30 percent.”

But don’t look for Anthony to anchor the team’s marketing campaign. Instead, the Nuggets’ effort is pegged to the tag line “Old School Basketball.”

For ticketing, the Nuggets are selling four different 10-game miniplans. It’s here that Anthony’s stardom is being marketed, tied to that of his prime challenger for last season’s rookie spotlight.

“If fans buy a 10-game package, they get an 11th game free, and that’s our game between Carmelo and LeBron [James],” Andrews said.

The early results: Miniplan sales to date are running 60 percent higher than last year.

Prices for Nuggets tickets have jumped an average of 14 percent, but fans have kept buying.
“In my 15 years with the team, demand has never been higher, and we are looking to cap season-ticket sales this year between 15,000 and 16,000,” Andrews said, adding that the team’s marketing budget has not increased this year from last season.

Last year, the Nuggets had 17 sellouts and averaged 17,597 fans a game, up 19 percent over 2002-03. This year, the Nuggets expect between 25 and 30 sellouts.

One of the challenges facing the franchise is the rollout of Altitude Sports & Entertainment network, run by Nuggets owner Stan Kroenke, who also owns the NHL Colorado Avalanche and the teams’ Pepsi Center home.

“We are in the early stages, but we will have a ton of programming,” Andrews said. “I expect it will help us market more efficiently with all the cross-promoting we can do between the teams and the arena.”

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