The NBA heads into its all-star break in Denver this weekend touting increased attendance but carrying a drop in both cable television ratings and apparel sales in its portfolio.
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| Stern |
“Overall, we feel good about our core business,” NBA Commissioner David Stern said last week. “We expect that by the end of the year, ratings on ABC, cable and local broadcasts will be up.”
Ratings on TNT have fallen 7 percent, to a 1.3 average compared with a 1.4 during the first half of last season. On ESPN, ratings have dropped 13 percent, to a 1.3 from a 1.5.
Officials from both TNT and ESPN said the demise of the Los Angeles Lakers’ dynasty and Kobe Bryant’s recent injury have hurt ratings. In addition, the NBA this year kicked off its cable broadcast schedule competing with Election Night coverage.
The NBA opening-night doubleheader on TNT, featuring Houston against Detroit and Denver against the Lakers, averaged a 1.4, roughly half the average 2.7 rating posted for last season’s opening doubleheader of Phoenix-San Antonio and Dallas-Los Angeles. The start of last season also featured coverage of LeBron James’ NBA debut.
The league and representatives of both cable networks expect that a stronger second-half TV schedule will bring higher ratings.
“There are a lot of factors in play for us,” said Turner Sports spokesman
| NBA BY THE NUMBERS |
| Following are the leaders, and followers, in several attendance categories for the league as this weekend’s all-star break approaches. Numbers reflect games played through Feb. 7. |
| HOME ATTENDANCE |
| Rank | Team | Avg. per game |
| 1 | Detroit | 22,076 |
| 2 | Dallas | 19,960 |
| 3 | Miami | 19,755 |
| 4 | New York | 19,359 |
| 5 | Utah | 19,070 |
| | LEAGUE | 17,023 |
| 26 | Orlando | 14,854 |
| 27 | Charlotte | 14,591 |
| 28 | New Jersey | 14,418 |
| 29 | New Orleans | 13,875 |
| 30 | Atlanta | 13,215 |
| ROAD ATTENDANCE |
| Rank | Team | Avg. per game |
| 1 | Miami | 18,551 |
| 2 | Houston | 18,260 |
| 3 | L.A. Lakers | 18,225 |
| 4 | Minnesota | 17,812 |
| 5 | Cleveland | 17,810 |
| | LEAGUE | 17,023 |
| 26 | Utah | 16,395 |
| 27 | Portland | 16,361 |
| 28 | Indiana | 16,167 |
| 29 | Seattle | 16,074 |
| 30 | Milwaukee | 15,872 |
| CHANGE* |
| Rank | Team | Gain/loss |
| 1 | Miami | +32.4% |
| 2 | Memphis | +13.4% |
| 3 | Seattle | +10.3% |
| 4 | L.A. Clippers | +6.9% |
| 5 | Washington | +6.2% |
| | LEAGUE | +1.5% |
| 25 | New Orleans | -4.0% |
| 26 | Boston | -4.5% |
| 27 | Milwaukee | -4.8% |
| 28 | Toronto | -8.8% |
| 29 | Philadelphia | -12.1% |
| * Change in average home attendance compared with average through Feb. 7 last season. Does not include the expansion Charlotte Bobcats. |
| Source: Timothy Brandt, for Street & Smith’s SportsBusiness Journal |
Greg Hughes. “We backload our schedule significantly, and we always get a bump after the All-Star Game. I also think that some marquee players missing significant time has hurt. But overall, the league is performing like we expected, and our sales are fine.”
Hughes would not disclose specific sales information.
ESPN’s coverage this season has included two Detroit-Indiana games. The first, on Nov. 19, ended with what shaped storylines for much of the season to date: the player-fan brawl. That game scored an average 1.3 rating. The rematch, on Christmas Day, posted a 3.5.
Ratings for the NBA on ABC, meanwhile, were averaging a 3.6 heading into this past weekend compared with an average 2.7 rating as of this date last season. Those averages represent four games this season and seven games last year. One of this year’s four was the much-touted Christmas Day matchup between the Lakers (Kobe Bryant) and Miami Heat (Shaquille O’Neal) that earned an 8.0 rating, the highest regular-season rating for the league in six years.
ABC also has been able to leverage its highly rate prime-time lineup to help promote the NBA on ABC. The network and league teamed on a Christmas Day commercial featuring members of the hit show “Desperate Housewives,” and a recent episode of “The Bachelorette” featured an NBA game.
Last year’s weaker ABC prime-time lineup limited cross-promotion.
“We’ve been able to reach out to a variety of areas in our company to gain additional exposure,” said Tag Garson, programming director for ABC Sports. “We’ve also had terrific matchups.”
The apparel side of the NBA’s business is down 20 percent to date this season from last year, due mainly to the end of the retro fad that helped drive merchandising business last season to a record $3 billion.
League officials are banking on an increase in video game sales to make up for the downturn and provide an overall single-digit percentage growth in merchandising by the end of the season. Details on year-to-date sales for video games compared with last season were not available.
“The retro apparel business will remain a core part of our business, but that fashion trend has waned,” said Sal LaRocca, senior vice president of global merchandising for the NBA. “We still expect our collective business to be up, with increases in non-apparel and international business.”
While the NFL and Major League Baseball recently signed exclusive deals with video game makers, it appears the NBA will keep its multiple licensee arrangement. The NBA currently has deals with EA Sports, Sony, Take-Two Interactive and Midway. LaRocca said negotiations with all four for new deals are ongoing.
“We are happy with the way things are structured,” he said.
Sponsorship revenue, league officials said, is up at the midway point of the season, though they declined to disclose the increase. The league has been in talks with various car makers to fill the vacant automobile category, but Stern would not disclose any potential deals with specific companies.
“Our partnerships are solid and we likely be announcing some additional partners within the next month,” he said.
Officials at Southwest Airlines, a league corporate partner that also has deals with 13 NBA teams, said they are content with the NBA’s first half of the season. Southwest began activating earlier this season than in past years, featuring a promotion with TNT and McDonald’s that brings children and families from Ronald McDonald houses to the featured Thursday night NBA games broadcast on TNT.
“As with all our deals, we have guaranteed ratings, and we are getting our value,” said Tena Griffith, manager of sports marketing for Southwest.
At the gate, average attendance for NBA games was up 1.5 percent through Feb. 7 to 17,023 fans per game, compared to 16,767 fans per game through the same date last year. The Detroit Pistons ranked first in attendance. Miami has the biggest gain over last year, up 32 percent, thanks in large part to O’Neal’s arrival in south Florida this season.
