Thursday, March 08, 2007

KC: An overextended market?

A bizjournals.com survey from 2006 ranked Kansas City as the nation’s fifth-most overextended sports market, declaring its nearly $61 billion collective annual income too small to adequately support its existing teams.

The fourth-most overextended market? Pittsburgh, with just more than $65 billion.
Not that NHL franchises really serve up much competition to the 'big leagues.'
  • Since Jes asked for it, here's a look at the study cited in that AP article from yesterday. The 10 overextended sports markets are:
    1. Tampa Bay
    2. Phoenix
    3. Denver
    4. Pittsburgh
    5. Kansas City
    6. St. Louis
    7. Milwaukee
    8. Cincinnati
    9. Buffalo
    10. Minneapolis/St. Paul

    The 10 best markets for pro sports expansion are:
    1. Los Angeles
    2. Philadelphia
    3. Hartford
    4. Las Vegas
    5. Portland
    6. Oklahoma City
    7. Rochester
    8. Virginia Beach/Norfolk
    9. New Jersey
    10. St. Bernardino-Riverside

    It's hard not to notice the positions of Kansas City and Las Vegas and wonder why the overextended market is currently considered the consensus choice. A building with cheap rent does not a good hockey market make.

7 Comments:

At 2:37 PM, March 08, 2007, Blogger Jes Gőlbez said...

Bah, SI site is blocked here at work :(

Bettman, the NHL owners and GM's tend to be very short-term thinkers, so they are probably quite attracted to the free rent, regardless of the fact that KC is a fairly weak market (Check out the Royals, anyone?) and there are other, stronger markets available (Hello, Winnipeg).

Still, we're heard this song and dance from the Penguins 100 times before. It's time for them to put up or shut up.

BTW, who are #1, #2, and #3 on that list?

 
At 5:16 PM, March 08, 2007, Anonymous Anonymous said...

hartford is #3!!!

Bring back the Whale and Brass Bonanza!!!

 
At 8:29 PM, March 08, 2007, Anonymous Anonymous said...

What is Philadelphia lacking, exactly? A roller hockey franchise? Or is there room for the Athletics to move back?

 
At 9:02 PM, March 08, 2007, Blogger Nick said...

I actually don't think a vegas hockey team would do too bad, especially given the lack of professional sports teams there now. Kansas city on the other hand...

 
At 10:35 PM, March 08, 2007, Blogger Oiler Joe said...

Oh how I wish we could see the greatest hockey logo flying down the ice with Brass Bonanza in the background. I guess we'll get the KC Pens instead. Thanks Gary, how's that team in Raleigh doing?

 
At 12:54 AM, March 09, 2007, Blogger J. Michael Neal said...

(Check out the Royals, anyone?)

The Royals are a different problem completely. Kansas City was once a fine baseball market. What happened? David Glass and revenue sharing. One of the HUGE problems with revenue sharing is that it reduces the recipients' incentive to win. Glass, the Royals' owner, cut payroll to the bone, collected his revenue sharing checks and turned a profit. Why bother going to the trouble of trying to win when there was a risk free profit to be made? Kansas City fans responded appropriately, by not going to games and not giving Glass any more money.

I like the Royals going forward. Glass has finally been shamed into hiring a good GM and allowing him to spend where he sees appropriate. Dayton Moore is a good baseball mind, and the Royals have two of the best prospects in the game in Alex Gordon and Billy Butler. It's still going to be a long building process, because the organization destroyed all of its pitching prospects, but the situation is better than it's been in fifteen years.

What is Philadelphia lacking, exactly?

A second baseball team in Philadelphia might be successful, but it's behind a third New York team and a second Boston team on the list of good places to expand. Hockey and baseball are in very different situations. I do think that the NHL overexpanded, and is now trying to deal with some weak markets. Baseball could easily expand again; Boston and New York could both support a second team, and with Asia opening up, the players are certainly there to do it.

 
At 10:55 AM, March 09, 2007, Anonymous dave in Rocha said...

How is "New Jersey" one of the top 10 markets for a team? If they were that desperate for sports, you'd think they'd, I don't know, go see their wildly successful hockey team once in a while.

I'm also surprised to see that they listed Buffalo as overextended, but Rochester as ripe for a team. It's only an hour between the two cities, a third of the people at Bills games are from Rocha, and there are plenty of folks (myself included) who make the trip to the HSBC Arena a few times a year. The two cities should be considered a single market. Then they would cancel each other out and be neither overextended nor under-serviced.

 

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