Minor league basketball died July 9, 2008

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bectond
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Post by bectond » Mon Jul 21, 2008 2:47 am

[quote=""DazedAndAmused""]I accept this as reaonable proof of the exception that I already acknowledge exists. But, this concept is a much easier sell in the major league sport examples you provide, where you know there are quality control measures that exist to provide real infrastructure to the business and where you know you have a solid brand name on which to bank your investment. Unfortunately, we have neither in independent minor league basketball. Additionally, these examples seem to be of professional ownership groups. I didn't get the impression that that was what you were advocating for minor league basketball. You mentioned (20) friends and family members and equal investors, some taking part in team management. That's the part I am most skeptical about in practice. Good info for thought though. Thx.[/quote]

You have to spend money to make money. Name me one successful professional sports league where the average operating budget per franchise is less than 500K. What you’re suggesting defies reason, how can restricting a franchise financially increase brand recognition.

The best minor league sports markets are small towns that have an inferiority complex. When entering such a market the operators must understand the psychological aspect of sport. The franchise has to make the citizens feel that their town has improved substantially due to the teams existence.

Don’t under estimate the power of water cooler talk, you can’t put a price tag on it’s importance.
Every major employer in a small team that host an independent league team should be connected to the team in some form or fashion.(As shareholders or sponsors) Each player signing should have some type of impact on break room conversation. The team should also be community based, it’s financial well being should be woven into the finances of the town in general. (More shareholders is always better than less shareholders) If possible, everyone should have a stake in the team in some form or fashion. In order for that to occur you have to spend a lot more than 250K.

As I stated earlier, the CBA should be a veterans league. Each team should attempt to sign veteran well-known players throughout the season. For instance, if Darius Miles wants to prove to NBA teams that his right knee is sound, CBA teams should be prepared to sign him for a two week home stand. (At 1,250-1,500 per week). When the team hits the road (minus the big named players that don't do bus trips) the front office staff should be actively looking for the next big name to bring into town for the next home stand. These independent operations should also be developing talent, and to do that you have to hire competent coaching, training and nutritional staffs. (Which cost money)

As for my family and friends statement....
Did you know that 33% of the top-executives at the major league level are related to a major shareholder in the ownership group by birth or marriage? Sports franchises by the most part are small businesses with fewer than 250 employees. In fact, most are family run small businesses.
If you have 20 owners in your ownership group, that’s a lot of trusted friends and family your team can use for front office and game operation staffing purposes. It’s far wiser to pay your friends and family to run a competitive sports franchise in a respected league than to have an under staffed non-competitive franchise in a joke of a leaque.

In conclusion (Boy, my responses are getting to darn long)
What do Edmonton, Oklahoma City and San Antonio all have in common?
They are all small market clubs that use the community centered approach. I believe the CBA should only enter extremely small markets like Minot and Pikeville. Places like Pikevill, Minot and Butte can use Edmonton as a blue print on how to survive in small markets with limited corporate resources.
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Post by DazedAndAmused » Mon Jul 21, 2008 10:05 pm

[quote=""bectond""]You have to spend money to make money. Name me one successful professional sports league where the average operating budget per franchise is less than 500K. What you’re suggesting defies reason, how can restricting a franchise financially increase brand recognition.

The best minor league sports markets are small towns that have an inferiority complex. When entering such a market the operators must understand the psychological aspect of sport. The franchise has to make the citizens feel that their town has improved substantially due to the teams existence.

Don’t under estimate the power of water cooler talk, you can’t put a price tag on it’s importance.
Every major employer in a small team that host an independent league team should be connected to the team in some form or fashion.(As shareholders or sponsors) Each player signing should have some type of impact on break room conversation. The team should also be community based, it’s financial well being should be woven into the finances of the town in general. (More shareholders is always better than less shareholders) If possible, everyone should have a stake in the team in some form or fashion. In order for that to occur you have to spend a lot more than 250K.

As I stated earlier, the CBA should be a veterans league. Each team should attempt to sign veteran well-known players throughout the season. For instance, if Darius Miles wants to prove to NBA teams that his right knee is sound, CBA teams should be prepared to sign him for a two week home stand. (At 1,250-1,500 per week). When the team hits the road (minus the big named players that don't do bus trips) the front office staff should be actively looking for the next big name to bring into town for the next home stand. These independent operations should also be developing talent, and to do that you have to hire competent coaching, training and nutritional staffs. (Which cost money)

As for my family and friends statement....
Did you know that 33% of the top-executives at the major league level are related to a major shareholder in the ownership group by birth or marriage? Sports franchises by the most part are small businesses with fewer than 250 employees. In fact, most are family run small businesses.
If you have 20 owners in your ownership group, that’s a lot of trusted friends and family your team can use for front office and game operation staffing purposes. It’s far wiser to pay your friends and family to run a competitive sports franchise in a respected league than to have an under staffed non-competitive franchise in a joke of a leaque.

In conclusion (Boy, my responses are getting to darn long)
What do Edmonton, Oklahoma City and San Antonio all have in common?
They are all small market clubs that use the community centered approach. I believe the CBA should only enter extremely small markets like Minot and Pikeville. Places like Pikevill, Minot and Butte can use Edmonton as a blue print on how to survive in small markets with limited corporate resources.[/quote]

I'll try keep my answer a little shorter so we don't bore each other:

1. To this:
What you’re suggesting defies reason, how can restricting a franchise financially increase brand recognition. Don't think of my past comments as suggestions or recommendations, but more of a recognition of the new reality we face. If we want legitimate minor league basketball for the near future, clubs will need to be closer to 250k to 300k budgets. Why? (See below.) Don't kill the messenger!

2. Minor league basketball is diluted with "product," most bad. Owners of teams will have to overcome the perception before larger investments (budgets) can be justified. Having a nice house on a street of shacks still means you live on a street of shacks, impressing few. A real league has to be developed first, and we don't have a proven one of those right now to justify the bigger $ investments.

3. I keep seeing "major league" examples here.....we're a far cry from that, but I take your statistic of 33% family connection in major league sports as fact.

4. Counting on friends and family (in 20 owner groups) in serious business ventures is not a model to bank on that will support, build, or sustain minor league basketball IMO. In fact, in could be a recipe for disaster as a general rule. Of course, I will acknowledge that exceptions to anything exist.

5. Allow me to turn your question around just a bit: name me ONE successful (finacially) independent minor league basketball team with a budget OVER $500k. (Here's a hint: we both lose.)

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Post by tbayz1 » Mon Jul 21, 2008 10:23 pm

[quote=""DazedAndAmused""]5. Allow me to turn your question around just a bit: name me ONE successful (finacially) independent minor league basketball team with a budget OVER $500k. (Here's a hint: we both lose.)[/quote]

There have been a few teams, I don't know how many still today, but they're not making money. Owners that are doing that just have a mad cash flow and don't know what to do with it all. I think I've read that the Rochester Razorsharks spend close to 1 million. They run a first class operation, and the owners are good, down to earth people. Going to a 'Sharks game feels like your at an NBA game, everything is really professional, and quite impressive both on and off the court. They put butts in seats too, 10k at the championship game, and they still don't make money.

I agree with D&A that a 250-300k budget for minor league basketball is a good budget. And with minor league basketball 20+ owners would just be a trainwreck, too many voices, egos, etc... Major sports is a different story.
Last edited by tbayz1 on Mon Jul 21, 2008 10:29 pm, edited 1 time in total.

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Post by bectond » Mon Jul 21, 2008 10:55 pm

[quote=""tbayz1""]I agree with D&A that a 250-300k budget for minor league basketball is a good budget. And with minor league basketball 20+ owners would just be a trainwreck, too many voices, egos, etc... Major sports is a different story.[/quote]

I'm suggesting that ownership groups should be diverse and community centered. Knowing that..egos would not come into play. I could name eight non-major league baseball teams that have 20 or more owners and none of which are "train wrecks". If the CBA wants long term stable existence in small towns a community approach is really the only way to go. The Green Bay Packers have done it for years, this is nothing new.
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Post by bectond » Mon Jul 21, 2008 11:35 pm

[quote=""DazedAndAmused""]I'll try keep my answer a little shorter so we don't bore each other:

1. To this:
What you’re suggesting defies reason, how can restricting a franchise financially increase brand recognition. Don't think of my past comments as suggestions or recommendations, but more of a recognition of the new reality we face. If we want legitimate minor league basketball for the near future, clubs will need to be closer to 250k to 300k budgets. Why? (See below.) Don't kill the messenger! [/quote]

I elected to use the word reason instead of Logic on purpose. Reason deals with cause and effect. The end result of reason is the best solution for a problem. A franchise must have a reason for it's existence in order to rally the community around it. You are too focused on numbers, sports is about people interacting. People coming together.


[quote=""DazedAndAmused""]
2. Minor league basketball is diluted with "product," most bad. Owners of teams will have to overcome the perception before larger investments (budgets) can be justified. Having a nice house on a street of shacks still means you live on a street of shacks, impressing few. A real league has to be developed first, and we don't have a proven one of those right now to justify the bigger $ investments.[/quote]

Sports should be about making the community better (in the mind of it's residents), bring the whole town together on a friday night and making people feel go about their town.
The ABA is not going anywhere, as long as there are fools the infamous JN will make a profit. The CBA needs to focus on the CBA.

[quote=""DazedAndAmused""]
3. I keep seeing "major league" examples here.....we're a far cry from that, but I take your statistic of 33% family connection in major league sports as fact.[/quote]

I was attempting to show you how successful small market teams operate.
In small towns the fans are really the owners anyway, why not make it official. The CBA needs a new brand and the low-budget league is not the type of brand recognition that will rescue the league from the abyss.
(How will a low-budget operation make citizens feel proud?)

[quote=""DazedAndAmused""]
4. Counting on friends and family (in 20 owner groups) in serious business ventures is not a model to bank on that will support, build, or sustain minor league basketball IMO. In fact, in could be a recipe for disaster as a general rule. Of course, I will acknowledge that exceptions to anything exist.[/quote]

Are you a democrat?

So it takes a village of idiots to raise a child. Just joking...

Yes, i'm saying form an extremely large local ownership group and get as many family and friends of those owners as ticket takers, ushers, office managers, receptionist, statisticians, ball boys, equipment managers, group tickets salesmen, season ticket salesmen, marketing reps.

Nope, it's a recipe for success - friends and family would care more about your investment then some outsider. So yes, if you normally surround yourself with good wholesome hardworking small town preotestants, then you can hire your buddy if he brings something to the table, his kids, your kids and all your wives. If you don't surround yourself with good people, then invest in the stock market instead. (Bec , tip of the day-Invest in Wind Energy) Leave community based sports ventures to people that are committed to improving society as well as making an extra buck.

[quote=""DazedAndAmused""]
5. Allow me to turn your question around just a bit: name me ONE successful (finacially) independent minor league basketball team with a budget OVER $500k. (Here's a hint: we both lose.)[/quote]

The Harlem Globetrotters and the Rochester Razorsharks.
Last edited by bectond on Mon Jul 21, 2008 11:38 pm, edited 1 time in total.
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Post by DazedAndAmused » Tue Jul 22, 2008 12:02 am

[quote=""bectond""]I elected to use the word reason instead of Logic on purpose. Reason deals with cause and effect. [/quote]

Well, this is getting down to semantics as reason requires logic and logic requires reason in all practical applications. We can go through that exercise if we must. But, my simple point is that I am discussing today's environment and what survival today and tomorrow will look like. And, yes the numbers do matter and require focus.

You seem to be talking about "pie in the sky." I won't argue with you about the way perhaps things should be, but I am commenting about the way they are now and will likely be for the foreseeable future. Do I want a world of $1M minor league budgets...sure. But, the house of minor league basketball needs to be re-built brick by brick, and I don't believe your approach is right right now for that cause .

As far as invest opportunities go, there are alot of great possibilities in both solar and wind. I agree with you there.

Examples of financially successful minor league organizations with budgets > $500k?

[quote=""bectond""]

The Harlem Globetrotters and the Rochester Razorsharks.[/quote]

The Harlem Globetrotters don't constitute a good example of what I asked for. It's an entertainment icon, nothing like independent minor league basketball. It's more analogous to a circus (in a good way.) And, Rochester has lost money every year in existence.

But, either way I enjoy your posts because I still think you are the second smartest poster on the board. :D

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Post by DazedAndAmused » Tue Jul 22, 2008 12:06 am

[quote=""bectond""]I'm suggesting that ownership groups should be diverse and community centered. Knowing that..egos would not come into play. I could name eight non-major league baseball teams that have 20 or more owners and none of which are "train wrecks". If the CBA wants long term stable existence in small towns a community approach is really the only way to go. The Green Bay Packers have done it for years, this is nothing new.[/quote]

I really don't want to belabor this, but the Packers are a major league franchise (that most of understand has a unique ownership structure) and baseball....well, baseball is America's past-time, with secure backing from the majors. We're talking minor league basketball here. There is not a public thirst for it, and it has been overly diluted with poor quality product. It's apples and celery sticks.

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Post by bectond » Tue Jul 22, 2008 12:29 am

[quote=""DazedAndAmused""]Well, this is getting down to semantics as reason requires logic and logic requires reason in all practical applications. We can go through that exercise if we must. But, my simple point is that I am discussing today's environment and what survival today and tomorrow will look like. And, yes the numbers do matter and require focus.

You seem to be talking about "pie in the sky." I won't argue with you about the way perhaps things should be, but I am commenting about the way they are now and will likely be for the foreseeable future. Do I want a world of $1M minor league budgets...sure. But, the house of minor league basketball needs to be re-built brick by brick, and I don't believe your approach is right right now for that cause .

As far as invest opportunities go, there are alot of great possibilities in both solar and wind. I agree with you there.

Examples of financially successful minor league organizations with budgets > $500k?[/quote]

The PBL can go low-budget, but there really isn't a place for the CBA in the low-budget basketball world with it's 150K franchise fee, yearly dues and high monthly fees. Do you know how much they charge to be in that league? Nobody is going to elect to pay that kind of money when they can join the PBL or ABA for little to nothing. The CBA has to sell value due to it's cost structure, they don't have any other choice. I'm not giving you pie in the sky, they CAN NOT go any other way. They have to go the community centered route.

[quote=""DazedAndAmused""]
The Harlem Globetrotters don't constitute a good example of what I asked for. It's an entertainment icon, nothing like independent minor league basketball. It's more analogous to a circus (in a good way.) And, Rochester has lost money every year in existence.

But, either way I enjoy your posts because I still think you are the second smartest poster on the board. :D [/quote]

And the current CBA is not a circus, Oh I get it's a circus in a bad way.
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Post by DazedAndAmused » Tue Jul 22, 2008 12:39 am

[quote=""bectond""]The PBL can go low-budget, but there really isn't a place for the CBA in the low-budget basketball world with it's 150K franchise fee, yearly dues and high monthly fees. Do you know how much they charge to be in that league? Nobody is going to elect to pay that kind of money when they can join the PBL or ABA for little to nothing. The CBA has to sell value due to it's cost structure, they don't have any other choice. I'm not giving you pie in the sky, they CAN NOT go any other way. They have to go the community centered route.



And the current CBA is not a circus, Oh I get it's a circus in a bad way.[/quote]

This is on the CBA forum I realize, but my comments are really directed and at independent minor league basketball in general. Sadly, even a 250k budget is a few times higher than what most independent minor league teams are spending (yes, I'm throwing the IBL and ABA teams in there to get the stats up.) I actually don't think that the CBA dues will remain $150k, but I do think that they will eventually come back stronger than ever. But, I don't think it will be next year.

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Post by TEN » Tue Jul 22, 2008 5:04 am

I've had two different experiences with large ownership groups...one good...one not so...

The Dodge City Legend has a 15 person ownership group that worked very well. They hired me to be the general manager...and left me alone...we had meetings every month or so...i met with an accountant in the ownership group day to day...and those guys bought their tickets and sponsorships and never interfered... a pretty good (and successful) experience until the end of my time there...

The last two years in Oklahoma with the Storm were another story....you had fans in the ownership group who thought they should be involved in the day to day stuff...even when they were getting drunk at ballgames...they didn't get along with each other...they had confrontations with the coaching staff...said stupid stuff to the players...etc...

I have definately seen it both ways!

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