Jazz to Seattle? If '$' Was The Only Motivator

The commissioner has spoken.

The Sacramento Kings will stay put and a precedent has been set where owners are not allowed to do what is in their best interest for the greater good of the whole. Those are the two outcomes to be understood after the NBA Board of Governors voted to keep the Kings in Sacramento and deny Seattle the return of basketball.

So where does that leave the rest of the teams? If I were a shrewd businessman of an owner I would have voted to reject the move too! The next day I would make a phone call to Chris Hansen, head of the investment group in Seattle, and say, “So is that $625 million offer still on the table?”

Could the possibility of the Utah Jazz be next?

Of course there are passionate fans and owners, but let’s consider the money for a moment. After all, money is a force to be reckoned with.

The Jazz were purchased by Larry Miller in two transactions for a combined $22 million in the early 1980’s. The asking price of $625 million represents a 2740% return over the original purchase price. If I knew I would make that type of return on the investment it would not be too hard of a decision to make. Keep in mind the next offer that comes for any NBA team will probably not be to the level of the Hansen offer, but even the purchase last year by Tom Benson for the New Orleans Hornets (now Pelicans) was $338 million. Even that is a return of 1436% for the Millers.

The team itself is not the only thing in need to consider. The team needs a place to play. Sacramento, until recently, has struggled to support a new arena for the Kings. Only until the very real chance of losing the Kings came about, did the politicians and city get their act in gear. Sleep Train Arena, formerly Arco Arena, was built in 1988. Just three years later the Delta Center opened its doors. Assuming a new arena in Sacramento comes to fruition, it would make EnergySolutions Arena the 6^th oldest in the NBA.

Due to the ever-changing abilities to create revenue streams, arenas in the NBA only have a shelf life of about 20 years, possibly 30 to be generous. They either need a massive overhaul like Madison Square Garden is currently under for a hefty $950 million price tag or a new one must be built. The current going rate for a new arena is anywhere from $300-$500 million.

That doesn’t give the Jazz many options. Larry Miller built the building for $60 million, almost half of what he spent on Miller Motorsports Park. Although upgrades have been made over the years, the initially simplistic design of the building hasn’t provided the ability to make the major overhaul that is needed to maximize sponsorship and revenue agreements.

The fact is the team has struggled to be profitable for a number of years. The last major run through the playoffs was in 2007. That year, the team needed to go the Finals twice to get out of the red on expenses. Subsequent player contracts over the past six years have made things even more difficult.

Now again, we are talking about money. All things aside, just the money to be considered, if I were Gail Miller I might be making a phone call to Seattle in the morning.

Fortunately for Jazz fans, there is more to consider than just money. There is an emotional tie of the Jazz to Utah and its fans. The Millers for years have used the team to promote its other businesses such as the car dealerships. If the Millers were to pull a switcheroo without notice and sale the team to a group that would move it out of Utah, the boycott on LHM dealerships would be massive.

Even though the Millers have undoubtedly considered a sale from time to time, it is highly unlikely that they would allow any potential suitor the opportunity to move the team. Any deal would be contingent on the Jazz staying put.

In the end, lack of shrewdness and emotion are what keep the Jazz in Utah.

I suppose it’s a good thing to have extreme emotional attachments to certain things in life.