Several NBA teams no longer exist due to relocation or rebranding. The Seattle SuperSonics were relocated and became the Oklahoma City Thunder in 2008. The Vancouver Grizzlies moved to Memphis in 2001, becoming the Memphis Grizzlies. Additionally, the New Orleans Jazz moved to Utah in 1979 and became the Utah Jazz. Other defunct teams include the St. Louis Hawks, who became the Atlanta Hawks, and the Baltimore Bullets, who were replaced by the Washington Wizards.
Seattle SuperSonics
The Seattle SuperSonics, founded in 1967, were one of the NBA’s means to start expansion towards the Pacific Northwest. While they had had competitive basketball for 41 years, they had also established strong ties with Seattle, becoming in a sense a part of its public culture. The year of their greatest success was the 1978-1979 season, when they ascended to the NBA throne. It was also the season where they attracted some 14,253 average attendance to their games, showcasing their popularity and their community’s devotion to the team. They had also made a significant economic impact on the city during their years of operation.
Incidentally, their peak years were in the early 2000s, when their total annual receipts amounted to between $95 and $130 million, which could be attributed to ticket sales, merchandising, and concessions. The operations had also supported several hundreds of jobs connected to the sports, from sports management to sports players and fixture staff, as well as food concessionaires at the KeyArena. The KeyArena itself was lively on the game nights and created a significant impact on the city’s economy – particularly its local dining and parking service sectors.
The decision to make the team settle in Oklahoma City in 2008 was met with considerable resistance both from their local fans and the city’s authorities. They were not the best team at the time of the move, yet their game attendance average never fell below 70% of KeyArena’s holding capacity of around 17,000. However, the reasons behind the move were the perfect storm of managerial and financial factors.
The SuperSonics’ owners had shown concerns about the city’s inability to produce an up-to-date multipurpose arena, prompting their decision to move. Additionally, there were financial disagreements between the city and the ownership on how the KeyArena should be renovated. For Seattle’s sports fans, this move was traumatic. The SuperSonics were not just a winter sports anchor, they were also the only major league sports team, in a sense a cultural moniker for the city. Its loss meant fewer local sporting events, which had made a significant economic ripple effect, with figures attesting to millions of dollars of lost revenue on an annual basis.
Vancouver Grizzlies
The Vancouver Grizzlies were an NBA franchise established in 1995 as part of the NBA’s expansion to Canada, along with the Toronto Raptors. Even though the franchise was short-lived and the team was moved to Memphis in 2001, Vancouver fans vividly remember the presence of a professional basketball club. The Grizzlies’ performance left much to be desired: over the course of six seasons, the team won only 101 out of 460 games. During the 1995/1996 season, Vancouver Grizzlies played at the General Motors Place, now known as the Rogers Arena. The average number of fans attending basketball games was around 17,000 out of 18,630 people required to fill the stadium.
Financially, there were a few challenges for the Grizzlies. Considering the relentless weakening of the Canadian dollar, the club’s operating costs remained quite high since the owners had to pay salaries to players in US dollars. At the same time, the Grizzlies generated income from ticket sales, merchandise, and broadcast deals. According to an article in 2001, Vancouver Grizzlies’ revenue in the recent season was about $65 million. Naturally, the team’s incomes were significantly lower than those of other clubs that performed better and, as such, experienced a much higher attendance rate and fewer sold-out games.
In their six years of existence, the Grizzlies won 101 games and lost 359, which is not an impressive result but a reflection of the challenges associated with starting a new franchise from scratch in the draft and getting the best free agents to come to the club. For some players, Vancouver was a less attractive destination due to the lack of a local market compared with other US cities. Overall, the economic contribution to the city was extensive.
Hundreds of people were employed by the franchise, including players, coaches, administrative staff, and stadium workers. As such, on game nights, commercial and entertainment establishments saw the influx of both local and out-of-town fans and frequent customers. The economic activity generated around sporting events in industries such as hospitality and service was crucial for small businesses.
Charlotte Hornets (original)
The first reason, signaling the return to the original Charlotte Hornets, is the crowd support the teams had. The original Charlotte Hornets were a professional team established in 1988 and played until 2002. The team quickly became a fan favorite in the NBA due to the unusual uniforms and the large fan support. In 1988, the Hornets played in the Charlotte Coliseum, one of the biggest NBA arenas, holding 24,042 fans. Despite the team’s losses, the club’s attendance reached 23,056 per game during the next several years, proving the attraction of basketball for the people of Charlotte.
Another important reason leading to the return of the original Charlotte Hornets was their financial performance concerning merchandising. In the early 1990s, no other team could surpass the sales of the Charlotte Hornets due to the team’s popularity. The success was largely attributed to the club’s logo and easily identifiable color-scheme. The team’s sales characterized the local economy’s prosperity, and it is common to see people in North Carolina and other states wearing Charlotte Hornets’ shirts, caps, and sweaters. In general, the merchandizing income of the Charlotte Hornets team ranked in the top five in the NBA during several years of popularity growth.
The third important reason was that the Charlotte Hornets showed significant progress in their later years. From the mid-1990s, the Hornets became permanent contenders in the basketball playoffs. This factor also increased revenue from ticket sales and television broadcasts. For example, income from the 1996-1997 home games increased due to the launch of a new arena in Charlotte, filling it at 90.2 percent capacity.
At the same time, the original Charlotte Hornets contributed to increased employment inside and around the Charlotte Coliseum. Beyond employing the basketball players, the team hired coaches and administrators. Home games also brought revenue to accommodation, security, and sales staff, as well as those involved with food and merchandise. Moreover, various local businesses benefited as fans visited them for dining, drinks, clothing, and other goods before and after the games.
San Diego Rockets
The San Diego Rockets were formed in 1967 as an expansion team to the NBA, and it was the city’s first exposure to professional basketball. The team was not particularly popular, having not performed well in the NBA. Financially, the team faced challenges due to low attendance and the location of San Diego itself. For instance, the team played home games in the San Diego Sports Arena, which had a capacity of 14,400, but the actual average attendance was less than 7,000, indicating low popularity as the new team struggled to establish itself in the area.
As for the financial status, it is known that the NBA was much less affluent at the time, and the pay scale for players was relatively low. The biggest source of income for teams was the fans attending the games, making game preparation expenses hinge on attendance. Moreover, San Diego did not have much interest in sports, as the city was not particularly affluent or as developed as other NBA cities. In conclusion, the San Diego Rockets were not successful and folded, having very little impact on the local economy.
Kansas City Kings
The Kansas City Kings were originally the Cincinnati Royals. When the team moved to Kansas City in 1972, it immediately became a part of the city’s sports industry. The Kemper Arena, where the Kansas City Kings played, could seat approximately 16,300 people. Despite widespread support, the NBA franchise struggled with attendance, with about 10,000 fans at most games, which was below average compared to NBA standards. The Kings also faced financial problems, as their revenue was below that of other NBA teams.
Even though the Kansas City Kings were on par with less popular teams in terms of ticket sales and televised matches, they struggled to generate revenue. Several years before moving to Sacramento, the Kings were reported to generate approximately $10 million annually. The more popular franchises earned twice as much due to larger media deals and better attendance rates.
The performance of the Kansas City Kings was inconsistent. In the 1980/1981 playoffs, the Kings advanced to the Western Conference Finals, which led to a noticeable increase in ticket sales, as fans supported their team throughout the playoffs. The games were almost always sold out, and the Kemper Arena was filled with tens of thousands of fans. However, the Kansas City Kings failed to generate similar excitement on most other occasions, leading to decreased attendance following the playoffs.
Lastly, the Kings contributed to the community by engaging in numerous activities. The team’s players participated in local charities and youth sports events. While the Kings seldom generated excitement through their performances, they fostered a community spirit that helped maintain a loyal fan base.
New Orleans Jazz
The New Orleans Jazz was established in 1974, during a period of NBA expansion. Despite being a new franchise, the team played its home matches at the New Orleans Superdome, one of the NBA’s largest venues. The Jazz averaged 11,000 fans per game during their early years, although this was only about two-thirds of the Superdome’s capacity.
Financially, the New Orleans Jazz struggled with the high operational costs associated with running a competitive basketball team and leasing such a large venue. During the 1977-1978 seasons, the team faced financial difficulties due to the disparity between lease expenses and the revenue from sales and broadcasts. The team’s monthly and yearly revenue was estimated between $5 to $10 million, which was lower compared to other clubs at the time.
Despite these challenges, the Jazz boosted the local economy, particularly benefiting the hotel and restaurant industries due to the influx of fans attending the games.
