hawkdude55

Big cover story in the Sports Business Journal today on the Hawks. It's a subscription publication so I am going to post it here... NBA Hawks profit from fresh start By John Lombardo, Staff Writer Published November 21, 2016, Page 1 Font Size Resize SmallResize NormalResize Large | Print | Share | The Atlanta Hawks have been in the NBA since 1968, but the team’s CEO, Steve Koonin, a veteran of local institutions Coca-Cola and Turner, has adopted a startup approach in overhauling the franchise. “It’s like a 48-year-old expansion team in the way we have reimagined it,” Koonin said. CEO Steve Koonin: “It’s like a 48-year-old expansion team in the way we have reimagined it.”Photo by: GETTY IMAGES Two years ago, the Hawks were a franchise paralyzed by feuding former ownership and racially charged controversy. But since being sold to a group headed by Tony Ressler in 2015 for $850 million, the Hawks this season are setting some all-time-high business marks. Sponsorship revenue has doubled to record levels, while ticket revenue is also spiking to new heights. Over the past two seasons, full-season-ticket sales have grown by 72 percent and are nearing the 10,000 benchmark, a level once unheard of for a team that for years was known for underperforming in its market. “We are now in the top 10 in the NBA’s sponsorship business,” Koonin said of the Hawks’ corporate base, which for the first time has cracked into the league’s upper echelon. “We have an attractive audience. It is a millennial, diverse audience that is very elusive to hit through traditional media.” Those metrics, combined with the recent announcement of a $193 million major renovation of Philips Arena, the purchase this month of a D-League team to start play in 2019 and construction of a new $50 million practice facility to open next year, are part of the Hawks’ fast and furious turnaround. It’s also taking place in an ultracompetitive market, as the Braves build their new ballpark in suburban Cobb County while the Falcons build a downtown stadium near Philips Arena. The new buildings mean fierce competition for fan dollars and corporate sponsorship, but it’s a laser focus on marketing to millennials that Koonin sees as the way to cut through the clutter. One of the strategies introduced this year to appeal to younger ticket buyers is the team’s new mobile-friendly option Hawks Season Pass, which for six monthly payments of $67 or a single payment of $399 gives buyers seats to all home games excluding when they play the Golden State Warriors and Cleveland Cavaliers. The digital season-ticket plan does not assign a seasonlong seat. Instead, fans are notified through their mobile device of their seat location 15 minutes before a game. Other millennial-targeted marketing efforts include Tinder Night promotions, and this week the team will host its first in-game concert with a halftime performance by rap artist Gucci Mane. These moves follow the Hawks’ next-generation uniform design featuring patterns and bold color schemes new to the NBA. Overall, the focus on the young, spontaneous buyer has worked, as more than 40 percent of Hawks single-game ticket buyers are between 18 and 34 years old, compared with 31 percent during the 2013-14 season, according to team executives. The Hawks have focused their ticket sales strategies on millennial buyers.Photo by: GETTY IMAGES “The Hawks are extremely progressive and creative, and a lot of the efforts have resonated,” said Amy Brooks, executive vice president of the NBA’s team marketing and business operations department. “They have seen tremendous growth in ticket sales and sponsorships, and a lot of that is largely a result of engaging with fans in new and different ways.” Koonin points to new sponsorship deals with Cuervo 1800, Crown Royal and Planet Fitness as evidence of increased corporate interest in the team. “These are lifestyle brands who have come to us because of our audience,” he said. The Hawks also are filling more traditional categories with new deals with UPS, Delta Air Lines and Kumho Tire. The team now has more than 100 deals, with more expected. But there are still some glaring omissions with the luxury auto and banking categories unfilled. “The luxury auto is something a lot of people are looking at with the Mercedes-Benz Stadium next door,” Koonin said, referring to the Falcons’ new facility set to open next year. “We have a significant credit union partner but not banking.” Koonin, who recently received a new three-year contract, has bolstered the front office to help push the transformation. In the past year, the Hawks hired former AT&T Center vice president and general manager Brett Stefansson as general manager of Philips Arena, added Atlanta sports veteran Andrew Saltzman as chief revenue officer, and named former Los Angeles Clippers executive Pete Thuresson as senior vice president of corporate sales. In addition, Thad Sheely, the team’s former chief financial officer, was promoted to COO. The Hawks also are the only NBA team to add a chief diversity officer, hiring Nzinga Shaw last year to fill the position. It’s a front office that still has a lot more work to do. Despite the hot start with a 9-2 record through Nov. 17, the Hawks are looking for a boost at the gate. In seven games at 18,047-seat Philips Arena, the team drew an average of 15,808 fans per game, ranking 25th in the 30-team league and up slightly compared to the first seven home games last year. For the 2015-16 season, Atlanta averaged 16,833 fans per game, 23rd in the NBA. To date, television ratings on Fox Sports Southeast are flat. But it’s the prospect of the brand’s growth that is drawing interest. One of the Hawks’ newest and most lucrative sponsors in Emory Healthcare, which bought naming rights to the team’s new practice facility, had no previous major sports sponsorships until this year’s agreement with the Hawks. “Ownership and management have sent a clear message that they are serious about investing in the community and having a championship-caliber team, and that starts with improving the facilities,” said Dr. Scott Boden, director of Emory Orthopaedics and Spine Center. “Traditionally, Emory had not been bullish on sports sponsorships because our brand is strong. But I thought it was a great opportunity to partner.” Koonin has his sights set on far more than just a run-up in season-ticket sales and sponsorships. With the planned Philips Arena renovation coming after the opening of the new NFL stadium next door, the Hawks are looking to profit from an effort to revitalize the city’s downtown entertainment district. “We think we are in the growth part of the city with significant plans to redevelop and expand into Atlanta’s version of L.A. Live,” Koonin said, referring to the entertainment district anchored by the Staples Center in downtown Los Angeles. “We are working with partners and the city to try to make the area more vibrant.” It is an eye-opening approach for local business leaders. “They are interested in partnering with other institutions that we have never seen before,” said A.J. Robinson, president of Central Atlanta Progress and the Atlanta Downtown Improvement District. “They are really making an effort to improve their overall product not only as a basketball teams but as an organization. They are setting a new bar for teams here.”

I got this survey from the Hawks asking about thoughts on the Philips Arena renovations. Figured I would link it here so everyone could weigh in. https://philipsarena.turnkeysurveyor.com/se/4A347535646F6CDF?cid=1e54a5fc-f8d8-e211-822b-005056af003c&mkt_tok=eyJpIjoiTWpOaE9EWm1aR1U0TVdNMyIsInQiOiJmZnIrdjl6TGlaa00ycVludmczWG9ieVdacjVHZFFaeVd1MDdpSXhNUFYzXC9iNmJoRmdscmZPbnRMNnkyOXJBKzhrVnlmaHBlYTBRTkJSRHUzRzkybGlWSFZ0NnRUMUpzclhxMjZEeUhNdzQ9In0%3D I'm not sure what I want to see, but we definitely need a better video board!!

I just saw a new article by Tim Tucker on AJC.com about some of the business happenings with the Hawks, including the new practice facility and Philips Arena. It's subscriber content so I will post it below! I think it's very interesting and I hope that the renovation to Philips Arena is substantial  Hawks’ business plan includes practice facility, renovated arena This has been an eventful year off the court for the Hawks, bringing new owners, a revamped front office and sharp increases in season-ticket and sponsorship sales. And as 2015 winds down, plans are emerging for more major developments ahead. + Hawks principal owner Tony Ressler welcomes fans to Philips Arena on the big screen for the regular-season home opener Tuesday, Oct. ... read more The Hawks expect to announce a site and naming-rights partner for a long-discussed practice facility in the first quarter of 2016, CEO Steve Koonin said. And efforts will continue toward a major Philips Arena renovation, with construction possibly beginning after next season, he said. Koonin and Hawks chief revenue officer Andrew Saltzman discussed those and other topics on the team’s business side in a wide-ranging joint interview with The Atlanta Journal-Constitution. “(2015) has been a really good year,” Koonin said. He and Saltzman said season-ticket sales tripled, albeit from a very low level, to more than 9,000 and that 18 new corporate sponsors came on board, with deals generally in the mid to high six figures. In a harbinger of upcoming priorities, the Hawks this month hired a new chief financial and real-estate officer, Thad Sheely, who worked on major stadium and arena projects as an executive with the New York Jets and Miami Heat. Sheely’s job description with the Hawks includes strategic leadership in construction of the practice facility and renovation of the arena. On the practice facility, Koonin said the Hawks are “looking at multiple sites” and “talking to public officials about collaboration.” He didn’t disclose potential sites or partners. He said the plan is for the facility to be open for the 2017-18 season. “We are going to build a state-of-the-art practice facility,” Koonin said. “We are talking with multiple medical-care providers in town about building a sports science and sports training (facility) adjacent to our 50,000-square foot practice facility.” He noted several NBA teams have naming-rights deals with medical-care providers for their practice facilities and indicated the Hawks are moving toward something similar. The Cleveland Cavaliers train at Cleveland Clinic Courts and the Minnesota Timberwolves at The Courts at Mayo Clinic Square. The Indiana Pacers recently announced a deal with St. Vincent Hospital for naming rights on a practice facility slated to open in 2017. “It’s an NBA trend, and it makes a whole lot of sense,” Koonin said. “It’s a wonderful way to build the brand of a health-care provider by serving the greatest athletes in the world and (saying), ‘For weekend warriors, we can do a lot for you, too.’” The Hawks’ practice court currently is in Philips Arena, but large separate practice facilities have become the NBA norm. “If you don’t have it, you’re at a competitive disadvantage,” Koonin said. Meanwhile, the Hawks continue discussions with city of Atlanta officials about renovating 16-year-old, publicly owned Philips Arena. “It is an ongoing dialogue,” Koonin said. “We don’t have a set timeline. “We have not hammered out a deal, no, but we’re talking and working on it,” he added. “And we share a very similar vision.” In June, on his second day as the Hawks’ primary owner, Tony Ressler told the AJC that the team would need a new arena or a renovated Philips. In October, the AJC reported city officials and the Hawks are discussing a significant overhaul of Philips to keep the team downtown, with Mayor Kasim Reed saying the renovation could cost $150 million to $250 million. How much taxpayers might contribute hasn’t been determined. Koonin said the Hawks have hired consultants “to help us envision” what the renovations could entail. Whatever the renovations, he said the Hawks are committed to scheduling the work in such a way that they can continue to play in the arena without interruption. “We see doing this over summers. We’re not closing the building. We’re not going to play elsewhere,” Koonin said. He said the planning won’t advance fast enough to begin construction next summer, but said the summer of 2017 could be a “serious” target. The Hawks’ management is convinced the arena is in the correct location, Koonin said. He recalled that when the team was for sale early this year, one prospective purchaser posed a hypothetical to him: “Here’s a billion-dollar check. Where do you put the arena?” “The answer is, we want to be here. We like where we are,” Koonin said. “But we are a high-paying tenant, competing against new buildings (under construction locally), competing for talent in the NBA with a lot of new buildings, and there needs to be some renovation. We want the city to do its fair share, and we plan to do ours. So it’s pretty simple. “We’ve done no work for another site — zero. Now, I’m not going to tell you there hasn’t been every real-estate developer in town calling us.” The biggest change on the Hawks’ business side this year came when a 19-person group led by Los Angeles-based billionaire Ressler bought the team from the previous ownership group led by Bruce Levenson. Koonin said the new owners are highly engaged but allow management to run the business day to day. Ressler’s involvement has included meeting with potential sponsors. Among the business metrics that have risen in 2015, Koonin and Saltzman said, are merchandise sales, TV ratings and social-media engagement — all boosted by the team’s 60-win record last season and creative marketing to millennials. Saltzman, who joined the organization in August after a long career in Atlanta sports marketing and radio, cited another measure of the Hawks’ increased prominence in the marketplace this year: “At the last Falcons game I went to, I saw seven people in Hawks gear. Two years ago, you would not have seen that.”

I am friends with some people very close to Steve, we could definitely ask him

Go to Hawks.com and then to the Hawks Shop. That's the best place online...ton's of merchandise in the arena though!

Koonin has said publicly before that he wants to remain downtown. I can imagine renovating Philips to remove the suites will be pretty costly, but I also know that the building is definitely not ideal from a revenue maximization perspective. I love all the development that's happening in Atlanta so any project with Philips, especially if the public portion of funding is sourced from the same hotel taxes that the Falcons stadium is, is more than OK with me if it's done right!

I wouldn't plan on seeing the Hawks in sleeved jerseys anytime soon. I don't think that they're a fan of the look... I remember hearing that in one of the interviews. I also know players don't like them and the Hawks have consulted with players in the design of the new jerseys...Korver even said he requested a specific shoulder that he likes for shooting. So I doubt they will spring the sleeves on the players!

Brilliant. Love the Hawks being relevant in the heart of the offseason/football season. Bravo Koonin and marketing team

Glad to see Koonin is still an owner. I'm not worried about this being a group...these guys are clearly a level above the past ownership group. It seems like Ressler is going to let Koonin and Bud/Wes do their thing and provide support when necessary

I have a feeling that the Squawk is going to have to get a new logo/colors/design scheme too!

Steve Koonin just announced on Twitter that the new uniforms will be unveiled on Wednesday!!!

Yes, the new uni's are going to be unveiled this week. They are absolutely awesome. My guess is they will announce it Wednesday. They are awesome

I have seen the uniforms. The conceptual uniforms are not accurate. I would say it's the right "idea" but not even close to the final execution. The uniforms are so badass...I can't wait until the reveal

I really didn't want to chime in but feel like I have to here. I have been lucky enough to have seen the jersey concepts. All I can say, especially to everyone on this board...just BE PATIENT. The new Hawks uniforms are undoubtedly the best jerseys in the NBA. Cream really throws this one concept off, but the cream color seems to be a Christmas day special thing. The patterning also doesn't come through in these pictures, but trust me when I say that they're incredible. Koonin and the marketing guys at the Hawks got this one right. Just be patient and I can imagine the whole new slate of uniforms and designs will come out soon...I very highly doubt the Hawks wanted that coming out during a leak, and especially this Christmas day version. The new look is a grand slam and you all will agree, trust me...I can't wait to see it in person

Koonin is truly awesome and a miracle on the timing when he came to the organization. I don't think the common fan realizes his value and how much his leadership, vision, and ability to keep order has meant to the success of this season and the Hawks' rising stature in the city