A former CEO of the Hawks virtually salivates at the thought of what an Eastern Conference championship, let alone an NBA title, could do for the team’s business.
“The real windfall is … in future seasons,” said Bernie Mullin, the Hawks’ chief executive from 2004-08 and now head of an Atlanta-based sports marketing firm. “It’s exactly what the Hawks have been waiting for and have needed.”
Mullin thinks season-ticket sales would at least double from traditionally low levels. He thinks many corporations would rush to buy premium seats and sponsorships that they have resisted in the past.
And once the Hawks have those customers, he thinks they’d keep many of them for years.
Although Mullin no longer is involved with the team, his assessment matches that of other experts: The Hawks’ playoff run, which continues Wednesday night at Philips Arena with the opener of the Eastern finals against LeBron James’ Cleveland Cavaliers, has ramifications for the franchise far beyond this series and potentially the next.
NBA teams bring in a lot of money from full arenas and elevated ticket prices late in the playoffs, yes, but the larger payday from a stirring postseason can come in new business the following season.
“There is a multiplier (effect),” said Bill Sutton, a sports management professor at the University of South Florida and a former NBA executive. “The playoffs are fine and exciting and can make a profit-loss difference this year with the higher ticket price. But in the long run, it’s the cumulative effect on what it does in the market. Does it generate a fan base?”
The Hawks are well positioned to capitalize in part because Atlanta is “hungry” for a champion among its pro sports teams, Sutton said.
“It has been a while since the Braves won something,” he said. “The Hawks have an exciting team and have been in the forefront all year long. … Hopefully that fan base stays true and decides to support them in the long run.”
Enthusiasm built for the Hawks throughout the regular season. The team had an average announced attendance (defined as tickets distributed) of 17,412, which ranked 17th in the 30-team NBA — up notably from an average of 14,339 and a ranking of 28th the previous season. But the Hawks sold fewer than 5,500 full season tickets, according to a January report on ESPN.com, leaving much room for improvement in an 18,000-plus-seat arena.
“If the Hawks go all the way and win the NBA Finals, I think they would darn near triple that season-ticket base of 5,500,” said Mullin, a former senior vice president of the NBA. “If they win the Eastern Conference and lose in the NBA Finals, I think they would still at least double it.”
Similarly, he thinks the playoff run will move major Atlanta-based corporations to buy premium seating and sponsorships, areas in which the Hawks have long lagged many of their NBA peers.
“Up to this point in time, many corporations in the Atlanta region have not not been compelled to buy Hawks tickets to give to their clients, their prospects, their employees,” Mullin said. “This (season’s success) really does drive that immensely from a corporate ticketing and hospitality point of view. In the same vein, it’s very probable they can get at least a 50 percent increase in (sponsorship) revenue streams.”
After winning 60 regular-season games, the Hawks have won two playoff series in a single season for the first time since moving to Atlanta in 1968. Those accomplishments make for an off-season sales pitch that would grow only stronger with a series victory over the Cavaliers.
“Momentum means everything in sports sales, and the Hawks have it,” said Atlanta public relations and marketing executive Bob Hope, who has much experience in sports. “Before, you could go everywhere in Atlanta and never hear anybody talking about the Hawks. Now, you can’t go anywhere without hearing people talking about the Hawks.”
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