The lousy economy. Contentious political races. The lousy economy. The shrinking job market. The lousy economy. Wars in Iraq and Afghanistan. The lousy economy …
Normally, this would be an ideal time to gather at Arco Arena for another group hug with the Kings. But the problem with that approach is twofold: Discretionary spending is frozen in most households, and the 2008-09 Kings haven't convinced anyone yet that they're worth the price of admission.
So other than panic, how do the Kings survive the downturn? Winning would help. A lot. But while awaiting the day when Spencer Hawes and Donté Greene are old enough to buy beers, the organization's more immediate strategy is hitting the streets, working the phones, and implementing ticket plans that make more financial sense for Joe and Joann Jones of Elk Grove, Folsom, Oak Park, or wherever else the region's purple-clad people reside.
You know, the diehards who were forced to give up their season tickets to pay the rent and feed the kids? Who can't afford full season-ticket packages? One size no longer fits all; those empty seats last season were deafening.
For the first time in more than a decade, Kings ticket packages are available for 22, 11 and six games, with the traditional full-season plans.
"We tried to listen to our fans," said Mitch Germann, hired in December as vice president of business. "We made a lot of changes. Joe and Gavin (Maloof, the Kings' co-owners) spent a lot of money on a new database system to track our fans, determine their needs, what they can afford. … And we're really working at the grass-roots and community level, getting our players out there to meet people. But there's no question it's harder because of the economy."
Season-ticket sales are flat. Renewals are down. Yet, Germann said, partial packages continue to sell. Amid an anticipated abundance of empty seats, that's the good news.
"We understand that these are tough times," Gavin Maloof said. "Because we don't have a large corporate base, ticket sales account for one-third of our revenue, so we have to get folks in the building. It's critical. I told our salespeople, 'I don't care how you do it, selling large packets or three- or four-game plans. Just get people in the house.' "
Frankly, the Kings were late to comprehend the enormity of their task. Their record-breaking Arco sellout streak of 354 games ended with last season's home opener, with only the Lakers and Celtics attracting capacity crowds. The team's business and marketing executives appeared to suffer from an acute case of paralysis – or maybe just simple arrogance – by failing to recognize that fans of teams in transition have to be wooed, coddled, contacted, convinced. These are not those Kings, nor those days.
It was only after a visit last season by a furious Colleen Maloof that the business model was restructured, with changes including: the hiring of Germann and two research analysts to renovate the data resources base; the doubling of the sales staff; and an organization-wide emphasis on engaging and reconnecting with the community, with greater demands placed on players, coaches and executives.
"We're putting money into the team at a time when maybe we should be cutting back," said Gavin Maloof. "We re-signed Kevin (Martin), 'Cisco (García), Beno (Udrih). But we like our potential with the young guys, and we don't expect any more off-court problems. The future is promising. We just have to get through this."
Call The Bee's Ailene Voisin, (916) 321-1208.
