Los Angeles scores asbest place for sports teams
Phoenix as most overextended market, American City Business Journals study finds
By G. Scott Thomas
American City Business Journals
Updated: 7:13 a.m. ET Oct. 4, 2004
Los Angeles and Phoenix may be separated by just 375 miles, but they are light-years apart in terms of sports economics.
Los Angeles is the nation’s most appealing site for an expansion or relocated team, says a new study by American City Business Journals. The No. 1 ranking is based specifically on Los Angeles’ ability to support a new franchise in the National Football League.
Phoenix, on the other hand, is the most overextended market in the nation, according to the study. That means its income base is insufficient for its current teams, let alone new ones.
American City Business Journals analyzed 172 markets across America to determine their economic ability to support additional professional teams in baseball, football, basketball, hockey and soccer. The study focused on markets without a team in at least one of the five major sports.
Los Angeles ranks first because of its economic power. Its income base is eight times larger than necessary to adequately support a franchise in the NFL, the only league in which L.A. is not represented.
Right behind Los Angeles on the list of best sites for new teams are Philadelphia, Orlando, Houston, Portland, Ore., and Las Vegas:
Philadelphia, the nation’s sixth-largest metropolitan area, is the biggest market not in Major League Soccer.
Orlando has twice the economic capacity needed for an NFL franchise or a National Hockey League team. It also has the highest rating of any market not in Major League Baseball, though its income base falls 7 percent short of the sport's requirements.
Houston, with a population above 5 million, has more than enough room to add either a hockey or soccer team.
Portland could back a pro team in any of three leagues, including the NFL, MLS and the NHL.
Las Vegas has the strongest income base of any area without a franchise in any of the five major sports. It ranks No. 1 among all potential markets for the National Basketball Association.
At the opposite end of the spectrum is Phoenix, which already has baseball, football, basketball and hockey franchises.
The study estimated that Phoenix would need another $68 billion in total personal income (TPI) to comfortably support all four teams. TPI is the sum of all money earned by all residents of an area in a given year.
The shortfall does not necessarily mean that any of Phoenix's teams will move or fold. But it is a fairly reliable sign that they can expect continued volatility in attendance and revenues.
Some of Phoenix’s franchises, in fact, are finding it difficult to prosper in their overextended market:
The Arizona Cardinals ranked dead last in the NFL in attendance last season. The Cardinals averaged 36,000 fans per game. Every other team in the league was above 53,000.
The Phoenix Suns fell 4 percent short of last year's average crowd size in the NBA.
The Phoenix Coyotes finished 19th in the 30-team NHL in attendance in 2003-2004.
Following Phoenix on the list of overextended sports markets are Tampa-St. Petersburg, Pittsburgh, Denver, Kansas City, Cincinnati and Milwaukee. Each would need at least another $30 billion in TPI to provide a comfortable base for its existing franchises.