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Tuesday, March 15th, 2011 at 12:00 pm  |  39 responses

New Orleans Hornets to Receive $7 Million from Louisiana


by Marcel Mutoni@marcel_mutoni

The New Orleans Hornets’ financial woes have been well documented: attendance has been a struggle, other cities want to poach the squad, and in a bizarre arrangement, the NBA owns the team.

Now, the organization is accepting money from its home state. As part of their agreement, Governor Bobby Jindal announced that some of the state’s budget will be transferred into the Hornets’ bank account.

The Times-Picayune reports:

Gov. Bobby Jindal said Monday the state of Louisiana expects to make a payment of just more than $7 million to the Hornets because the franchise isn’t projected to meet the benchmark revenue requirement in its lease agreement with the state.

Jindal said the money is fully funded in the LSED budget.Jindal was in New Orleans on Monday to attend the launching of the Hornets’ new marketing campaign, called “I’m In,” to meet their possible target of reaching at least 10,000 season-ticket holder next season.

Best of luck explaining that one to voters, Gov.

The man put in charge of the team, Jac Sperling, says his main focus remains finding a new buyer for the Hornets, be it before or after the seemingly-inevitable lockout.

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  • JTaylor21

    For what? If the fans would at least show up to watch the best PG play this wouldn’t be a problem.

  • Jimmy

    second & third then

  • http://slamonline.com Allenp

    I do not support this in one of the poorest states in the union, with some of the worst schools. This pisses me off greatly.

  • http://Slamonline.com BK Chris

    How about investing that money in the school system! People don’t buy season tickets because they can’t afford them! What’s the main cause of proverty? Lack of education! Give the money to the kids Jindal!

  • NJ4Life

    @JTaylor21 not sure what you mean. Chicago is packed every night and NJ’s been sold out the last two games.

  • Yann Blavec

    7 millions !? Even here in france it would never happen.

  • robb

    @NJ4 I’m the biggest Drose fan, but I still think CP3 is the best pure PG in the league

  • wilz

    even in France??????

  • CP3NOLA

    Coming from a Hornets and CP3 fan even I think this is a bad idea, fans in the bayou need to show up instead, this is just trying to go around the problem instead of actually facing it

  • TheBarberShop

    This is simply ridiculous. New Orleans does not deserve to keep this team.

  • All Day

    @Allenp and BK Chris: Co-sign, bros! Apparently Jindal is aware of or completely forgot about the recession.

  • All Day

    Typo: Jindal is unaware

  • EazyE

    i wonder if walsh made this happen…

  • memyselfand9

    what allen said.

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  • rich

    move this team seriously. here in toronto our team is trash but the building is filled every night since the franchise started. those are fans. these people dont deserve chris paul, i hope they move the team somewhere that actually cares about sports.

  • blakos

    Thats the way to bridge the gap between rich and poor……….

  • http://www.redcross.org/ Felix

    Don’t know how we can comment without looking at the governor’s books… Losing a pro team probably a setback to local economy in some ways… maybe he has numbers that say 7 mill could be a good investment- will get a future return? I think the Saints run to Superbowl probably had some positive financial ripples

  • http://www.youtube.com/user/officerbarbrady what

    Bobby Jindal is a disgrace.

  • http://www.redcross.org/ Felix

    What if not floating the team 7 million and losing them results in a net loss to the local economy of maybe 20 million? Is it a bad move then?

  • http://www.redcross.org/ Felix

    I doubt he cut the check with a CP3 jersey on, waving a foam finger, while standing on top of a dilapidated civic structure

  • http://slamonline.com Allenp

    Felix
    Prove that.
    That the local economy would suffer a $20 million loss, and use real numbers to prove it. It seems curious that the state is giving out free money on one hand, and then claiming it’s poor ont he other hand.

  • http://Philosophervision@blogspot.com The Philosopher

    Shout out to the Illuminati.

  • http://thetroyblog.com Teddy-the-Bear

    Great to see Louisiana knows what its priorities are…

  • http://slamonline.com Allenp

    Look at some of the info on the Sonics move:
    http://seattletimes.nwsource.com/html/nba/2004131860_sonics18m.html

  • the nerve

    there go phil n dat illuminati shtt. i feel him tho

  • Raeniel

    VANCITY

  • http://www.google.com/news BETCATS

    Louisiana is one of the most backward states in the union. However, the Hornets are a big employer and provide a boost to the local economy. I am not sure how to feel about this, on the one hand it is a Republican governor giving a corporation money that isnt pocket change to stick around/taking funds away from public resource progams, but on the other hand it is keeping the Hornets in New Orleans. Combine it with my apathy for the Hornets moving and you get 1 big feeling of i dont really care one way or another. Who didnt know the deep south had their priorities all wrong and the NBA wouldnt find a way to play victim even when they make tens of millions?

  • Gerrel

    This isn’t nothing new. Louisiana has been giving the Hornet’s money for a while now.

  • Patrick

    It’s actually written into the lease that was signed post-katrina that the hornets are given money by the state. Most of the benchmarks that have become public as of late were all to protect shinn post katrina, and allow New Orleans to keep their team. The Times Picayune wrote the article as if this were new information. This has happened every year since 05. Also, if you look at the attendence figures they rank 18th percentage wise. That is right near the middle of the pack… Ahead of Toronto which was previously mentioned.

  • Patrick

    George Shinn is the reason for this entire mess, not the city of New Orleans. Things are slowly turning around, but with the league owning the team and articles such as this being thrown in our fans faces every day, it becomes a little tiresome. It is impossible to one hundred percent support something that everyone is telling you is going to leave.

  • flash

    bring back the supersonics!

  • http://www.google.com Tristan Warneke

    Good luck explaining that one to voters
    indeed!

  • IAMORANGE4EVER

    Where enabling happens.

  • http://www.redcross.org/ Felix

    @AlenP- You’re right, I can’t prove it and shouldn’t use real numbers… But what is the net loss to a city’s economy from losing a sports team? That number might be higher than 7 million. That’s the only way the move is justifiable too me, and I hope he has some numbers to prove it. We don’t have access to the governor’s books, so we don’t know the long term ramifications of the Hornets staying vs. leaving. If somebody does have an Idea, please put a link up here.

  • http://www.redcross.org/ Felix

    To say, “7 million? that’s a lot of money, he must have messed up” could be short sighted

  • http://www.redcross.org/ Felix

    @Alenp the sonic article you posted is pre-move, from a different city. Plus Sonic ownership wanted to move, so their probably working the press there. So, speculation from somewhere else, pre- move… don’t know how relevant that is

  • http://theurbangriot.com The Nupe

    This was a necessary and smart move by the Gov. The income tax and payroll tax based on player salaries alone provides the state with $4.8mil. That doesn’t take into account the other employees of the team and business’s that thrive only because a team exist. Plus and estimate 2-3000 fans come from out of state to watch thier team play the Hornets. The lost revenue from their hotel stays, airport taxes/fees, gas, food etc easily execeeds the $7mil mark. NBA (like NFL) owners have their own form of ‘vodoo economics’ to try to hide or highlight their footprint on a community – so it’s very hard to get a accurate picture. But just in simple taxes alone (on the players) and thier extreme buying habits easily make this a smart deal for the state.

  • http://theurbangriot.com The Nupe

    Another interesting thing I read a while ago. LeBron’s financial impact on Cleveland has been huge (and they still have a team – if you want to call the Cavs a team still). Downtown cleveland resturaunts and hotels are saying revenues are down by as much as 40% and they have had to lay-off employees (which means additional tax burden to pay unemployment etc.). Some estimates have been as high 2mil loss rev from out-of-state visitors (who only come to see the game) per home Cavs game. This is money that the state won’t see. So like in the Seattle example when they say that the people that live there will just spend their entertainment dollars on other things, what it doesn’t mention that the out-of-towners that were spending money in seattle every home game are now going to OKC and speding money there. Which is why OKC wanted a team so badly – to get all this additional revenue that wouldn’t exist without a team. Bottom line $7mil is a great investment if it keeps a team there just one more year.

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