| Alm: Mavs' playoffs mean payoffs Success to boost revenue from tickets, products, TV 04/14/2001 
The Dallas Mavericks will soon end their long exile from the National Basketball Association's post-season party with the first playoff games in more than a decade.
The comeback makes a good sports story.
And a good business story.
"For the first time in a while, people are passionate about the Mavericks," said team president Terdema Ussery. "They're buying tickets, watching television and buying merchandise. All of that's good for business."
Shut down in late April in every season since the elder George Bush was president, the Mavericks now will get at least one extra sellout crowd this year. The team doesn't know how much extra revenue will be generated. A lot will depend on how long the Mavericks last in the playoffs against a murderer's row of Western Conference foes.
Even if the team makes a quick exit, this year's unexpected success will provide a boost for marketing next year when the Mavericks move along with the Dallas Stars to the new $350 million American Airlines Center.
"We're going into a fabulous new building with one of the youngest teams in the NBA," Mr. Ussery said. "From a business perspective, it makes for a different conversation. We don't have to tell fans to hang in there. There's a difference between selling almost apologetically and selling with authority and conviction."
The Mavericks are doing better on the revenue side this season. With one home game remaining next week, the team has sold out 19 games in 18,000-seat Reunion Arena, the most since 1994-95. Paid attendance is running 37 percent ahead of last year.
In his first full season as owner, Mark Cuban kindled a fire under the sales staff, which expanded the roster of corporate sponsors.
For most turnaround teams, though, the big payoff comes in the next year as fans buy more season tickets and new corporate partners jump on the bandwagon.
With the new arena, the Mavericks will add their share of the luxury suites, club seats, sponsorships and other new revenue streams. Industry experts say a new arena can increase a team's revenue by $10 million to $20 million a year.
Television rights
Going into next year, the Mavericks will also have a chance to sell their local television rights as a winning team on the rise. Two years ago, the franchise signed a three-year deal with USA Networks Inc.'s KSTR-TV (Channel 49).
In December, KSTR's parent signed a $1.1 billion deal to sell the Dallas station and a dozen others to Univision Communications Inc., which will switch KSTR to Spanish-language programming. So, the Mavericks will have to find another home for over-the-air broadcasts, although cable broadcasts will continue on Fox Sports Net.
Rick Mills, KSTR's general manager, said the Mavericks audience doubled from last season, beating the Dallas Stars among males and adults in February. "I only wish that we could benefit next year from the great things the Mavericks did this year," he said.
KSTR will get a parting windfall. Under the current deal, the station gets all Mavericks post-season games that aren't on network television. Spot advertising rates for playoff games are three times what they've been for the regular season, Mr. Mills said.
"We didn't plan or budget for the playoffs," said Mr. Mills, who added that the contract gives the Mavericks advertising inventory to sell on the broadcasts. "These games are icing on the cake."
Stars owner Tom Hicks said his team made money in the last two years with long post-season runs, winning the Stanley Cup in 1999 and reaching the National Hockey League finals last year.
Still losing money
Mr. Ussery concedes that the Mavericks will be in the red, no matter how deep they go into the playoffs. He declined to discuss any hard numbers.
This year, the team incurred unexpected expenses for player payroll as Mr. Cuban rebuilt the team with free agents and trades, including the one that landed power forward Juwan Howard, who will earn $16.5 million this year.
Mr. Cuban, an Internet billionaire, has gained a reputation as a free-spender, tossing the NBA-maximum $3 million into several trades. Mr. Ussery, though, says Mr. Cuban doesn't want the Mavericks to be a money pit.
"We talk about the bottom line quite a lot," Mr. Ussery said. "We intend to be profitable."
Staff writer Richard Alm reports on sports business for The Dallas Morning News. His e-mail address is ralm
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– Richard Alm
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