Quick housekeeping note: I will not be attending Wednesday’s Good Neighbor session as I will be out of town on business. If any readers are attending and want to drop some observations, contact me. I plan to attend the 5/1 Oakland community meeting.
Woe is Dave Newhouse, great defender of all things Oakland:
Sometimes, I feel alone in defending Oakland, though I know that’s not true. But I’ve been doing it considerably longer than others in my line of work because I’ve been around considerably longer.
I know my preachings have gone way beyond repetitious, but I believe so strongly in Oakland — the most misrepresented city in America — that I’m about to deliver yet another sermon, although wishing I had Elmer Gantry’s oratory.
Well, at least he admits he’s repetitious. Have to give him credit for that. Newhouse criticizes other media for “cheering” a Warriors’ move back to San Francisco (yes, I’m as guilty as anyone). It’s a move that at this point lacks substance or detail, especially since we don’t know who will own the team in the future.
Newhouse also asks a pretty important fundamental question: How many large-scale arenas one area can support? It’s a very good question worth considering before anyone starts the development process. Most markets have one large arena (17,000-20,000) to service the population and the various acts that might tour or take up tenancy. Usually, that’s plenty enough. Large markets with multiple winter sport teams could have two arenas, but three? It would seem that the built-in competition for events would create diminishing returns for any arena operator in that environment. Let’s take a look at which cities have multiple modern arenas:
Bay Area: Oracle Arena (NBA), HP Pavilion (NHL)
We have a perfect situation right now, with the Pavilion consistently among the busiest arenas in the world and the Arena geographically situated to capture as many NBA and W’s fans as possible. There’s little reason to change this, other than SF trying to boost civic pride. The market here is too thin to have two hockey teams, leaving a second NBA team as the only real option. There’s little chance of that happening for Oakland and SF since they are too close and would cannibalize each others’ fans. San Jose is a possibility, but not the way it’s set up now with a prospective NBA team playing second fiddle for dates and revenue. Beyond the franchise move politics, there is a question as to whether or not our market size (7 million population) can support three arenas.
NYC: Madison Square Garden, Prudential Center (Newark), Nassau Coliseum (L.I.), Izod Center (NJ Meadowlands), Barclays Center (Brooklyn, future)
Obviously there’s some serious overkill here. However, Izod Center will lack a major team tenant next season, and Nassau has been outdated for at least a decade. It would appear that in the near future enough consolidation will occur that the area will have three arenas – a revamped MSG, The Rock, and Barclays, which could host the Nets and perhaps the Islanders. This is the one market where three arenas is just right, whereas two may be not enough given the spread of the regional fanbases.
LA: Staples Center (downtown LA), Honda Center (Anaheim), LA Sports Arena (South LA), Anaheim Convention Center, Long Beach Arena
The latter two are old, small venues attached to convention centers, so they’re not going to attract major sports. The old Sports Arena probably gets more use as a stand-in for other arenas in movies than it does attracting actual events. Staples Center has established itself as the home to three winter teams and the Grammys, while Honda Center has covered a lot of concert dates that Staples isn’t able to do. Combined with the Hollywood Bowl and the Verizon Wireless Amphitheater, the market is well-covered, just as the Bay Area is, but with twice the population.
As for the other Top Ten markets? They usually have a mix of a one modern arena and one older arena, though there are some cases where there’s only one arena or two new ones have been built (usually with poor results).
- Chicago – United Center (new), Allstate Arena (old)
- Dallas – American Airlines Center (new), Fort Worth Convention Center (old)
- Philadelphia – Wachovia Center
- Washington, DC – Verizon Center
- Houston – Toyota Center (new), Reliant Arena (old)
- Miami – American Airlines Arena (new), BankAtlantic Center (new)
- Atlanta – Philips Arena (new), Arena at Gwinnett Center (new, small)
Before anyone starts to go crazy working on plans for a San Francisco arena, it’s worth looking at the other markets and running the numbers. If there’s a potential for oversaturation, this is the place for it.
One more thing about Newhouse’s column: he states that Lew Wolff failed to build a soccer stadium in San Jose. Um, what? He just got approved and consummated the land deal. The Quakes should be starting construction within a year. Dave, stick to your purview – Oakland and SF. Apparently you don’t know squat about the South Bay.

