January 9, 2008

Seattle: The Storm is Perfect Right Where She Is

In response to the potential sale of the Storm and Sonics to Oklahoma City, a group of Seattle women acted to save their favorite team. They formed an LLC called Force 10 Hoops, raised $10 million, and now have the exclusive option to buy the Seattle Storm. It looks like the Sonics/Storm family has been divided.

In November Seattleites voted against (yet) another stadium. Oklahoma City residents will have their day at the polls on March 4, when they decide whether to approve funds to claim the Sonics. Okie basketball fans had a taste of NBA fever for three years while the New Orleans Hornets waited for their arena–and New Orleans fan base–to rebuild after Hurricane Katrina.

Still in dispute is the lease the Sonics have with Key Arena, through 2010. Because the agreement was struck in return for a rebuild on the Key Arena, The City of Seattle has decided not to let the Sonics out of their agreement. The matter is now in the courts–of law, that is.

The conventional wisdom is that sports arenas bring sports fans, who bring money to the city. This wisdom has been solidly challenged by economists. Seattleites are still paying for Safeco and Qwest Fields every time they eat out, stay at a hotel, or rent a car in town. November’s vote was clear: no more stadium spending for the moment, thanks. (Then again, that didn’t work at Safeco.)

Many of the arguments that dispute the economic benefit of sports arenas and teams do not apply in the case of the Storm sale. The Storm will not get a new stadium, but remain in the Key Arena. The substitution effect says that in larger cities people spend money on sports events that they would have spent on entertainment in the same city anyway, resulting in no net gain. But the WNBA has a primarily female fan base, and it’s not as obvious where this new market would have spent its money otherwise.

I didn’t vote for the Key Arena revival, but I’m not unhappy that the Storm is staying. It’s likely that the economic impact of the Sonics leaving (if there is one) will offset any benefit we might see if the Storm stays, so it’s not a big local economy argument. But it’s kind of heartwarming to see people fight for a women’s team.

What will be the impact on Seattle if the Sonics do leave? Will it be a loss of revenue, a loss of Seattle spirit, or merely a loss of one factor in Seattle traffic woes? Will the Storm’s presence make Sonics fans bitter, or is there any chance the fans will be absorbed by women’s basketball?