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On this latest edition of Sparks Watch, we'll take a step away from the Sparks and the Golden State Warriors specifically and throw out an open question. Can smaller ownership groups work long term in the WNBA?

To me, I don't think that smaller ownership groups can work in the WNBA long term, in particular for the larger market cities, like Los Angeles.

1. Large markets have large fixed costs, which ultimately require richer owners who can pay them if teams are not profitable.

Previously, on Sparks Watch Day 13: Joe Lacob's impact on the WNBA CBA Albert Lee The owners will get richer, and expect the players to ask for more in return. Day 12: What the WNBA and Warriors want in this James Bowman Both sides want to take care of this as soon as possible. But we know the WNBA would rather keep this team in LA if it can. Previously, on Sparks Watch Day 13: Joe Lacob's impact on the WNBA CBA Day 12: What the WNBA and Warriors want in this

The main reason why I just don't see smaller ownership working long term in large markets is because of the fixed costs to run a team. James has a conservative budget in Day 7 of the series. The costs of renting an arena for a number of games per year is already going to be high, but Los Angeles real estate prices will cost more than most other markets in the United States, so player housing, which is an expense that WNBA teams have to offer players, at least per the last collective bargaining agreement, is going to be higher than other teams as well. Then leasing office space for team employees, like ticket salesmen and administrative staff will cost more on a square foot basis as well.

2. Smaller ownership groups will have a harder time getting sponsorship money.

The second reason why I don't see smaller ownership working long term is due to local sponsorship money. Do these teams have the brand to attract major dollars? Because larger market teams generally have larger fixed costs, they also will need more sponsorship dollars to fill up the void.

Meanwhile, national WNBA sponsorships, like ESPN's and Boost Mobile's will likely be given to each WNBA team proportionately. So when the Sparks lost their Farmers marquee sponsorship in 2013, that could have been what set them over the edge given that these deals are at around $1 million a year. Then, since the owners of these teams aren't Big Four League team owners, they can't affiliate themselves with those teams, where getting sponsorships is easier.

In closing

This post isn't too long, and there are going to be some days when we don't 1,500 word pieces to give. I just don't see small ownership working in large markets long term. But now it's your turn. Do you think such groups can work in the league? Or do you agree with me? Speak in the comments below!

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Poll Can a smaller owner (based on wealth) successfully run a WNBA team's business operations over the long term, in particular for a larger market city?

• Yes
• No

  46 votes | Results

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This post is related to an ongoing story:

• 2013 WNBA

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There is 1 comment on this post. Join the discussion!

grandmawolf says:

Sometimes a smaller group is needed to mend pass wounds . A large corporation might have the financial muscle but some lack the close personal touch that is needed in some situation like this one . This might be what the doctor ordered ! Start small and grow !

Grandmawolf

Thursday, January 16, 2014 at 7:37pm EST

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