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[nba.com]Restaurants, businesses in Houston feeling lockout's pinch

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by SidDaKid, Nov 12, 2011.

  1. SidDaKid

    SidDaKid Member

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    HOUSTON -- During a regular lunch hour, the air is still filled with the conversation of hungry diners and the aroma of Szechuan chicken, won ton soup or assorted other items on the menu.

    But these days the atmosphere at the China Garden and many other restaurants and businesses near Toyota Center is heavy with frustration as the NBA lockout continues.

    While the haggling concerns of the players and owners has grabbed the headlines, the truth is the effects of the labor dispute have been felt more already in Houston and other NBA cities by folks who'll never make a 3-point shot or throw down a slam dunk.

    "It's maddening," said Carol Jue Churchill, whose family has spent the past 42 years operating the China Garden, located one block from Toyota Center. "At a time when the economy is already the way it is, we have billionaires fighting millionaires.

    "I understand that the players have a talent and to compare them to people like us who work for a living is apples and oranges. But I think players should be grateful that they are in the top 1or 2 percent of income in the country. They're not the ones taking the risk in running a business. And, well, they're playing basketball."

    With the restaurant established since 1968, Churchill said there is no fear of going out of business if the lockout were to wipe out the entire season. But it would cut significantly into the lives of the owners and employees.

    "We're talking thousands and thousands of dollars," she said. "The property taxes alone are in the $70,000 to $90,000 a year range and that is based on that building, the Toyota Center, being open for business. If this keeps up, I'm probably going to go and protest our taxes for the year. Everybody here is tightening their belts. I've already told my kids it's going to be a mild Christmas. The money is down."

    Mike Neri, general manager of Mia Bella Trattoria and Andalucia Tapas Restaurant and Bar, about two blocks north of Toyota Center, shook his head in frustration.

    "On game nights, Rockets and NBA fans represent about 60 to 70 percent of our sales," he said. "I think my emotion is disappointed. We have a lot of families who are depending on that income. Some have to take a pay cut. Some have to get another job."

    On Rockets game nights, Neri said he usually increases his wait staff at the pair of side-by-side restaurants from eight to 16 servers and bumps up his bartenders from two to six.

    "With people stopping in here before and after the games, a bartender can walk out of here with about $250 in a night," Neri said. "Now it's maybe $50 to $60 a shift. That's a significant cut. It's similar for the waitstaff. A lot of my people have had to get another job, because they just don't have the hours. And right now, we're just at the early part of the season."

    So far, the Rockets have lost just four home dates: three preseason games and one regular season game. But there were six more home games on the original schedule in November, including the defending champion Dallas Mavericks and in-state rival San Antonio Spurs. Then the first three home games in December were supposed to be against the high-profile L.A. Lakers, Chicago Bulls and Oklahoma City Thunder.

    "We rely on business from the convention center and concerts and other events in the area," Neri said. "But let's face it, what goes on over there in that building with the NBA is a big part of our bread and butter."

    The effect of the lockout on the city of Houston is not believed to be significant. The Rockets' lease at Toyota Center requires two payments of $4.25 million a year, one on Aug. 1 and another on Feb. 1.

    "It's that indirect effect that has a greater impact," said Greg Ortale, the president and CEO of the Houston Convention and Visitors Bureau. "It's the revenue that is lost to the businesses and then to those employees, as well as the part-time workers at the Toyota Center. For a lot of those people, it's a necessary second job, maybe a third job and they need that income."

    Behind the counter at Front Row Tickets, a broker 1 and 1/2 blocks from Toyota Center, salesman Slim Johnson lifts his palms up and shrugs.

    "No games, no tickets, no money," he said. "It's pretty simple."

    Johnson said Front Row will usually have a minimum of 10 to 20 tickets for resale on an average game and that figure will rise dramatically for the Lakers, Celtics or Heat. But these days he's just looking out the front window toward Toyota Center and getting frustrated.

    "I want to slap somebody," he said. "All this money and you can't get it together? Is greed that big a deal? We are the little people over here and we're dying and they're fighting over millions. Reality doesn't set in on these guys. I think we need to put them all in a Prius and make them live in one room and find out what it's like for the rest of the world.

    "Look at all of the ticket takers, the concession stand workers, the guys who run the parking lots and all these restaurants downtown. Listen in here. The phone ain't ringing now. All we've had are one or two calls from people asking if the NBA is going to play at all."

    Mike Raymond is the co-owner of Reserve 101, an upscale bar near the arena, and he believes both sides in the lockout are getting dangerously close to doing permanent damage to the product.

    "Look, this is not the NFL," he said. "I haven't heard much of a public outcry at all. I know we have 3,000 friends on our Facebook page and so far, I've seen exactly one post about the NBA.

    "The NBA is in trouble. This might be like the NHL, where they went a whole year without playing and people didn't miss it. I think it's a very scary situation, maybe more for them than for us.

    "I think we'll survive in the long run. I'd like to say we're not dependent on these games. But that said, 16,000 coming to a game? You want it. If you got the Lakers on a Friday night, you know you're gonna be busy. People are gonna be excited. Everybody's gonna be happy. Hopefully they figure it out for everybody's sake."

    http://www.nba.com/2011/news/featur...ers-lockout-impact/index.html?ls=iref:nbahpt1
     
  2. Dave2000

    Dave2000 Contributing Member

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    I was pretty shocked that B.U.S across the street from the Toyota Center shut down when I passed by it on the way to UFC 138 last month, sucks for them and was a hot spot during the season.
     
  3. SidDaKid

    SidDaKid Member

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    Its definitely bad news that its affecting local businesses. Lets just hope that the NBA lockout ends asap and things start rolling again.
     
  4. Buck Turgidson

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    I imagine all those people are just spending their entertainment dollars elsewhere in the city.
     
  5. jdh008

    jdh008 Member

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    There was an article very similar to this in the Chronicle about a month or so ago. I'm not saying that they ripped it from the Chron, it's just weird that it worked out that way.
     
  6. napalm06

    napalm06 Huge Flopping Fan

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    Perfectly articulated version of what 95% of us are thinking.
     
  7. Alvin Choo

    Alvin Choo Member

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    It just makes me wonder. Do the owner still pay the GMs/Coaches/Physio etc during the lockout?
     
  8. heypartner

    heypartner Contributing Member

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    I wonder what sports bars throughout the city would say. I know when I went to them for away games, there really aren't that many NBA fans out at bars watching games...like in the NFL. Would they say, nah, the NBA doesn't really effect us much until the playoffs.

    Dave2000,
    How are the Rockets handling billing STHs for the season? Did they want you to pay already and then reimburse for missed games?

    only the players are locked out.
     
  9. RudyTBag

    RudyTBag Contributing Member
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    So the players aren't grateful? I don't see how the current negotiations, and being grateful for playing basketball for a living, are connected...
     
  10. tofu--

    tofu-- Member

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    But it's not about being grateful for playing basketball. It's about being grateful for being in the top 1-2% of income earners. Fighting for a few extra million when you're already making millions, while local businesses struggle to make ends meet is what the quoted person in the article is upset about.
     
  11. MadMax

    MadMax Contributing Member

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    Exactly.

    When I was younger, I used to argue for the economic impact of pro sports venues and how the use of public money could be justified by an argument centered around return on investment. I don't argue that anymore.
     
  12. meh

    meh Contributing Member

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    But to sports fans it's still a good deal. Basically the entire city, both sports fans and non-sports fans, shoulder the cost that only sports fans enjoy. So I'm still for public stadiums and such even if it's not that beneficial to the city in general. It's beneficial to me, and I only shoulder a tiny fraction of the cost.
     
  13. napalm06

    napalm06 Huge Flopping Fan

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    If you ask me, they're playing a child's game for a living to entertain people, and they could take 50% paycuts and still be "fairly" compensated for what they contribute to society. But that's not exactly how their comments read. If they were grateful, they'd accept a CBA that means games played over a hold-out for 2% and whatever small amount of leverage they're clinging to.

    I don't think all players think the same way, but we're dealing with a union, which doesn't always represent collective rationality...
     
  14. Air Langhi

    Air Langhi Contributing Member

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    There aren't the top 1%. They are the top .0001% of athletes. The top .0001% of any profession be it engineer, medicine, law, etc. they get paid with literally no cap on their salaries. When Lebron left they cavs their value dropped over a 100 million dollars.


    I had to do a research report about the sports stadiums, and in general they are terrible investments for the city from a financial stand point. The don't help generate revenue for a city. They just shift revenue from one part of the city to the other. Plus basketball arenas generally have good occupancy rates.
     
  15. da_juice

    da_juice Member

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    The trouble is, for every city smart enough not to invest in an arena, there are five that are willing to. Unless the majority wisens up and demands owners foot the bill, then cities will continue to pay for arenas.
     
  16. Tfor3

    Tfor3 Member

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    It's only temporary. Learning to survive as a business will only make them stronger. Once the NBA is back, they should be stronger financially and emotionally than they were the year before.

    I hate Stern. Not saying the lockout is his fault but I still can't stand him.
     
  17. tmac2therack

    tmac2therack Member

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    Well I wonder how they are feeling now.
     
  18. Dave2000

    Dave2000 Contributing Member

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    They gave us a choice of getting a full refund plus 1% interest for each game canceled, or get credit for each game plus 5% in "Rockets loyalty credit" to use towards next season, playoff games. I choose the 5% option with hope the All Star game still being here in 2013
     
  19. MadMax

    MadMax Contributing Member

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    I don't disagree with that. I'm very glad we built those stadiums. I'm just done trying to justify them based on economic impact.
     

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