The Hawaii Tourism Authority regularly books entertainers to help make its pitch, but is taking it to an above-the-rim level in partnering with an NBA team.
In what both parties have described as a “unique partnership,” the HTA held a “Hawaii Night” at the Staples Center in Los Angeles this month and is paying to bring the Los Angeles Clippers to Honolulu for a training camp, two exhibition games and a “fan fest” this fall as part of a “comprehensive marketing agreement.”
Portions of the concept have drawn praise from frequent HTA critics as well as interest from other NBA teams.
The state-funded HTA won’t say how much it is paying the Clippers and has redacted the amount in a copy of the agreement requested by the Honolulu Star-Advertiser. The amount is spread over four payments that began in November and run through October, according to the contract.
In a cover letter accompanying the redacted agreement, the HTA said the “redaction is necessary to protect Hawaii’s competitive advantage as to visitor destination.”
State Sen. Glenn Wakai (D, Kalihi, Salt Lake), who has often criticized the HTA’s sports marketing efforts, applauded the relationship with the Clippers, saying, “Although I’m not at liberty to disclose the amount, I think it is money well spent. I thought it was a well-thought-out and well-executed promotion with the Clippers, and from what I understand, other NBA teams saw what (they) did and have approached the HTA to do something similar in their areas.”
The partnership with the Clippers marks a significant departure from the past, when the Los Angeles Lakers regularly made Hawaii their training camp home on their own dime. Between 1988 and 2015 the Lakers trained and played here 13 times, prompting the team’s ownership to compare Hawaii to “a second home.”
A spokesman for the Lakers said, “As far as I know, and I checked with our sponsorship group, we have never had any arrangement with the (Hawaii) Tourism Authority or any sponsorship whereby we were paid to come there.”
The Lakers are scheduled to hold their 2017 training camp in El Segundo, Calif., where their 120,000-square-foot facility, the UCLA Health Training Center, is to open this summer.
The Toronto Raptors, the only NBA team in Canada, regularly play what they call an “NBA Canada Series,” with exhibition games in Vancouver and other cities. And many teams spread exhibition games around outlaying areas.
The Clippers, for example, have held previous training camps in several Southern California cities and Las Vegas.
The Clippers and the Los Angeles market, which is the HTA’s biggest, “(Were) our focus from the outset,” said Leslie Dance, HTA vice president for marketing and product development.
She said what the HTA pays the Clippers “… is substantially less than what was committed for the Pro Bowl ($5.2 million) and is in line with typical fees paid by other NBA team sponsors. This partnership has the added benefit of the in-market component, which further elevates its value” for Hawaii.
“What is unusual is the opportunity to host the sponsored team/event in the destination market,” Dance said. “That is what is so compelling about the Clippers marketing partnership. HTA has the opportunity to promote the Hawaiian Islands in a critical market in addition to hosting in-market events with the team. From a marketing and tourism standpoint, this is a win-win scenario.”
The Clippers, who were bought by Steve Ballmer, former chief executive officer of Microsoft, for $2 billion in 2014, have been a team on the rise with Blake Griffin, Chris Paul and DeAndre Jordan. A team spokesman said the team views its ties with the HTA as an opportunity to expand marketing in Hawaii, where its games are carried on the Fox Sports Prime Ticket network.
The agreement with HTA for 2017, which includes options for extensions, provides for signage at Clippers games and media opportunities across radio, TV and social media. As part of the agreement, the HTA “will receive status of ‘official partner of the LA Clippers,’” according to the contract.
The Clippers’ victory over Memphis before a sold-out (19,060) crowd Jan. 4 was “Hawaii Night,” with the HTA providing 10,000 lei and music by Willie K as part of a four-hour promotional effort inside and outside of the Staples Center.
“I thought it was a really, really good promotion,” Wakai said. “One thing that I will say, though, is that it could have been better. “HTA never reached out to (more of) the hotels, attractions and airlines to sweeten the pot.”
He also questioned the need for 10 people to be involved.
The Clippers are negotiating a separate agreement with the University of Hawaii for use of athletic facilities in Manoa, but that contract has yet to be finalized, a UH spokesman said.