Q&A with Ron Terwilliger

Trammell Crow's chairman and CEO gives Atlanta shot at women's hoops team.

Michael J. Pallerino

November 14, 2007

After five years in the Navy, J. Ronald Terwilliger didn't know what options awaited him in civilian life. So he decided to go to business school to sharpen his marketability. That's when he took a real estate class involving the application of quantitative techniques to building in a real-world environment. He liked the idea of building a tangible product.

Ask the current chairman and CEO of Trammell Crow Residential about why he purchased just the sixth team to be owned and operated independently of the Women's National Basketball Association (WNBA) and you may get the same answer.

Business to Business asked Terwilliger to share his expectations for just the 10th expansion franchise to join the WNBA since the league's founding in 1998 (there are 14 teams). The Atlanta team, which has yet to choose a name, logo, colors and head coach, will begin play in at Philips Arena in May 2008.

BtoB: With more than 10 professional and college sports franchises in Atlanta, where does the WNBA team fit in? What demographics are you seeking?

Terwilliger: Atlanta has a strong professional sports platform and we believe our city will be very supportive and embrace our new WNBA team. The southeast is the cradle of women's basketball with top-notch college teams – from Tennessee to Georgia to Duke and North Carolina –across the region. If the WNBA can succeed anywhere, it should be right here in the capital of the south. The WNBA in Atlanta will not only be viable but that it will grow in value and success in future years.
 
People keep comparing the league with the NBA, but even WNBA President Donna Orender has said comparisons with the Hawks and other Atlanta teams are irrelevant because the 11-year-old WNBA is a different product that draws a different audience. The demographic profile of the typical WNBA crowd tends to be 60-70 percent female and much younger than other sports, particularly in drawing teenagers and pre-teens. Our game appeals to a diverse crowd including families and, in particular, fathers who want their daughters to see strong female role models in action.

It may take time to develop a strong, steady fan base here but we are confident there is not only room for a WNBA team in Atlanta but that there is a need for it. I was a basketball player, and now I am a father of two daughters and grandfather with two granddaughters. We are looking forward to seeing the team's impact on families, young girl basketball players and women in our city.

BtoB: How will you measure the team's ultimate success? What (average) attendance figure are you shooting for? What about the ROI?

Terwilliger: It will take approximately 7,000 tickets to be sold per game to break even. This is slightly below the WNBA's average attendance and based on WNBA regular-season TV ratings in Atlanta, we have the fans here to make that possible. In fact, Atlanta has posted higher ratings for WNBA than any other market, including those with teams.

Every team in professional sports has to start somewhere and we're excited to give Atlanta the opportunity to have women's professional basketball. We also are excited to give young women the opportunity to play professional basketball in Atlanta and are counting on the Atlanta community to support this effort. We'll do the best we can to entertain.
 
BtoB: Describe the correlation between running a real estate company and a professional sports franchise.

Terwilliger: Running a professional sports franchise is running a small business where marketing, financial controls and team performance matter. In basketball, it is putting an outstanding product on the floor and making it an entertaining event. By doing so our marketing efforts should be successful.
 
Similarly, in real estate one has to identify consumer demand, execute well in the development process and service the buyer/renter in an exemplary fashion.