Coach Creates Western Chain of Hoops-Only Athletic Clubs

In Oregon prep basketball circles, Barry Adams is “the man.”

Adams is the winningest coach in state history with more than 600 victories. His South Salem Saxons are the reigning state champs.

So perhaps it shouldn’t be too surprising that Adams’ foray into the private sector--a basketball-only athletic club dubbed The Hoop--has so far proved a slam dunk with a small army of gym rats.

The Hoop’s financial potential is unclear at this point, but attracting customers is not a problem.

About 2,500 basketball junkies belong to The Hoop, which has built impressive, multicourt facilities in Beaverton and Salem. The company broke ground this month on a third club in Vancouver, Wash.

“Basketball is just an exploding game,” Adams said. “At the same time, there are never enough open courts around.”

Churches and schools, which once hosted many leagues and pick-up games, are closing their gyms to the public because of insurance and security concerns.

That environment creates an opportunity for The Hoop to expand, Adams contends. The company is seeking to raise $30 million to build six new facilities across the West. He says his company is working with investors from Seattle, Phoenix and Las Vegas who are interested in building similar facilities in their cities.

To lead The Hoop’s expansion, Adams has brought a field general with plenty of experience and connections in the sports world onto the team. Craig Morton, former Dallas Cowboys and Denver Broncos quarterback, joined The Hoop as chief executive officer in July. He replaced Dean Derrah, a former Tektronix manager, who remains on The Hoop’s board.

Morton, who spent 18 years in the NFL before retiring in 1982, moved to Lake Oswego in 1992 to coach the Portland Lightning Bolts, a franchise in the short-lived United States Professional Spring Football League. The league folded before a single game was played, but Morton and his family stayed in the area.

He’s excited about the promise of The Hoop. “The numbers look great,” Morton said. “The reality is, once people find out about these places, we have no problem selling memberships.”

In their short existence, the two clubs have amassed memberships of about 1,300 apiece. Both are profitable, Morton said.

Each Hoop member pays modest dues, by health club standards, of between $25 and $42 a month, depending on age.

Neither Morton nor Adams would divulge the company’s total revenues. However, an average monthly dues figure of $35 per member would put total membership revenue per club at around $546,000.

Skip Rowley, a Seattle-based sports agent and a director of The Hoop, said each club will augment membership money with corporate sponsorships, athletic camps and on-site refreshment stands.

For example, Katy Steding, Olympic basketball gold medalist and a member of the Portland Power, has established a girls-only basketball academy at the Beaverton Hoop.

Given the relatively limited revenue base, site selection is important for the operation. “You can’t pay too much for it, but it has to be surrounded by people, and it has to have plenty of parking,” said Rowley, who added that he is eyeing two sites in the Seattle area.

The Vancouver Hoop is being built near Vancouver Mall, not far from Interstate 205.

The clubs are built in warehouse-like buildings in office park settings. The company has emphasized quality backboards and hoops and hardwood courts.

The Salem club, now 15 months old, has a young membership base and concentrates heavily on league play. The Beaverton club, which opened last fall, features a more diverse membership and more pick-up games.

From the beginning, Adams has rigidly enforced a no-trash talking rule. Anyone fighting or even getting in an opponent’s face is barred from the club. There are scoreboards and court monitors but no referees.

Some wonder about the company’s ability to maintain a consistent philosophy and quality in the event of wide expansion. Plus, Adams’ connections in the Oregon amateur basketball circles has contributed to The Hoop’s local success.

Adams is convinced that he’s hit upon a formula that will work in any urban center in the country. And he’s hopeful Morton’s big-time sports background will open doors previously closed.

So far, all Hoop locations are company owned, but Adams thinks the concept has potential for franchising. He and Morton want to sell investors on the idea of paying the estimated $3 million it takes to erect such a facility. The Hoop then will manage the facility for a fee.

“We’re dealing with a brand new product that no one else has tried,” Adams said. “So it’s a little hard to say what people will do and won’t do.

“But we do know basketball is the most popular participation sport and that many of us give up the game because there’s no place to play.”