TheBakersfieldCalifornian.com

After losses of around $1 million for each of the last two years, Bakersfield Jam owner Stan Ellis announced Wednesday the NBA Development League team has ceased operations.

"It's not a reflection on the economy," Ellis said inside the team's practice facility on Norris Road. "Our businesses are doing very well.

"It's simply this: Other business opportunities have arisen with much more potential. And the losses we incur with the Jam are not fair to the other 300 people we employ for expansion in those businesses."

The Jam is coming off its first winning season, having qualified for the D-League playoffs for the first time.

Ellis, who owns just under 94 percent of the team, said sponsorships were up 400 percent this past season compared to the previous year. But attendance lagged.

Minority owner David Higdon said the average attendance this season was 2,100 per game, about the same as the previous season. But the actual head count at games was often well below that figure.

Ellis said the goal when the team formed was average attendance between 3,000 and 3,500 per game.

"At the end of the day, we have to put a product on the floor that draws clientele," Ellis said. "That did not happen."

Scott Roth, who joined the Jam as head coach during the 2007-8 season, said he wasn't surprised with Ellis' decision.

"I don't think the fans ever caught on to the Jam," Roth said. "When you get 6,000 to 7,000 per game for the Condors and you're not getting 1,500 to a Jam game, it's a problem."

Ellis said he made the decision to cease operations Tuesday after waking up at 5 a.m.

"Of course it didn't happen at once," Ellis said. "David (Higdon) and I have had many conversations. The thing is: the opportunities we have in business today are scary phenomenal. They're great.

"And then we look at the Jam and it's frustrating because you spend $1,000 to get $100 through the door. ... Well, we can only stand that so long and it's not good business sense."

Ellis added: "When you have business deals that start to go south, you cut your losses and you go on to the next one. It's simply that. This is a business decision."

Higdon said: "No one has told us we made a bad business decision."

Ellis said several factors led to the timing of the announcement.

A major consideration was the Jam's contract with the city of Bakersfield to use Rabobank Arena for home games. Ellis said the contract states that the Jam must inform the city by May 1 whether it plans on continuing to play.

"And we have obligations to our people and we have obligations to the community," Ellis said.

The Jam is the second minor league team from Bakersfield to fold in less than two years. In the late summer of 2007, the Arena Football League2 Blitz disbanded.

Also in danger is the minor league baseball Bakersfield Blaze. Major League Baseball officials have said this could be the California League team's final season in Bakersfield because Sam Lynn Ball Park fails to meet minimum facility requirements.

Ellis said he recently acquired two alternative energy businesses from the San Diego area that deal with wind, water and solar energy.

"We decided that's where our efforts should go," he said.

Also involved in the Jam's demise is minority owner Steve Chase, who has been involved with the team from the start.

"It's a very sad day for me," Chase said. "I believed three years ago and still believe today that Bakersfield is a great market for this product."

He added: "When you look at it, Stan and Dave wanted to give something back to the community. Now that you look at it, did the community want the team or not? Certainly the crowds weren't there."

Said Roth: "I thought it was a great market. It was one of those situations that, potentially, had a lot of things going for it. It just wasn't working."