Back in October, Orlando Magic executives were counting on a winning season that would build fan excitement, boost attendance and maybe even bolster support for retrofitting the TD Waterhouse Centre.

None has come to pass, despite a Sports Illustrated prediction that the team would make the National Basketball Association Finals.

Star forward Grant Hill's exit this early in the season with an ankle injury just makes for a grimmer reality.

Magic officials said Friday that Hill's injury, coming during the second season of a seven-year, $93 million contract, won't have much impact on the team's financial health this year because season tickets and packages already already been sold. But there could be long-term damage if fans don't come back next season, they said.

"Talking about the economic impact, it's on more of the long-term side than the short-term," Chief Operating Officer John Weisbrod said. "Obviously, not having Grant makes it harder to be an elite team. It's delaying us from getting to the top of the mountain."

Magic ticket sales averaged 14,277 for the first 11 home games of the season, but attendance is 11,623 at the 17,250-seat arena, according to Magic officials. For every game, 2,000 to 3,000 ticket holders don't show up.

Attendance dropped to as low as 9,257 for the Detroit Pistons game on Nov. 26. Friday night's matchup against Michael Jordan and his Washington Wizards has been the only sellout.

Even empty seats that have been sold take a toll. City officials say the average Magic fan spends $6.92 per game on beer and other concessions. Every ticket holder who stays home reduces the team's revenue.

But fans say you need a winning team to draw people.

"People in Orlando will never be on the team bandwagon as long as they're no good," Magic fan Lloyd Monahan said outside the arena before attending Friday night's game. With the loss, the Magic dropped to 13-15. "There's no history -- this isn't like Boston and the Celtics."

Mayor Glenda Hood had no good news for the team or fans.

Though negotiations for a publicly funded renovation of the arena broke down some time ago, Magic management had hoped to revive talks early next year, they said.

But Hood said Friday that city leaders haven't talked about the project in months.

"I don't have any indication on when that will be revived," she said, adding that she remains optimistic that an economic turnaround could restart negotiations.

Magic executives say they're losing about $10 million a year on the team because TD Waterhouse is antiquated and doesn't include moneymaking features such as midlevel suites and pricey restaurants found in more modern arenas.

In April, they asked local officials to build them a new, $250 million arena. Public sentiment killed that plan, but there seemed to be more support for a $75 million plan to renovate the Waterhouse Centre.

But those plans hinged on the health of the tourist tax, which plunged after Sept. 11. And even before Central Florida's economy spiraled, political support for the renovation wasn't unanimous.

Orange County Chairman Rich Crotty said he immediately thought of the debate over the arena when he heard about Hill's injury. But the team's performance won't be a major factor when it comes time to decide whether to renovate.

"I'd be more concerned about the resort tax," Crotty said.

At least the team appears to be in good company, given that the NBA as a whole has fallen on hard times. Eighteen of the league's 29 have lower attendance this year as compared to last season.

Television ratings for NBA games fell as much as 38 percent in the last three seasons.

The NBA has reportedly reached a new national TV agreement that dumps NBC in favor of ABC and cable television. The six-year, $3.9 billion deal may mean more money, but by going to cable, may cost the league some exposure.

NBC has televised weekend double-headers and triple-headers, but under the new deal with ABC, only 15 games would appear on network television. The rest would be split among ESPN, TNT and a new all-sports cable channel being launched by AOL Time Warner and the NBA.

Monahan, the fan, said the decline in interest is a sign fans are fed up.

"There's a bad taste in people's mouths with all professional sports," he said. "People can't afford the tickets, they think the games are fixed, and they think the NBA is the worst of all." Coach Doc Rivers said the team remains focused.

"Our guys are still playing and our coaches are still coaching. We'll survive. We have to. We have a team that wants to survive. This is hardest for Grant Hill, because he's the one who can't play."