They should sell that franchise and then move it.
Man, I wouldn't do that. New Orleans would be #2 on my most attractive cities to live in behind Miami out of NBA cities.
New Orleans can become a free agent destination. Small market - big market = no, too simplistic. Great weather, fun city, interesting culture. Lots of music. Nightlife. New Orleans has lots going for it. It is one of the best / most attractive small markets out there (particularly for young rich famous athletes).
They (the team, the franchise) just need to stop self-harming and that starts with hiring a competent front office.