Less Than Half NBA Teams Profitable

[J.R. Locke]

http://www.realgm.com/src_wiretap_archives/55060/20081024/exec_5_to_7_teams_are_profitable/

There has been other reports too.

My suggested fixes

1) Turn off the jumbotron
2) Get rid of all cheerleader/dance squads except Knicks/Lakers
3) Play in smaller venues if you can't sell out your arena (half the league)

I hate how evil they think not making a profit on an NBA team is. At anytime an owner could sell his team and recoup more than he originally bought it for and likely make a substantial profit. Sports are one of the most consistent businesses in America.....isn't there anything worse than millionaires whining?

[dave374]

Re: Less Than Half NBA Teams Profitable

Stop paying stiffs $12 million a year.
Problem solved.

[youvalss]

Re: Less Than Half NBA Teams Profitable

No worries, EA will soon pay a billion $$ for an exclusive license. Just hold on a little longer...

[RubenDouglas]

Re: Less Than Half NBA Teams Profitable

that doesnt seem to make sense.. players get paid that ammount because the owners are making all that money, correct? i was under the impression they are getting paid less than they really should be making because the owners and GMs are really bringing in the big bucks

[Laettner32]

Re: Less Than Half NBA Teams Profitable

that doesnt seem to make sense.. players get paid that ammount because the owners are making all that money, correct? i was under the impression they are getting paid less than they really should be making because the owners and GMs are really bringing in the big bucks

That is the problem IMO. I'm 37! I'm a man! I loved the Association in the 80's and the 90's. But in the past decade or so, it is just trash (IMO). The players just don't care, I remember after a game the winning team would jump up and down, and the losers would hang their heads and walk off the court. Now, you can't tell who won or loss after a game, both teams are smiling! All the players care about is playing well enough and staying healthy to sign one more contract. That is all.

[youvalss]

Re: Less Than Half NBA Teams Profitable

That is the problem IMO. I'm 37! I'm a man! I loved the Association in the 80's and the 90's. But in the past decade or so, it is just trash (IMO). The players just don't care, I remember after a game the winning team would jump up and down, and the losers would hang their heads and walk off the court. Now, you can't tell who won or loss after a game, both teams are smiling! All the players care about is playing well enough and staying healthy to sign one more contract. That is all.

So true!

[J.R. Locke]

Re: Less Than Half NBA Teams Profitable

You guys obviously don't watch the NBA playoffs do you?

Owners can recoup loses by selling the team....players are playing for their livelihood.

[aholbert32]

Re: Less Than Half NBA Teams Profitable

That is the problem IMO. I'm 37! I'm a man! I loved the Association in the 80's and the 90's. But in the past decade or so, it is just trash (IMO). The players just don't care, I remember after a game the winning team would jump up and down, and the losers would hang their heads and walk off the court. Now, you can't tell who won or loss after a game, both teams are smiling! All the players care about is playing well enough and staying healthy to sign one more contract. That is all.

LOL. Revisionist history. Most players care alot whether they win or lose and show it on the court. The same amount of players who "cared" existed in the 80's and the 90's that do now. I'm 31 and I see players like KG, Kobe and Dirk get just as upset as Bird, Magic and Zeke used too. This is another case of peopl remembering their glory years as being better then the present.

[aholbert32]

Re: Less Than Half NBA Teams Profitable

You guys obviously don't watch the NBA playoffs do you?

Owners can recoup loses by selling the team....players are playing for their livelihood.

Exactly.

You dont own an NBA team to make a profit. You own it as a status symbol and to make money once you sell it. Thats it.

[youvalss]

Re: Less Than Half NBA Teams Profitable

Exactly.

You dont own an NBA team to make a profit. You own it as a status symbol and to make money once you sell it. Thats it.

But how much money will you make when selling a team that's not profitable?

[aholbert32]

Re: Less Than Half NBA Teams Profitable

But how much money will you make when selling a team that's not profitable?

The article only speaks to last year's profits. As with any business some years you make profits...others you lose. Just because a team isnt profitable doesnt mean its close to going belly up. With that said, lets say you buy a team for 300 million in 2002 and you sell it now (Most owners only keep their team for 5-8 yrs) for 4-500 mil. Even if you lost 80 million during those 6 yrs you are still made a 120 mil profit from your investment.

[J.R. Locke]

Re: Less Than Half NBA Teams Profitable

But how much money will you make when selling a team that's not profitable?

The appreciation of sports franchise are ridiculous. Even in the NBA I would bet they gain a few million in value each year.

[SPTO]

Re: Less Than Half NBA Teams Profitable

In many ways the NBA is worse off then the NHL. At least the NHL has relatively strong gate revenue (except for most of the sun belt teams) whereas the NBA has been losing a lot of fans in the arenas. Another factor is the TV deal, while it's very lucrative it doesn't generate enough revenue for the teams locally. In the US the NHL teams that have regional TV deals actually make some good coin off of it.

The NBA needs to trim some of the excess fat with player salaries as well. You got average players getting paid huge money which in turn bumps up the median salary. You add that to the fact that teams aren't exactly generating great revenue and it leads to a cash flow problem.

[J.R. Locke]

Re: Less Than Half NBA Teams Profitable

The NBA needs to trim some of the excess fat with player salaries as well. You got average players getting paid huge money which in turn bumps up the median salary. You add that to the fact that teams aren't exactly generating great revenue and it leads to a cash flow problem.

I swear people have no clue about the NBA. The NBA has the most restrictive salary cap system in place for marginal talent. Rookies are on a strict scale. Unless you resign with your team you can't make more than 5 million a year.....unless a team has cap room which is like 1 or 2 a year.

What is going to hurt the NBA is the fact that more seats are sold to business/luxury box instead of real fans. When the economy downturns businesses give up these seats (which average folk can't afford) and they go empty.

[Juice Malone]

Re: Less Than Half NBA Teams Profitable

the miami heat cheerleaders are the finest in the biz, keeping them off your list is blasphemy