Feb 29, 2012, 8:01 PM EDT
If you believe the league’s numbers — and we’re still skeptical, to put it kindly — the NBA was a long way from turning a profit, they predicted a $300 million loss last year.
A few months into the new collective bargaining agreement that is far more favorable to the owners (no matter what Mark Cuban thinks), the league has not turned those losses around. At an All-Star Weekend press conference Deputy Commissioner Adam Silver said that the league will not turn a profit this year and may not next year.
It seems odd to say that at a time when NBA television ratings are skyrocketing and attendance is up overall. The players have taken pay cuts to lower costs. So costs are down, the NBA’s popularity is booming and profits are not?
Henry Abbott went into more detail and shows why there is some logic to that at TrueHoop.
The explanation from the league is that the cuts in player costs roughly match the losses from last year. But this year the league says there were an additional $200 million in losses related to the lockout, for instance due to lost ticket revenue and corporate sponsorships that didn’t happen.
More importantly, popularity only equals big changes in revenue over years. The most obvious way that happens is with more lucrative national TV deals, but the old deals are still in place for two more years. High TV ratings have not meant new TV revenues for the league. Corporate sponsorships similarly take time to develop.
Where the popularity will really show is in local television and other media deals, particularly the national broadcast rights which are up in 2016. But the league is right, it’s a year or several years before those eyeballs can be converted to cash. Now, if we’re having this same discussion if five years, if the league can’t turn all those additional eyeballs into profits, then they are doing it wrong.
Apr 17, 2014, 5:57 PM EDT
Both are likely first round picks in the teens or early 20s.
The Al Jefferson Effect: Now that the Bobcats are playoff-bound, how they want their big man to help next
Apr 17, 2014, 4:53 PM EDT
What affect will Jefferson have on the development of Kemba Walker, Bismack Biyombo, Michael Kidd-Gilchrist and Cody Zeller?
Apr 17, 2014, 4:50 PM EDT
Raptors fans are pumped for the playoffs.
Apr 17, 2014, 4:00 PM EDT
Can you blame them?
Apr 17, 2014, 3:59 PM EDT
Ballots show a tight race
Apr 17, 2014, 3:15 PM EDT
It really comes down to this: Does he trust Phil Jackson and Knicks management to build a winner quickly?
Apr 17, 2014, 2:40 PM EDT
You put your money where your heart is, and your heart clearly follows LeBron James and the Heat.
Apr 17, 2014, 2:11 PM EDT
Bucks didn’t win back-to-back games all season
Kobe tells Lakers’ fans to “flush” last season, has been cleared to run, shoot, prepare for next season
Apr 17, 2014, 1:33 PM EDT
Kobe may be in France but he still had time to tweet Lakers fans and tell them things will be better next season.
Apr 17, 2014, 12:55 PM EDT
He is as high on some boards as No. 1, but likely goes No. 3. However no freshman near the top of this board will have a bigger immediate impact in the NBA — his offensive game is NBA ready.
Apr 17, 2014, 12:10 PM EDT
This both has been expected and is mutual, according to the buzz around the league.
Apr 17, 2014, 11:20 AM EDT
Hill previously reported to be a candidate for a job
Apr 17, 2014, 10:44 AM EDT
Pistons forward: ‘I’ve censored myself’
Apr 17, 2014, 10:11 AM EDT
Get ready for an intense playoff series
Apr 17, 2014, 9:40 AM EDT
Irving talks as if he wants to stay in Cleveland
Apr 17, 2014, 8:44 AM EDT
Clear out your calendar.
Apr 17, 2014, 8:00 AM EDT
Tight 1-2 race
Apr 17, 2014, 2:10 AM EDT
On the season Kevin Durant averaged 32 points, seven rebounds and five assists a game. Not too shabby.
Apr 17, 2014, 12:07 AM EDT
Apr 16, 2014, 11:31 PM EDT
Kevin Durant was simply unstoppable with the game on the line against the Pistons.
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- Kobe tells Lakers’ fans to “flush” last season, has been cleared to run, shoot, prepare for next season 37
- Duke’s Jabari Parker says he will enter NBA Draft 32