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.
Mar 16, 2014, 9:00 PM EDT
DeMar DeRozan expressed his displeasure over a non-call by kicking the ball away from a referee — a move which guaranteed him a quick whistle in the form of a technical foul.
Mar 16, 2014, 7:41 PM EDT
Midway through the third quarter you had to like how the Rockets were playing against the Heat in Miami. Tied 92-92, the Rockets got what seemed like their 5,347th floater in the lane of the night, this time it was Chandler Parsons over Chris Andersen. The Rockets players did not fear the Heat shot blockers…
Mar 16, 2014, 6:30 PM EDT
Patrick Beverley leaves LeBron James in the dust, before attacking the rim and throwing down a huge slam on Chris Bosh.
Mar 16, 2014, 5:00 PM EDT
LeBron takes a nice pass from Wade and elevates over Dwight Howard for the vicious first quarter slam.
Mar 16, 2014, 3:30 PM EDT
Jarrett Jack believes custom fitting players with the sleeved jerseys would reduce the complaints. But he still doesn’t like the way they look, regardless of how they do or do not impact performance. “We’re like the Beach Police,” Jack said.
Mar 16, 2014, 2:01 PM EDT
How I wish “Brian” were real. Alas, this is a faux documentary on former NBA player Brian Scalabrine is not real. Still, the trailer is brilliant. An actual documentary following Scalabrine, now an assistant coach with the Golden State Warriors, would be interesting. He’s long been one of the better interviews around the NBA, his…
Mar 16, 2014, 12:30 PM EDT
Jim Cleamons is currently an assistant coach with the Milwaukee Bucks, but he was a member of Phil Jackson’s coaching staff both in Chicago and Los Angeles, and has nine championship rings to show for it. The Bucks happened to be in town to face the Knicks on Saturday, just one day after the news…
Mar 16, 2014, 11:00 AM EDT
Doc Rivers, Chris Paul and DeAndre Jordan all recently explained why they’re against the NBA raising its age limit. But there are valid reasons on the argument’s other side.
Mar 16, 2014, 9:30 AM EDT
John Wall splits two defenders near mid-court before putting the exclamation point on a win over the Nets with a thunderous slam.
Mar 16, 2014, 8:00 AM EDT
The Sixers are currently riding a 20-game losing streak, but for better or for worse, no one inside the Philadelphia organization is deluding themselves as to what’s going on there this season. Call it tanking, or as the NBA’s new commissioner Adam Silver prefers, rebuilding. But either way, there’s going to be a whole lot…
Mar 15, 2014, 10:30 PM EDT
There are plenty of players who make exaggerated vocal noise during the course of an NBA game, with Carlos Boozer of the Bulls perhaps heading up that very long list. While it’s accepted to a certain extent, it’s also nice to see a veteran of the game point out just how ridiculous it is. During…
Mar 15, 2014, 8:59 PM EDT
How Detroit’s Andre Drummond staggered and went down after this hit, and how he stayed down for several minutes (all the way through the ensuing commercial break not part of the above video), is a little frightening. The medical staff brought out a stretcher but he got up under his own power and was helped…
Mar 15, 2014, 8:00 PM EDT
Joakim Noah receives a $500K bonus if he’s named to the All-NBA first team. Does he have a shot?
Mar 15, 2014, 6:30 PM EDT
Carmelo Anthony seems initially pleased with the hiring of Phil Jackson. Mike Woodson, on the other hand, didn’t sound quite as optimistic — for obvious reasons.
Mar 15, 2014, 5:00 PM EDT
The Thunder are just a game back of the Spurs for the league’s best record, an achievement that would guarantee home court advantage throughout the playoffs. But they’ll willingly be hurting that effort by resting Russell Westbrook as a precautionary measure in certain back-to-back sets.
Mar 15, 2014, 3:30 PM EDT
We’ve known for a very long time that the Lakers wouldn’t be making the playoffs this season. After Friday night’s loss, it became official.
Mar 15, 2014, 2:00 PM EDT
The mere presence of Phil Jackson in the Knicks front office will have an immediate impact in terms of big-name free agents looking at New York as a possible destination.
Mar 15, 2014, 12:30 PM EDT
After playing out consecutive 10-day contracts, the Nets have signed Jason Collins for the remainder of the season.
Mar 15, 2014, 11:00 AM EDT
Kenneth Faried showed why the Nuggets would have been crazy to trade him at the deadline, as he helped send the Heat to their fifth loss in six games.
Mar 15, 2014, 9:30 AM EDT
Ultimately Thomas Wolfe will be proven right, you can’t go home again. Not even Phil Jackson. It’s easy to sit back and list the reasons Jackson’s return to the team that drafted him, taking over basketball operations of the New York Knicks, will not work: James Dolan; Jackson has never had any front office experience before;…
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- Pau Gasol says Kobe was right to rip Lakers front office 45