Skip to content

Stern says NBA revenues should be $5 billion this season

Nov 14, 2012, 3:14 PM EDT

David Stern, Adam Silver AP

During the NBA lockout, we all got frustrated watching the owners and argue over how to divide up $4 billion in revenue. Billion. With a “B.”

Now, make that $5 billion.

That is what NBA Commissioner David Stern said speaking Tuesday at Beyond Sport United conference in New York, according to the Associated Press.

The $5 billion figure is considerably higher than the $4.3 billion estimated that would come in under the BRI this season (via NBA CBA FAQ from the brilliant Larry Coon).

The owners will get a higher share of that revenue — under the old CBA the players were guaranteed 57 percent of the league’s revenue, that falls to 50 percent this year under the new CBA. Hopefully now, somehow, these poor men can find a way to turn a meager profit (*cough*).

The increase in revenues shows fans and sponsors did not leave the league during the lockout. It shows that local television deals are up, as is the spread of the NBA brand globally. You can also chalk some of this up to an economy starting to find it’s footing and turn around (we hope).

In case you’re curious, the NFL has revenues of around $9 billion and MLB around $7.5 billion.

  1. cantonbound13 - Nov 14, 2012 at 3:18 PM

    When is he retiring? Whenever it is, it’s not soon enough.

    • eventhorizon04 - Nov 14, 2012 at 3:52 PM

      2014.

  2. narrabeen23 - Nov 14, 2012 at 3:22 PM

    in other news, expenses are going to be $5.1 billion

  3. zerole00 - Nov 14, 2012 at 3:37 PM

    How in the world does MLB have revenues that high? I like watching the highlights, but baseball is so damn boring to watch (but fun to play). Best case scenario is that a pitcher pitches a no-hitter, does anyone actually find that fun to watch?

    • blueintown - Nov 14, 2012 at 3:48 PM

      162 games.

    • eventhorizon04 - Nov 14, 2012 at 3:53 PM

      A ton of games, a ton of teams, and international appeal in Latin America and Japan….

      Not a fan personally, but that’s where the money comes from.

    • nbascreed - Nov 14, 2012 at 4:56 PM

      The comparison is illusory. If you normalize the revenues above on a per contest basis you get:

      Normalized to NFL
      MLB = 790M
      NBA = 1.04B

      Normalized to MLB
      NFL = 85B
      NBA = 9.8B

      Normalized to NBA
      MLB = 3.7B
      NFL = 43B

      There are a lot of other things that would come into play in actually achieving these numbers, but a couple observations:

      1. NBA is much better product than MLB
      2. I see why NFL owners want to go to 18 game schedule!

  4. ambitoos - Nov 14, 2012 at 4:09 PM

    You posters are nuts. The NFL is at 9 billion with alot more expences with a 55 man roster.

    • 4thquartermagic - Nov 15, 2012 at 11:45 AM

      Yeah but with a hard salary cap (no luxury tax) and non-guaranteed contracts, players salaries aren’t as big an expense as you’d think.

      Also consider that unlike the MLB and NBA, the NFL doesn’t have to fund it’s minor league system (NCAA).

      The NFL prints money like non other.

  5. therealhtj - Nov 14, 2012 at 4:29 PM

    So if the revenues are 5 billion, and the players are GUARANTEED 50%, that would mean every team would HAVE TO spend 83.33 million in player salaries just to meet the minimum revenue guaranteed to the players.

    Considering there are small market teams that would never even come close to that kind of spending, how is it still possible to make a salary cap of 60 or so million with a luxury tax threshold just a little north of $70 million? I get these jokers fleeced the players on the revenue split, but don’t cheat the fans of their favorite teams being able to keep key players by creating a salary cap that isn’t even mathematically feasible.

    • katra2logic - Nov 14, 2012 at 9:22 PM

      The salary cap calculation starting in 2012-13 takes 44.74 percent of the league’s projected BRI, subtracts projected benefits, and then divides by the number of teams in the league. I assume the other 6 % goes to the players pension fund.

      Approximation… 44.74% of 5B = 2.237B for player salaries / 30 teams = 74.56 million per team. Based on these numbers, the salary cap and luxury caps will go up substantially in 2014.

    • katra2logic - Nov 14, 2012 at 9:24 PM

      Agree fully #therealhtj

      Notice the timing of this item. Right after the player extension period expired. I am sure the NBA has known these numbers for a while but it gave some organizations the excuse they needed not to sign / extend players. OKC knew the caps were going to rise but let James Harden go anyway….

  6. badintent - Nov 14, 2012 at 11:18 PM

    How much is this profit from China with J.LIN Jerseys ???
    Stern had the NBA lay off over 300 employees worldwide in 2009(blamed the recession ) but he did not take a pay cut then. I hope the NBA has re- hired those laid off. Next big market for NBA is India.Cricket is now huge there. NBA missed a huge chance to build a brand there. Fire Stern ! His watch, his fault, his Waterloo.
    Stern DID play Billy Hunter on the numbers. Billy too busy hiring his family for office jobs to notice.Chump

Leave Comment

You must be logged in to leave a comment. Not a member? Register now!

Featured video

What players stood out at World Cup?
Top 10 NBA Player Searches
  1. R. Rondo (2585)
  2. E. Bledsoe (2500)
  3. K. Bryant (2160)
  4. L. James (2046)
  5. D. Rose (1825)
  1. R. Allen (1680)
  2. N. Young (1588)
  3. K. Irving (1522)
  4. J. Hickson (1444)
  5. G. Oden (1405)