RealGM

I was wondering, from where exactly does the NBA franchises' revenue come from?

I imagine that it comes from tickets sales plus merchandise sales.

If I'm right, wouldn't signing with stars more than compensate the expenses of it (his salary plus the tax hit if applyable)? I mean, some years ago Real Madrid F.C. (a soccer team from Spain) bought David Beckham's contract for a huge amount of money only to have it compensated in less than a month in jersey's sales.

While I know that the salary cap would keep the franchises from expending at free will, wouldn't championship caliber teams and/or teams from huge markets be willing to spend more than the other teams? In the long term, wouldn't that lead to the big teams getting bigger and the small teams getting smaller?

In the Lakers' case, wouldn't resinging Lamar and making the Lakers the favourite to next year's ship give the merchandise sales a boost more than enough to compensate, or at least coming close to it, the money that would be spent in the signing?

(PS: I know that Lamar isnt a global icon like David was and I'm not saying that the Lakers should expend more than the market value for Lamar, I'm only asking if the favourite status or sign stars wouldn't be enough to compensate the signing)

if we could get ANYONE to buy a Sasha Vujacic jersey we'd have signed lamar weeks ago

The team makes about 26 to 32 mil for going to the Finals from play-off ticket sales.

Then the champs usually make about 10 mil in gear sales.

If the champs happen to sale their draft picks because they are stacked you can add an extra 4.5 mil

All n all the champs get about a 45 mil bonus in profit for winning it all. If you factor in the ring chaser bonus it is closer to 50 mil so the Lakers should resign LO for 9.5 mil and get it over with.

Even if the Lakers are 20 mil over the cap... after you balance the books they would still be up 25 mil over the Lakers of a few years ago. And then when you factor in the pride thing and the fan love it is a no-brainer

enlightenment wrote:The team makes about 26 to 32 mil for going to the Finals from play-off ticket sales.

Then the champs usually make about 10 mil in gear sales.

If the champs happen to sale their draft picks because they are stacked you can add an extra 4.5 mil

All n all the champs get about a 45 mil bonus in profit for winning it all. If you factor in the ring chaser bonus it is closer to 50 mil so the Lakers should resign LO for 9.5 mil and get it over with.

Even if the Lakers are 20 mil over the cap... after you balance the books they would still be up 25 mil over the Lakers of a few years ago. And then when you factor in the pride thing and the fan love it is a no-brainer

Not sure where your getting this, or if it's accurate, but really, the bottom line is, the Lakers are one of the most valuable commodities in a monopoly of a franchise, Buss is worth almost a billion with the Lakers I would imagine, He shouldn't be haggling over a couple million, just as Lamar should sign for his market value, and nobody has given the "free agent" who's unrestricted I might add, a better deal.

This says there revenue is around 170 Mill, even if it was half of that or a quarter in Buss' pocket a year, he's a fool to be messing with this team and not signing Lamar. And Lamar is a fool for not seeing that teams are not jumping to sign him, and sign.

http://www.forbes.com/2007/12/05/biz_07 ... ahoosports

Looking at those figures makes buss look really greedy for not paying lamar, unless I'm reading it wrong. They make almost the whole player expense on the gate receipts alone. Not to mention the total worth of the franchise. I'm sure at the cost we are in tax already that 2-3 million x tax wont hurt, especially if we need this player to win another championship to bring in more income again. Also with our expiring contracts next season our roster will be set with a few minimums to fill in the gaps.



THE CHAMPS IS HERE!!

Well... There are alot factors. I think one that is routinely left out here. If you factor in their profit and loss statements ( rev vs. expenses) all businesses have to pay tax. Not, Luxury Tax. Uncle Sam Tax.

So it's easy to be on the outside looking in.. but the bottomline is we don't know the Lakers bottomline.

Big chunk of revenue (may be 10 to 20%) comes from TV rights.

http://articles.latimes.com/2006/jul/31/sports/sp-aba31

Read this article.. The St. Louis Spirits is one of the most profitable NBA franchise today only from a share of TV rights of 4 former ABA teams..

speaking of sales from tickets..

how does the season-ticket pricing go?

like, what seats are available, what is the waiting period (5 years from what I've heard), and how much?

when I move to LA and become mega-rich I'll get some seats

kevin_405 wrote:Big chunk of revenue (may be 10 to 20%) comes from TV rights.

http://articles.latimes.com/2006/jul/31/sports/sp-aba31

Read this article.. The St. Louis Spirits is one of the most profitable NBA franchise today only from a share of TV rights of 4 former ABA teams..

That's an interesting article. Who wouldn't want a contract like that, huh?

Interesting that the NBA had the chance to buyout the contract but didn't. They could have saved tons of millions if they thought about the long term.

Joe Kleazy wrote:Looking at those figures makes buss look really greedy for not paying lamar, unless I'm reading it wrong. They make almost the whole player expense on the gate receipts alone. Not to mention the total worth of the franchise. I'm sure at the cost we are in tax already that 2-3 million x tax wont hurt, especially if we need this player to win another championship to bring in more income again. Also with our expiring contracts next season our roster will be set with a few minimums to fill in the gaps.



THE CHAMPS IS HERE!!

Lakers' profit was $31.8 mil, not $170 million. $170 million is revenue and that's before paying all the players, paying luxury tax, paying government tax, paying for the Staples, paying for staff, etc.

I am not even sure if the $31.8 mil is before or after government tax.

pretty sure there's a lot more to this unless we get reports verified by the irs. players have to be paid. utilities have to be paid. workers, transportation, etc. factor in the slumping economy, higher taxes, fake merchandise, insurance, profits split between shareholders.... too many variables to count.

but i'll tell you this.... the final game in the finals changed when trevor and hedo bumped heads. trevor made a couple of 3's and that changed the momentum to the lakers and they never looked back. lamar had some crazy moments as well. hard to see both leave after an incredible performance by the two. with odom you can bet he'll know what to do to control his old pal artest.

BTW - More than HALF (60%) of the ticket & gear revenue goes to the league NOT the LAKERS. However, they do get to keep concession sales (i.e. food, etc...)

This is current figures.
2007-2008.
http://www.forbes.com/sportsmoney/lists ... 20250.html

2009 fiscal year does not end yet.

dznutzz wrote: with odom you can bet he'll know what to do to control his old pal artest.

And vice versa, Course if Odom goes to Miami, we will never play them in a game of importance anyway, so Lamar is really a non factor for our mindset.

Patterns wrote:

Joe Kleazy wrote:Looking at those figures makes buss look really greedy for not paying lamar, unless I'm reading it wrong. They make almost the whole player expense on the gate receipts alone. Not to mention the total worth of the franchise. I'm sure at the cost we are in tax already that 2-3 million x tax wont hurt, especially if we need this player to win another championship to bring in more income again. Also with our expiring contracts next season our roster will be set with a few minimums to fill in the gaps.



THE CHAMPS IS HERE!!

Lakers' profit was $31.8 mil, not $170 million. $170 million is revenue and that's before paying all the players, paying luxury tax, paying government tax, paying for the Staples, paying for staff, etc.

I am not even sure if the $31.8 mil is before or after government tax.

Even if that's true, not sure where your getting it, wish you say or post a link, but even if true, and Buss is making that much profit, when most owners are either breaking even or losing, he'd be a fool to not shell out cash to keep a player like LO. And I'm not saying LO's not at fault her also, they both are, but that's a great franchise that is making a profit, and needs to do this thing.

Magicontinues wrote:

Patterns wrote:

Joe Kleazy wrote:Looking at those figures makes buss look really greedy for not paying lamar, unless I'm reading it wrong. They make almost the whole player expense on the gate receipts alone. Not to mention the total worth of the franchise. I'm sure at the cost we are in tax already that 2-3 million x tax wont hurt, especially if we need this player to win another championship to bring in more income again. Also with our expiring contracts next season our roster will be set with a few minimums to fill in the gaps.



THE CHAMPS IS HERE!!

Lakers' profit was $31.8 mil, not $170 million. $170 million is revenue and that's before paying all the players, paying luxury tax, paying government tax, paying for the Staples, paying for staff, etc.

I am not even sure if the $31.8 mil is before or after government tax.

Even if that's true, not sure where your getting it, wish you say or post a link, but even if true, and Buss is making that much profit, when most owners are either breaking even or losing, he'd be a fool to not shell out cash to keep a player like LO. And I'm not saying LO's not at fault her also, they both are, but that's a great franchise that is making a profit, and needs to do this thing.

Shelling out money for Odom for 5 years would mean $20 million a year for a bench player because of the luxury tax. Is Odom worth $20 million a year for 5 years to Buss? Ask yourself.

If you want the link or source, it's at the beginning of the thread from forbes.com.

$31.8 million isn't a lot. If you tax that, it becomes about $20 million.

Some teams like the Bulls, Suns are making a boatload more than the Lakers.

Phil X wrote:... the bottomline is we don't know the Lakers bottomline.

qft

Patterns wrote:Shelling out money for Odom for 5 years would mean $20 million a year for a bench player because of the luxury tax. Is Odom worth $20 million a year for 5 years to Buss? Ask yourself.

If you want the link or source, it's at the beginning of the thread from forbes.com.

$31.8 million isn't a lot. If you tax that, it becomes about $20 million.

Some teams like the Bulls, Suns are making a boatload more than the Lakers.

The Lakers had the second highest net operating profit (EBITDA - earnings before interest, taxes, depreciation and amortization) in the NBA from that Forbes report http://www.forbes.com/sportsmoney/lists ... _Rank.html. Chicago was 1st with 55.4 mil, the Lakers had 47.9, and Phoenix wasn't in the team photo. Considering they won the championship the year after that Forbes report, I'm guesing they did pretty well. Considering all the money the Lakers earn from winning championships, how it affects future earnings, and how the goodwill affects Buss' other enterprises, if not paying Odom results in their not getting at least to the finals, it's a very bad business decision, imo.