Small Market Teams Could Lose Approximately $20M Per Season In Revenue-Sharing Alone

Moderators: BombsquadSammy, Domejandro, bwgood77

RealGM Wiretap
RealGM
Posts: 71,724
And1: 195
Joined: Mar 19, 2013

Small Market Teams Could Lose Approximately $20M Per Season In Revenue-Sharing Alone 

Post#1 » by RealGM Wiretap » Thu May 14, 2020 4:31 pm

Small market teams such as the Charlotte Hornets, Indiana Pacers and Memphis Grizzlies collect around $20 million per season from more profitable teams due to revenue-sharing.


Even when the NBA's revenues spiked due to the start of far more profitable national television deals for the 16-17 season, 14 of the league's 30 teams lost money before factoring in revenue-sharing. Nine teams finished that season in the red even after accounting for those payments.


With the possibility of no fans attending games for the remainder of the 19-20 season, as well as the entirety of the 20-21 season, teams like the Golden State Warriors, New York Knicks and Los Angeles Lakers will have less money to distribute to other teams.


The NBA's 30 owners could change the revenue-sharing model without negotiating with the union.

Via Bobby Marks/ESPN

Boneman2
General Manager
Posts: 7,774
And1: 1,146
Joined: Jul 07, 2003
Location: Indy
       

Re: Small Market Teams Could Lose Approximately $20M Per Season In Revenue-Sharing Alone 

Post#2 » by Boneman2 » Fri May 15, 2020 4:15 am

Revenue sharing isn't necessary. Put all local TV deals in a pot and split them equally prior to the season.
"A man who fears suffering is already suffering from what he fears." -Michel de Montaigne
DoctorDunc
Freshman
Posts: 77
And1: 14
Joined: Nov 07, 2019

Re: Small Market Teams Could Lose Approximately $20M Per Season In Revenue-Sharing Alone 

Post#3 » by DoctorDunc » Fri May 15, 2020 12:30 pm

There is not a chance in hell that the big market team’s owners would agree to that. If you own a McDonalds Franchise in a busy town you are not going to share revenue with the franchise owner in the small town.
BigHustle
Junior
Posts: 434
And1: 55
Joined: Jun 30, 2018

Re: Small Market Teams Could Lose Approximately $20M Per Season In Revenue-Sharing Alone 

Post#4 » by BigHustle » Fri May 15, 2020 1:29 pm

DoctorDunc wrote:There is not a chance in hell that the big market team’s owners would agree to that. If you own a McDonalds Franchise in a busy town you are not going to share revenue with the franchise owner in the small town.

You will if it makes you more money in the long term. The NBA is a quasi-monopoly and the owners have an ownership mentality. Also, high switching costs and little ability to sell now.
Desiderium
Starter
Posts: 2,404
And1: 328
Joined: May 11, 2006
 

Re: Small Market Teams Could Lose Approximately $20M Per Season In Revenue-Sharing Alone 

Post#5 » by Desiderium » Fri May 15, 2020 3:13 pm

Boneman2 wrote:Revenue sharing isn't necessary. Put all local TV deals in a pot and split them equally prior to the season.


Why would a team, who is top 3 in the league, be okay with splitting equally with a team who's tanking? Good teams draw in more viewers than bad teams.

Return to Wiretap Discussion