The league lost nearly 700 million this season.

OkcSinceSGA · Post #1 » by **OkcSinceSGA** » Tue Oct 20, 2020 2:23 am

https://amicohoopsnews.com/lakers-suffer-nba-loses-694-million/

https://theathletic.com/2140632/2020/10/16/the-lakers-won-a-title-but-also-lost-the-most-potential-fan-revenue-in-2019-20/

With a global pandemic, no paying fans in attendance and a dustup with China’s CCTV, the NBA admittedly suffered major financial losses this past season.

And now we know how steep those losses were.

As Bill Shea of The Athletic relayed, the NBA lost a whopping $694 million after the cancellation of 258 total regular-season games, per the sports-business research firm Team Marketing Report.

No one suffered more than than the defending champion Los Angeles Lakers, who in a normal year tend to be the hottest ticket in town. Instead, no tickets were sold in LA during the NBA restart on the Disney campus.

When the NBA suspended the season in March, the Lakers still had 10 home games left on the schedule. But since they got exactly zero, they missed out on an estimated $52.7 million in fan revenue, as Shea noted.

HeartBreakKid · Post #2 » by **HeartBreakKid** » Tue Oct 20, 2020 2:26 am

that's nearly as big as john wall's contract

chitownsalesmen · Post #3 » by **chitownsalesmen** » Tue Oct 20, 2020 3:08 am

I assume this means that the league lost out on 700M of potential revenue, not that they suffered a net loss of 700M on the books for the entire season in total. They still had the ticket/etc sales pre-March, all their licensing/exclusive rights/merchandise deals, and not to mention all the stellar TV ad-revenue they gobbled up during the bubble.

Magic Is Magic · Post #4 » by **Magic Is Magic** » Tue Oct 20, 2020 3:11 am

chitownsalesmen wrote:I assume this means that the league lost out on 700M of potential revenue, not that they suffered a net loss of 700M on the books for the entire season in total. They still had the ticket/etc sales pre-March, all their licensing/exclusive rights/merchandise deals, and not to mention all the stellar TV ad-revenue they gobbled up during the bubble.

My thoughts exactly with yours. This is the amount that they "could have made" but not that they went in the red necessarily. At the VERY least they got my $39.99 when I bought that 2020 Lakers Championship shirt!

Dr Aki · Post #5 » by **Dr Aki** » Tue Oct 20, 2020 3:11 am

They also saved 1.5 billion in monies by holding the bubble

https://www.sportsbusinessdaily.com/Journal/Issues/2020/10/19/Leagues-and-Governing-Bodies/NBA-bubble.aspx

The NBA spent $180 million to operate 100 days of basketball in its Disney bubble, but the steep investment allowed the league to stop the loss of $1.5 billion in projected revenue.

Up-And-Coming · Post #6 » by **Up-And-Coming** » Tue Oct 20, 2020 3:18 am

Yes, unfortunately the pandemic has had huge economic /financial consequences on nearly all of society.

OkcSinceSGA · Post #7 » by **OkcSinceSGA** » Tue Oct 20, 2020 3:19 am

chitownsalesmen wrote:I assume this means that the league lost out on 700M of potential revenue, not that they suffered a net loss of 700M on the books for the entire season in total. They still had the ticket/etc sales pre-March, all their licensing/exclusive rights/merchandise deals, and not to mention all the stellar TV ad-revenue they gobbled up during the bubble.

Very good point. My title isn't as accurate as it could be.

IgorK · Post #8 » by **IgorK** » Tue Oct 20, 2020 3:20 am

Dr Aki wrote:They also saved 1.5 billion in monies by holding the bubble

https://www.sportsbusinessdaily.com/Journal/Issues/2020/10/19/Leagues-and-Governing-Bodies/NBA-bubble.aspx

The NBA spent $180 million to operate 100 days of basketball in its Disney bubble, but the steep investment allowed the league to stop the loss of $1.5 billion in projected revenue.

Silver should get legend status. The bubble worked to perfection and they put it together so fast before we knew as much as we know about the virus/epidemic now. It's an amazing feat.

Johnny Bball · Post #9 » by **Johnny Bball** » Tue Oct 20, 2020 3:33 am

Pretty sure it's going to be way more than that guess given what the NBA themselves talked about the variance in next year's revenue can be.

Deadpool Raptor · Post #10 » by **Deadpool Raptor** » Tue Oct 20, 2020 3:34 am

chitownsalesmen wrote:I assume this means that the league lost out on 700M of potential revenue, not that they suffered a net loss of 700M on the books for the entire season in total. They still had the ticket/etc sales pre-March, all their licensing/exclusive rights/merchandise deals, and not to mention all the stellar TV ad-revenue they gobbled up during the bubble.

Missing out on potential revenue is a loss in business because one of the primary goals of business is revenue.

Measuring your year over year revenue is a key indicator of all businesses. For example, if you have lower revenue than the previous year your business has experienced a year over year loss.

That potential revenue that was lost wasn't some sort of magical unearned pool of money, it came through careful planning and hard work.

Post #11 » by **Duke4life831** » Tue Oct 20, 2020 3:36 am

IgorK wrote:
Dr Aki wrote:They also saved 1.5 billion in monies by holding the bubble

https://www.sportsbusinessdaily.com/Journal/Issues/2020/10/19/Leagues-and-Governing-Bodies/NBA-bubble.aspx

The NBA spent $180 million to operate 100 days of basketball in its Disney bubble, but the steep investment allowed the league to stop the loss of $1.5 billion in projected revenue.

Silver should get legend status. The bubble worked to perfection and they put it together so fast before we knew as much as we know about the virus/epidemic now. It's an amazing feat.

A huge chunk of how people view Silver will be what kind of financial shape the league is in, in 2024 and on. What kind of new TV deal will the NBA be able to get once this one is up. If ratings don't improve, the chances of a smaller TV deal increases which would have major financial consequences for the league. How much healthier will the league be financially in 2024 than it was in 2014 when he took over.

Im not saying anything is set in stone, just saying I think that will be the major thing people will look at.

trickshot · Post #12 » by **trickshot** » Tue Oct 20, 2020 3:38 am

IgorK wrote:
Dr Aki wrote:They also saved 1.5 billion in monies by holding the bubble

https://www.sportsbusinessdaily.com/Journal/Issues/2020/10/19/Leagues-and-Governing-Bodies/NBA-bubble.aspx

The NBA spent $180 million to operate 100 days of basketball in its Disney bubble, but the steep investment allowed the league to stop the loss of $1.5 billion in projected revenue.

Silver should get legend status. The bubble worked to perfection and they put it together so fast before we knew as much as we know about the virus/epidemic now. It's an amazing feat.

Why it was so foolish these players wanted the season cancelled. Part of me wish they cancelled it just so they could bear the losses caused by their ignorance

IgorK · Post #13 » by **IgorK** » Tue Oct 20, 2020 3:47 am

Duke4life831 wrote:
IgorK wrote:
Dr Aki wrote:They also saved 1.5 billion in monies by holding the bubble

https://www.sportsbusinessdaily.com/Journal/Issues/2020/10/19/Leagues-and-Governing-Bodies/NBA-bubble.aspx

Silver should get legend status. The bubble worked to perfection and they put it together so fast before we knew as much as we know about the virus/epidemic now. It's an amazing feat.

A huge chunk of how people view Silver will be what kind of financial shape the league is in, in 2024 and on. What kind of new TV deal will the NBA be able to get once this one is up. If ratings don't improve, the chances of a smaller TV deal increases which would have major financial consequences for the league. How much healthier will the league be financially in 2024 than it was in 2014 when he took over.

Im not saying anything is set in stone, just saying I think that will be the major thing people will look at.

The NBA is probably the most progressive league we have - they'll figure out how to leverage streaming platforms and/or social media by that time to cash in on Generation Stream.

Post #14 » by **HMFFL** » Tue Oct 20, 2020 3:49 am

chitownsalesmen wrote:I assume this means that the league lost out on 700M of potential revenue, not that they suffered a net loss of 700M on the books for the entire season in total. They still had the ticket/etc sales pre-March, all their licensing/exclusive rights/merchandise deals, and not to mention all the stellar TV ad-revenue they gobbled up during the bubble.

They never want people to look at it liie that. They prefer that tbeir beloved fans think they're hurting for funds.

Sent from my SM-N975U using RealGM mobile app

Pachinko_ · Post #15 » by **Pachinko_** » Tue Oct 20, 2020 3:49 am

Magic Is Magic wrote:
chitownsalesmen wrote:I assume this means that the league lost out on 700M of potential revenue, not that they suffered a net loss of 700M on the books for the entire season in total. They still had the ticket/etc sales pre-March, all their licensing/exclusive rights/merchandise deals, and not to mention all the stellar TV ad-revenue they gobbled up during the bubble.

My thoughts exactly with yours. This is the amount that they "could have made" but not that they went in the red necessarily. At the VERY least they got my $39.99 when I bought that 2020 Lakers Championship shirt!

I'm guessing it wouldn't be too far off though. NBA teams are not disclosing financials but from some that have leaked it seems some teams are barely breaking even on a good year. Most owners are in it mainly for the capital growth on the resell price, not the annual profit. Given team expenses (mainly salaries) did not get any smaller during COVID it wouldn't surprise me if most teams close off the books in the red.

IgorK · Post #16 » by **IgorK** » Tue Oct 20, 2020 3:49 am

donnieme wrote:
IgorK wrote:
Dr Aki wrote:They also saved 1.5 billion in monies by holding the bubble

https://www.sportsbusinessdaily.com/Journal/Issues/2020/10/19/Leagues-and-Governing-Bodies/NBA-bubble.aspx

Silver should get legend status. The bubble worked to perfection and they put it together so fast before we knew as much as we know about the virus/epidemic now. It's an amazing feat.

Why it was so foolish these players wanted the season cancelled. Part of me wish they cancelled it just so they could bear the losses caused by their ignorance

Easy to say this in hindsight. When the idea of The Bubble was initially floated, we didn't know much about the virus. It's not hard to understand the human beings who were skeptical about risking their lives just to entertain us.

SNPA · Post #17 » by **SNPA** » Tue Oct 20, 2020 3:58 am

Only after teams of high-end accountants backed by teams of NBPA lawyers -who have access- told me what the finances of the league were would I believe any number presented.

Billionaires like pretending they are losing money.

Post #18 » by **Duke4life831** » Tue Oct 20, 2020 4:00 am

IgorK wrote:
Duke4life831 wrote:
IgorK wrote:
Silver should get legend status. The bubble worked to perfection and they put it together so fast before we knew as much as we know about the virus/epidemic now. It's an amazing feat.

A huge chunk of how people view Silver will be what kind of financial shape the league is in, in 2024 and on. What kind of new TV deal will the NBA be able to get once this one is up. If ratings don't improve, the chances of a smaller TV deal increases which would have major financial consequences for the league. How much healthier will the league be financially in 2024 than it was in 2014 when he took over.

Im not saying anything is set in stone, just saying I think that will be the major thing people will look at.

The NBA is probably the most progressive league we have - they'll figure out how to leverage streaming platforms and/or social media by that time to cash in on Generation Stream.

Yes and if that happens Silver will be viewed as a great commissioner. Im just saying if Silver is viewed as the commissioner that took the league over when it was booming, to all time lows in TV ratings and that then leads to a major reduction in the next TV deal. That will be a very bad look. Either outcome is a possibility at the moment.

SNPA · Post #19 » by **SNPA** » Tue Oct 20, 2020 4:04 am

Duke4life831 wrote:
IgorK wrote:
Duke4life831 wrote:
A huge chunk of how people view Silver will be what kind of financial shape the league is in, in 2024 and on. What kind of new TV deal will the NBA be able to get once this one is up. If ratings don't improve, the chances of a smaller TV deal increases which would have major financial consequences for the league. How much healthier will the league be financially in 2024 than it was in 2014 when he took over.

Im not saying anything is set in stone, just saying I think that will be the major thing people will look at.

The NBA is probably the most progressive league we have - they'll figure out how to leverage streaming platforms and/or social media by that time to cash in on Generation Stream.

Yes and if that happens Silver will be viewed as a great commissioner. Im just saying if Silver is viewed as the commissioner that took the league over when it was booming, to all time lows in TV ratings and that then leads to a major reduction in the next TV deal. That will be a very bad look. Either outcome is a possibility at the moment.

Gambling
New Franchises
Extra Ad revenue (gonna dress like NASCAR soon)
International streams

These are his pillars. They’ll be more. But for now this is his approach to make money which makes his bosses happy.

IgorK · Post #20 » by **IgorK** » Tue Oct 20, 2020 4:07 am

Duke4life831 wrote:
IgorK wrote:
Duke4life831 wrote:
A huge chunk of how people view Silver will be what kind of financial shape the league is in, in 2024 and on. What kind of new TV deal will the NBA be able to get once this one is up. If ratings don't improve, the chances of a smaller TV deal increases which would have major financial consequences for the league. How much healthier will the league be financially in 2024 than it was in 2014 when he took over.

Im not saying anything is set in stone, just saying I think that will be the major thing people will look at.

The NBA is probably the most progressive league we have - they'll figure out how to leverage streaming platforms and/or social media by that time to cash in on Generation Stream.

Yes and if that happens Silver will be viewed as a great commissioner. Im just saying if Silver is viewed as the commissioner that took the league over when it was booming, to all time lows in TV ratings and that then leads to a major reduction in the next TV deal. That will be a very bad look. Either outcome is a possibility at the moment.

I understand, and agree. But TV ratings aren't the future. Television has been dying for years. Silver (and his team) will embrace and usher in a digital/social/streaming era and find a way to leverage it.