So...I thought the NBA was in decline and losing money?

[Doctor MJ]

Didn't the league say they lost $1B to $1.5B last season? And still some of these deals...

They "lost" that much relative to what they'd expected to make. The league didn't actually lose money. It made money.

Hmm. Can you elaborate on precisely what you mean by this and maybe post a link?

My general sense is that NBA franchise value has been skyrocketing not so much because of massive profits but because being an NBA owner is a way for a billionaire to by stature and glamour. Yes, revenue has been going up, but costs tend to follow suit if you want to stay competitive, not the least of which is player salary.

[scrabbarista]

Didn't the league say they lost $1B to $1.5B last season? And still some of these deals...

They "lost" that much relative to what they'd expected to make. The league didn't actually lose money. It made money.

Hmm. Can you elaborate on precisely what you mean by this and maybe post a link?

My general sense is that NBA franchise value has been skyrocketing not so much because of massive profits but because being an NBA owner is a way for a billionaire to by stature and glamour. Yes, revenue has been going up, but costs tend to follow suit if you want to stay competitive, not the least of which is player salary.

Apologies that I'm not going to look for the links you could find for yourself. It was two or three weeks ago when I saw/heard these numbers, and I don't remember the source.

As to precisely what I mean: there was a projected amount of revenue for last season, and the league came in, IIRC, about $800 million below it. Without going into how much of the actual revenue was profit (I admit I may have misspoke somewhat, as I don't have that number to mind), it is at least certain that this loss of projected revenue is typically what's being reported. Whatever the actual numbers are, the league certainly didn't spend $800 million more than it earned last season, never mind $1B or $1.5B.

[Doctor MJ]

They "lost" that much relative to what they'd expected to make. The league didn't actually lose money. It made money.

Hmm. Can you elaborate on precisely what you mean by this and maybe post a link?

My general sense is that NBA franchise value has been skyrocketing not so much because of massive profits but because being an NBA owner is a way for a billionaire to by stature and glamour. Yes, revenue has been going up, but costs tend to follow suit if you want to stay competitive, not the least of which is player salary.

Apologies that I'm not going to look for the links you could find for yourself. It was two or three weeks ago when I saw/heard these numbers, and I don't remember the source.

As to precisely what I mean: there was a projected amount of revenue for last season, and the league came in, IIRC, about $800 million below it. Without going into how much of the actual revenue was profit (I admit I may have misspoke somewhat, as I don't have that number to mind), it is at least certain that this loss of projected revenue is typically what's being reported. Whatever the actual numbers are, the league certainly didn't spend $800 million more than it earned last season, never mind $1B or $1.5B.

Oh, I understand about not hunting for sources so no worries. We're not doing a peer-reviewed journal here.

I do think you might be surprised though how little actual profit the NBA turns from year to year. This isn't a "Oh the poor owners!" lament as I don't feel any sympathy for them really, but I have little doubt that NBA franchises were looking at the revenue they had been earning as a budget, and while some franchises may have been putting a wall up and saying "I'm keeping at least this amount as profit", I bet many of them were not.

And this is true all over our society. Businesses, organizations, and people have been operating as if the amount of money coming in during normal times was some kind of natural baseline because we've been living our whole lives largely in stability even during "the Great Recession". When something comes up than fundamentally knocks us off that baseline, those who were living on the edge get in trouble.

And while people may think "How could billionaires possibly be living on the edge?", these guys typically don't have a swimming pool of gold coins just laying around. Their investments are tied up into society, and thus their wealth outside of basketball can be as fragile as the revenue of the NBA.

[Pointgod]

Every couple of years the owners cry poor and claim the league is on the verge of folding, then they go out and sign a bunch of horrendous contracts then complain NBA players are overpaid and they need more of the revenue split. Keep in mind no one has to go out and sign Gordon Hayward to a 30 million dollar contract to meet the salary floor. There are teams in the luxury tax that will need to shed salary and are willing to attach assets. But owners and GMs put this on themselves.

Rinse and repeat I’ve seen this scenario continue to play out many times. The only thing I still can’t figure out is why fans continue to fall for the owners crap.

[scrabbarista]

Hmm. Can you elaborate on precisely what you mean by this and maybe post a link?

My general sense is that NBA franchise value has been skyrocketing not so much because of massive profits but because being an NBA owner is a way for a billionaire to by stature and glamour. Yes, revenue has been going up, but costs tend to follow suit if you want to stay competitive, not the least of which is player salary.

Apologies that I'm not going to look for the links you could find for yourself. It was two or three weeks ago when I saw/heard these numbers, and I don't remember the source.

As to precisely what I mean: there was a projected amount of revenue for last season, and the league came in, IIRC, about $800 million below it. Without going into how much of the actual revenue was profit (I admit I may have misspoke somewhat, as I don't have that number to mind), it is at least certain that this loss of projected revenue is typically what's being reported. Whatever the actual numbers are, the league certainly didn't spend $800 million more than it earned last season, never mind $1B or $1.5B.

Oh, I understand about not hunting for sources so no worries. We're not doing a peer-reviewed journal here.

I do think you might be surprised though how little actual profit the NBA turns from year to year. This isn't a "Oh the poor owners!" lament as I don't feel any sympathy for them really, but I have little doubt that NBA franchises were looking at the revenue they had been earning as a budget, and while some franchises may have been putting a wall up and saying "I'm keeping at least this amount as profit", I bet many of them were not.

And this is true all over our society. Businesses, organizations, and people have been operating as if the amount of money coming in during normal times was some kind of natural baseline because we've been living our whole lives largely in stability even during "the Great Recession". When something comes up than fundamentally knocks us off that baseline, those who were living on the edge get in trouble.

And while people may think "How could billionaires possibly be living on the edge?", these guys typically don't have a swimming pool of gold coins just laying around. Their investments are tied up into society, and thus their wealth outside of basketball can be as fragile as the revenue of the NBA.

Point taken. To clarify, the league has reported its total revenue for last season. I could very much be wrong (because I'm going from memory), but I think they projected like $2.4B in revenue and took in $1.6B instead. Something like that. But, to your point, once again, I have no idea how much of that was profit.

[Dominator83]

I believe the Pacers, Cavs, Mavericks and Grizzlies are the 4 teams that have done absolutely nothing in terms of roster moves so far.

I'm bored.

Mavs are working it now.

Grizzlies wait until everyone has finished their dinners. Then they come at night flipping the trash cans.

People wonder why teams release vets for free, this is why. I think some players are passing on Grizzlies because of how they treated andre. Players league

Because of how they treated Andre? Andre was unprofessional AF. Thought he was too good to play with them. And I'm pretty sure he was still cashing dem checks the whole time.

[Jedzz]

Mavs are working it now.

Grizzlies wait until everyone has finished their dinners. Then they come at night flipping the trash cans.

People wonder why teams release vets for free, this is why. I think some players are passing on Grizzlies because of how they treated andre. Players league

Because of how they treated Andre? Andre was unprofessional AF. Thought he was too good to play with them. And I'm pretty sure he was still cashing dem checks the whole time.

I was just fun'in about bears in Alaska.

[Questionquest]

Mavs are working it now.

Grizzlies wait until everyone has finished their dinners. Then they come at night flipping the trash cans.

People wonder why teams release vets for free, this is why. I think some players are passing on Grizzlies because of how they treated andre. Players league

Because of how they treated Andre? Andre was unprofessional AF. Thought he was too good to play with them. And I'm pretty sure he was still cashing dem checks the whole time.

He was a jerk no question. But players see it differently

[Gabe Ball]

Hmm. Can you elaborate on precisely what you mean by this and maybe post a link?

My general sense is that NBA franchise value has been skyrocketing not so much because of massive profits but because being an NBA owner is a way for a billionaire to by stature and glamour. Yes, revenue has been going up, but costs tend to follow suit if you want to stay competitive, not the least of which is player salary.

Apologies that I'm not going to look for the links you could find for yourself. It was two or three weeks ago when I saw/heard these numbers, and I don't remember the source.

As to precisely what I mean: there was a projected amount of revenue for last season, and the league came in, IIRC, about $800 million below it. Without going into how much of the actual revenue was profit (I admit I may have misspoke somewhat, as I don't have that number to mind), it is at least certain that this loss of projected revenue is typically what's being reported. Whatever the actual numbers are, the league certainly didn't spend $800 million more than it earned last season, never mind $1B or $1.5B.

Oh, I understand about not hunting for sources so no worries. We're not doing a peer-reviewed journal here.

I do think you might be surprised though how little actual profit the NBA turns from year to year. This isn't a "Oh the poor owners!" lament as I don't feel any sympathy for them really, but I have little doubt that NBA franchises were looking at the revenue they had been earning as a budget, and while some franchises may have been putting a wall up and saying "I'm keeping at least this amount as profit", I bet many of them were not.

And this is true all over our society. Businesses, organizations, and people have been operating as if the amount of money coming in during normal times was some kind of natural baseline because we've been living our whole lives largely in stability even during "the Great Recession". When something comes up than fundamentally knocks us off that baseline, those who were living on the edge get in trouble.

And while people may think "How could billionaires possibly be living on the edge?", these guys typically don't have a swimming pool of gold coins just laying around. Their investments are tied up into society, and thus their wealth outside of basketball can be as fragile as the revenue of the NBA.

Yikes, that sounds pretty bad for the owners, but they'll probably have a big bounce back after this recession period