In 2018, the Houston Rockets earned nearly $50 million just by reaching the Western Conference Finals, not to mention the championship, for example, the Warriors made a profit of more than 90 million in 17 years, and the market value of the Warriors is also rising under the leadership of the championship, and the rising market value has also given the Warriors owner the courage to pay the super luxury tax continuously, and the result is also the championship, and the Cavaliers lost $40 million in 2016, what is the reason?
What are the sources of income for NBA teams throughout the season?
The first highlight is the 9-year $24 billion broadcast contract signed between the NBA and ESPN in 2014, in addition to the NBA's overseas contract of $7 billion, of which we contributed 1.5 billion in a certain news, which will be divided equally by the league's 30 teams, whether you are from Los Angeles or Milwaukee, whether you are a championship or the league's bottom fishing team, which is one of the reasons why the NBA's market value still rises despite the sharp decline in ticket revenue during the epidemic in the past few years. In addition, each team also has its own broadcast income, such as the Lakers and Time Warner 5 billion in 25 years, the Knicks and New York TV 130 million a year, the Rockets 15 million, the Spurs 7 million, the Pistons 6 million a year, and so on.
Kobe Bryant's retirement tour made the Lakers and Time Warner a lot of money
The second is ticket revenue, each team's attendance and ticket price are completely different, for example, Nixon's ticket price is more than $165 a ticket and the New Orleans Pelicans are only $40, and the regular season and playoff ticket revenue are also very different, the Warriors in 2017 The playoff ticket revenue reached $44.3 million, and the 2022 Finals even had a game of more than 15 million.
Then the highlight is the team's advertising sponsorship revenue, and during the Yao Ming period, Chinese companies alone sponsored nearly $60 million a year to the Rockets. In 2022, the Warriors' annual advertising sponsorship of $150 million ranked first in the league, compared to the Rockets Yao Ming period 15 years ago, when Alexander climbed from the bottom of the league to the tenth place in the league.
Chinese advertising in the Rocket Arena
Further down, the income from team peripheral products, jersey advertising, team catering, overseas markets and other revenues is not worth mentioning, and the team may still lose money by relying on the above income, so the highlight of the league BRI dividends is here.
Almost every income of each team in the NBA will be divided into a part of the league, such as 6% of regular season tickets, 25% of playoff tickets, 30% of jersey advertising, 25% of team peripherals, etc., in which the league retains 1% into the player protection fund, intercepts 9% as the league's operating expenses, and then the remaining 90% will be evenly distributed to the league's 30 teams, such as the Knicks, Lakers, and Warriors pay $100 million a year, and the Pelicans, Grizzlies, and Spurs pay 10 million a year, and then all teams share it equally. In this way, the alliance has completed the "robbery of the rich and helping the poor" in disguise!
Even though the Knicks are at the bottom of the league, their net income ranks among the top three in the league
In 2022, the Spurs will have a salary of 117 million US dollars, and more than 40 million US dollars will be spent on team venues, publicity, operations, bus charter flights, accommodation, etc., and the Spurs will still lose 53 million yuan by relying on tickets, advertising appreciation and other income, but after the season, the Spurs will get 142.4 million US dollars through league broadcasting and BRI dividends, plus 10.45 million without paying the luxury tax, and finally the Spurs will make a profit of 99 million US dollars.
Of course, there are also negative cases, in 2022, the Nets have not been able to raise advertising and sponsorship income because they are in the same city as the Knicks, and this year the Nets were swept 0:4 in the first round, and the playoffs revenue has also dropped sharply, coupled with the high luxury tax of 97.69 million, the Nets still lost $34 million with the blessing of league broadcasting and BRI dividends.
A first-round sweep resulted in almost no gains in the playoffs
Finally, let's talk about the championship team, the Cavaliers won the championship in 2016, and the Cavaliers made a total profit of 15 million after counting tickets, broadcasts and league dividends this year, but the Cavaliers had a luxury tax of 54 million that season, so in the end, the Cavaliers lost nearly 40 million.
In the next 17 years, the Warriors won the championship and earned $91.9 million, the Cavaliers' luxury tax has been reduced to $24.8 million, but the rest of the net income is only 6.5 million, so the end of the season is a loss of 18.3 million, and the next 18 years The Cavaliers lost 6.2 million, and the boss's decision to reduce investment after continuous losses is also one of the reasons for James' departure.
The boss looks at both the championship and the financial gain
The Warriors also began to lose money in 20 and 21 years, but in the 22 season, tickets, broadcasts, sponsorships, BRI dividends, especially playoff home tickets and advertising, made a lot of money, and finally the total annual income reached 765 million US dollars, although the luxury tax of 170 million this year was very scary, but the Warriors finally made a net profit of 206 million US dollars, so the owner Lacob had the courage to continue to pay the luxury tax!