Which nba owners are losing money

What's more, nine of the teams lost money even after the payouts. According to Windhorst and Lowe, league owners will review the revenue-sharing system during the Board of Governors meeting on Sept.

The report noted sources said 10 instead of 14 teams lost money before revenue sharing when using operating income—which doesn't account for some debt—as a measurement. But what does this mean for fans of the 14 teams, or especially the nine, that have reported losses? After revenue sharing, seven teams still reported an operating loss, while two more were added due to their contributions to the revenue share: the Cavaliers and the Spurs.

The team spent more in a year — on player contracts, team employee salaries, costs, promotions, travel, and a hundred other categories — than it made. That includes ticket sales, national television money, local television deals, advertising and sponsorship rights, merchandise profits, and so on. No, no, no.

There are no teams in danger of doing that. Any sports owner or ownership group is prepared to eat yearly costs as a cost of doing business.

Right now, NBA franchises are experiencing a valuation boom. We may see several owners incentivized to sell because of that — because it would be highly profitable for them to do so. These documents obtained by ESPN are strictly focused on basketball operations. Many owners or ownership groups that own these NBA teams also own the arenas in which they play. Some teams who are losing money on the basketball teams gain it all back in other areas. It does matter. Some teams have already cut employees salaries.

But some teams are also doing extravagant things like shipping their courts to Disney World for practice:. WholeNewGame pic. Coronavirus has wrecked so many sectors of the economy. Revenue falling significantly would be felt by players, who — per the Collective Bargaining Agreement — receive about half of Basketball Related Income.

The salary cap could be reduced. But that would put the burden on players — free agents, draft picks — signing new contracts next offseason. There are a couple options within that scenario.