This is a chart which shows according to Forbes Magazine which teams are making money and which...

This is a chart which shows according to Forbes Magazine which teams are making money and which teams are losing money.

Here is the associated Article

As NBA Enters Lockout Numbers Show Why System is Broken

11 months ago brutusbrutus 18 comments 0 recs |

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Read More: nba, lockout, graph, profit, loss

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Surprise surprise

Going by the eye test the two most profitable teams make enough profit to outweigh the roughly 17 teams that are making a loss.
And that doesn’t even include the other 11 making a profit.
The system is clearly broken, but that system is the revenue sharing not the CBA which really only at most needs slight tweaks

by UKwarrior on Jul 7, 2011 1:43 AM PDT reply actions

I agree it should be an easy fix.

Put it at 50% owners 50% players and add revenue sharing. I think the problem is that teams like NY that make an obscene amount of profit don’t want to share the wealth. The teams that lose money want to be profitable and competitive so they want the salary cap to be lowered to somewhere they can afford, think about what that would do to the profits in NY! Basically in my opinion there is no business that is guaranteed to succeed there should be some risk involved in owning an NBA team, that needs to happen so that management has competence in their decisions. I bet the owners of teams like the Warriors just want this whole thing to end, they don’t care either way, its really teams like NY and Orlando that care. Also if Orlando is losing all that money why on earth did they give that contract to Rashard Lewis!

by brutusbrutus on Jul 7, 2011 2:29 AM PDT up reply actions

Put it at 50% owners 50% players and add revenue sharing.

If the NBPA was willing to drop their cut from 57% to 50% this thing would probably be over already.

Formerly ffgolden.

by ivanbe on Jul 7, 2011 10:12 AM PDT up reply actions

They already agreed to 53% which is a big drop.

KOBE BRYANT IS DA GREA-TEST PLAYER IN DA HIS-TORY OF DA NBA- Warriors Head Coach Mark Jackson
Hand Down Man Down

by GovernorStephCurry on Jul 7, 2011 5:29 PM PDT up reply actions

That would be unprecedented and completely out of line with every other major sport.

by Spider Jerusalem on Jul 7, 2011 7:20 PM PDT up reply actions

NFL is trying to set the percentage at 48%. The NBA players’ current percentage is what’s unprecedented. And in general, having employees make more than half their company’s profit is unprecedented (I’m talking outside of sports).

Having said that, 53 or 54% are more realistic numbers.

by ERock386 on Jul 7, 2011 9:10 PM PDT up reply actions

Right, but this isn't a normal business. It's an entertainment venture.

And the current salary percentage was agreed on in the last CBA.

by Spider Jerusalem on Jul 7, 2011 9:18 PM PDT up reply actions

Yeah, and it was a horrible deal for the owners. Even the players will admit that. Even compared to other sports, it was an amazing deal for the players.

by ERock386 on Jul 8, 2011 12:07 AM PDT up reply actions

thanks for the graph!

What I get from looking at it is that a lot of the teams losing money are pretty crappy franchises in general.
I’m talking about questionable decisions by the FO, and poor fan support.

I just have a hard time imagining that the system is indeed broken, when the biggest financial losers are teams like the Magic, Bobcats, Pacers, Nuggets, Nets, Kings. To me, that just looks like a list of teams that are broken

and, FUUUUUU:

No matter how you cut it, the model is broken. There has to be significant concessions by the players and a dramatic increase in revenue-sharing to get the NBA back to being profitable. In speaking with execs at both the league and club level in the NBA over the last year, the notion that losing a whole season might save the league. That the pain, however great now, will allow it to survive in the coming years.

"There’s no such thing as off the charts, just get a bigger piece of paper. If you can’t figure that out you shouldn’t be charting anything" - Skep

by Duby Dub Dubs on Jul 7, 2011 10:12 AM PDT reply actions

The problem with revenue-sharing

is illustrated by some teams like Milwaukee in baseball. You can’t have so much revenue-sharing that it makes sense for some teams not to try to field competitive teams, because they can make a quiet profit just by keeping costs low.

by Ronaldinho on Jul 7, 2011 12:54 PM PDT reply actions

Profit sharing should include a mechanism for contracting or moving the worst teams. That mechanism should really exist regardless but at least it would make profit sharing an easier sell. The other abuse of profit sharing would be teams using subsidies to finance cap Luxury taxes. So any team over or under the cap should be penalized and forfeit shared revenue.

With all due respect, I am a Analyst Hall of Fame candidate. If you are offended by my comment, I did write "With all due respect".

by KillaContract on Jul 7, 2011 3:22 PM PDT up reply actions

interesting idea

a mechanism for contracting or moving the worst teams

this isn’t really on the table is it?

What’s your proposed timeline here?
…and what about a team wants to gut it out while losing money?

I could go with this! (although we probably would have lost the Warriors)
10 years of sucking/loosing boatloads of cash, and then your team is up against the ax
….brought out for an arbitrated amount, or put up for bid

"There’s no such thing as off the charts, just get a bigger piece of paper. If you can’t figure that out you shouldn’t be charting anything" - Skep

by Duby Dub Dubs on Jul 7, 2011 5:14 PM PDT up reply actions

a mechanism for contracting or moving the worst teams

This would not need to be very complicate. Something like if a team is one of the 3 worst teams for 3 years or one ot the 5 worst teams for 5 years them the ownership must sell the team. If the highest bidder is out of town then it moves. If the team does not sell then it gets eliminated. A mechanism for expansion should also be there for eventual growth if needed.

With all due respect, I am a Analyst Hall of Fame candidate. If you are offended by my comment, I did write "With all due respect".

by KillaContract on Jul 8, 2011 10:05 AM PDT up reply actions

might work

if Stern wasn’t such a complete A-hole

"There’s no such thing as off the charts, just get a bigger piece of paper. If you can’t figure that out you shouldn’t be charting anything" - Skep

by Duby Dub Dubs on Jul 8, 2011 12:37 PM PDT up reply actions

It would be complicated

But I highly doubt it would be tied to performance. Look at the current lockout- it’s all about money.

My guess is that a team would be much more likely to be contracted based on fan support and financial success. That is why the W’s should never worry about being contracted.

Looking at the chart, I say we just give up on basketball in Florida. The three best players (arguably) play there and both their teams are losing money (allegedly), with Orlando being the worst in the NBA.

by ERock386 on Jul 8, 2011 3:26 PM PDT up reply actions

well, the graph is for the '09-'10 season

so I’m guessing the Heat did much better this past season

"There’s no such thing as off the charts, just get a bigger piece of paper. If you can’t figure that out you shouldn’t be charting anything" - Skep

by Duby Dub Dubs on Jul 8, 2011 4:53 PM PDT up reply actions

But I highly doubt it would be tied to performance. Look at the current lockout- it’s all about money.

I agree with this but the whole Idea behind profit sharing is to subsidize the money losing teams so they can be competitive. My thinking was that if they are getting subsidized to be competitive then they need to be penalized if they never achieve a measure of competitiveness. So instead of contracting the team maybe just cut off their subsidy. But I love the thought of putting teams in a situation where they must win games to stay where they are and save their owners ASSet. It should be more fun than watching them tank year after year. And the top rookies could feel better about having to get drafted by sucky teams in grim locations like Minnesota/Cleavland. After all they may get drafted there but after a few years there is a chance the whole team could end up somewhere better.

With all due respect, I am a Analyst Hall of Fame candidate. If you are offended by my comment, I did write "With all due respect".

by KillaContract on Jul 8, 2011 5:35 PM PDT up reply actions