How much money can a team make in a year if they win the NBA championship?

For many fans, the team they recognize may rely on selling tickets to make money. After all, this makes the money the fastest. For example, in the 16-17 season, the Warriors made a profit of $44.3 million by relying on nine playoff home ticket revenue, and his opponent, the Cleveland Cavaliers, also earned nearly 20 million, which undoubtedly made the teams that did not enter the playoffs envious! But in fact, the source of income of NBA teams is far more than that, and even ticket revenue only accounts for a small part of the total revenue. Let’s analyze it in detail below!

If they reach the tiebreak in the finals in the past two years, they will make more money!

What are the sources of income for an NBA team?

First of all, the TV broadcast revenue. In 2014, the NBA signed a 9-year, $24 billion large-size broadcast contract with ESPN and TNT. In addition, the NBA also signed a contract with foreign broadcasters with nearly $7 billion, of which the contract with our country Tencent reached $1.5 billion in five years! This money is divided equally by thirty teams and has nothing to do with the team's record!

The second is the broadcast contract of the local TV station where the team is located. Thirty NBA teams have such contracts, but the amount is as small as the amount! For example, the Lakers and Time Warner have a contract of 25 years and 5 billion yuan; the Knicks and New York TV have a year of 140 million yuan; the Rockets and Houston TV have a year of 15 million yuan; the Pistons and Detroit TV have a year of 6 million yuan!

TNT Commentary Group!

The third one is ticket revenue, and the ticket prices of different teams are also different. The Knicks have an average of $165 per ticket, and the Pelicans have a minimum of $40 per ticket! And in the playoffs and even the finals, these ticket prices rose exponentially! Here, the regular season ticket revenue is 6% in the league and 25% in the playoffs!

The fourth one is sponsor income. We are familiar with Nike and Adidas, and of course there are many other fields. The Rockets had many advertisements for Chinese companies at home. With Yao Ming’s retirement and Morey incident, this part should be gone!

The fifth star surroundings, this part is mainly player jerseys, and there are also star models. This part accounts for half of the players, one-quarter of the team, and the rest is turned over to the league!

The sixth team endorsed, and this is generally more endorsed by McDonald's and other catering products!

The seventh foreign competition income, preseason and summer leagues played abroad, etc.!

Houston jersey is full of Chinese elements!

The eighth alliance dividend is distributed, and this part accounts for the majority. Let’s talk about it in detail below!

In addition to the above league commissions, after the team settles the profit at the end of the season, the team also has to pay part of the profit to the league. There are two key points here. The first is that the luxury tax is not considered. This is also a kind of restrictions and punishment for luxury tax by the league. The other is that the remittance ratio of all teams in the league is the same. The previous labor-management agreement standard was 30%, and it should be around this now!

After the money is handed over to the league, except for a small part to maintain league operations and player welfare protection, the rest is distributed evenly to all teams in the league! For example, Team A made 100 million, and handed over 30 million to the league, Team B made 10 million, and handed over 3 million to the league. After the league got 3300, it left 3 million as the operating cost. The remaining 30 million was rated to the two teams A and B, with each team of 15 million! In fact, Team A lost money and Team B made money. This move by the league is to reduce the gap between the rich and the poor between the teams and allow small teams to survive!

Like Bobcats under Boss Qiao rely on alliance dividends to achieve revenue!

The team makes money in this way. Can you see which ones are linked to the results?

If you look closely at these eight points, it may be related to the team's performance. Among the other income, the TV broadcast revenue and the league's season dividends are equally divided by 30 teams, and it has nothing to do with the performance! As for the other items, what we value is the commercial value of the team's city. No matter how good the team's record is, it is just icing on the cake!

So the championship's bonus to a team is very small. Due to the impact of the epidemic last year, many NBA operation data have not yet been released, so let's take a look at the revenue of some representative teams in the past few years!

The 16-17 season champion Warriors made a profit of US$130 million before the season dividend. After calculation of the remittance and dividend, the actual profit was US$91.9 million!

The Cavaliers made a profit of US$21.7 million before dividends. After calculating the remittance and dividends, they actually made a profit of US$6.5 million. After deducting luxury taxes of 24.8 million, the Cavaliers actually lost US$18.3 million! Of course, the Cavaliers lost more than this year. The Cavaliers also lost more than four million in the 2016 championship season! Although the honor is very glorious, the Cavaliers have not made as much money as the Thunder and Grizzlies in recent years!

Winning the championship can bring about an increase in market value, but as the record falls, the team's market value will fall back!

Of course, it is also a bad show. The Lakers' real income this year is US$164 million, which is more than the Warriors who won the championship! Therefore, whether the team can make money mainly depends on the commercial value held by big cities such as Los Angeles, San Francisco, and New York! For small cities, if they make small fuss like the Grizzlies, they can basically ensure food and clothing. If a small team pays luxury tax to compete for the championship, the ending is likely to be a loss for honor, just like the Cavaliers in recent years!

(Doctor)