Friday, August 5, 2011
Where does all the money for an NBA team originate and how profitable is it to the owner(s)?
I come from a market that doesn't have an NBA team, despite attempts to bring one has happened more than once. Around here we only concentrate on college basketball (Kentucky). I realize that much of a teams revenue comes from ticket sales and TV, but what I don't understand is what people pay for an NBA ticket and how often games are played, the average attendance, how much television pays to broadcast and other revenue sources are to cover the apparent $50-90 million dollar team salaries plus money to the back office and owner's return on investment. Feel free to talk to me like I am a third grader on this, but remember you don't need to explain the outside endorsement deals of the players. I am only interested in the money developed by the team itself. In addition I am curious about how the argument of the players that their rising salaries are representative of the owners profit margins ever increasing. Beyond cutting operational costs how do the owners increase their profit margins?
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