Franchise FAQ

how much do nba franchises make from sponsorships

by Hadley Swaniawski Published 1 year ago Updated 1 year ago
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  • All playoff teams in the first round of playoffs receive $347,545.
  • Teams who play in the second round get $413,534.
  • Conference finalists receive $683,363.
  • The losing team in the NBA finals gets $2,732,699.
  • The 2022 NBA champions are awarded $4,124,054.

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How much does NBA make from sponsors?

around 1.6 billion U.S. dollarsIn the 2021/22 season, the league and its teams generated around 1.6 billion U.S. dollars in revenue from sponsorship....National Basketball Association sponsorship revenue from 2010 to 2022 (in million U.S. dollars)CharacteristicRevenue in million U.S. dollars19/201,39018/191,29817/181,12016/178619 more rows•Jul 13, 2022

How do NBA franchises make money?

The NBA makes money primarily through television, merchandising, sponsorships, and tickets. The 30 teams making up the NBA had an average valuation of $2.12 billion each in the 2018-19 season. Across the 2018-19 season, the NBA generated about $8.76 billion in revenue.

How profitable are NBA franchises?

The average revenue of an NBA franchise was $213.5 million in the 2020/21 season. This is a 19% drop from the season before ($264 million)....NBA revenue by team.Chicago Bulls2018$2872019$3012020$3002021$21331 more columns•Nov 1, 2021

How much profit do NBA teams make?

Despite a decrease in NBA profit per team last year, team values are up 4%—from $2.1 billion in 2020 to $2.2 billion this year....The Most Valuable NBA Teams.Rank1TeamNew York Knicks2021 Valuation$5.0B1-Year Change9%4 more columns•Mar 29, 2021

Who is the richest NBA franchise?

Here's a look at what each NBA franchise is worth from least to greatest, according to Sportico's total valuations up to December 2021:New York Knicks - $6.12 billion.Golden State Warriors - $6.03 billion. ... Los Angeles Lakers - $5.63 billion. ... Brooklyn Nets - $3.61 billion. ... Chicago Bulls - $3.53 billion. ... More items...•

How do NBA teams split revenue?

Sport Revenue: To help create equality between large- and small-market teams, the league implements revenue sharing. Basically, this means all teams pool in their annual revenues in order to redistribute it equally. That way, all teams receive revenue that equals the current salary cap.

What NBA teams are not profitable?

The nine teams that lost money following the sharing were the Atlanta Hawks, Brooklyn Nets, Cleveland Cavaliers, Detroit Pistons, Memphis Grizzlies, Milwaukee Bucks, Orlando Magic, San Antonio Spurs and Washington Wizards. It is notable six of those nine teams made the playoffs last season, including the Cavaliers.

Who makes more revenue NFL or NBA?

League revenues are split between 1,696 total players in the NFL while in the NBA it's only split between 450 players. $8 billion / 1,696 = $4.717 million per NFL player. $3.7 billion / 450 = $8.222 million per NBA player.

Where does the majority of NBA revenue come from?

A majority of revenue generated by the NBA and its subsidiaries is classified as Basketball Related Income (BRI). This includes ticket purchases and concessions, TV deals that deliver the game to viewers' homes, and merchandising rights from jersey and apparel sales.

What do NBA refs make?

Like most jobs in America, an NBA referee's salary is based on both seniority and performance. Entry-level referees' compensation begins at $600 per game or roughly $250,000 per year. Seasoned or professional referees earn $3,500 per game or up to $550,000 annually.

How much money does the NBA get from China?

NBA China is valued at approximately $5 billion, and the NBA owns 90% of the entity (ESPN owns a 5% stake, and several state-controlled banks collectively own the rest). That would put the China value of each of the league's 30 teams at an estimated $150 million.

How much does an NBA team owner make?

Owners of NBA teams report earnings around $12-30 million per season year. This is taking home money from $100 million once all the taxes and fees are added up. After counting player salaries', arena costs and maintenance, and other required expenses, the owners take home a decent payday.

Who makes more revenue NFL or NBA?

League revenues are split between 1,696 total players in the NFL while in the NBA it's only split between 450 players. $8 billion / 1,696 = $4.717 million per NFL player. $3.7 billion / 450 = $8.222 million per NBA player.

How much does an NBA franchise cost?

Every team in the league is worth at least $1.5 billion, per Forbes' estimates.

How do team owners make money?

The teams and league make more millions. For example, NFL makes about $15 billion in revenue a year. The NBA is around $8 billion. The money comes from a combination of ticket sales, TV rights, digital products (e.g. NBA League Pass), merchandising, licensing, advertising and so on.

How much money does the NBA make in sponsorships?

The NBA offers sponsorship on a variety of levels, from local to worldwide. For the 2013-14 season, sponsorship revenue increased by 5.7 percent ye...

How do NBA teams afford to pay their players?

The NBA makes the majority of its money from broadcast, merchandise, sponsorships, and ticket sales. In the 2018-19 season, the NBA's 30 franchises...

How much money does the NFL make from sponsorships?

In the 2017-18 season, NFL sponsorship income was $1.32 billion, with beer, trucks, and fast food among the top spenders. In the 2017-18 season, th...

Why are there so many sponsors for the NBA?

The NBA is one of the world's largest and most popular athletic organizations. As a result, it's a hotspot for sponsorship deals. Because the NBA h...

Who makes more money in 2020: the NFL or the NBA?

The NFL produced $14 billion in total income last season, which was more than $900 million higher than the previous season and a $6 billion gain ov...

How does the NBA make money?

The NBA makes money primarily through television, merchandising, sponsorships, and tickets. The 30 teams making up the NBA had an average valuation of $2.12 billion each in the 2018-19 season. Across the 2018-19 season, the NBA generated about $8.76 billion in revenue.

Why does the NBA share revenue?

Like some other major sports leagues, the NBA shares non-basketball related revenue between teams in order to address inequalities across different markets around the country. All teams pool their eligible revenue together to redistribute it from teams with higher revenues to those with lower. Each team then receives revenue equal to the salary cap for that year.

Why is the NBA playing in a bubble?

With the coronavirus pandemic, teams were forced into playing in a bubble to prevent the spread of the virus. Although it has been largely a success with controlling any major coronavirus breakouts, teams and the NBA are expected to take a significant revenue hit in 2020 and 2021. The shortened season for 2020 has led to less advertising and TV revenue. The loss of ticket sales alone, due to no fans being allowed at the games is estimated to cost each team nearly $2 million on average per game. 13 

How many games did the NBA broadcast in 2017?

While the NFL’s television contracts are famously lucrative and are signed exclusively with national networks, the NBA broadcasted 277 regular-season games nationally in 2017-18—plus 90 or so playoff games. In the 2017-2018 season, NBA TV aired the most regular-season games with 106 followed by Disney's ( DIS ) ESPN (87), ...

How much does the NBA make from TV?

The nine-year deal earns the NBA approximately $2.6 billion per year. Even with a total of 400-odd active players making an average of close to $6.7 million annually (as of 2019-20), national TV contracts generate enough revenue to cover salaries and then some. 7 

When was the NBA founded?

The NBA was founded after the other sports leagues (in 1946) and had to spend decades catching up to its entrenched counterparts in baseball and football. 2  It was the first league to turn its all-star game into a three-day weekend loaded with events, the first to draw a significant portion of its revenues through merchandising. ...

Does the NBA have international advertising?

As a result, many international companies can now advertise with the NBA through the jersey patch program as well as other marketing initiatives. The expansion into China and throughout the globe is a strategic one and is likely to generate an increasingly larger share of the NBA's overall revenue for years to come.

How do NBA owners make money?

Owning an NBA franchise is often an emotional investment. For some investors, like Dallas Mavericks owner Mark Cuban, owning an NBA franchise can be very profitable. But that’s not always the case.

What is market size in the NBA?

Market size is the number of people who tune in to watch a team’s home games. As a result, Lakers have a higher market income than, say, New Orleans Pelicans. Market size is a big factor in an NBA franchise’s profitability.

How does brand revenue work?

Brand revenue comes from a team’s broader appeal in the culture. For instance, a teenager outside of LA who buys a LeBron jersey generates brand income for the Lakers. Market size is a big reason for brand revenue since big market teams tend to have larger fan bases outside their town. Having a cool and easily recognizable logo also helps.

What are the factors that determine the revenue of a basketball team?

A team’s total revenue is basically made up of four factors: Sport, Arena, Market, and Brand.

Does team success affect brand income?

Additionally, team success plays a crucial part in brand income . For example, the Warriors. Before their recent successes, Golden State had a relatively small brand influence. However, now everyone knows about GSW and young kids want to be the new Steph Curry.

What was the number 1 NBA team in 2015?

Last season, the Spurs were No. 1 in the NBA in local TV ratings (average of 8.09), which was 9% higher than the previous season. San Antonio's international influence doesn't stop with its players on the court. In November 2015, the team agreed to a sponsorship deal with Swiss watchmaker Tissot.

How much did Mark Cuban pay for the Mavs?

Mark Cuban paid $280 million for the Mavs back in 2000 (a highly-criticized move at the time), and the franchise is now currently valued at $1.4 billion according to Forbes research. Those critics didn't take the value of stability into account, and that's exactly the kind of team Cuban built with Rick Carlisle and future hall of famer (yes, he is) Dirk Nowitzki.

How much does DeMarre Carroll make?

DeMarre Carroll's four-year, $58 million contract makes him the highest-paid player on the roster and the 12th highest-paid player in the NBA at the small forward position. The Raptors have filled a major void for basketball in the Canadian market, and the team's value has almost doubled since it was purchased by Bell Canada, Rogers Communications for $400 million in 2012.

How much did Vino make in his retirement?

While NBA fans are enjoying Kobe Bryant's farewell tour, Vino will be enjoying a cool $50 million in total earnings, split 50/50 ($25 million in salary/$25 million from off-court endorsements). Bryant will retire having earned $680 million over the course of his NBA career.

How much is the Utah Jazz worth?

The Jazz were purchased back in 1986 for just $24 million, and though the team falls into the lower third of team values when compared to the entire league, its current value of $875 million is a solid return on investment considering the Jazz market's metro population is only 1.2 million. 21.

What are the factors that determine a team's value?

A team's total value is made up of four determining factors: Sport, Market, Arena and Brand . Sport is the portion of a team's value attributable to revenue shared among all teams. Market is the portion that comes from its city and market size (which determines the team's revenue per fan).

Is the Nets a successful team?

The Nets aren't exactly the successful experiment that owner Mikhail Prokhorov had hoped for. Though much of the Nets' value can be attributed to the team being in the New York metro area, Nielsen Scarborough data shows that only 15% of the that market watched, attended or listened to a game last season.

What happened when soccer fans started seeing online gambling?

When soccer fans first started seeing that online gambling companies were sponsoring their beloved teams, they reacted with shock and some anger as well. However, these days, they’re more or less used to it.

How long will the 76ers deal with StubHub last?

The deal between the Philadelphia 76ers and the StubHub company is going to last for three years, and it will start in 2017. Both groups signed off on the deal for a total of five million dollars annually. The NBA can expect to get around $15 million from this deal, which is ultimately going to benefit everyone from the managers to the fans, at least in this regard. Half of the revenue generated from this deal is going to go to the teams themselves, and the other half will go to all of the individual players in an even distribution.

Is the 76ers brand connected to StubHub?

The Philadelphia 76ers CEO Scott O’Neil has already said that the brand for StubHub and the brand for the Philadelphia 76ers are now connected. While he says this in an optimistic manner, some people are going to be less than enthusiastic about the fact that people are going to associate these two companies together. Some people might also be worried about the fact that one of their favorite teams is now completely dependent on a jersey sponsorship.

Can teams afford better players?

Teams may be able to afford better players, and they may be able to make the upgrades that would have been financially impossible otherwise. However, many fans are going to feel like this deal and the deals like it are going to let them down in the long run, and it’s too early to tell whether or not they’re right about that.

Is the Philadelphia 76ers dependent on StubHub?

The Philadelphia 76ers is obviously not completely dependent on their association with StubHub by this point, and they do have other sources of revenue. However, as the association deepens, the suspicions and concerns of the fans may be confirmed.

Why is sponsorship important in the NBA?

As you can see, sponsorships in the NBA are essential. Some people may focus only on the money the brands above pump into the top basketball league in the world, but the partnerships work both ways and lead to fantastic results for everyone. In return for funding, companies gain maximum exposure on one of the biggest stages around.

Who sponsors every shot clock?

It’s Tissot who are sponsors of the every shot clock in the league. That sponsorship helps to generate more than approximately $16 million in revenue, in what is another significant and mutually beneficial deal for all parties.

Is the NBA a sponsorship?

The NBA is one of the biggest and most popular sporting organizations on the planet. Therefore, it’ s a prime hunting ground for sponsorship deals. As there are multiple layers to the National Basketball Association, with the league, teams and players all investable, it’s easy to see why massive brands and companies want a slice of the action.

Is State Farm a sponsor of the NBA?

The company is a primary sponsor of the NBA and were the principal backers of the Rising Stars game. State Farm were also lead sponsors for All-Star Saturday Night.

Is Party Casino a sportsbook?

There is always a raft of companies from other sectors wanting to enter the sponsorship arena too, with gaming operators such as Party Casino, an online operator soon to open a Sportsbook, making them a possible candidate for a future mega-money deal.

Is Michelob Ultra a sponsor of the NBA?

We’re not sure if Michelob Ultra was an NBA sponsor prior to this season , but the beer brand has had a lot of visibility since the 2019-20 NBA season resumed after the coronavirus pause. Most apparent were their sponsorship of virtual fan experiences called Michelob Utlra Courtside that partnered with Microsoft Teams to bring “a digital experience that allows fans to appear and communicate virtually inside the arena during the games…” basically the ZOOM audience of fans you saw “attending” the games.

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How The NBA Makes Money

Understanding The NBA

  • The NBA was founded after the other sports leagues (in 1946) and had to spend decades catching up to its entrenched counterparts in baseball and football.2 It was the first league to turn its all-star game into a three-day weekend loaded with events, the first to draw a significant portion of its revenues through merchandising. The NBA is also the first to consciously develop i…
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NBA's Television Revenue

  • Like other major sports leagues, television comprises a key part of the NBA’s business strategy. TV is an attractive option for many NBA fans since they can watch the game for free, minus the cost of their cable provider or TV service. Live sporting events remain popular despite the increasing trend of streaming TV programs and the widespread use of DVRs. Between the c…
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NBA's Merchandise Deals

  • There’s another major contributor to the NBA revenue, and unlike the others, this one corresponds to something tangible. Merchandiseaccounts for well over a billion dollars annually, and in the 2017-2018 season, for the first time in the NBA's history, teams wore advertisements on their jerseys.
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NBA's Ticketing Business

  • You may be surprised that ticketing is actually not one of the primary sources of revenue for the NBA. It tends to lag behind some of the other revenue streams mentioned above. However, that's not to say that ticketing doesn't contribute at all. According to ESPN, for the 2018-2019 season, teams saw an average of anywhere from just under 15,000 to just over 20,000 fans attend per h…
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International Revenue

  • The NBA has been expanding internationally for many years, and it has become a key revenue source—especially China. It's estimated that China generates $500 million dollars in revenue annually. Part of that revenue includes the Chinese technology giant, Tencent's $1.5 billion deal to be the NBA exclusive digital partner.12 With greater international appeal also comes internati…
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Team Values

  • As the NBA’s popularity increases, team values grow far out of proportion. NBA teams are not sold that frequently, but when they are, records break every time. Over the last decade, the average sale price of a team has tripled. Granted, that’s largely due to a single outlier: the 2014 sale of the Los Angeles Clippers, who went for an unprecedented $2 billion. Even discountingtha…
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Future Challenges

  • There are a number of key challenges facing the NBA, even as professional basketball continues to grow in popularity in the U.S. and elsewhere around the world—and as individual teams balloon in value. For one thing, not every team is equally valuable or profitable. Last year, the Cleveland Cavaliers lost money on an operating basis and declined by about 4% in value to $1.28 billion, pe…
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