Blog Entry

NBA lockout could cost arena operators $1 billion

Posted on: August 24, 2011 3:00 pm
Edited on: August 24, 2011 3:02 pm
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Posted by Ben Gollivernba-lockout

Ever wondered how much revenue the NBA's arenas rake in over the course of a season? 

Bloomberg.com reports that the figure is in excess of $1 billion and that the ongoing lockout and the possibility of a canceled or delayed season puts that giant pile of money in jeopardy.

National Basketball Association arena operators would miss out on more than $1 billion in ticket revenue if a labor shutdown wipes out the 2011-12 season, probably leaving their buildings dark those nights.

“Most all the dates would go unfilled,” former Portland Trail Blazers President Steve Patterson wrote in an e-mail.

Of course, many arenas are not operated by the NBA teams that fill them. Independent management companies, auxiliary management companies or even sports teams in other leagues can find themselves in the position of operating and profiting from arena revenue from NBA games.

Because the NBA has alread released its 2010-2011 preseason and regular season schedules, the arena operators really have no flexibility or recourse if the ongoing lockout results in a delayed or canceled NBA season. All 41 regular season home dates must remain reserved for the NBA.

In other words, all those empty nights could add up to serious losses.
“As much as we would like to have the ability to repurpose those dates, it’s just impossible,” [President of TD Garden in Boston John] Wentzell said in a telephone interview. “I don’t think anyone would attempt to spin this -- that it’s not a painful hit to their business.”

“They’re losing up to half of all revenue that comes to them over the course of a year,” said Rob Tilliss, founder of Inner Circle Sports, a New York-based advisory firm that represented Apollo Global Management LLC co-founder Josh Harris in his purchase of the Philadelphia 76ers. “It’s very damaging.”

Independent arena operators will really take it on the chin if the lockout continues on without a resolution. They have no ability to directly impact the ongoing Collective Bargaining negotiations and they don't stand to gain nearly as much as the NBA's owners from a new financial model. All they can really do is groan and moan publicly and lean as hard as possible on their NBA tenants behind closed doors.

Hat tip: InsideHoops.com
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Category: NBA
Comments

Since: Jul 29, 2011
Posted on: August 28, 2011 7:31 pm
 

NBA lockout could cost arena operators $1 billion

This nis insane, the owners need to get thios squarewd away.  There are lots of people that work at these games that don't make alot of money that depend on this income!  Take a page from the nfl and get it done.  David Stern need to step in like Roger Goodell did and make this happen.  The owners and players make a lot of money.  Time to remember the little people that make the shoe go on!



Since: Mar 30, 2010
Posted on: August 27, 2011 1:00 am
 

p.s. I voted for the ARena measure




Since: Mar 30, 2010
Posted on: August 27, 2011 12:59 am
 

Sacramento voters the smartest ever!

Weeeellll now, it seems that a 500 MMMmmmmillion dollar arena built on tax payer dollars for the benefit of two playboys, their slick little brother and 'B' grade Tv sister might not have paid off so well after all if the tax payers of Sacramento had listened to the likes of idiot politicians and butt slurping  lackies.  SACRAMENTO PAY ATTENTION!! If we'd bought it we'd be left holding the bag on this. This is what we'd be reading in the local rag that licks their wrinkle sack: 'We wish we could bring $$ into Sacramento, but the league has it out of our control', or 'A work stppoage never could have been predicted to occur between egos the size of Texas and Alaska...', or '.....   pick one or write your own. THIS is why Sacramento voters showed the NBA why they can help themselves out the door and into any city they want to rip off next. ANAHEIM count yourself LUCKY!!!!  You were very nearly the biggest suckers in the nation if a local Sac town guy hadn't saved your politicians from ripping you off without so much as a vote! -- disclaimer: In actuality I love the NBA and the gangsta mentality it promotes in high school and college sports. I also whole heartedly support the system of coddling 4 to 6 superstars in big TV markets at the expense of fair play, equal enforcement of rules, and the spirit of true sportsmanship. Stern is a genius and the NBA is what makes America the envy of the free and repressed world. Go Royals, er Kings, er Monarchs, er, it doesn't matter because NOBODY CARES.



Since: Aug 25, 2011
Posted on: August 25, 2011 11:32 am
 

NBA lockout could cost arena operators $1 billion

That is WITTINESS at it's finest! LOVE IT Smile



Since: Jul 28, 2007
Posted on: August 25, 2011 7:57 am
 

NBA lockout could cost arena operators $1 billion

Quit being so hard on the NBA players.  Where else can you see someone average 1.5 points, .9 rebounds and .4 assists per game, making $4.5 million?  These guys need more money, bottom line.  They want to hire someone to teach them to shoot the ball at better than 35-40%, learn to play defense, or understand technical things like what an assist is.  It's not their concern that thousands and thousands of near minimum wage people (arena support staff, ticket people, etc) depend on the season to support their families.  Some of these players only have 3 houses and 7 cars!! Come on folks, back off!!  They need our support . . .

P.S.  Remember, it's your chance to fork out $300 for a family of four to go see two teams play hard for 3-4 minutes at the end of the game!!!!



Since: Apr 6, 2007
Posted on: August 25, 2011 6:20 am
 

NBA lockout could cost arena operators $1 billion

Must be nice to have a lockout during a double-dip recession, especially when it's millionaires looking for more millions.  I hope when it's all said and done, it's more offense, less defense, higher paid stars, and more expensive tickets.





Since: Jan 4, 2007
Posted on: August 25, 2011 1:32 am
 

NBA lockout could cost arena operators $1 billion

KNEW btw



Since: Jan 4, 2007
Posted on: August 25, 2011 1:32 am
 

NBA lockout could cost arena operators $1 billion

No sympathy in Seattle. We new the NBA model was broken when a team from a large market got shipped to a college town



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