Champions, the Lakers lost big with the suspension of the season

According to Team Marketing Report, the Lakers didn’t just win the NBA title this year, they would also be the franchise that lost the most revenue due to game cancellations. Team Marketing Report estimates that the losses generated by the lack of revenue from these 258 home games would be $ 694 million. The Lakers, for which the Staples Center is one of the league’s best-selling venues, have seen 10 home games canceled, or about 52.7 million estimated losses between ticket prices and what spectators consume and buy at the hall on game nights.

Here are the top 5 teams that lost the most money during the pandemic.

• Lakers – $ 52.7 million (10 games canceled)
• Knicks — $45 million (8)
• Warriors — $42.5 million (7)
• Rockets — $35 million (9)
• Celtics — $31.5 million (9)

The five doing the best:

• Grizzlies – $ 10.4 million (8 games canceled)
• Hornets — $11.7 million (10)
• Timberwolves — $11.7 million (9)
• Cavaliers — $11.8 million (5)
• Suns — $11.8 million (6)

It is estimated that a franchise earns an average of $ 2.7 million each night of the regular season at home. Note that the NBA system is made so that the huge income differences are minimized by revenue sharing.

Some losses were therefore considerable, especially for top-of-the-table teams. Note, however, that all franchises are held by owners or groups, all billionaires. And these figures do not take into account the losses linked to the absence of playoff matches in the various markets where the revenues are even more important. Here too we can think that the Lakers were the most impacted because they also had the home advantage from the start to the end of the playoffs.

An NBA franchise is worth an average of $ 2.1 billion. The Knicks have the highest estimate (4.6 billion) ahead of the Lakers (4.4 billion) while the Grizzlies bring up the rear with 1.3 billion. So of course, money was lost during the pandemic, but no landlord contemplated ruin. Either way, it will be important to find attractive ways to bring fans back to theaters. This is what the economist of Team Marketing Report Chris Hartweg who recently looked into precisely the question.

What is obvious when you look at the gross revenues that fans drive by coming to games is that they are a vital factor for teams, even when there are TV contracts that are worth billions. If you take this year’s numbers and project them over a full 41-game home season, the average earnings of an NBA team is over $ 110 million, which is $ 3.3 billion over the year. whole league. These dollars are a huge motivation for the teams to make sure their facilities are as safe as possible so that fans will come back asap. To attract fans, we anticipate that teams will be very creative in coming up with offers to properly welcome fans back. ” Chris Hartweg

The economist was also able to calculate the cost that a basketball night could represent for a family of four. In its formula, it includes four non-premium tickets, a parking space, two draft beers, four soft drinks, four hot dogs, and two souvenir caps. The average for all of this in the NBA is $ 430, but that price can vary wildly depending on the team. Here is the list of the five franchises that are the most expensive to attend games.

• Knicks – $ 901 for a family of four
• Lakers — $739
• Warriors — $703
• Celtics — $579
• Bulls — $562

And here are the five that cost the least:

• Hornets – $ 233 for a family of four
• Grizzlies — $262
• Pelicans — $278
• Timberwolves — $297
• Hawks — $302

In the five major leagues, this $ 430 average represents the second highest price compared to the other five American major leagues.

• NFL – Average $ 540 for a Family of Four
• NBA — $430
• NHL — $424
• MLS — $250
• MLB —$242

Note that these prices are far from fixed and may vary from one year to another. For example, in Milwaukee, ticket prices have increased by 16% since the MVP trophy won by Giannis Antetokounmpo in 2019. In Cleveland, since the departure of LeBron James, it is the reverse and the price of tickets in two years has fallen by 15.4%. For information, compared to the previous season, 17 teams increased their prices during the 2019-20 fiscal year, 8 remained at constant price and 5 lowered them. Let’s see if, as expected, more prices drop next year.

Via The Athletic