http://grantland.com/the-triangle/g...e-jason-kidd-mess-has-a-144-million-pricetag/
Milwaukee is projected to make $14.8 million in basketball-related net profit for the 2013-14 season, according to that league memo, but they’re one of several small- and mid-market teams propped up almost entirely by revenue sharing. Milwaukee will get about $18 million from revenue sharing and $3 million more from luxury tax payouts, easily eclipsing the $6.5 million the team lost on its own account.
The Hornets and Pistons would be dead without revenue sharing, and they’re expected to end up in the red even with it. Charlotte is projected to lose nearly $34 million in basketball operations, and its monster estimated $22 million revenue-sharing check can’t make up for that. Ditto for Detroit’s $26 million loss and estimated $10.6 million revenue-sharing get.
A few other tidbits from the memo while we’re here:
• The Thunder are indeed paying into the revenue-sharing system, rare for such a tiny market, but they’re slated to make nearly $29 million in profit when everything is netted out. That’s the fifth-best projection in the league, trailing only the Lakers ($100.1 million), Bulls ($61 million), Rockets ($40.7 million), and Celtics ($33.1 million). Again: This memo does not capture the complete financial picture for any organization, but between this estimated profit and the general escalating value of all NBA franchises, it’s fair to take these numbers into account when debating the Thunder’s decision to trade James Harden and duck the luxury tax.
• Holy cow, the Lakers! They end up with that huge profit despite contributing a league-high $49 million to revenue sharing. The league’s revenue sharing is complex, with payouts and contributions tied to all sorts of variables — market size, profitability, earnings benchmarks, and other stuff. A few teams, including the Lakers and Knicks, play in markets so large they are disqualified from ever receiving revenue-sharing payouts.
• Speaking of the Knicks: They’re actually expected to take a net loss for the season — something around $3.5 million. But don’t worry, they’re still insanely profitable. They made $58 million on their own, and will “lose money” only because of their huge revenue-sharing contribution (nearly $27 million, no. 2 behind the Lakers) and the giant tax bill they paid for a lottery roster. And, again, the figures do not account for the value of Madison Square Garden, on which the Knicks do not pay any property taxes. Hooray, civic handouts!
• Sneaky profitable teams: the Spurs, Jazz, and Nuggets, nos. 6-8 in the estimated net-profit rankings. All three finished under the tax, and the Jazz and Nuggets receive nice payouts from the revenue-sharing system. The Spurs will pay into that system, but they made a boatload on their own.
Milwaukee is projected to make $14.8 million in basketball-related net profit for the 2013-14 season, according to that league memo, but they’re one of several small- and mid-market teams propped up almost entirely by revenue sharing. Milwaukee will get about $18 million from revenue sharing and $3 million more from luxury tax payouts, easily eclipsing the $6.5 million the team lost on its own account.
The Hornets and Pistons would be dead without revenue sharing, and they’re expected to end up in the red even with it. Charlotte is projected to lose nearly $34 million in basketball operations, and its monster estimated $22 million revenue-sharing check can’t make up for that. Ditto for Detroit’s $26 million loss and estimated $10.6 million revenue-sharing get.
A few other tidbits from the memo while we’re here:
• The Thunder are indeed paying into the revenue-sharing system, rare for such a tiny market, but they’re slated to make nearly $29 million in profit when everything is netted out. That’s the fifth-best projection in the league, trailing only the Lakers ($100.1 million), Bulls ($61 million), Rockets ($40.7 million), and Celtics ($33.1 million). Again: This memo does not capture the complete financial picture for any organization, but between this estimated profit and the general escalating value of all NBA franchises, it’s fair to take these numbers into account when debating the Thunder’s decision to trade James Harden and duck the luxury tax.
• Holy cow, the Lakers! They end up with that huge profit despite contributing a league-high $49 million to revenue sharing. The league’s revenue sharing is complex, with payouts and contributions tied to all sorts of variables — market size, profitability, earnings benchmarks, and other stuff. A few teams, including the Lakers and Knicks, play in markets so large they are disqualified from ever receiving revenue-sharing payouts.
• Speaking of the Knicks: They’re actually expected to take a net loss for the season — something around $3.5 million. But don’t worry, they’re still insanely profitable. They made $58 million on their own, and will “lose money” only because of their huge revenue-sharing contribution (nearly $27 million, no. 2 behind the Lakers) and the giant tax bill they paid for a lottery roster. And, again, the figures do not account for the value of Madison Square Garden, on which the Knicks do not pay any property taxes. Hooray, civic handouts!
• Sneaky profitable teams: the Spurs, Jazz, and Nuggets, nos. 6-8 in the estimated net-profit rankings. All three finished under the tax, and the Jazz and Nuggets receive nice payouts from the revenue-sharing system. The Spurs will pay into that system, but they made a boatload on their own.
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