Tag Archives: economy

The NBA Needs To Share It’s Revenue!

It’s a shame that in the NBA, or as Bill Simmons calls it, the No Benjamin’s Association that the rich do in fact get richer. No, this isn’t a rant on how the Lakers will probably land some stud at the trade deadline for a poo poo platter of expiring contracts or practice squad guys. This is about how the league is structured. Looking around it’s immediately obvious that teams stuck in small markets are going to lose money. Being a good team is supposed to raise you from financial destitute, but in a league strapped for cash, this isn’t happening anytime soon. With 40% of teams losing money last season, and the economy looking unlikey to turn around the NBA does have the most financial problems of all the major sports. Unless you count NBC, the NBA is probably the next closest organization in need of a Heidi Montag style face-lift.

It’s troubling to see how many NBA organizations are struggling to stay afloat without some good form of revenue sharing in place. It’s a travesty that teams like the Clippers, Knicks, and yes my Warriors make ten-million plus dollars profit each year, and field teams that would have a tough time beating the Washington Generals. Yes, these are the teams that I deem the greediest in terms of giving back to their fans. They do relatively nothing to improve their rosters, and they have plenty of income that could be spent to improve their respective teams. I don’t mind some of the teams atop the list, since the Lakers do deserve to make more money, because they do always put a good team on the court, but I feel that a teams revenue should be more driven by their ability to win. It’s been quite awhile since I broke down some financial situation, and most of this post is derived from Forbes numbers that they released on the teams earnings from last year. Continue reading

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The NFL Really Cares… About Making Money!

Oakland Coliseum Raiders

It’s looking like the NFL is about to see some hard times of their own due to the economy. Everybody knew it was coming, and we are seeing the first signs of it as there are 10 to 12 teams that may not sell out every game. This would mean mass local blackouts on TV broadcasts for many supportive fans.NFL blackout games Last season there were only three teams that didn’t sell out games and not surprisingly the list was Oakland, Detroit, and St. Louis. They combined for a total of nine blacked out games last season. I can’t blame any of the fans for not going to those games though, especially since I’m a Raiders fan and value paying to see them as much as going to see “Thunder from Down Under” for a bachelor party in Vegas. Despite the fact that there are about one third of teams finding it difficult to sell out, the blackout rule will stay in effect for it’s 37th straight year. The Jaguars have stated that they may not even sell out one home game all season. Sorry Jacksonville fans, you have to sign up for Direct TV and pay an extra $200 just to watch your local team for those eight games.

Tim Keown explored the reasons why the blackouts are out dated, and only hurt the league. I fully agree, as it deters possible fans that would have to watch the locally televised games. Many times a casual fan that lives in the area is exposed to the local team to the point where they start to follow them. I’ve had that transformation since my move to Southern California about three years ago. I used to root mildly for the Giants as a Northern California resident, but without being able to watch them, I now root for the Dodgers since I see them on TV nearly every day. I definitely never thought that I’d say four years ago when I was living in Northern California surrounded by that media market.thesilverblackouts Don’t get me wrong, I’m not a fair weather fan, I’ll always be a fan of the A’s, Raiders, and Warriors which sholuld say enough looking at their track records this past decade. I’ll root for all the Oakland teams no matter where I live, but every sports fan has “other teams” or man crushes on a certain players so we follow them. If they’re in the local media market, they are certainly going to be watched. That won’t happen if eight of a teams games are being blacked out. How can anyone get attached to a player or team that isn’t shoved down your throat? It won’t happen, and that’s why this rule that’s older than Al Davis needs to be changed.

Sometimes we’ve been saved from these blackouts by local companies that will buy up the rest of the tickets, so that the game can be televised. In these uncertain economic times it’s much less likely that companies are going to open up their wallets to get a game televised. Teams that have had no problem selling out all their tickets in the past like the Cheifs, Dolphins, and Jets are struggling to sell tickets, and have noticeably ramped up the promotions to get people out to the games. San Diego, Miami, and Minnesota are on the list of teams that might not sell out all their tickets, and they were all playoff teams last season. If I was jobless, and couldn’t watch my team play on their way to a playoff run I’d be mad. The NFL is still in great shape either way financially, so why not give the fans a break. It’s bad enough that the fans are asked to spend taxpayer money on the ridiculously large stadiums, and they expect people to be okay with them not being on their local programming!

Goodell is too smooth of a talker to be able to trust!

Goodell is too smooth of a talker to be able to trust!

This quote pretty much sums up how much Goodell and the NFL care about the fans that support the game and teams of their home towns.

Sean McManus, president of CBS Sports and CBS News, said last week that NFL Commissioner Roger Goodell told him that “he is not going to make any major adjustment to a rule that has lasted a long time just because of a short-term economic problem.”

When asked if CBS had concerns about blacked-out games, McManus said, “I don’t think there is any way they are going to change it, so it is pointless to talk to them about it.”


The New Salary Cap Kills Dreams, and Gives Other’s Hope

Stern

Today the salary cap numbers were released for the NBA, and as projected the cap space for next season dropped by close to $1 million from $58.68 million this past season to $57.70 million this upcoming season. It is also projected to drop 5% more next year during the extremely hyped free agency class of 2010.  I know that I’ve been a little depressed and couldn’t really tell what the motivations were for the moves made by my Warriors, but now I feel that this is going to give us the boost we needed, as it may help us get rid of our horrendous owner (back to that later).

Teams that have been clearing cap space for the 2010 free agent bonanza are suddenly realizing that they may not have the cap room they first thought. The Knicks have been the most adamant in trying to get a superstar to the big apple in 2010, as they have been dumping salary like Steinbrenner gives out $100 million contracts. Their obvious goal was to make enough room under the cap to sign a combo of star players and bring the franchise back to contention for a championship. Since they were trying to clear out enough money to sign a combo of players, they haven’t really developed much of a team.80391809NB002_CAVS_CELTICS NB001_ROCKETS_KNICKS During the tirade of trades that would be off the books by 2010 the projected cap was in the $60 million range. Now it appears that number will be around $8 million less than what was projected a year ago to spend on the superstar summer. Basically, instead of signing two superstar free agents, they will have to settle for one superstar and one MLE player. In the Knicks case, it seems that not developing a team worthy enough to entice a superstar, is going to hurt them next summer. As of now, it seems much more likely that Cleveland, Toronto, and Miami can retain their franchise guys, and possibly, for slightly less money than they had originally thought. Does it sound very tempting to a player like Lebron to go to a lottery team like the Knicks or stand pat and keep trying in Cleveland where he knows he’s close. If Lebron isn’t moving to a team with a player like Bosh, Wade, or Amare there isn’t a point for him to leave.  I’m sure he believes he could make them a playoff team, but I doubt he could talk himself into thinking that they were a championship caliber team.

What does this do to the Warriors you may ask? Not only is the cap not a concern to me, even though the Warriors have a lot of their money tied up for many years down the road, it actually could be a franchise changing year for the good of the team! Being a lifelong Warriors fan, I wasn’t old and wise enough to enjoy the early teams they had with Run TMC, so I’m stuck with the visions of the Chris Cohan era, which has produced a whopping 1 playoff appearance in 15 seasons! RunTMC_160x140 This recent news has helped our horrible owner have what alcoholics like to call “a moment of clarity”. Even if this team does get blown up because of the sale, is that really the worst thing that could happen to this franchise? I love the way their team is set up with youth and some veterans, but any longtime Warriors fan will tell you that it can’t get much worse as long as the new owner doesn’t take us for a Donald Sterling type ride. I’d love to see a front office that actually has relationships with the GM, coach, and players. What a concept!


The MLB is Roidless in the Economic Crisis

bud-selig

Since my last piece examined the state of the NBA on the decline, I figured that it would be fitting to give an assessment of the MLB during the financial crisis . Baseball is in the beginning stages of seeing exactly how bad the country’s unwillingness to spend is affecting them. We’ll know exactly what is going to happen with 19 teams within 6 games of first place in their divisions. As the July 31st trade deadline approaches, will any teams make any big moves adding money to their payroll? Baseball is facing their biggest financial hurdle since they came back from the 94 strike, but this time they don’t have the influx of steroids to save them. Even the rich teams are feeling the financial crunch as the powerhouses like the Yankees and Red Sox are even seeing declining ticket sales.

With teams struggling to get fans through the turnstiles, they’ve turned to alternatives to lure people to the games. In Arizona, they gave away an unprecedented amount of 41 season tickets to 14 different families which was worth approximately $100K. marlinscheerleadersThe Marlins are giving away $2,500 towards a mortgage or rent payment for 11 Saturday’s this season. They are also giving away free tickets on Monday night games to any person with proof that they were laid off.  Baseball, more than other sports, is driven by ticket sales, and this year has shown that even the mighty Yankees and Red Sox aren’t immune to the recession, as many games aren’t selling out the way they have over the past decade and a half.

Last year there were many big names swirling around before the deadline like CC Sabathia, Mark Teixiera, Manny Ramierez, Jason Bay, Rich Harden, and Joe Blanton. Like many years past, all of the marquee names found a new home for the 2nd half of the season to help their respective teams during the playoff push. Maybe last year’s market had more top dogs than most, but this year you can hear a pin drop around most camps with teams trying to find ways to save. I haven’t heard one intriguing rumor for any player that would make a significant impact on a team pushing for a playoff spot. As we approach the July 31st trade deadline, it’s the time of the year when teams have to decide if they are a buyer or a seller. This year it seems as though everyone is a seller, and every team has players on the block as they just want to clear salary. It doesn’t seem like teams even want to improve in this bizarro situation that is mirroring the NBA. Are Mark Derosa and Eric Hinske going to be the biggest names we hear moved this year? DeRosa Cardinals BaseballSo far it’s shaping up that way. The Red Sox, Phillies, Giants, and Mets seem like the only teams that are willing to take on a significant amount of salary. The economy has made GM’s much more cautious. Even if there are trades made, I doubt it will be much more than a 7-9 hitter or a 4th or 5th man in the pitching rotation. I hope we see some fireworks from one or two teams before it’s all said and done. I need something to look forward to, since my A’s were placed on the sellers list a month ago by positioning themselves firmly in last place in the AL West. Hopefully they can get a few parts via trade, that can be immediately inserted into their D rated offense for one of their proven players (their old guys or Holliday).