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Author Topic: 10% revenue drop to 8.3 billion overall  (Read 1328 times)

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10% revenue drop to 8.3 billion overall
« on: October 28, 2020, 03:55:20 PM »

Online Moranis

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https://www.espn.com/nba/story/_/id/30211678/nba-revenue-2019-20-season-dropped-10-83-billion-sources-say

800 million loss in gate receipts, 400 million loss in sponsorships and merchandise, and 200 million lost from China.  The bubble cost 190 million but saved 1.5 billion in revenue.

If next has no fans, the league is looking at a 40% loss in revenue (around 4 billion). 

No decision yet on what they are going to do with the salary cap.  If they used normal methods it would be like 90 million (and just about every team in the league would be in luxury tax range), but they aren't going to use normal methods.
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Re: 10% revenue drop to 8.3 billion overall
« Reply #1 on: October 28, 2020, 05:12:36 PM »

Online johnnygreen

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This is something that needs to be figured out before the start of free agency and the NBA draft.

It looks like everyone involved would prefer to keep the salary cap of $109M in 2019-20, into next season. Based on the formula for determining the cap, it should drop down to around $90M. Could the two sides (not necessarily) meet in the middle and help each other out? Since there might be a cash flow issue, would the players agree to defer around 11% ((100% - 90M/115M*)/2) of the 2020-21 salary until the following season, or when fans are allowed to attend with no restrictions? In return, the owners agree to increase the cap to $115M*, to accommodate for current free agents, and maintain the natural progression of the cap. Also, suspend/reset the salary cap tax for the 2020-21 season.

On another note, is there any evidence if the whole BLM effected sponsorships, either positively or negatively? Or should we assume the drop in sponsorships is COVID related?
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