NBADL franchise fee??

[Smitty77]

Does anyone know how much the fee is to get an NBADL franchise?  I have been doing a little research and found out the building where the Bakersfield Jam play has a maximum seating capacity of only 750!!  I was watching some highlights played there and they had one entire side covered with tarps.

Also, there used to be quite a few NBADL teams in the Southeast, but I don't think there are any left.

Smitty77

[lightspeed5]

nba d-league isnt for spectactors, its really designed to be soemthing to develop players and for reps.

how many people normally go to minor league baseball triple-AAA games? I would assume about the same amount.

[Smitty77]

Back when they actually had the D-league in the South, my son and I went to quite a few Fayetteville Patriot games back when Gerald Green was playing down there.  The talent level was comparable to a Duke/UNC game and it was very cheap.

I would recommend it to everyone.

Smitty77

[Roy H.]

nba d-league isnt for spectactors, its really designed to be soemthing to develop players and for reps.

how many people normally go to minor league baseball triple-AAA games? I would assume about the same amount.

I think minor league baseball tends to draw more spectators.  The Paw Sox, for instance, bring in about 7,000 fans per game.  That's probably on the high side compared to most franchises, but I suspect that most baseball teams outdraw their D-League counterparts.

[Who]

I remember reading that D-League teams were running at a cost on average of around $5 million per year in losses for the NBA teams that were running them.

I have also read that they have been slowly improving their profitability year on year though so that figure is probably out-dated.

[TripleOT]

A few years ago, the franchise fee was reputed to be in the low seven figures   

http://www.sportsbusinessdaily.com/Daily/Issues/2008/04/Issue-152/Franchises/Minor-Interest-NBA-Teams-Slow-To-Run-Their-Own-D-League-Club.aspx

The average D league salary is between $12,000-$24,000 a year, so that would be a payroll for players of about $300,000. Add another $50k for coaches and support staff. There are 24 away games, so teams would spend around $500,000 on travel. 

I'm guessing that it costs around $1.3m to run a D league team for a season, assuming the team has a sweet arena deal (and a sweet concessions/parking deal too) .  Assuming teams can bring in $200,000 in sponsorship fees from advertisers and the NBA club that they service, and assuming that teams bring in no money for TV/Radio, a team would have to do a live gate of $45,000 a game to break even. 

D league teams do from 2000-4000 fans per game, with the Red Claws averaging a hair under 3000 last season. I'm guessing the Red Claws broke even last year. Ticket prices average $15-$20).   

These are all guess-timates.  If a team is located in an area with no pro teams, and builds up a fan base, like the Red Claws seem to be doing, ownership could make a small profit.

I always thought my city, Providence RI, would make a good D league site - close to Boston, good basketball history in the state, already a very successful minor league hockey team (Providence Bruins), nice arena.  Our area also hosts one of the most successful minor league ventures anywhere int he country, the Pawtucket Red Sox.  Unfortunately, the Red Claws have already affiliated with the nearest NBA team.

A half decade ago, I looked into bring in an Arena 2 indoor football team to Providence, and my research pointed to me losing a lot of money. The formula for success for minor league sports is 1) Affordable, family and fan friendly atmosphere, 2) strong tie in to youth leagues in that sport, 3) sweet arena and concessions deal 4) deep pocketed ownership that can withstand losses while the franchise gets established. 

       

[Smitty77]

Thanks for the detailed info Triple OT!!

Happy New Year!

Smitty77