Is the NBA over its head financially?

Also, it appears the highest payroll only increased slightly under $100,000 from the '05-'06 season to the '15-'16 season.

 

In those 30 years I was including this years and next years bump.

 

This is what i was thinking too... More and more are going the way of streaming... And taking the "loss" of live sports as a small inconvenience. Im sure advertisers will think of ways to shove their way in... And even though espn has watchespn its secondary games on there... They either have to completely change it over and take it all online or they will crash. I hope they crash, personally. They arent needed.

 

https://en.wikipedia.org/wiki/List_of_assets_owned_by_Time_Warner


The global influence they have is just mind blowing. From kids and cartoons, to sports fans with nascar and golf, to video games.. and lets not even get started on the news coverage. How they report things will dictate the truth in millions of minds everyday. Whether they have it right or wrong or are biased or have an alternative agenda. This is what makes it scary because as big as espn is, someone will swallow them up, like time warner, and trickle the losses down through the various avenues until it hits the consumer in the pocketbook. That's how big business works. So in the end, we would be paying more for less. Less coverage, less angles, due to less cameras, etc. because ESPN would have been downsized during their fall and struggles to stay afloat in the initial stages. Only to have what is left saved at a wholesale rate by a larger company.

I will say this... televised coverage is better than it's ever has been before. I've been impressed over and over again on controversial calls, there just always seems to be a perfect camera angle or shot. I don't mind paying these companies more for cable but not at the rate it has raised.

 

as the game has lost officiating integrity ive found myself not watching at all. i suppose most people watch sports for the dramatic stories and not the actual skill of the game. either im getting old and my cynicism has spilled into sports as well. or sports really are turning shit and feel rigged. not just basketball either. football is total shit. patriots have bought like 3 of last 4 super bowls they won and got away with cheating.

 

Ummm With the knowledge that the cap is now going to regress......

BUMP!!!

 

A regressed cap means... yes the NBA is over it's head. I bet we see a lockout before too long.

 

The cap isn't regressing--it went up from $94M last season to $99M this season. It went down from previous projections of what it would be (at one point, it was expected to be around $107M) but that's not a regression, that's just slower growth.

Everyone knew that growth would slow after last year's cap spike.

 

Everyone but NO?

 

Perhaps. Even last year, the cap spike was called a one-time phenomenon. Maybe Olshey just thought the cap would increase enough that more crazy deals would be signed. Plus, I guess, he didn't think the deals were crazy.

 

The NBA owner are going to be ok. Contracts are not long enough to put them in danger of significantly hurting them financially. Remember, if they break even, they still are making bank with the franchise value increase not being part of the revenue calculations.

 

The value of NBA franchises (LA Clippers) went from $12 millions to $2 billions. Nobody is talking about the amount of money the owners are making. The value of Apple Computers went from zero to billions. The value of Google went from nothing to billions ... etc. When your product is popular, your employees need to profit from it, not only the owners or CEOs.

 

What are you? A commie? Oh wait no that is capitalism, unfortunately Republicans don't believe in that anymore and seem to only care about the rich.

 

Entertainment is a pretty durable industry. People always need it, it doesn't really go obsolete. I guess there could come a day when basketball isn't popular, but that's probably still quite a-ways off.

 

I should have clarified.... the growth is slowing. I meant the growth is regressing. It's not continuing.
I don't know if everyone knew it. What if it has zero growth two years from now? I get it's a ripple effect and it always seems to even out, by the drastic growth we saw never sustains, like my op states. Read below for my thoughts on the results.

In entertainment he wheels falling off means lockout and some major changes.
It has happened before so it's not impossible. I think that is the scenario non of us fans want. But if we see another rash of big signings this off season and then the regular season seems predictable and fans tune out like last year, stunting growth... it's gonna be a problem I think.

 

Nope. And the reason is because it is the only league that is truly recognized globally as the best and it's a global sport.

 

Lockouts generally don't happen because the NBA or the teams are struggling. They generally happen because the owners feel that players are getting too much of the pot and they think they can force the players to give up some of their revenue. In other words, it rarely has to do with the growth of the pie, but how the pie is being divided.

 

But that is what I am saying is going to happen. James Harden will make 50 mill his final year of his new contract. If/when the revenue continues to slow its growth, these contracts WILL be too much of the pie....