“The first time I stepped on an NBA court I became a businessman.” - Lebron James. The National Basketball Association is the pre-eminent men's professional basketball league in the world. It is widely considered to be the premier men's professional basketball league in the world. The NBA and it’s teams are part of the sports entertainment industry, just like any other major sports league in the world (NFL, MLB, NHL and other national sports leagues). A national sports team, in particular an NBA company makes it’s money by appealing the game to the audience in various ways. The company chooses a target group and a city to look for the customers who are willing to spend money.Then, the franchise gets paid with four main income sources of the …show more content…
The Bulls are the NBA’s third billion-dollar franchise. The team’s $1 billion valuation is up 25% from a year ago. The Bulls are one of the NBA’s most profitable teams every year thanks to four straight years of league-leading attendance, as well as payroll restraint. Although last season, the Bulls bumped up their payroll and incurred a $3.9 million luxury tax bill. Profits in the NBA were still fourth highest in the league at $52 million (Mike Ozanian, The Business Of Basketball). But times were not always as bright as today, before Michael Jordan who reigned his era with 6 NBA championships (1991,1992,1993, 1996,1997, and 1998) during the 1990’s (How Many Championships Did Michael Jordan Win?). During Michael’s rookie season (1984-19859, attendance soared 87% at home games, (Roy Johnson, The Jordan Effect The World's Greatest Basketball Player Is Also One of Its Great Brands. What Is His Impact on the Economy?) though the Chicago Bulls only had a record of 38-44 (1984-85 Chicago Bulls). Not to forget, at Bulls road games Michael Jordan boosted attendance with a result of $2 million in net gain over the previous season. By the 1988-89 season, the Bulls were selling out every night. CNN, estimates that Jordan's impact on home gate receipts is $135 million, while only impacting road games by $30.5 million. Together that makes $165.5 million as Jordan’s overall impact on NBA attendance. However this is only a small fraction of the vast $10 …show more content…
Source 16: Ozanian, Mike. "The Business Of Basketball." Forbes. Forbes Magazine, n.d. Web. 14 May 2014.
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Source 10: "1984-85 Chicago Bulls." Basketball-Reference.com. N.p., n.d. Web. 14 May 2014.
Source 14: "NBA Tips Off 2013-14 Season With Record International Player Presence."NBA.com. N.p., n.d. Web. 13 May 2014.
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Source 1: "National Basketball Association." Wikipedia. Wikimedia Foundation, 05 Dec. 2014. Web. 14 May 2014.
Source 2: Harris, Nick. "Global Sports Salaries Survey 2012: The Richest Teams by Average First-team Pay." Sporting Intelligence REVEALED The Worlds Best Paid Teams Man City Close in on Barca and Real Madrid Comments. N.p., n.d. Web. 14 May
In the American economy, capitalism is at the root of every major market; markets such as the textiles, healthcare, utilities, and sports entertainment. Professional basketball is a huge industry in the United States that many corporations and sports-lovers spend money on to watch and endorse. Devastating to many of the fans, the National Basketball Association (NBA) went into a lockout in 2011 because of the many economic issues that the league had been experiencing in the previous years. During a lockout, players cannot play, teams are not allowed to trade, sign or contact players, and many players do not get paid and cannot access NBA team facilities or staff. The 2011 NBA lockout was the fourth lockout in NBA history. The 2011 lockout started on July 1, 2011, and ended December 8, 2011, delaying the start of the NBA season by almost two months. Although many critics would argue that the 2011 NBA lockout was caused by the team owners’ greed and the professional players’ unwillingness to compromise, the main and most unbiased causes of the 2011 lockout were the expiration of the NBA’s collective bargaining agreement (CBA) that was set in 2005 and the great recession of 2007. Nonetheless, the team owners’ greed and the professional players’ reluctance to negotiate clashed and prolonged the NBA lockout period.
The National Basketball Association no longer holds the prominence that it once had. In the aftermath of the lockout that took away half of the 1998-99 season, the National Basketball Association finds itself looking into an uncertain future. Appearing similar to the state of the league during the mid 1980's, the NBA finds itself with a tarnished image and no icon's to build the league around. With the retirement of Michael Jordan and the number of superstars in which the league built its popularity on during the 1990's getting smaller, the National Basketball Association sits in limbo while it searches for its new identity.
Even though the NBA is a multi-billion dollar industry, it does not mean that the owners should have to pay over 50% of their revenues in player salaries. Something needs to be done to stop the enormous growth of player salaries that has been taking place the last couple of years. The NBA players union seems to believe that they should have salaries as high as the market can bear. The NBA was started by the owners and others as a business. Therefore, all of the players are employees of the owners and the league. The league and owners are the ones who do all of the advertising, make deals with television stations, sign contracts for licensing and make it all happen. They are the ones who should be reaping the most financial rewards. In his magazine article, "Held Ball", Phil Taylor, a writer for Sports Illustrated lets us know that with the signing of a new four year, 2.6 billion dollar contract with NBC and Turner Sports, the league seems to have plenty of money. But with figures of about a billion dollars being paid out in player salaries, there is not enough money to pay for all the employees, ...
Lately in the NBA you might have noticed a lot more players from Europe playing for different teams in the league. Previously in the European players did not have the opportunity to play professional basketball for the NBA. Players that did get a chance rarely succeeded in the league of the worlds best basketball players, they were most likely traded until teams realized the little amount of talent compared to NBA superstars in the European players and then cut...
"SN names the 20 smartest athletes in sports." Sporting News. 2 Oct. 2013. 27 Apr. 2014
Basketball was created and has been played since December 1891 (Griffiths, 2010), it is a game of skill and talent that is enjoyed by fans all over the world. There are numerous leagues, but the two main leagues are the National Collegiate Athletic Association (NCAA) and the National Basketball Association (NBA). The NCAA is considered amateur where the players are not paid, and the NBA is considered professional where players make millions of dollars. In order for the NBA to get their players they draft from the NCAA, but the rules have changed several times over the years that have permitted players to enter the NBA. The current rule states that NBA players must be one year removed from high school or 19 years of age (Article X, 2008), this rule is considered by many needing the most change.
“Fans pay to watch athletes compete at the highest level. To be sure, it is the fans that primarily pay the athletes’ salaries” (Walter). Yes, a large portion of an athlete’s pay comes from the people that come to watch them. Athletes get a portion of all revenue their team or staff receives. This means that everybody gets a cut of that prize money, everybody gets a cut of ...
Out of all of the professional leagues the three that make the most money are: MLB, NFL, and NBA. Together these three leagues make an astonishing $25.5 billion dollars every year. Some of wealthiest franchises from each league are; MLB: Yankees, NFL: Washington Redskins, and NBA: Lakers. Major League Baseball makes about $3.3 billion a year. The leading franchise in baseball is the Yankees which make $832 million every year. In the National Football League the Washington Redskins make the most out of any NFL team with $952 million made every year. In the National Basketball Association the Lakers make the most with $510 million. So if each league and franch
As a fan of basketball, the NBA has always been the center of every discussion I partake whenever basketball is involved. Since its inception in the late 70s and the popularity of the American National Basketball Association, basketball has been cemented as one of the most iconic games played today. Whether a fan or enthusiast watches the game live or on replay, the high-voltage intensity and addicting thrill of every turnover and every score made just makes the person go wild. Of course in every game, some people often wonder how much money the players have in each season. I am one of those people who often think about how wealthy these players are and the more I see advertisements and high profile appearances these players partake, the question just keeps on popping up in my head. Reading through discussion boards, articles and even editorial papers about the issue, I have found this to be an interesting topic to discuss and with these sources in mind, this will be my foundation for this topic. In this paper, I intend to prove through an intimate discussion and debate that the players of the NBA are overpaid with regards to how much their salary and contracts are worth.
New entrants into this industry are unusual since NBA League approval and a sharp franchise fee stand in the way of potential new team owners. Moreover, attempting to deceive the NBA would put the following difficulties into an entrepreneur’s path are: massive capital costs, lack of brand reputation, lack of TV revenue, and steep competition for talent. Extension teams occasionally do get approval, like the Charlotte Bobcats founded in 2004. Though, the competition that so many different industries face from new entrants is practically non-existent in professional basketball.
Lapchick, R., Hippert, A., Rivera, S., & Robinson, J. (2013, June 25). The 2013 Racial and Gender Report Card: National Basketball Association. . Retrieved April 20, 2014, from http://tidesport.org/RGRC/2013/2013_NBA_RGRC.pdf
The National Basketball Association has gone through a lot to get to what it is today. Today’s league contains thirty teams. These teams are divided into two conferences, the east and west. Fifteen teams are in the east and fifteen teams are in the west. Another way they are divided is there are six divisions that contain five teams each. Two NBA teams the Golden State Warriors, and the Cleveland Cavaliers have battled it out in the finals for the last three years and are the front runners this year(Trenchard, NBA Then and Now). In today’s league, players
The National Basketball Association (NBA) is a professional basketball league located in the United States. It is composed of 30 franchised teams, all of which are in the US except for one located in Canada. It markets teams and players, and regulates franchised team ownership. The NBA licenses rights for broadcasting and collects revenue from sponsorships with corporate partners. It also operates the WNBA, a women's professional basketball league; the NBA Development League for players who are preparing for the NBA; and NBA TV, a cable TV channel offering news, original programming, and live game broadcasts. The NBA was established as the Basketball Association of America in 1946.
There are now even more international players in the league today, and many of them show great potential. International players like Giannis Antetokounmpo and Kristaps Porzingis are just few examples of rising stars in the game(Segal 79). As of today the NBA is in a phase known as the LeBron era(Segal 22). Right now, guards are being seen as more of the focal point of the team rather than big men(Segal 33). Some of today’s brightest stars include guards like Russell Westbrook, James Harden, Kyrie Irving, and Stephen Curry(Segal 10). Last but not least, players are forced to play a lot softer today than in the past due to multiple rule changes(Trenchard, NBA Then and
Basketball was developed by Canadian physical education college director James Naismith. The sport was created for the sole purpose of being a winter sport because it was too cold to play baseball or football outside, This port originated at the YMCA training school in Springfield Massachusetts, 1891. The first official game was played in the YMCA gymnasium in Albany, New York on January 20, 1892, with just 9 players. Since 1891 the original game was played with peach baskets (that were then later replaced by heavy woven wire rims)and a soccer ball. Years later backboards were introduced, team sizes were reduced, basketballs were manufactured, skills were brought into the game as well as a variety of rules such as scoring, timing, fouls, passing