December 07, 2007
This is probably going to ruin the rest of your Friday. Let’s get that out of the way before we proceed.
Forbes’ latest issue contains their yearly breakdown of the overall earnings, expenditures and the relative impetuses behind the money-making and money-spending instincts of the NBA’s 30 teams.
The magazine’s website also houses a must-read valuation breakdown for each team (divided into Sport, Market, Brand Management and Stadium revenue), a bar graph detailing the last 10 seasons worth of value, revenue, operating income, player expenses and a wins-to-player cost ratio. Also included are stadium facts, a listing of major sponsors, ownership history, a precise and insightful breakdown of the storm and stress surrounding each organization and a chart with a detailed comparative ranking of each team separated by five significant financial categories.
For an NBA junkie, every team profile is a must read. At the very least, one should check out the individual page devoted to their favorite team for a better idea about what to carp about and what to appreciate most regarding their top rooting interest.
"The Bulls have been the NBA's most profitable team this decade thanks to a huge fan base and low payrolls. The team has averaged $46 million in operating profits the past eight seasons versus a league average of $7 million."
That’s right. After selling out nearly every game even during the lean post-MJ years, after sometimes compiling a minuscule payroll that often had to be spiked with a late-offseason signing just to vault past the league’s minimum salary cap basement, after taking advantage of a large market and reeling in the cash due to the onset of lucrative home playoff games over the last three seasons; the Chicago Bulls are the NBA’s most profitable team. Does this mean the team will take advantage of those earnings, dive into luxury tax and pony up for a championship contender?
Hardly. But Chicago brass at least has the hope that Bulls fans will be distracted by some interesting sign-and-trade options for Ben Gordon next summer.