http://www.cbssports.com/nba/story/15322847/given-honest-criteria-other-teams-could-join-hornets-in-contraction
In addition to the New Orleans Hornets' obvious candidacy for contraction, what other NBA teams should be on the chopping block as the league seeks relief from hundreds of millions in annual losses?
The NBA uses a formula developed by consulting group McKinsey & Co. that handicaps how teams are performing on and off the court given the size of their markets and available resources. This would be the place to start, though the NBA does not divulge the results of the annual study -- which it uses to dole out a portion of luxury tax and revenue-sharing funds.
The criteria, therefore, must be fairly straightforward, though the order of importance might vary depending on the team:
1) Total local revenues: If a team cannot avoid deep losses, even with substantial revenue assistance from healthier teams, it should be considered for contraction.
2) Annual losses: The teams that are losing the most money undoubtedly are being squeezed by a combination of inadequate local revenues and mismanagement. Both should count.
3) Market size, as defined by number of TV households, since that measurement has a direct correlation to the local broadcast revenues a team can earn.
4) Arena lease terms: As deserving as a team may be for contraction, if the penalty for breaking the lease with its arena is cost-prohibitive, it has to be scratched off the list.
The Hornets, now owned by the NBA, pass the test with flying colors -- with the lone possible exception of ticket revenues, an area in which the team has done better in recent years. According to league gate receipts data from the 2008-09 season obtained by CBSSports.com, the Hornets were 20th in the league, with $28.3 million in net gate receipts.
Not bad for the smallest TV market in the NBA, No. 52 in the nation, according to Nielsen. For reference, the next biggest market in terms of TV households, Memphis, netted a league-low $12.9 million in gate receipts during the '08-09 season, the most recent season for which figures have been obtained.
The Hornets reported $45 million in net ticket revenue for the fiscal year 2009.
Monday, July 18, 2011
NBA Hornets On A Season-Ticket-Selling-Mission!
http://www.nola.com/hornets/index.ssf/2011/07/the_hornets_vigorous_season-ti.html
It was also Day 14 of the NBA lockout, but that hasn’t dampened the enthusiasm in Ron and Sally Forman’s Uptown home as the Formans welcomed Hornets chairman Jac Sperling, president Hugh Weber and members of the team’s sales staff in the hopes of padding the season ticket rolls by 20.
Where else but New Orleans could you stand around a bountiful buffet table, an open bar nearby, and be updated on the relatively astounding success of an effort by the Hornets of selling 10,000 season tickets by mid-September for a basketball schedule that could be shortened — or canceled entirely — by a work stoppage?
“This is a collaborative effort that’s designed for New Orleans and the current situation,” said Sperling,
the man NBA Commissioner David Stern placed in charge of the league’s ownership of the Hornets when it took the unprecedented step last December of buying the team so that it wouldn’t be sold and pirated out of the city by interloping carpetbaggers.
It was also Day 14 of the NBA lockout, but that hasn’t dampened the enthusiasm in Ron and Sally Forman’s Uptown home as the Formans welcomed Hornets chairman Jac Sperling, president Hugh Weber and members of the team’s sales staff in the hopes of padding the season ticket rolls by 20.
Where else but New Orleans could you stand around a bountiful buffet table, an open bar nearby, and be updated on the relatively astounding success of an effort by the Hornets of selling 10,000 season tickets by mid-September for a basketball schedule that could be shortened — or canceled entirely — by a work stoppage?
“This is a collaborative effort that’s designed for New Orleans and the current situation,” said Sperling,
the man NBA Commissioner David Stern placed in charge of the league’s ownership of the Hornets when it took the unprecedented step last December of buying the team so that it wouldn’t be sold and pirated out of the city by interloping carpetbaggers.
Thursday, July 14, 2011
PSL Is Capitalism for Some Season Ticket Holders...
Some Giants fans are making significant profits when they sell their New Meadowlands Stadium personal seat licenses on the team’s official PSL resale website. But others are walking away without coming close to recouping their original investment.
An analysis by The Record of the first five months of PSL sales on seasonticketrights.com shows that the most profitable PSLs have been in the loge section, which includes the first few rows of the upper deck between the end zones. Nine of those seats — all in the first four rows and close to the 50-yard line — have sold for an average of $7,556. Those PSLs originally cost $5,000, with a per-game ticket price of $105 and including two preseason games.
The official website offers a window into the PSL marketplace, but using it doesn’t come cheap. A fan selling two loge PSLs for a total of $15,000 would pay a fee of $1,500 — nearly one-third of the profit. The buyer also would pay a $1,500 fee.
http://www.northjersey.com/news/Giants_personal_seat_license_profit_or_loss_depends_on_where_youre_sitting.html
An analysis by The Record of the first five months of PSL sales on seasonticketrights.com shows that the most profitable PSLs have been in the loge section, which includes the first few rows of the upper deck between the end zones. Nine of those seats — all in the first four rows and close to the 50-yard line — have sold for an average of $7,556. Those PSLs originally cost $5,000, with a per-game ticket price of $105 and including two preseason games.
The official website offers a window into the PSL marketplace, but using it doesn’t come cheap. A fan selling two loge PSLs for a total of $15,000 would pay a fee of $1,500 — nearly one-third of the profit. The buyer also would pay a $1,500 fee.
http://www.northjersey.com/news/Giants_personal_seat_license_profit_or_loss_depends_on_where_youre_sitting.html
Wednesday, July 13, 2011
Forbes List It Top 50 Again...Cowboys Still Tops List in NFL!
The NFL has grown explosively over the past 25 years as TV revenue jumped 700%. The league’s 32 teams now divide $3.8 billion annually under the current round of broadcast deals, which expire after the 2013 season. With ratings at record levels, the next TV contracts are bound to be even more lucrative.
Teams that were selling for $70 million in the mid-1980s are now worth $1 billion on average.
NFL owners claim they are not getting a big enough share of the league’s $9 billion in revenue, but a look at the world’s 50 most valuable sports teams shows how valuable NFL teams already are.
The list is littered with NFL franchises–all 32 teams make the cut, led by the Dallas Cowboys, worth
http://blogs.forbes.com/kurtbadenhausen/2011/07/12/the-worlds-50-most-valuable-sports-teams/
Teams that were selling for $70 million in the mid-1980s are now worth $1 billion on average.
NFL owners claim they are not getting a big enough share of the league’s $9 billion in revenue, but a look at the world’s 50 most valuable sports teams shows how valuable NFL teams already are.
The list is littered with NFL franchises–all 32 teams make the cut, led by the Dallas Cowboys, worth
http://blogs.forbes.com/kurtbadenhausen/2011/07/12/the-worlds-50-most-valuable-sports-teams/
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