NBA Lockout and its effect on the arenas and workers – Labour dispute Update
The NBA Lockout is not only giving sleepless nights to players but also to owners and workers of the NBA arenas throughout the country. If the deadlock leads to the cancellation of NBA season, all the concerned parties should brace
themselves to lose as much as tens of million dollars in revenue.
Although every arena would be wounded badly if such situation arises but Staples Center in Los Angeles that is a home for two NBA teams, Los Angeles Lakers and Los Angeles Clippers will probably suffer the most as it hosts 82 games
compared to 41 games by other arenas.
Three arenas in California alone have total of one thousand workers including janitors, ticket takers and ushers who would be feeling wretched as for few this would be their only source of income. "It's going to devastate these
workers, they have become very dependent on these jobs," said Mike Garcia, president of the SEIU (Service Employees International Union).
Then, there are food-service companies operating in all arenas such as the famous Levy Restaurants, which operates in 17 NBA arenas will be badly hit in case the season is cancelled.
NBA has already cancelled 43 pre-season games and delayed the training camps for indefinite time so at the moment it looks very difficult the season will start as scheduled. And even if the season starts, it is expected to be a
shortened one and though it will lessen the misery of arenas to an extent, still will create budgetary headaches for them.
The impact of cancelled season on all the 30 NBA teams and 29 arenas will vary because of the different lease agreements. Los Angeles Lakers, for example instead of paying rent to Staples Centre, pay a percentage of their games
ticket sales. On the other hand, teams such as Warriors and Phoenix Suns pay a yearly rent to government owned arenas.
In case the season gets cancelled, these both teams will still have to pay the arena’s heavy rent so they will be biting their nails and would be hoping deadlock to end soon.
So these arenas would not be affected much by the cancelled games. They will get their rent anyway but will only be deprived of their share they get from team revenue. For example, Phoenix Suns pay a fixed $850,000 to the arena
along with 10 percent of the team’s total revenue generated every season which is around $750,000 every year.
So games or no games, Phoenix arena will acquire its fixed $850,000 from the Suns but will not get the extra share because of no earned revenue.
Arenas will lose many ticket holders too who would not renew if the season is lost. This is one of the major concerns for people related to arenas too. Let’s hope the season starts on time.
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