NBA teams will lose up-to $1.5 million in gate revenue if the lockout continues
The National Basketball Association (NBA) is currently in lockout which means that no official game can be played until both parties reach on a mutual agreement to sign the new Collective Bargaining (CBA).
Along with many other disadvantages, including a mass exodus by the NBA players, growing bitterness between players and the owners and the loss of full or partial NBA season, this lockout is threatening the NBA teams a potential
loss of gate money up-to $1.5 million.
Many negotiations have taken place between the NBA owners and the Players Association till date, but still no positive results have come out. With the lockout on the cusp of entering its third month, the two sides will meet tonight
in a bid to kick start the stalled negotiations. However, if they fail to reach an agreement and the NBA loses a whole season, there will be financial issue not only for the players, but also for the franchises.
The top NBA teams will suffer most if this lockout engulfs the entire season. The Los Angeles Lakers and the New York Knicks have the biggest gate revenue generating sides for some time. They also generate money from their season
tickets and Television rights and if the current lockout continues, they will lose money from all these sources.
Chris Granger, the executive vice president of the NBA’s team marketing and business operations division recently intimated reporters about the situation of revenue flow in the league. He said, “We remain on pace with last season’s
renewal numbers while new season sales and partial plan sales are solid.”
Another former front office executive spoke in the media and tried to explain how the NBA teams generate money from season tickets’ sales and that is now in jeopardy. He sai
“Once you get beyond the season-ticket renewals and full-season-ticket sales, the challenge is selling the (remaining) inventory, and sponsors make their budget decisions in advance, so the longer the (lockout) goes, the more spot-buying
there is, and that’s done on a discounted rate card”
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