The National Basketball Association is a league that has been around for a long time now, but it is starting to see more growth potential than ever. And, this is because MLB is slow paced and the safety issues are plaguing the NFL. And hockey just hasn't been the same since their lockout. As for soccer and golf, well, Americans don't really care as much about them.
However, such cases do like this do not exist in the NBA and that is why more and more investors are taking advantage of its lucrative offerings. On the world stage, basketball is one of the most popular sports. In fact, the only sport that draws more attention is soccer. Basketball related income might be made up of everything from broadcasting rights to concessions and advertising merchandise, but the majority of the revenue in the sport is generated from subsidiaries.
Breakdown Of All NBA Subsidiaries & Properties
When it comes to properties of the NBA, investors need to know that all marketing and licensing of the NBA is done so through a company known as NBA Properties, Inc. It is this company that gives other companies the licenses and rights to sell sneakers, basketballs, warm-up jackets, sweatshirts, and non-sports related items. The company was incorporated in 1967 and it is based in New York. If anyone wants to sell NBA related items they are going to have to acquire a license with this company. That being said subsidiaries are a completely different thing altogether. A subsidiary is a company that owns more than 50% of the stock of a parent company.
Who Owns NBA Teams?
There are 30 different teams that make up the NBA and most teams are owned by one individual. This might seem surprising when you sit down and look at everything that goes into the NBA and its merchandising. However, it should be noted that there are several teams out there with multiple owners like the Atlanta Hawks.
The Hawks currently have six owners. These individuals that invest in teams are usually billionaires that make their money through successful capital firms or similar careers. Some are even former NBA pros themselves. Take a look at Wycliffe Grousbeck the owner of the Boston Celtics. He bought the company is 2003 for $360 million. The team is estimated at being worth close to $800 million today. Grousbeck was a partner at a hugely successful venture capital firm where he specialized in medical technology and healthcare services.
How Does The NBA Make Money?
When it comes to NBA profits there certainly is no shortage and they come from several different sources. First, you have ticket sales. There are right around 82 games in a season and with 30 teams that would be a total of 2460 games. There is an average of 17,390 tickets sold on an average game. This literally means that there are almost 43,000 tickets sold throughout an entire season. And, this isn't even counting the playoffs where the ticket prices are outrageous.
A ticket these days runs about $125. So, if you multiply that number by the average tickets sold during a season, you roughly come up with almost 5.4 billion. This is just one aspect where the league brings in money. You also have to consider the TV spots, the merchandise it sells, the contracts that it sells to allow other companies to market merchandise, and all the concessions.
How Much Do NBA Owners Make Per Game?
When it comes to considering how much owners make on a single game things can get tricky. This is going to really depend on the draw of the team, the tickets sold, the concessions, and the TV time. The more popular the team, the more money they are going to draw in.
You also have to consider the expenses of the owners. They are responsible for paying the players so teams with more talented players are going to be out more money. It is estimated that the average owner can earn anywhere from $100 to $200 million a season.