Welcome to Around the Realm, where we look at the top news stories from around the league. If I missed any notable stories, feel free to discuss in the comments!
The Bubble was a financial success
John Lombardo of Sports Business Daily reports that the NBA saved about $1.5 billion in revenue by successfully completing the season in the bubble. Most of that is tied to the ability to complete requirements for minimum number of games for TV deals.
Economically, the NBA Bubble was a success.
It stemmed the loss of about $1.5 billion in expected revenue — mostly $ tied to TV deals & league sponsorships. Still expect a major decline in BRI, used to calculate next season’s salary cap.#NBA | #SportsBizhttps://t.co/q5wvhoOcPe
— Darren Heitner (@DarrenHeitner) October 19, 2020
Nonetheless, the NBA is still looking at a significant reduction in revenue which could have trickle down effects on the salary cap. Those details are still being ironed out.
David Stockton named Interim VP of G League Union
Kings legend David Stockton was named to the Interim Executive Committe of Basketball Players Union, according to Shams Charania.
Sources: Interim Executive Committee of Basketball Players Union (G League Union):
President: Andre Ingram
VP: David Stockton
Secretary-Treasurer: Isaiah Todd— Shams Charania (@ShamsCharania) October 19, 2020
From my understanding the bubble “saved” 1.5B in revenue, but that was money the league was counting on due to TV deals. This does not mean the league was profitable, correct. How much was lost to empty arenas, leases, viewership, etc?
Also, how the hell did it only cost the NBA $180M in 100 days to hold the bubble? Disney must have given them a screaming deal because didn’t Silver say there was something like 3,000 people from the league in the bubble? Are you telling me it costs less than $2M per day to house, feed, entertain, medically treat all those people?
Correct that it simply prevented losses of money they were counting on already. The NBA will still have major losses, but would have lost another $1.5 billion in tv and related revenues if they hadn’t done the bubble.
As for the cost, I imagine they worked out a nice deal with Disney since those spaces would have otherwise been unoccupied. It’s a win-win. And Disney owns ESPN so they had a programming incentive to help it happen.
Good points, Greg, Thanks for that clarification.
Ya I’d imagine money was negotiated off of the back end of the TV deal
Kings fans have been taking it in the back end for years.
The NBA also did society a service with the bubble – they proved that testing and preventative actions such as quarantining and wearing masks absolutely works.
They also privately funded a new testing system using saliva. It’s like they understand the need to invest in a solution if they want their business to return to normal.
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