The Disparity Caused By Market Size In The NBA

Daniel Shoag of Harvard University and Stan Veuger of the American Enterprise Institute studied the NBA superstar's economic effect on the cities where he played. They found that he was a driving economic force outside of the arena. Researchers examined Cleveland, Ohio, and Miami, Florida, both cities the superstar called home while playing for the cities' respective NBA teams.

“Profit growth is measured by the percentage increase in net profits over time. In general, higher profitability and a higher rate of profit growth will increase the value of an enterprise and thus the returns garnered by its owners, the shareholders.” (Hill, Global Business Today.) This is the main reason that it is important that the Women’s National Basketball Association is successful. Started by the NBA, the WNBA has been lucky to start out with a partner that is already stable in it’s industry. The WNBA was not able to support itself when it started out, similar to most leagues. The NBA spent more than $10 million per year during the mid-2000s to keep the WNBA financially solvent. Without the NBA, the WNBA would’ve folded. It was estimated that teams were losing around $1.5 million to $2 million a

There is a dearth of empirical literature regarding the topic of NBA player salary determinants. Whereas there have been some articles written on NBA player salary discrimination, the lack of empirical evidence as it relates to player performance and its impact on player salary have been virtually non-existent. This investigation serves to contribute to the paucity of empirical literature regarding NBA player salaries. Wage fund theory was chosen to guide this study. According to this theory, wages are determined by the amount of capital available to pay workers. As capital increases so do worker raises. This theory has a direct correlation to the NBA salary cap. The salary cap is comprised of Basketball Related Income (BRI) which consists of revenue generated from ticket sales, national and local broadcast deals, in

March Madness collegiate basketball tournament, hosted by the National Collegiate Athletic Association’s (NCAA) tournament, generated “7.5 billion dollars in revenue over the past decade,” through advertising alone (Chupka, 2016). Currently, this year 's 2016 March Madness tournament is projected to make over “1 billion dollars” (Chupka, 2016). The NCAA is counting the cash, lots of it,” stated financial analyst Kevin Chupka. Does this solicit the view that the NCAA is a money-hungry organization? Through extensive research as a group, we will be collectively addressing the intrinsically paternalistic view that the NCAA has portrayed to all athletes and spectators alike. We will be focusing on the origin of the organization, motivation for implementation, specific divisional separation, financial asset allocation analysis, and the social stratification of the National Collegiate Athletic Association.

Sports stars aren’t getting paid enough each year to play sports because people who don't play are get paid a lot , the best players on each team should be paid the most, and MVP winners should be the most paid on their team. This topic is important because it need to tell the teams that the best players should be paid the most. A solution to this problem is to pay the best players the most. The best should be paid the

We are going to start with a bit of History, when the NBA League started marketing was a heavy and important part, due to the fact that there needed to be followers in order for the association to continue “living”. The 1960’s were a known for their purity and realism, followed by the

With how many sporting events that there are in this country, it is common to see fans that love multiple games. Professional sports are typically favored by most followers, but there is a clear deficiency that hurts the leagues. Professional sports are exhilarating if one is a fan of a playoff team or especially a team that wins championships on a regular basis. While this is great for traditional powerhouses and teams with endless amounts of money, the majority of teams in these leagues serve as punching bags for years or even multiple decades. There is a fine line between these teams and other organizations that struggle just to make financial ends meet. Teams in financial

Basketball is one of the most followed collegiate level sports. With over 55 million fans that watch the sport on television alone, college basketball’s ad revenue is higher than all other postseason sports. While the NBA postseason only makes around $536 million on ads, over $1 billion is spent on ads during the postseason of college basketball. I, along with several other people, believe that with this amount of money being made on ads alone, colleges would be more than able to pay their players. However, these college basketball heroes end up gaining no money from their games.

The employes at Sports Interaction squeezed some salary data from across the United States’ major league sports- the NHL (Hockey), NFL(Football), NBA (Basketball), MLB (Baseball), and MLS (Soccer). Soon after, the results were appalling when the calculations made it clear that the NBA has the highest average career revenue. This opened the eyes of many readers, and viewers.

There is no question that the National Football League (NFL) and the National Basketball Association (NBA) are different and similar in many aspects. Discovering the comparisons and contractions in value, revenue, and operating income of these professional sports teams, can help shed light on the tremendous amount of money these leagues withhold. In calculating the value is divided between four separate classes, which are the sport value, the market values, stadium value, and the brand value. Surprisingly, When looking into the values one may find that some of these categories are more valuable then those of the other league, showing how these two leagues are both structured uniquely. The only element that makes this business possible is the

The Warriors will be the hot ticket wherever they go” (Cunningham). They would claim that entertainment is the main focus of the NBA; therefore, super teams are good for the

Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of

The National Basketball Association (NBA) has transformed over the many of years as an organization and a brand, into a multibillion-dollar business that draws thousands and thousands of fans to each and every game. Many contributing factors have made the NBA what it is today, but the main cause of this gain in interest is the ultimate rivalry between two remarkable players, Earvin “Magic” Johnson and Larry “the Legend” Bird. The battling rivalry amongst these individuals is comparable to the feud of Coca Cola and Pepsi, or, Star Wars and Star Trek. During the era of modern television, and the still and ever present racial bigotry, Magic Johnson and Larry Bird helped redefine the game of basketball and popularity of the NBA with their

The NBA is one of the United States’ favorite sports leagues, with each team averaging 100 million dollars of income each year before expenses.

Even though team owners sometimes acknowledge that the subsidies they receive are related to the scarcity of franchises, owners ' demands for public assistance is more often pressured by financial issues that have changed the financial side of professional sports. For example, player salaries have increased rapidly as a result of athletes earning the right to sell their services to the highest bidders (free agency). Normally, these high bids come from teams in the largest markets (New York, Los Angeles, Chicago, etc.). Since the leagues protect the power of teams in these markets are able to refuse the creation of new franchises or the movement of existing teams into their market areas, the owners of these coveted franchises amass large revenue bases and can thus afford the best players. To offset the advantages of large market teams, owners in smaller regions seek public subsidies that will permit them to earn revenues similar to those of the teams in the biggest markets. (Pitts, Statlor 2007)