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Does anyone know what the Jazz revenue is?

colton

colton

All Around Nice Guy
Contributor
Is there any way to find this out? That would at least give us a sense as to how far into the luxury tax they would go, given the rule the family trust has of putting profits back into the organization.
 
Wow not as much as I thought, i figured top line revenue was way higher, our profits were in the red around 2011

Brooklyn Nets are is ranked #7 most valuable franchise in the league??
 
$164 million in gross revenue... What about profit? Because revenue doesn't cover cost of facility, employees, players... And suddenly $164 mil may leave the Jazz losing $$$...
 
The Jazz Wonderbra said:
$164 million in gross revenue... What about profit? Because revenue doesn't cover cost of facility, employees, players... And suddenly $164 mil may leave the Jazz losing $$$...
Click to expand...

Yeah. The Forbes info was great, but too bad it didn't list expenses at all (besides players). Also, I assume those are last year's numbers and that they will be increasing roughly 5% for the coming year (like the salary cap increased). So maybe it'll be $172 million for the coming year? Also they presumably got some extra money for the playoff run that wouldn't have been included in the Forbes numbers but I wasn't able to find specifics on that. Maybe $8-9 million? Let's go with $8, so the expected income is a nice even $180 million for the coming year.

Trying to make any sort of reasonable estimates for expenses... I'd guess Snyder is making around $5-6 million (middle of the pack for NBA coaches), and his assistant coaches probably sum to about $5-6 million as well. And the Vivint renovation is about $125 million, so there are the payments on that as well assuming it belongs to the family trust and that it wasn't paid for outright. Maybe $10 million/year on that? But I have no idea what the operating costs of the facilities are.

OK, I'm a bit at a loss. Let's see what I can find out with some web sleuthing, I found this website which claimed that operating expenses for NBA teams in 2010-11 were an estimated average of $63 million. http://wagesofwins.com/2011/11/08/the-bottom-line-on-the-nba-finances/. No idea if that's close to correct. Presumably the Jazz would be less than the average (lower cost of living here, team and owners not particularly extravagent). And I found this website which says that the Nets operating expenses (minus player salaries) in 2004 were $39 million: http://deadspin.com/5816870/exclusi...-7-million-profit-look-like-a-28-million-loss. Obviously costs will have gone gone up by then, but again the Jazz almost certainly have much lower costs then the Nets.

So maybe the Jazz have operating expenses around $60 million, including Vivint costs?

If my estimates are close (which is a huge IF), then $180 expected revenue for the coming year and $60 expected expenses before player salaries. So that leaves them with $120 million for player salaries, which is just barely over the luxury tax. Of course, they also probably saved a bunch of money the past two years because salaries were so low, so maybe that will allow them to go into the luxury tax a bit but probably not too far at all.

I have no idea if these numbers are good, but at least I'm done now. :-)
 
Stoked said:
Plus the massive amount of revenue they get from their ever expanding business empire.
Click to expand...

I think that's completely separate from the team now. That's the good and bad of the family trust as I see it. The Jazz are forced to put their profits back into the team, but then they likewise can't be propped up by the other Miller businesses.
 
colton said:
Yeah. The Forbes info was great, but too bad it didn't list expenses at all (besides players). Also, I assume those are last year's numbers and that they will be increasing roughly 5% for the coming year (like the salary cap increased). So maybe it'll be $172 million for the coming year? Also they presumably got some extra money for the playoff run that wouldn't have been included in the Forbes numbers but I wasn't able to find specifics on that. Maybe $8-9 million? Let's go with $8, so the expected income is a nice even $180 million for the coming year.

Trying to make any sort of reasonable estimates for expenses... I'd guess Snyder is making around $5-6 million (middle of the pack for NBA coaches), and his assistant coaches probably sum to about $5-6 million as well. And the Vivint renovation is about $125 million, so there are the payments on that as well assuming it belongs to the family trust and that it wasn't paid for outright. Maybe $10 million/year on that? But I have no idea what the operating costs of the facilities are.

OK, I'm a bit at a loss. Let's see what I can find out with some web sleuthing, I found this website which claimed that operating expenses for NBA teams in 2010-11 were an estimated average of $63 million. http://wagesofwins.com/2011/11/08/the-bottom-line-on-the-nba-finances/. No idea if that's close to correct. Presumably the Jazz would be less than the average (lower cost of living here, team and owners not particularly extravagent). And I found this website which says that the Nets operating expenses (minus player salaries) in 2004 were $39 million: http://deadspin.com/5816870/exclusi...-7-million-profit-look-like-a-28-million-loss. Obviously costs will have gone gone up by then, but again the Jazz almost certainly have much lower costs then the Nets.

So maybe the Jazz have operating expenses around $60 million, including Vivint costs?

If my estimates are close (which is a huge IF), then $180 expected revenue for the coming year and $60 expected expenses before player salaries. So that leaves them with $120 million for player salaries, which is just barely over the luxury tax. Of course, they also probably saved a bunch of money the past two years because salaries were so low, so maybe that will allow them to go into the luxury tax a bit but probably not too far at all.

I have no idea if these numbers are good, but at least I'm done now. :-)
Click to expand...

You will never get the true number... I am not sure all the revenue is captured and the accuracy is likely not perfect. The expense stuff is also challenging. I work with a lot of businesses that have great cash flow but plan well enough to make sure taxable income is much lower than you'd think by looking at the bank statement... non-cash expenses.

I'd love to see an all encompassing cash flow statement. We have been profitable the last few years... if we fall in the red by 10-15M it shouldn't really matter.
 
colton said:
Yeah. The Forbes info was great, but too bad it didn't list expenses at all (besides players). Also, I assume those are last year's numbers and that they will be increasing roughly 5% for the coming year (like the salary cap increased). So maybe it'll be $172 million for the coming year? Also they presumably got some extra money for the playoff run that wouldn't have been included in the Forbes numbers but I wasn't able to find specifics on that. Maybe $8-9 million? Let's go with $8, so the expected income is a nice even $180 million for the coming year.

Trying to make any sort of reasonable estimates for expenses... I'd guess Snyder is making around $5-6 million (middle of the pack for NBA coaches), and his assistant coaches probably sum to about $5-6 million as well. And the Vivint renovation is about $125 million, so there are the payments on that as well assuming it belongs to the family trust and that it wasn't paid for outright. Maybe $10 million/year on that? But I have no idea what the operating costs of the facilities are.

OK, I'm a bit at a loss. Let's see what I can find out with some web sleuthing, I found this website which claimed that operating expenses for NBA teams in 2010-11 were an estimated average of $63 million. http://wagesofwins.com/2011/11/08/the-bottom-line-on-the-nba-finances/. No idea if that's close to correct. Presumably the Jazz would be less than the average (lower cost of living here, team and owners not particularly extravagent). And I found this website which says that the Nets operating expenses (minus player salaries) in 2004 were $39 million: http://deadspin.com/5816870/exclusi...-7-million-profit-look-like-a-28-million-loss. Obviously costs will have gone gone up by then, but again the Jazz almost certainly have much lower costs then the Nets.

So maybe the Jazz have operating expenses around $60 million, including Vivint costs?

If my estimates are close (which is a huge IF), then $180 expected revenue for the coming year and $60 expected expenses before player salaries. So that leaves them with $120 million for player salaries, which is just barely over the luxury tax. Of course, they also probably saved a bunch of money the past two years because salaries were so low, so maybe that will allow them to go into the luxury tax a bit but probably not too far at all.

I have no idea if these numbers are good, but at least I'm done now. :-)
Click to expand...

Does all that include the revenue received from revenue sharing?
 
It hurts that only one team is deep into the luxury tax this year in Cleveland. The revenue sharing model will pay off more next year with GS, Cleveland, Portland and others to be projected well into the luxury.
 
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