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Financial incentive to win a title

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vj_74

Well-Known Member
This is a legit quetsion I have had for quite some time. For a lot of teams, especially the small market teams like the Jazz what is the financial incetive to win a title?
Cuban has spent all that money to win one, what does he get in return? Just the title of a champion and the fame /legend/label associated with it, or something more tangible?

Hypothetically say a team A makes the playoffs every 5 years and always loses in the second round or the conference finals in the playoffs. Team B makes the playoffs for 5 consecutive years too but breaks through one year and wins it all. Has team B really made that much more money than team A because of that one championship? (assume their market sizes are similar)

I am asking this because I really want to know if somebody like Greg Miller, a cold businessman, wouldnt think that he would be better off not breaking the bank and being a pereniial playoff team vs breaking the bank bigtime for just a solitary championship(not that breaking the bank guarantees a championship but say the Jazz have to go over the LT bigtime to get a player who they think can really help then win a title)
 
Greg Miller has been willing to spend money on the team. I don't understand the greg miller hate. People blame the teams problems on him just because he's not his father.
 
Aside from the Greg Miller derail, does anyone know the answer to the question? I am curious too.
 
The true answer would be subjective and hard to quantify.

I would guess that some owners spend significant effort and resources studying scenarios like this, but that the analysis is not shared with the public.

Certainly there would be many financial benefits to winning a championship.
First on the list would likely be a big boost in the resale value of the franchise.
 
I would think that most owners already have a lot of money, and they are in it for some sort of emotional rewards.
 
northeast said:
I would think that most owners already have a lot of money, and they are in it for some sort of emotional rewards.
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False. Why do you think there is a lockout pending? Other than Cuban and maybe Paull Allen most are either making money or are trying to.

Lakers spend a ton but still make a profit. Knicks too.
 
Ya, there's a financial incentive in owning a team... you can't flip a team like a house. But over time you are able to make a significant profit... I believe LHM bought the team for 27 mil and now the Jazz and their assets are worth 350 mil. Ya you have to pump money into it, such as arenas, players, employees, etc... but there is revenue... Forbes says the jazz made 117 million in revenue last year.

I assume that just like a business... the better the market the more worth of the team
the better the team, the more worth of the team (ticket sales and inferred profit)
the more prestige, the more worth of the team (the Lakers and the Celtics would be worth more than the Spurs)

I assume most owners make money in an average year when all is said and done...
 
The-Joker said:
I assume most owners make money in an average year when all is said and done...
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This is just wrong. Why would the league be pressing so hard for smaller salaries and a hard cap?

The league lost 300 million last year.

https://thestockmarketwatch.com/stock-market-news/recent-events/nba-loses-300-million-usd/7728

According to the Deputy Commissioner of National Basketball Association Mr. Adam Silver, out of the 30 league franchises 22 of them are expected to lose money this season.

On a related subject, it bothers me so much that players unions push so hard to maintain and increase their share of the pie. A professor of mine in college once worked for the Denver Broncos in their finance department. He liked to talk about how, outside of being an athlete or top level executive, working in sports didn't pay well compared to other industries. When over half of the revenue is dedicated to a small group of employees, what else can a company do? The only reason they can attract quality personnel is because of the fascination of working for a sports franchise.
 
I would think there are financial benefits. Off the top of my head:
-Increased revenue from ticket sales. Both during the playoff run (more games for that year) and the next season(s) ticket sales.
-Going along with the previous one is increased concessions sales (beer, pizza, hot dogs, soda, etc.) during all these games.
-Increased merchandise sales. How many championship T-shirts, hats, banners, get sold in the immediate aftermath of the championship? I would also assume jersey sales would go up.
There's probably more that I haven't thought of.
 
In the case of Larry Miller, wasn't he a car dealer? His association with the Jazz provided valuable publicity for his other business.
 
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