PDA

View Full Version : Cavs Will Lose $10M - $15M This Season



JordansBulls
04-17-2010, 07:39 PM
Link (http://www.nydailynews.com/sports/basketball/2010/04/17/2010-04-17_bad_bounces_for_the_nba_with_league_claiming_lo sses__players_crying_foul_lockout.html#ixzz0lOCmev 86)




The Cavaliers have been losing upwards of $20 million per season over the last two seasons, and are projected to lose anywhere from $10-$15 million this season, according to league sources with knowledge of the team's finances.

Not that the Cavs are alone. They're one of many of the 30 NBA teams expected to lose millions and supply the league's owners with what they see as an iron-clad case for changing the current economic model when the labor agreement expires after next season.

Owners don't believe their losses are merely a direct result of the lousy economy, which can be partly to blame for the league's 2% decline in ticket sales. For the men who sign the players' paychecks, the very system under which they operate is obsolete, only five years after they signed their last collective bargaining agreement and guaranteed players 57% of basketball related income (BRI).

TheDetroitBlue
04-17-2010, 07:43 PM
Them and Detroit have probably lost the most money this year

Iodine
04-17-2010, 07:46 PM
If the league drop is 2%, yet the lakers, knicks, spurs, dallas, and boston remained the same, thats a bigger drop than I thought would happen in the post MJ era

fairandbalanced
04-17-2010, 08:05 PM
Apparently it's not profitable to have Lebron.

abe_froman
04-18-2010, 12:16 AM
you have the most marketed player in the league and cant even break even?? thats just sad

still1ballin
04-18-2010, 12:49 AM
zomg!

IRUAM #21
04-18-2010, 12:57 AM
Oh noez !

irobson
04-18-2010, 01:10 AM
dan snyder should run the cavs...they would make 50+million

xabial
04-18-2010, 01:10 AM
you have the most marketed player in the league and cant even break even?? thats just sad

:laugh:

OrderOfCook
04-18-2010, 01:16 AM
So thus far not a single person appears to understand how BRI is distributed throughout the league and how it is calculated nor the immense complexity of operating costs of a sporting team.

Shocker.

ARMIN12NBA
04-18-2010, 01:23 AM
So thus far not a single person appears to understand how BRI is distributed throughout the league and how it is calculated nor the immense complexity of operating costs of a sporting team.

Shocker.

Hardly an excuse for a business losing money especially when they should be making money (see: Lebron James).

OrderOfCook
04-18-2010, 01:26 AM
Ahahahahahaha.

You completely missed the point of my post. But thank you.

SteveNash
04-18-2010, 01:28 AM
You really have to doubt this...

Kakaroach
04-18-2010, 01:36 AM
I don't think anybody here realizes just how bad the economy is in not just Cleveland, but all of Ohio right now.

ARMIN12NBA
04-18-2010, 01:40 AM
Ahahahahahaha.

You completely missed the point of my post. But thank you.

No. Many businesses have extremely expensive operating costs, but that is calculated beforehand for projections. A successful corporation set themselves up to make money and have different people working to cut down operating costs while maintaining a high level of efficiency to be successful. It is no different for a sports team and when you have Lebron James, losing money is unacceptable.

GSW Hoops
04-18-2010, 01:44 AM
In my opinion, players need to be paid a LOT less. I love basketball (obviously), but NBA athletes get paid tens of millions of dollars to put a ball inside a metal rim. Really?

LeBron, Kobe, Carmelo and the rest can survive on an $8-10 million per season max contract. And mid-level guys like Leandro Barbosa, Luke Walton and others can feed their families on $1 million per year. The Players' Union probably won't want a dime cut from their salaries, but too bad--times are tough.

That way, teams can break even and parents can take their kids to a game for less than $300.

ARMIN12NBA
04-18-2010, 01:49 AM
In my opinion, players need to be paid a LOT less. I love basketball (obviously), but NBA athletes get paid tens of millions of dollars to put a ball inside a metal rim. Really?

LeBron, Kobe, Carmelo and the rest can survive on an $8-10 million per season max contract. And mid-level guys like Leandro Barbosa, Luke Walton and others can feed their families on $1 million per year. The Players' Union probably won't want a dime cut from their salaries, but too bad--times are tough.

That way, teams can break even and parents can take their kids to a game for less than $300.

To play devils advocate, the amount of people that can do it as well as them is very, very little in the world. Supply and demand is what they will argue I guess.

SteveNash
04-18-2010, 01:49 AM
I don't think anybody here realizes just how bad the economy is in not just Cleveland, but all of Ohio right now.

Their economy is so bad they managed to sell out every home game.


In my opinion, players need to be paid a LOT less. I love basketball (obviously), but NBA athletes get paid tens of millions of dollars to put a ball inside a metal rim. Really?

LeBron, Kobe, Carmelo and the rest can survive on an $8-10 million per season max contract. And mid-level guys like Leandro Barbosa, Luke Walton and others can feed their families on $1 million per year. The Players' Union probably won't want a dime cut from their salaries, but too bad--times are tough.

That way, teams can break even and parents can take their kids to a game for less than $300.

Athletes get paid millions of dollars because they are the reason the league generates billions of dollars every year.

And a reduction in player salary isn't likely to be passed on to the fans.

RaysFan
04-18-2010, 01:52 AM
No. Many businesses have extremely expensive operating costs, but that is calculated beforehand for projections. A successful corporation set themselves up to make money and have different people working to cut down operating costs while maintaining a high level of efficiency to be successful. It is no different for a sports team and when you have Lebron James, losing money is unacceptable.

This is the 2nd time you called this a "business". Dan Gilbert has a business and it is doing fairly well. He also won a major election back in November which essentially put him in control of new casinos in the state of Ohio. The Cleveland Cavaliers are not a business to Gilbert. He wants to win a title and he is spending big bucks to make it happen.

Cleveland sold out every game this year and they do very well in the TV ratings. They just had to pay an absurd salary this year.

Kakaroach
04-18-2010, 01:52 AM
Their economy is so bad they managed to sell out every home game. Yes, cuz attendance at their games proves something about the whole city and state's economy doesn't it?

Outside from everyone that can afford to go to the games, it is horrific in Cleveland/Ohio. The only place I think that might have been hit harder is Michigan.

SteveNash
04-18-2010, 01:57 AM
Yes, cuz attendance at their games proves something about the whole city and state's economy doesn't it?

Outside from everyone that can afford to go to the games, it is horrific in Cleveland/Ohio. The only place I think that might have been hit harder is Michigan.

It proves that there are enough people in the Cleveland area to support a basketball team.

ARMIN12NBA
04-18-2010, 01:59 AM
This is the 2nd time you called this a "business". Dan Gilbert has a business and it is doing fairly well. He also won a major election back in November which essentially put him in control of new casinos in the state of Ohio. The Cleveland Cavaliers are not a business to Gilbert. He wants to win a title and he is spending big bucks to make it happen.

Cleveland sold out every game this year and they do very well in the TV ratings. They just had to pay an absurd salary this year.

Nobody wants to lose money in any "endeavor" they partake in. Winning is great, but winning and making money is what you strive for.

Kakaroach
04-18-2010, 02:00 AM
It proves that there are enough people in the Cleveland area to support a basketball team. Yeah and I already know that. What I'm trying to say is that they were expected to lose money as well. Nobody is saying their gonna have to re-locate.

kblo247
04-18-2010, 02:28 AM
Nobody wants to lose money in any "endeavor" they partake in. Winning is great, but winning and making money is what you strive for.

If you are Buss yes.

If you aren't though to be fair not really.

For Jerry Buss the Lakers are his team and his business as he doesn't have outside interests. For other owners though their teams are their hobby as they make their money elsewhere.

Not sure if you have ever followed wrestling, but a good way to say it is that their are owners like Vince McMahon whose promotion(WWF/E) is their bread and butter so they have to plan and manage everything perfectly, and then their are owners like Ted Turner whose promotion is just an interest of theirs like video games or music(WCW).

ldc62
04-18-2010, 02:47 AM
dan snyder should run the cavs...they would make 50+million

Yea and overpay FreeAgents and then having them suck. Not baiting, just the truth...

heathonater
04-18-2010, 03:49 AM
i want to know how many teams in the nba lost money this year. for a team like the cavs to lose money during a great season indicates a flaw in the economics of the nba. im not sure, but teams losing money despite having great seasons could be why we could face a lockout in a couple of years. i dont think cleveland had a problem with attendance this year. therefore distribution of revenue between players and the teams must be adjusted in order for teams to make money.

Big Quett
04-18-2010, 04:17 AM
In my opinion, players need to be paid a LOT less. I love basketball (obviously), but NBA athletes get paid tens of millions of dollars to put a ball inside a metal rim. Really?

LeBron, Kobe, Carmelo and the rest can survive on an $8-10 million per season max contract. And mid-level guys like Leandro Barbosa, Luke Walton and others can feed their families on $1 million per year. The Players' Union probably won't want a dime cut from their salaries, but too bad--times are tough.

That way, teams can break even and parents can take their kids to a game for less than $300.




Athletes get paid millions of dollars because they are the reason the league generates billions of dollars every year.

And a reduction in player salary isn't likely to be passed on to the fans.

People dont understand. The money people like Kobe, LeBron and Wade makes is not the problem. It is the Jerome James, Rashard Lewis's Eric Dampiers of the NBA that is the problem. Every penny the superstars make they deserve for all the jesrsy sales, nab gear and fans they bring in the arena. its to 2nd tier and lower level guys making 10 and 12 million that has the NBA in this economic crisis.

And like someone said just because billionaires make more money doesnt mean they are going to pass the cost down to the little guys like the fans.

_KB24_
04-18-2010, 04:30 AM
I wonder how much their going to lose once Lebron leaves......

LOL @ abe! ahahahahahaha

LeBrowns
04-18-2010, 04:49 AM
I wonder how much their going to lose once Lebron leaves......

LOL @ abe! ahahahahahaha

I wonder how much you're going to lose in the job market without proper grammar

ryder78c
04-18-2010, 04:54 AM
It is the Jerome James, Rashard Lewis's Eric Dampiers of the NBA that is the problem. Every penny the superstars make they deserve for all the jesrsy sales, nab gear and fans they bring in the arena. its to 2nd tier and lower level guys making 10 and 12 million that has the NBA in this economic crisis.

And like someone said just because billionaires make more money doesnt mean they are going to pass the cost down to the little guys like the fans.

dont forget washed up players and eddy curry players should get paid by how they play it would bring up playing and it would have the crap players making less and the big mouths like sprewell shutting up every contract should have a insinuative if you dont play good you shouldnt be gettin paid like your MJ

does anybody deserve a raise at work because they looked good with there former employer or because they had a few good days compared to the harder workers who are consistent......WRONG! HARD WORK SHOULD PAY OFF BUT IN PRO SPORTS THAT DOESNT HAPPEN.....Just Like Albert Haynesworth he just got paid 21million dollars and then complains about playing a diffrent position GTFO

shep33
04-18-2010, 05:06 AM
I mean its Cleveland and their payin a lot of dough for players on that team. NY, LA, Chicago, Dallas i could understand, but Cleveland doesn't have the same market.

the Lakers have the highest salary in the league, yet last year i believe they made the most money, even after the luxury tax if i'm not mistaken.

If you put LeBron in NYC, I couldn't imagine how much money he'd make them. It would be ridiculous.

uws
04-18-2010, 05:46 AM
This sort of info spells Lebron leaving Cleveland, maybe they can sign him for more than anyone else in the league because of their ability to retain him, but apparently they cant afford it hahaha, and this proves not even lebron can make a franchise in cleveland successful. Plus who will ever sign with a team thats well on its way to going out of business in a town that obviously doesnt care even when they are winning (because if they cared they would be buying tickets, advertising and merchandising would be profitable). Finally lebron can be somewhere where advertisers actually care and he wont have to worry about his team writing his pay check every year

dtmagnet
04-18-2010, 11:25 AM
Wow thats brutal.

GodsSon
04-18-2010, 11:51 AM
I wonder how much you're going to lose in the job market without proper grammar

Pwned

tjlipford
04-18-2010, 12:06 PM
This is not going to determine if LB is leaving or staying. All yall Knicks fans can keep hoping and wishing for him to leave. Yall will sign someone in the off season but it wont be LB.

Also Dan Gilbert the owner is a billionaire and a very good business man. All the owners are basically losing money every year

LA_Raiders
04-18-2010, 12:13 PM
Dang, and this is just the start, wait until LeBroom is gone...

tredigs
04-18-2010, 12:18 PM
For what it's worth, Cleveland sold out every game and averaged the 2nd highest attendance in the league. OrderofCook, you were clowning on the guy but didn't offer anything yet, curious what your take on this is?

NBAfan4life
04-18-2010, 12:49 PM
In this case it is the owners fault. He chose to go so far into the luxury tax. If he would of stayed UNDER the salary cap his team would of made a ton of money. His choice

prodigy
04-18-2010, 12:54 PM
The cavs are like 50million over the cap lol. of course they are losing money.

Dan Gilbert Has stated many times that he will spend whatever it takes to win.

BTW- Isn't LA going bankrupted? lol. Ohio is not. Cavs are losing a lot of money because of how much they spend. Not so much the economy.

ldc62
04-18-2010, 02:50 PM
Cavs should be making as much as the Rockets... Lebron is easily the most famous basketball player in China.

OrderOfCook
04-18-2010, 06:56 PM
No. Many businesses have extremely expensive operating costs, but that is calculated beforehand for projections. A successful corporation set themselves up to make money and have different people working to cut down operating costs while maintaining a high level of efficiency to be successful. It is no different for a sports team and when you have Lebron James, losing money is unacceptable.

Yeah you still missed my point.

cmstophe
04-18-2010, 07:35 PM
Dan Gilbert says to the contrary as of late last season.

tredigs
04-18-2010, 07:36 PM
Yeah you still missed my point.

Have you made one yet? Make your argument already.

runforrestrunx9
04-18-2010, 07:51 PM
To play devils advocate, the amount of people that can do it as well as them is very, very little in the world. Supply and demand is what they will argue I guess.

u can say that for many professions that dont make a 20th of what professional athletes make.

RaysFan
04-18-2010, 07:53 PM
Nobody wants to lose money in any "endeavor" they partake in. Winning is great, but winning and making money is what you strive for.

Exactly, but what I am saying is that this isn't Gilbert's business. Yes...they lost some money...but Gilbert knew that going in. Cleveland has a huge payroll and they paid a massive luxury tax. Next year they lose Shaq's $20 million salary so it will all even out.

OrderOfCook
04-18-2010, 07:53 PM
Have you made one yet? Make your argument already.

Yes.
I did.

RaysFan
04-18-2010, 07:58 PM
This sort of info spells Lebron leaving Cleveland, maybe they can sign him for more than anyone else in the league because of their ability to retain him, but apparently they cant afford it hahaha, and this proves not even lebron can make a franchise in cleveland successful. Plus who will ever sign with a team thats well on its way to going out of business in a town that obviously doesnt care even when they are winning (because if they cared they would be buying tickets, advertising and merchandising would be profitable). Finally lebron can be somewhere where advertisers actually care and he wont have to worry about his team writing his pay check every year

The Cavs sold out all of their games. The TV ratings were some of the highest in the NBA...the highest if you go by per-capita. The problem is that there just aren't that many people in the city of Cleveland compared to NY or LA so the demand for a ticket will never be as high...which means the price of a ticket can never be as much.

RaysFan
04-18-2010, 08:00 PM
Also I don't know how accurate the NY Daily News is going to be when it comes to finances of the Cleveland Cavaliers. Do you think they would have a reason to fudge the numbers?