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How much money does kentucky basketball make
How Much Does Money Kentucky Basketball Bring in Annually?
Sports
ByGarrett Parker Posted on Updated on
Sports is no longer just a pastime activity in schools to keep the students fit. It has become a foundation for most people who discover their talents while playing in school and for the schools, it has become an income-generating activity. The University of Kentucky Athletic Department has continually been ranked among the top in revenue generation. However, most of the revenue is by the Kentucky basketball team and here is how they generate millions annually for their school.
Nike deal
University of Kentucky (UK) and Nike have had a long relationship that dates to the late 1990s, and they later extended the contract in 2006 and 2013. The 2013 agreement was to have Nike provide the UK with $47 million in clothes and cash through 2024-25. While it is not much compared to the $160 million that Adidas signed with the University of Louisville, Nike has more exposure and does not need to pay schools as much to have them wear its logo. Usually, the value of a contract depends on student enrolment, how many times a team has appeared in the NCCA tournament, football stadium size and sporting events attendance.
If all these factors were considered, the UK would have received $6,680,423 in apparel and cash in 2017, but instead, they got $3,725,000. Under the 2013 contract, Nike pays the university $1.8 million as base compensation which totals to $21.6 million over 12 years. As for the uniform and other products, the university gets $2 million every year. However, the value of these products, that is shoes, uniforms, some equipment and workout clothes will go up such that in 2013, UK received $1,725, 000 but the time they get to 2024, they will be receiving $2,125,000. The university also received a signing bonus in 2013 worth $2.4 million.
Moreover, the contract includes termination clauses such that if the basketball team is not on TV, Nike cuts its base compensation 70%. Also, if NCCA bans UK basketball team from TV, then Nike will stop its support immediately. Further, an NCCA probation would have the basketball team left without Nike’s support
Sports licensed merchandise have become one primary method of how teams rake in revenues, and the UK has not been left behind. Truth is the sports licensed merchandise is an industry in itself worth $4.6 billion in 2011. According to Bloomberg, Kentucky obtained $6.73 million in merchandise royalties in 2011, which was an increase of 40% from the previous year. By 2012, if you wanted your iPhone 4 case to be a Kentucky National Championship one, then you had to pay $29.95 while an officially licensed basketball jersey was going for $74.95.
In the contract with Nike, there is also an agreement for royalty payments to the University for sale by Nike of products that bear the school’s logo. In the deal, Nike pays UK 12% of licensed products, and the guaranteed minimum is $35,000.
Multi-media rights
In April 2015, UK’s contract with IMG expired; its value was $80.5 million over ten years. IMG wanted to extend the agreement by proposing to give the UK $246.25 million over 20 years. They also included a signing bonus of $5 million over the first four years of the contract and a $5 million extension bonus which would have been paid in 2025-26 calendar year. Unfortunately, the IMG proposal was not as lucrative as what JMI Sports offered the university. In these times when teams also have lots of expenses, then the game is all about numbers, and JMI Sports won with their offer of $210 million over 15 years. The deal started with guaranteed rights fee of $9.1 million in 2015-16 which increase annually, and by 2029-30, UK will be receiving $16 million annually.
The contract with JMI Sports was effective in the spring of 2015, and it came with a hefty signing bonus; $29. 4 million to be precise. Inclusive in the deal was radio rights to the university’s men’s and women’s basketball teams.
Ticket sales
Kentucky’s men’s basketball team, as well as the men’s football team, are the main drivers of revenue in the university even though whatever they bring in has to be shared among the entire athletic departments. Usually, the regular season is when they rake in lots of revenue. For instance, in 2016, the men’s basketball team brought in $19.5 million in ticket sales, while the football team generated $16.4 million. The basketball revenue is about fifteen times more than what the other 20 varsity sports bring in since combined they made $1.3 million.
Garrett Parker
Garrett by trade is a personal finance freelance writer and journalist. With over 10 years experience he's covered businesses, CEOs, and investments. However he does like to take on other topics involving some of his personal interests like automobiles, future technologies, and anything else that could change the world.
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Kentucky Footall: What's Worth More, UK Basketball Or Football?
The Kentucky Kernel had a very enlightening article out today about the football program, and it answers some of the questions I've seen asked around the Big Blue Nation lately.
First of all, we know, or should know, that football is the bell cow of virtually every school's athletics program -- yes, even at Kentucky, and it isn't even a close call:
"What most people don’t understand is that every school is a football school. The amount of revenue that football can generate dwarfs even the greatest basketball programs," said Mark Nagel, associate professor in the sport and entertainment management department at the University of South Carolina. "Certainly the fans identify with what sport wins the most, but football just has the potential to make so much more money with attendance and television contracts. "
Some of you may think that it can't be that way at Kentucky, but if you've been reading this blog, as well as others, you know otherwise. Here are the numbers:
The 2012-13 athletic budget approved in the summer by the UK Board of Trustees shows that football is slated to produce $27.6 million in revenue while spending $9.5 million — for a profit of $18.1 million.
By comparison, men’s basketball, even coming off a national championship, is projected to produce $20.8 million in revenue, while spending $12.6 million — for an $8.2 million profit.
Those are the only two profitable programs for the university. The other 20 sports lose a combined $11.6 million, according to the 2012-13 budget.
Now, think about that for a minute. The football program, as bad as it is, generates over twice as much net revenue as the basketball program, as good as it is. That is a staggering statistic, and should leave every Kentucky fan thinking about football, and what it means to the university athletics programs.
Football is why the revenue in schools like Florida and Alabama dwarf that of Kentucky. A big football program means big, sweet dollars, and when football struggles to bring in fans, athletics department budgets get rearranged, cut, and priorities reviewed.
The reality at Kentucky is that even though the football program nets more than twice what the basketball program does, the first 'Cat at the feeding trough is always the basketball program. Many people famously blamed this reality for the fact that Paul "Bear" Bryant decided to relocate to Texas A&M rather than stay at Kentucky and compete with Adolph Rupp. A very good examination of that issue can be found at Jon Scott's site.
What this causes is a distortion in the athletics department. Because basketball is the big favorite of university boosters, they get the resources first, and football second. That goes a long way to explain why you rarely see schools succeed at both sports, because one or the other invariably gets short shrift.
For this reason, Kentucky's football facilities, unlike basketball, are not among the tops in the SEC. That matters. How much? Consider this commentary from Myron Metcalf of ESPN regarding the new Wildcat Coal Lodge:
Kentucky just built another multimillion-dollar facility mostly to accommodate its basketball squad. It’s another way to set those athletes apart from the rest of the student body. And that exclusivity caters to former prep stars who are used to special treatment.
But it also makes you wonder how the bulk of the college basketball world will ever compete with the seven or eight programs that devote that level of resources to the sport. The answer is it won't.
The exact same thing can be said about football, and the seven or eight football programs (many of whom live right here in the SEC) who stand head and shoulders above the rest in resources dedicated to the care, feeding, and comfort of the athletes they bring into the program, which has a major impact on recruiting -- not to mention the success these programs have had in the sport.
So while you continue to scratch your head about Kentucky's commitment to football, understand until Kentucky fans become football fans, the football facilities will be improved at a slower and relatively uncompetitive pace compared with the rest of the SEC. Our basketball facilities will thrive, but football will fight with everyone else, like baseball, for scraps.
I understand that energizing Kentucky fans about football requires major surgery to the team leadership unless something unexpected happens. Joker Phillips isn't on the hot seat for nothing.
This is the first year football is budgeted to decline in revenue since 2004-05. Football revenue grew nearly 50 percent from 2008-09 ($20 million) to 2011-12 ($29.6 million), fueled by success on the field and SEC revenue-sharing agreements.
A decrease from an average of 60,000 tickets per game to 55,000 per game represents almost a 10% drop. Ticketmaster has UK football tickets on sale for $41 for non-conference and $46 for conference game, which brings the average average price to $43. 86. For each 5,000 absent fans, that's $1.54 million in lost revenue. We know that season ticket sales were down more than 10,000 this year, and that translates to roughly $2.3 million in lost revenue (season tickets are cheaper than individual tickets, and I just averaged the various season ticket package prices).
So when people suggest, "how can we afford to buy out Joker's contract," the question becomes, how can you not? When the team performs poorly, the cost to the athletics department is substantial. If we just consider the season tickets as the only loss, which is probably close, that's the equivalent of saying the net cost of Joker Phillips is his regular salary of $1.7 million, plus $2.3 million in lost revenue. That amounts to $4 million, more than the salary of LSU's Les Miles. You think UK fans would come to Commonwealth if we hired Les Miles and gave him a $200,000 raise?
Which is why Mitch Barnhart will have to look long and hard at the football situation at the end of the year. If Phillips turns it around, obviously he'll be retained. But if the season continues as it looks like it will on paper, Barnhart can't afford another year of further decline. If the team is headed upward, winning some, and giving fans a reason for optimism next year, Phillips may keep his job.
If not, I can't see how he does. These are not my rules, although they are my calculations, and admittedly imprecise. Kentucky is not coming off probation, and the days of minimum four-year auditions have probably come and gone. UK needs to get fans in the stands, and hiring a new coach would do that.
Barnhart knows this, and so does Phillips. This is the big-boy world, and keeping Phillips on at an effective cost of $8 million or more over two years is a mighty big pill to swallow. Even with that said, and even if we hired a Les Miles type, that still doesn't address the structural problems that UK football has to deal with, like being second in line when the dollars get handed out.
Foul between the lines. Money is killing collegiate sports in North America
Agents and sponsors chasing the most promising athletes has threatened the collegiate sports system in North America
Collegiate teams are of great importance to the sports industry in the US and Canada, especially in basketball. They train staff for the National Basketball Association (NBA) and draw huge attention to their own competitions. March Madness, the finals of the men's college championship, is successfully competing in ratings with NBA games. Naturally, this is of interest to sportswear brands, financial institutions, automotive concerns and other potential advertisers.
NCAA basketball players are considered amateurs and do not receive a salary - the most successful of them have only a scholarship to cover tuition costs. Under these conditions, contracts with personal sponsors can turn your head. Agents should help calmly understand the financial and legal intricacies without harming your career, but it was their work that brought student sports to a huge scandal.
NCAA
National Collegiate Athletic Association. Unites 1281 organizations that conduct sports competitions in colleges and universities in the United States and Canada. Under the auspices of the NCAA are championships in 24 sports. More than 450 thousand athletes participate in these tournaments. In 2014, NCAA revenue reached $1 billion. At least 80% of the association's money comes from the top division of the men's basketball championship.
Non-amateur transactions
In late September, the Federal Bureau of Investigation (FBI) arrested eight NCAA coaches and two athletic equipment managers. All of them appear in the case, which the bureau has been working on for a year and a half. The FBI has identified several cases of coaches and agents using bribes to persuade players to transfer to a particular university. They themselves received rewards for this from the managers of these universities, striving to assemble a stronger squad, in fact, outbidding basketball players, or from sponsoring companies looking for the most promising career development options for their potential clients in terms of moving to the NBA. Students were offered to change not so much the university as the team. This allows the participants in the transaction to earn, but is contrary to the principles of amateur sports.
Former NCAA player, current basketball agent Kevin Tarka commented to the CBC on this situation: “I wouldn't say shocked. Changes in recruitment in recent years are evident. Unfortunately, the influence of outfitters has increased dramatically. But the intervention of the FBI surprised. This is a completely different level in contrast to the internal investigation of the NCAA. Everything starts from the bottom. Athletes are being pulled in all directions: family, friends, shoe companies, coaches, amateur athletes union, scouts, agents... When huge sums are involved, it's hard to spot a foul somewhere between the lines. Someone is bound to break the rules to try and make money.” .
$250,000 alleged reward from adidas to young athletes for transferring to company-sponsored universities
Heavy choice
The hunt for the best basketball players is understandable. Such players with sports success can bring millions to their university (most of the huge NCAA profits are distributed among league members), and if they get into the NBA, they will provide good advertising to sponsors and a decent commission to agents.
The problem is that the majority of basketball students enter the NBA draft after their first year. And they have to make a difficult choice: either try to prove themselves in the best league in the world, or postpone this issue until graduation. In the first case (if a contract with an agent is signed), there will be no opportunity to return to the university, in the second, there is a risk of losing three years of a career (and a high salary) in a weaker tournament. Even those who are objectively not ready for the NBA often cannot resist the temptation. For them, the first professional contract is the last, but at the age of 17 it is difficult to soberly assess their strength. Especially when your advisor is very interested in getting a commission. As a result, both the players and the NCAA level suffer.
“We need to find ways to pay players official salaries. Otherwise, the NCAA will put itself in danger of destruction, - sure Kevin Tarka . – It is necessary that the guys understand their true market value. Let the account be available to them only after graduation, but it should be their money. Coaches in the NCAA earn several million dollars, while athletes receive only "free training." Absurd. However, it is necessary to weaken the interest of the NBA. And let the players hire agents to keep them informed, but don't take away their right to training if they can't sign a professional contract!"
Gray Cardinals
In the report released by the FBI, the names of athletes and universities are hidden. Pseudonyms are used - "Player 1", "Player 2", "University 3", "University 4" and so on. For example, it is indicated that the coaches received from adidas (more precisely, from "Company 1") and agents $ 22 thousand for the transfer of one player to the "University 6" team. University 6 is described as similar to the University of Louisville, where Hall of Famer Rick Pitino was fired after the report was published.
There are two main defendants. No one is as closely connected to the black market agents, shoe companies, financial advisors, and recruiters in the NCAA as they are. These are Adidas International Sports Marketing Director for Basketball James Gatto and an employee of the same company, Merle Coad, who previously headed the youth basketball program of another equipment manufacturer (described as similar to Nike). For two decades they remained in the shadows and turned all the deals without too much noise. Both have happy families and crystal clear reputations. The information that surfaced shocked their entourage. Charges of bribery and money laundering threaten terms of up to 40 years. Collaboration with the investigation may knock them down, but in this case, Code and Gatto will have to show something really significant, which will surely result in new arrests among coaches, managers and other industry workers.
$150,000 received, according to investigators, a potential recruit of the University 7 team for choosing their team with the participation of James Gatto
“He was in charge of budgeting, recruiting, college coach relations, ,” says a person who worked with Code. – He controlled everything and nothing could happen without his knowledge. That is why everyone is in fear right now.” .
“Coaches who worked with equipment manufacturers are sleeping in a cold sweat. I imagine myself in the place of James and Merle and understand that their families are dearer to them than even their closest clients. If in such a situation I knew something that would reduce my term, I would certainly tell it. It's not about the war with North Korea, we're talking about college basketball."0005, ESPN analyst Sam Fraccilla , who used to work as a coach at a New Mexico college, estimated what was happening.
Beginning of the end
On the other hand, while NCAA officials think it's dark days, league coaches say it's a great opportunity to take the first step toward fair college sports. Waiting for changes and our expert. “We have finally reached the tipping point. If there is no change to student athlete compensation, the NCAA could be destroyed. Perhaps not in the short term, but in 10 years. But this process has begun now.” , - considers Kevin Tarka .
$50,000 - bribe allegedly received by coach Chuck Person, famed NBA veteran, to lure several players into a sponsorship deal with an Atlanta clothing manufacturer
Agree on league outlook and Jay Williams former NBA player and current college basketball analyst: “This is the beginning of the end for the NCAA. The situation casts middle-level workers, be it a trainer or outfitter manager, in a bad light. But this is a small part of all the problems. And it is clearly seen that “amateur” sports have always been, first of all, a very profitable business.0005 .
NCAA inaction, according to Kevin Tarkey, can deprive the college basketball league of stars, and therefore income. The best players will either stay home to prepare for the NBA draft without the risk of injury in the NCAA, or go to work in Europe for a year. Such examples were before, but now they can become massive. In addition, it must be understood that the investigation is not completed and the problem may worsen. Will Coade and Gatto testify against other participants in the case? Do they have the knowledge that could lead to more layoffs, accusations and chaos in general? Nobody knows the answers to these questions. And consequently, all student basketball cannot live in peace.
Text: Andrey Grigoriev Photo: Louisville Cardinals, Iowa State Cyclones
Material from SBC. Sport Business Consulting» №4–5 (31–32) December 2017
The NBA will never run out of money - Blogg on the floor - Blogs
A league that knows how to make money on everything.
We've grown accustomed to resenting the NBA's gigantic salaries. Why does Otto Porter make more money than Giannis? Who thought of giving Mozgov 64 million for 4 years? How much will Wall get in two seasons? Why does John Luer get $10 million a year? Who is John Luer anyway? Is it some kind of tea?
But the players make so much because the league makes so much. In American sports, there is a system of closed leagues in which there are no lower divisions, but there is a draft and a salary cap. This makes it possible to conduct a "single accounting" - to conclude a collective agreement between the league and the players' union and share income with athletes in certain proportions. This means that the largest item of expenditure (costs for personnel, i.e. athletes) will be tied to the income of the tournament, and the league as a whole will never be unprofitable.
The NBA is expected to generate $7.5 billion in revenue this season, including $5.4 billion in what is known as Basketball Revenue, which is the basis of the salary cap. The players will get 50% of that $5. 4 billion. The NBA's cash flow is relentless, and owning a club is no longer just a fun toy, it can be a good investment.
First of all, because clubs are getting more expensive. Forbes estimates each at least $1 billion, and the average NBA franchise is worth 3 times what it was five years ago.
But many clubs in the league are also making good money, not just growing in value as an asset: an NBA club's average operating profit exceeded $50 million last year. And the revenue-sharing scheme introduced in 2011 virtually guarantees every club a profit, as long as they don't inflate their payroll and dig deep into the luxury tax (shoutout to Cleveland, the most unprofitable champion in NBA history).
However, the mood of potential buyers affects the growth of clubs' value more than the financial condition of the league. The answer to the question why NBA clubs are getting more expensive is simple: because this is a very limited luxury market, in which it is basically impossible to correctly name the price of an asset - resales are very rare, and other clubs try to evaluate them only on their basis. Ballmer bought the Clippers for $2 billion and the valuation skyrocketed. Goods for sale are single, and taking into account the interest of foreigners, there are no fewer buyers even with price jumps.
It's like a market not just for ancient artifacts, but specifically for African figurines of the 3rd century BC. e.
When talking about the finances of the NBA, it is better to ask this question: what new sources of income will the league have? After all, the NBA recently signed new TV agreements with ESPN and TNT until 2025, according to which it will earn 24 billion, that is, in the near future it has successfully closed the possibility of growth (but also the risk of falling) in its largest source of income. And the entire financial stability of the league is based on the fact that revenues will grow, albeit slowly.
While there is no need to work on a new TV contract, the NBA is developing other potential gold mines.
War of Friendship with the NCAA
The student association is still considered a non-profit organization and does not pay taxes to the federal budget. In fact, this, of course, is not the case - the NCAA's revenues in 2017 exceeded a billion dollars, and the net profit was more than 100 million. And the association, which has fifty sports, receives 75% of its income from basketball. March Madness feeds college fencing, curling, cheerleading, track and field, and even hockey.
There is so much money in the student league - and the athletes do not get anything, but the coaches get more than in professional leagues. And this leads to many conflicts. Bribes, bets, crime cover-ups, prostitutes for players, violations of school recruiting rules, illegal payments to athletes and their families - it's all there and has been in the NCAA for almost its entire history. This season, the FBI has been involved in investigating the problems of college basketball. And recently the report of a special commission headed by former US Secretary of State Condoleezza Rice was published. In it, as usual, all responsibility is shifted to others - mainly to shoe brands and the NBA. For some reason, the commission considers the root of all troubles to be the rule according to which the NBA prohibits drafting players straight from school, and calls for its abolition.
And the NBA doesn't mind anymore.
By the time previous NBA commissioner David Stern closed the high school draft in 2005 and sent everyone to the NCAA for at least a year, the league was already tired of unprepared youth as psychologically unprepared (Kwame Brown, Darius Miles, Sebastian Telfair, Ndudi Abi, Robert Swift) and physically (Sean Livingston, Dorell Wright, Jonathan Bender and Robert Swift again). A year in prestigious student programs with famous coaches and easy schedules was supposed to be a crash course in serious basketball.
It turned out that he does not become anything like that, the “students” do not study, but just kick the bullshit for a whole year in anticipation of the draft, and NBA busts continue to appear. The average age of rookies has only risen, as now most students move to the NBA after one year of college that does nothing for them. The goal of the NCAA is not to invest time and energy in the training of an athlete, because he will soon leave, but simply to replenish each year with new talented “meat” from the school.
The NBA itself now has many more opportunities to accommodate young players. There are two additional spots on the team bids for bilateral contracts, almost every club (27 out of 30) has a team in the Development League, salaries in the G-League itself are rising, high school basketball scouting has risen, and the NBA is ready to engage in youth development - look at "Philadelphia" and how slowly, gradually, but correctly, they prepared Embiid and Simmons, not even letting them out on the floor.
Draft rules will be changed no earlier than 2020, and during this time, the NBA will see how the Development League and the Australian NBL, which wants to take top American students, will work while the NBA is just preparing for reforms. The G-League signed a contract with Twitch for online broadcasting of matches, and if conditional Zion Williamson, Bol Bol and Shaka's son play in the league, this will add interest to the farm league - and where there is interest, there are sponsors and money. Darius Bazeley, one of the top prospects in the 2019 draft, has already announced that he will not go to Syracuse University or any other college, but will sign a contract with the G-League for the 2018/19 season.
The once high-profile NCAA contracting scandal in 1951 saved the NBA because many spectators switched to the less popular professional basketball. The current woes of college sports are also turning many fans, sponsors, and even players (and not just the Ball family) away from it. All this gives the NBA additional opportunities to increase its financial power, its status as the world's main basketball entertainment.
New telecontract in China
China's ruling party's support for sports is highly volatile, ranging from investing billions in soccer to become the next Brazil, to focusing on developing traditional sports like ping-pong.
And the NBA is still the most popular league in China.
NBA China was launched 10 years ago, in the wake of Yao Ming's success in America, and is now valued at $4 billion. It employs 175 people (which is about 175 times more than officially employed in the direction of NBA Russia).
The NBA estimates that 750 million Chinese watched NBA games last season. About 300 million people play basketball in China. The local league even manages to compete with America and Europe for this or that player (of course, not someone who could start in the NBA). 144 million follow the NBA on Chinese social media, five times more than the Premier League, La Liga and Serie A combined. The NBA's Weibo has 6 times as many followers as the league's China-blocked Twitter page.
Stephon Marbury has turned into a god here.
There is money in China, there is interest in basketball in China, and the NBA is trying to monetize it all. The league has over 30 marketing partners in China and in 2015 signed a five-year TV deal with Tencent worth $700-800 million. There can be no doubt that this sum will be even higher in case of re-signing.
There is a shift in television in China, with fewer options for the state monopoly CCTV and more viewers for streaming platforms like Tencent. There, over the past year, the number of NBA game views has almost doubled. The short videos that the league posts on Weibo got 3 billion views during the playoffs alone!
The NBA has built relationships with Asian media partners at the right time, and now this acquaintance brings big profits - and can bring even more.
The development of the NBA in China is not limited to broadcasting - the league has already built 3 basketball academies here and plans to establish a major sports center next year. The first full-fledged Chinese investor appeared in the NBA - Joseph Tsai bought 49% of the Nets from Mikhail Prokhorov, and Jiang Lizhang owns a small share of the Timberwolves.
In theory, the Chinese audience of the NBA may exceed the American one. Although the NBA has been in this market for a very long time (the first exhibition games were held in China in 1979), it is still the most promising one.
Advertising on uniforms
Since this season, “alien” logos have appeared on uniforms for the first time in the NBA: firstly, the logo of Nike, the new league outfitter (previously, adidas could brand training kits and souvenirs, but not jerseys), and in Second, advertising.
Advertising.
Advertising!
ADVERTISING!
How many screams, curses and curses were there when the news about this first appeared. And now confess, when was the last time you remembered that there is a sponsor logo on the uniform of your favorite team? How often do you notice him during broadcasts? Does it interfere with game viewing? Has the spirit of the NBA faded because of this?
20 out of 30 NBA teams now advertise on uniforms, the remaining 10 are planning to sign sponsorship contracts in the near future.
The League evaluates the project with a "C", as it expected a greater financial effect. About 200 million fell into the NBA budget, but since only 2/3 of the clubs advertised on their kits, the league lost about 50 million - and adjusted the salary cap forecast for next season by about 1 million downwards.
However, that's 200 million that didn't exist before. The biggest contract is with the Golden State champions, who are paid $20 million a year by Japanese online retail giant Rakuten.
In addition to the pure financial benefit of advertising, this project also opens up opportunities for new corporate affiliate programs - for example, GE not only puts the logo on the Boston kit (and repaints it in club colors, which many do not, see photo above) ), but will also supply hi-tech equipment to the new Celtics training facility, which will open in the summer. This is not just advertising, but a full-fledged cooperation.
Media analysts from GumGumSports estimated the benefit of companies from advertising at 350 million in social networks alone (and there is also the reach of potential buyers through television, through souvenirs, and through advertising at the stadium), and most of all from advertising on Goodyear (Cleveland), Rakuten, General Electric, Wish (Lakers) and Squarespace (Nicks) win.
The league has been running uniform advertising in a test mode - all contracts are for three years, and in 2020 the NBA will decide whether they have achieved the desired effect and how exactly to continue this project.
(at this point you have to get into the comments and leave the obligatory comment “This is just the beginning, then they will cover the whole uniform with stripes, have you ever seen the Shyvrole logo on the Manchester United uniform?!!! 1!11!”)
T-shirts is not the only potential source of revenue growth through advertising. The league has long branded the All-Star Game and contests (the dunk contest is officially called Verizon Slamdunk, and the three-point contest is sponsored by JBL), even the farm league was renamed from the D-League to the G-League - Gatorade became the title sponsor.
Even parquet can become an advertising surface: in February, a teaser for the new part of the God Of War video game was shown at the Warriors Arena: League Pass without being subject to geo-restrictions. The ingenuity in delivering ads to the user is reaching a new level, and the patch on the uniform is only a small part of it.
Some would call it the commercialization of sports, others would call it a necessity for the financial stability of the NBA.
Even more money
The NBA makes a lot of money, but continues to look for new sources of income.
The league enters the esports market by founding the NBA2K league with its club counterparts. And NBA esports players will already receive more in one season than basketball players in the G-League (not to mention basketball players in the WNBA - this is the project that the league cannot monetize in any way).
The league wants to participate in the legalization of the betting business (now there are huge restrictions everywhere except Nevada) and requires 1% of all bets on their games - and this is a huge amount of money, even if some of them go to monitor the betting market in order to identify suspicious betting and trading insider information. A similar system of deductions from bookmakers to the budget of sports leagues operates in Australia and France.
The league is expanding its presence on social media and has the youngest audience in America. Understanding the psychology of millennials, the NBA does not crusade on illegal highlights on Twitter or Facebook, like the NFL or Major League Baseball, because even pirated content attracts additional audiences that can be monetized in the future.
The league is developing more and more mobile applications. League Pass is Coming Soon to "Micropayments" - Buying the Last Quarter of a Tense Match for 99 cents is a convenient option for the casual fan. Half of game tickets are sold on mobile, new stadiums are becoming "smart arenas", mobile streaming is evolving from HD to UHD to VR to a format we can't even imagine yet (choose your game form in augmented reality? slow motion replays real-time? nano-cameras on each player's eyebrows? built-in smells?).
The league continues the globalization of basketball: building academies somewhere, opening official representations somewhere, holding pre-season games somewhere, and regular season games somewhere. And in Mexico, even a new NBA team could potentially appear (but, most likely, they will start with the Development League).
The university also received a signing bonus in 2013 worth $2.4 million.
In the deal, Nike pays UK 12% of licensed products, and the guaranteed minimum is $35,000.
4 million to be precise. Inclusive in the deal was radio rights to the university’s men’s and women’s basketball teams.
As MLB franchises go, they are a relatively new one, seeing as how they started up in 1998. With that said, the Arizona Diamondbacks…
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86. For each 5,000 absent fans, that's $1.54 million in lost revenue. We know that season ticket sales were down more than 10,000 this year, and that translates to roughly $2.3 million in lost revenue (season tickets are cheaper than individual tickets, and I just averaged the various season ticket package prices).
If Phillips turns it around, obviously he'll be retained. But if the season continues as it looks like it will on paper, Barnhart can't afford another year of further decline. If the team is headed upward, winning some, and giving fans a reason for optimism next year, Phillips may keep his job.
Students were offered to change not so much the university as the team. This allows the participants in the transaction to earn, but is contrary to the principles of amateur sports. 
Such players with sports success can bring millions to their university (most of the huge NCAA profits are distributed among league members), and if they get into the NBA, they will provide good advertising to sponsors and a decent commission to agents. :no_upscale()/cdn.vox-cdn.com/uploads/chorus_asset/file/13128999/KELDON_JOHNSON_MBB2018_01_CW_600x900.jpg)
As a result, both the players and the NCAA level suffer. 
University 6 is described as similar to the University of Louisville, where Hall of Famer Rick Pitino was fired after the report was published. 
Waiting for changes and our expert. “We have finally reached the tipping point. If there is no change to student athlete compensation, the NCAA could be destroyed. Perhaps not in the short term, but in 10 years. But this process has begun now.” , - considers Kevin Tarka . 
The best players will either stay home to prepare for the NBA draft without the risk of injury in the NCAA, or go to work in Europe for a year. Such examples were before, but now they can become massive. In addition, it must be understood that the investigation is not completed and the problem may worsen. Will Coade and Gatto testify against other participants in the case? Do they have the knowledge that could lead to more layoffs, accusations and chaos in general? Nobody knows the answers to these questions. And consequently, all student basketball cannot live in peace. 
Why does Otto Porter make more money than Giannis? Who thought of giving Mozgov 64 million for 4 years? How much will Wall get in two seasons? Why does John Luer get $10 million a year? Who is John Luer anyway? Is it some kind of tea? 
4 billion. The NBA's cash flow is relentless, and owning a club is no longer just a fun toy, it can be a good investment. 
Ballmer bought the Clippers for $2 billion and the valuation skyrocketed. Goods for sale are single, and taking into account the interest of foreigners, there are no fewer buyers even with price jumps. 
In fact, this, of course, is not the case - the NCAA's revenues in 2017 exceeded a billion dollars, and the net profit was more than 100 million. And the association, which has fifty sports, receives 75% of its income from basketball. March Madness feeds college fencing, curling, cheerleading, track and field, and even hockey. 
For some reason, the commission considers the root of all troubles to be the rule according to which the NBA prohibits drafting players straight from school, and calls for its abolition. 
The goal of the NCAA is not to invest time and energy in the training of an athlete, because he will soon leave, but simply to replenish each year with new talented “meat” from the school. 
Darius Bazeley, one of the top prospects in the 2019 draft, has already announced that he will not go to Syracuse University or any other college, but will sign a contract with the G-League for the 2018/19 season. 
It employs 175 people (which is about 175 times more than officially employed in the direction of NBA Russia). 
There, over the past year, the number of NBA game views has almost doubled. The short videos that the league posts on Weibo got 3 billion views during the playoffs alone! 
Understanding the psychology of millennials, the NBA does not crusade on illegal highlights on Twitter or Facebook, like the NFL or Major League Baseball, because even pirated content attracts additional audiences that can be monetized in the future. 
