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Blog Entry

The biggest lockout loser could be Miami

Posted on: November 15, 2011 1:14 pm
Edited on: November 15, 2011 1:14 pm
 
Posted by Royce Young



With an NBA season hanging in the balance, thoughts are shifting to who has the most at stake right now. Who loses the most without a season? Players? Owners? Fans? Teams?

All of the above, really. But in terms of dollars and cents, Miami loses the most. Not the Heat though -- the city.

According to CBS Miami, the city will lose some $200 million without an NBA season. Parking next to the arena is currently going for just $3. A nearby Buffalo Wild Wings has already seen its sales drop dramatically from last year.

It shouldn't be surprising though. When a $4 billion business disappears, things are affected. A report from Cleveland says the NBA accounts for 35 percent of annual downtown restaraunt revenue. Estimated losses for Portland are $59 million. For Oklahoma City, $60 million. For San Antonio, $90 million.

Some cities like Memphis have considered filing a class action suit against the league because taxpayer funds were used to build a new arena that now is sitting empty.

We all know that a season without the NBA greatly changes things for a lot of people. We've all heard players pretend to apologize to arena workers about it. We've all heard David Stern pretend to call this a tragedy. People are hurt by this. Cities are being damaged. Maybe it's irresponsible for businesses and cities to put so many eggs into the NBA basket, but it's just the way it is.

I live in Oklahoma City. And the overhaul the city has seen in the three years the Thunder have been here is incredible. But right now, a newly renovated arena is sitting there with new outdoor video boards and a brand new grand entrance that nobody is using. And the city is not only paying for that still, but not reaping any of the rewards that were promised to it because of a team.

Projections in OKC early on said the city would add an extra $50 million to the economy with an NBA franchise. But that number is around $60 million now and growing. People wanted an NBA team here regardless, but to that casual person, the promise of an economical boost was enough to vote yes on a new tax to get a team. And now citizens are getting absolutely no return on their investment.

Everyone is losing. Everyone. Except the lawyers. They're winning big.

Via The Post Game
Comments

Since: Nov 15, 2011
Posted on: November 15, 2011 9:10 pm
 

The biggest lockout loser could be Miami

who cares.... they are a bunch of greedy people, owners and players. fans always get screwed but then go back to it anyways. cancel the whole season please



Since: Mar 30, 2010
Posted on: November 15, 2011 9:08 pm
 

Stop with the made up numbers

If the Heat actually generated $200 mil in income for the city they would have paved the streets with gold. Please stop with the hyper-inflated propaganda. People are smarter than this writer, and, by the gist of the article, more honest than him too.



Since: Nov 15, 2011
Posted on: November 15, 2011 8:38 pm
 

The biggest lockout loser could be Miami

Fans ? we aren't losing .. we are actually saving money ...



Since: Oct 6, 2006
Posted on: November 15, 2011 7:44 pm
 

The biggest lockout loser could be Miami

Really?  Then why does revenue go up every year?  Fact is despite the "atrocities" ( I'm not sure you know what that word means if you're using it to complain about perceived officiating issues in a basketball game), the NBA is experiencing ever increasing attendance and revenue--thus the big fight between players and owners on how to share the pie.

This is laughable. Strange how they're "experiencing ever increasing attendance and revenue" yet the NBA is claiming $300 million in losses, huh? Also, check the ratings by ANY measure. While the last two years experienced a slight increase in ratings, that was preceded by all-time lows as well as considerably lower ratings than the '90s. Basically, you're full of crap with your made up arguments.



Since: Nov 12, 2011
Posted on: November 15, 2011 7:31 pm
 

The biggest lockout loser could be Miami

Wow, on one hand the NBA claims its losing 300 million dollars, but everyone else talks of all the money the NBA makes. The average NBA teams pulls in 70-90 million a year before a game starts just in outside revenue.  Some teams as much as 150-200 million. They only pay somewhere between 60-90 million in salaries.  The players salaries are covered before a single ticket is sold.

Plus, all the areans are paid for by taxpayers. The owners are full of it when they say they are losing money. That is a bs accounting trick and everyone knows it. The math doesn't add up. Any business would love to have a building it doesn't pay for. I work for a company that pays over 14 million dollars a year to lease its warehouse space, plus we pay union wages and benifits.  I would love to see the city tell me they were going to build us a new 80 million dollar distribution center with no cost out of the companies pocket and only a $1 a year lease. If I couldn't turn a profit with that then I don't deserve to run a business.

The guys who work for the company are not the ones who make us lose money. Its bad supervisors and managers who don't know how to run the crew. And bad VP's who make bad choices with investments and decisions. We pay our guys a good wage to do a good job. We pay better then most becuase we expect you to do a good job.  The workers can do a great job and if the company loses money, it isn't their fault. Its the fault of the peolple running the place.



Since: Apr 23, 2008
Posted on: November 15, 2011 6:09 pm
 

The biggest lockout loser could be Miami

The basic premise of a NBA franchise adding huge $$ to the local economy is flawed.  A metropolitan area has only so much disposible income and a franchise marginally increases that amount.  It only changes the distribution of the income.  Instead of Disney they see the Magic, etc.  The only addition to the local income is what the players families spend and an insignificant increase in employment tied to the franchise and arena.  On the other other hand if you give tax breaks to a new business that may employee 100's of employees that are unemployed or may have to relocate to the city, you then greatly increase the local economy because most working people have to spend most of their income to live.

The folks that should be sued are the public servants that give away taxpayer money.  Many time this approval is bought by ownership by favors to these same public servants.



Since: May 17, 2008
Posted on: November 15, 2011 5:48 pm
 

The biggest lockout loser could be Miami

If the city attempt to get the back rent through the court system, the NBA franchise attorneys would find a loop hole in the basic agreement  that would not require them to make up the back rent
I think the cities would be able to recover any "rent" that was due--unless there is a clause in the specific lease that lets the team not pay if there is a lockout or strike.  What the cities likely can't recover is "lost" tax revenues as those revenues, unlike base rent, is speculative at best.  It is hard to put a figure on because what you received last year is not proof of what you'd get this year, or next.  The number could be higher, lower or the same.




Since: May 17, 2008
Posted on: November 15, 2011 5:44 pm
 

The biggest lockout loser could be Miami

Who knows if the NBA will, considering how they've treated their fans over the years, how many people have left after atrocities like the Lakers-Kings conference finals in 2002, and how the past decade has shown a major decline in popularity in the NBA.
Really?  Then why does revenue go up every year?  Fact is despite the "atrocities" ( I'm not sure you know what that word means if you're using it to complain about perceived officiating issues in a basketball game), the NBA is experiencing ever increasing attendance and revenue--thus the big fight between players and owners on how to share the pie.



Since: May 17, 2008
Posted on: November 15, 2011 5:40 pm
 

The biggest lockout loser could be Miami

If the league doesn't play it is basically a ponzi scheme.  They took the money promising to use facilites to play pro basketball.  Then, for whatever reason that doesn't really matter, they aren't doing it. 
That's not even close to what a Ponzi scheme is.  My guess, as well, is that if there are contracts betweent he teams and the cities, there are clauses in those contracts that deal with what happens if for any reason there are no NBA games (including labor disputes) and, if not, the courts would not find any enforceable "implied contract" for specific revenues and so law suit against the NBA by the cities would be largely a (further) waste of taxpayer money.





Since: Feb 22, 2008
Posted on: November 15, 2011 5:34 pm
 

The biggest lockout loser could be Miami

Time for the cities to file a class action suit. All this taxpayer money going into the business and getting nothing in return: maybe the final settlement should be owners 40%; players 40%; cities 20%.
It is an interesting point.  When the NBA teams sought investment from cities they promised economic activity in return.  By failing to provide that the teams have effectively breached a contract, albeit probably not a written one. 

If the league doesn't play it is basically a ponzi scheme.  They took the money promising to use facilites to play pro basketball.  Then, for whatever reason that doesn't really matter, they aren't doing it. 


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