Thursday, November 12, 2015

Milwaukee Bucks

Alex Clement
Economics A1
The Milwaukee Bucks are a basketball organization in the NBA. To the untrained eye, they are a bunch 20-30 year old men playing a “game for a living” and competing on television in hopes to win the playoffs. But, in reality what actually goes on behind the scenes? Looking at things from an economic standpoint, what even are the Milwaukee Bucks? What type of revenue do they produce? What do consumers and businesses see in this organization?
The Milwaukee Bucks are a profit organization sitting with a team value at about $600 million dollars. Although the price looks the part, they actually finished last in the league in terms of team value. This however does not mean the Bucks are in debt, as they earned over $14.5 million dollars in net profit that remains for the organization alone. The Milwaukee Bucks had a historic season after finishing 15-67 in the 2013, to bouncing back making the playoffs, and finishing with a regular season record of 41-41. It’s safe to say as an organization the Bucks have turned over a new leaf.
Arena Rendering.
With rumors heading into the year that the Bucks will move to Seattle, in order to benefit the NBA because of the fact that it wasn’t generating as much revenue as the “Chicago’s, and LA’s”, the Bucks have a bounced back. With new colors, new logos, and of course the new arena going to be built, the Bucks are staying in Milwaukee and creating new target markets and new fan bases. The arena will cost about $250 million dollars, this looks like a substantial amount, but it comes with a promising trade off. Paying this money will only benefit surrounding businesses such as restaurants, and “stores”, as a new arena is built this will attract more consumers to flock towards the arena, making local restaurants and stores to benefit from this arena. In the long run the overall revenue generated from the arena, will farmore outweigh the cost of building the arena. As the 2015 season has began, the Bucks are off to another nice start, only soon will the demand for NBA players to come to Milwaukee be at an all-time high and the demand for fans to purchase apparel will increase, due to the basic fact that the better the team, the more expensive the apparel.

Work Cited


"Milwaukee Bucks." Forbes. Forbes Magazine, n.d. Web. 10 Nov. 2015.  

"Murphy's Law: State Bucks Arena Plan Fleeces Milwaukee." Urban Milwaukee Murphys Law State Bucks Arena Plan Fleeces Milwaukee Comments. N.p., n.d. Web. 10 Nov. 2015.

21 comments:

  1. This was an interesting post to read. I didn't know that the Bucks had the lowest team value in the NBA. I think that because of all the actions they are taking that the Bucks will stay in Milwaukee and become a better and more profitable team. I thought it was interesting how you talked about the trade-off of building the new arena. I didn't really think about the impact the arena would have on surrounding businesses but that makes sense.

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  2. Hey Alex, I thought that your topic was very relatable as the NBA season has just recently started. I think that consumers are very happy in general that the Bucks stayed in Milwaukee as it gives them entertainment and pride in their city. Also I think that it is a good move for the new arena to be built because like you said, it will help spark a flame in local businesses around the arena and be beneficial in the long run for the economy of Milwaukee.

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  3. I think that this was a really good topic to touch on. It has a lot of relevance recently due to the scare of Milwaukee losing their basketball team. This hits the reality of a new arena right on the head; this is because many people think that all this money is being dropped just on a new arena and that it is pointless, but in reality a new arena would bring in more of a crowd which would greatly benefit the economy of the city and bring more business to all surrounding stores and restaurants.

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  4. Milwaukee Bucks are one of many teams that are in Wisconsin. They could be called a successful team after making the playoffs last year. Now they have a good chance to become a contender for after signing a big name free agent Greg Monroe and resigning Kris Middleton. This would help the profit for Milwaukee. Even in a small market they still able to make a lot of money.

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  5. I don't believe we need a new area at all but that's not on me. If you're a true bucks fan you wouldn't need a new area or fancy restaurants to attract you. Because "to the untrained eye" that's what some people might need. With the profit the Bucks made they should invest in better players, not a fancier stadium.

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  6. It was interesting to learn that they have the lowest value in the league, but it is Milwaukee so that isn't too surprising. I think building this stadium is going to have a big economic impact on downtown Milwaukee in terms of jobs and businesses coming around the stadium. Of course the Bucks can't spend all the money they want on players because the salary cap so building a stadium was a good idea especially to keep the bucks in Milwaukee longer, because we want to take a step forward economically not backward.

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  7. This is a very interesting topic. I've always been a fan of the Milwaukee Bucks, but if there was no chance of them going to the playoffs I wouldn't really pay attention to them as much, so I had no idea they had the lowest team value in the NBA, and I didn't know that in 2013 they were as bad as 15-67! But with the new arena being built, new, young, athletic players being signed each year, and a completely new look, this team is on a rising track to a high revenue, and it will allow the local businesses surrounding the arena to bring in a lot more people.

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  8. It was interesting to learn that they have the lowest value in the league, but it is Milwaukee so that isn't too surprising. I think building this stadium is going to have a big economic impact on downtown Milwaukee in terms of jobs and businesses coming around the stadium. Of course the Bucks can't spend all the money they want on players because the salary cap so building a stadium was a good idea especially to keep the bucks in Milwaukee longer, because we want to take a step forward economically not backward.

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  9. First things first this stadium is going to be crazy. Have you seen the artwork for this thing? It looks like a mix between a 1950's TV and the Sydney Opera House. It's an architectural masterpiece. It would be silly for anyone to pass by and not say I want to watch some basketball in that beautiful arena. With that when the new arena is able to be played in the seats will sell out something Bucks owners probably have never said before in that the last championship team was our only in 1971. The area around the stadium will be greatly affected by this too restaurants, hotels and like you explained consumers to the Milwaukee area and it will be very cool what how well this city will be doing economically after this addition.

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  10. You did not mention how the bucks were gonna pay for this new stadium, because I know that taxes are gonna be the reason this new stadium is going to be built. The new and improved Milwaukee Bucks will generate more money, if they can have a successful season. The bucks are in the process of stack their team with young players full of potential. I believe this new stadium is a good idea as long as the Bucks continue to improve.

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  11. This is a very interesting post, especially since it has a more of a meaning since it's in the home front. The new arena to be built has caused a lot of controversy over if it is really worth it, and if the trade offs are worth it, and that the marginal benefit outweighs the marginal cost. While this would add to the economy of local businesses around the new arena, how would the businesses around the Bradley Center fair? Will they gradually slow down? Or will their business remain the same?

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  12. Colin Marks

    The Milwaukee Bucks are a great team, and are indeed like you said turning over a new leaf. Your piece was right on the money saying on how the new arena deal would help the city of Milwaukee but the way you worded the pricing was a bit confusing. You said that the arena would cost $250 million when in fact the arena cost is estimated to cost closer to $500 million, where about half of that ($250 million would be public ally funded)

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  13. Although that the Bucks have one of the lowest values of a NBA franchise, they are adding more assets which include the new arena and the revitalization of the downtown area. Many may disagree with the public funding for this arena, but I believe that this new arena will bring the people to downtown Milwaukee and help out the local businesses.

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  14. I understand that there are external factors influencing the demand for merchandise and tickets, but I fail to understand how the building of a new arena will help drive this demand. I like how you mentioned the benefit to local stores and restaurants as it will increase foot traffic and therefore profitability of those locations.

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  15. I thought that it was really interesting that they had the lowest value of teams in the NBA, however this will definitely change in the next few years with the improving team and the new stadium. In addition the new stadium will really help not just the Bucks, but the city as a whole. In general the economics will definitely be changing in the next few years

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  16. I was surprised to hear that the Bucks have the lowest value of all teams. Charlotte would probably be the team I would think of. The whole new area being set up for the Bucks will certainly change that. From the new bars and restaurants to the newest arena the value will go through the roof. Of course all the changes will take place while were at college. That seems to be the case in most things that are going on around here.

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  17. This is a great topic to talk about considering that the there has been a lot of controversy towards tax money. It’s awesome to see that the Bucks are making changes with there colors, logos, and the new arena that is going to be build. Despite the fact that the area will cost $250 Million dollars there is a high trade off. Such as the development around the area to attract more consumers. One thing that you could have added is projected number of increased fans, or to also show the decrease in fans over the years to show why this is such a big deal.

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  18. The revenue being brought into the area probably wont' be beneficial at all when you consider the whole state. As of right now the bucks aren't a very popular team so most of the business that is brought into the area from all around but mostly in state. The money doesn't just get created and then used in the area. This means that it will take money away from other markets within the state. We saw this when miller park was built and it didn't really change the market. Personally I can say that when going to a sporting event especially at night I don't spend money on other things in the area mostly because of the high amount of traffic. Normally me and my company would drive out of the area and find someplace that is a little less busy.

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  19. I am really happy to see that the bucks are staying in Milwaukee because the games were always fun to go to especially when they where in the playoffs. I think that the new ownership and stadium will help spark public interest to get more people to support the bucks. Also I don't think people realize how economically beneficial to the city bringing so much money, that even if people don't like basketball, at least help your city.

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  20. I have recently attended a Buck's over the last weekend and the size and the condition of the building are not up to par. The seats are awkward and uncomfortable and the court looks very unprofessional for a professional team. I believe that the new arena would draw people to the game that so many love, because they will have a better experience. In economic terms, the supply of a new arena will be in demand and thus the price of tickets would increase. The price would also increase because the cost of the arena. Since more people would be in attendance more merchandise would be sold and more profit would be made.

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  21. I feel that the bucks do not have much support. Whether this be the stadium or not if the bucks were to get more support there would be a lot of other positive impacts that come along such as a new stadium, a better/more confident team.

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