Robert Wagner
Mrs. Straub
AP Econ
16 April, 2016
Economic Impact of the NBA Finals
Very recently, the NBA playoffs kicked off with a few stellar and a few not so stellar games for the public eye. After a season filled with so much drama such as the retirement of Kobe and the Golden State Warriors finishing the season with the best record of all time, an exciting playoffs would be a great way to cap off a memorable season. On a personal note, the fact that the Bucks have been snubbed once again from making the playoffs really grinds my gears, but the predictions for next year's finals are fairly simple: Bucks in 6. A championship team’s local economy is seriously affected by a team's finals run, so when the bucks win it all next year we can know what to expect from the local economy.
In 2013 when LeBron James and the Miami Heat faced off against a talented San Antonio Spurs team, Becky Bridges, San Antonio’s Chamber of Commerce Spokeswomen said “the economic impact from a Heat-Spurs game could generate $3 million to $4 million a game in total revenue” (Degollado). San Antonio hosted a minimum of two games in 2013, with a maximum of three, and because the series was so tight a game 6 was played in San Antonio. This means that San Antonio generated nearly $12 million, which “does not include T-shirts or souvenir sales. Also print shops making signs and banners are not factored in” (Degollado). When you put these stats in perspective, the Bucks will obviously be winning in 6 meaning that they will have 3 high intensity games at home in Milwaukee. The people of Milwaukee and the surrounding communities have been waiting agonizingly long for a Bucks championship run, and with the thrill of seeing the Bucks final games in the Bradley Center being at an all time high, ticket prices will skyrocket because the demand for tickets will be so great. Along with seeing the final games at the Bradley Center, Bucks fans will be treated to some of the best players in the game today. The Milwaukee squad is led by none other than the Greek Freak, Giannis Antetokounmpo, a top 50 NBA player in his own right. A chance to witness his basketball wizardry is sure to bring fans to the great city of Milwaukee from all over the country. While all the crazed fans flock like geese to the shores of lake Michigan, local monopolistically competitive small businesses will be putting up advertisements all over the suburbs to buy the fairly priced Bucks merchandise. This competition for all things Bucks will lower the prices so that each chain can keep up with its competitors, which in turn will increase the quantity sold.
Despite the Bucks firepower at all positions, they are surprisingly the 29th most valuable franchise in the NBA (Forbes). That’s just one spot better than the New Orleans Pelicans, a newer team that is said to move up a few spots on the list in the coming years. For a complete list of the top franchises click here. That means that by 2020, the Bucks could have the most unvalued franchise in all of basketball. The key word in that sentence was “could.” Because the Bucks are going to win it in 6 next year, there is no need to worry about being the smallest franchise. At the beginning of the 2011 season, for example, the Dallas Mavericks were in the bottom half of the most powerful clubs. It was estimated that “the value of the Mavericks could rise between $30-45 million in the next year alone” (Garcia). Patrick Rishe, a professor of economics at Webster University said that along with the Mavericks championship trophy, “They'll see ticket prices go up next year, and expect those to be higher over the next few years than they would have been without a championship...They'll be able to negotiate better local media deals, but that may only last one negotiating cycle. They'll see merchandise increase…” (Garcia). When the Mavericks won it all in 2011, no one saw it coming. No one outside of Wisconsin is going to see the Bucks coming until it is too late, and much like the Mavericks, the Bucks organization is going to see higher ticket prices, due to an increase in demand for consumers to watch games. The media will want to talk about the Bucks and advertise with the Bucks which will just bring in more revenue. The amount of merchandise sold will skyrocket, especially with the popularity of the new logo being so high. A championship will see the demand for Bucks tickets, Bucks gear and Bucks advertisements increase, bringing in massive revenues in the years to follow. The Bucks will no longer be the laughing stock franchise of the NBA after next year's championship. Instead, Milwaukee will be on top. Watch out. The Bucks are coming. #Bucksin6
For a video showing other ways the Bucks are growing Milwaukee’s economy, click here
For a video proving the Bucks are destined to win in 6 click here
Works Cited
Badenhausen, Kurt. "The Business of Basketball." Forbes. Forbes Magazine, 20 Jan. 2016. Web. 19 Apr. 2016.
Degollado, Jessie. "NBA Finals Economic Impact in the Millions." KSAT. N.p., 11 June 2013. Web. 19 Apr. 2016.
Garcia, Art. "What an NBA Championships Means to the Dallas Mavericks." ESPN. ESPN Internet Ventures, 24 June 2011. Web. 19 Apr. 2016.
Win it all next year? I don't know much about the Bucks but that sounds like a stretch. I absolutely love how you tied your concept to local economies. The impact is huuuuuuuuge. So huuuuuuuuge that Milwaukee felt it necessary to build a huuuuuuuge stadium. I wonder how long it will take them to recoup that investment.
ReplyDeleteI agree with you Rob that the Bucks are a lock in six. This will bring joy to many people in the Milwaukee area and will have incredible economic impacts throughout the city. I mean the Bucks did end the magical run by the Golden State Warriors, who are going to win the NBA Finals this year, and are beginning to create the next dynasty. Mason Plumlee is also destined to become the next King of the NBA, as LeBron is scrubbing out as usual, the NBA will be turning to a player who can personify the greatness that only the best player in the NBA can do. Giannis Antetokounmpo is ready to take this touch and start a career that will surpass even the greatest to ever play -- Jackie Moon. With the returning stars of Giannis Antetokounmpo and Jabari Parker, there is no way the Bucks won't win in six.
ReplyDelete#BucksInSix
The Bucks are really a key to the economic success of Milwaukee, and without the franchise being based here, we would not only lose out economically, but culturally. Many families have made a tradition of attending Bucks games, which provides revenue for the team and for vendors in the arena, some of which may be charities or other local organizations.
ReplyDeleteAlthough I do not fully agree with your basketball analysis - the bucks won't make it past the first round - I do agree with your economic analysis of how crucial the Bucks are to the economy of Milwaukee. Without the historic franchise, the city would suffer greatly economically, but also culturally. The teams at the Bradley Center and the new stadium not only creates business for themselves, but also business for the shops and stores and restaurants around the stadiums. Thus, the culture of the team alone is enough to send an economic wave throughout the city. It would also be interesting to analyze the correlation between the economy and the Bucks record each year. Overall, however, nice job on your post Rob. The Bucks will not win in six. #Buckswillnotwin @Nick R
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