John Carle
Mr.Reuter
Economics
5/2/2016
Nba Playoffs
The Nba playoffs are in force right now, with the first round coming to end and the second one starting. The playoffs are both great for the Nba team and the state that the team is from. There are many factors that come into play with the nba playoffs and economics. First is how often the team gets to the playoffs, second is the fan base of the team, and lastly who is the other team they play.
A big factor with the playoffs is how often the team gets to the playoff for example the Golden State Warriors are a very good team and they had a high chance of making in farther into the playoff which generates a ton more revenue for that team. For the 16 teams that make it into the playoff the team is giving $194,000 no matter if they win a game or lose a game. That is not counting all the tickets and merchandise that is sold during the playoffs. Therefore being a better team and making it farther into the playoff you have a huge trade off of a lot more money. The winning team is award 2.3 millions dollars from the NBA, the runner ups are award 1.5 million dollars.
Second factor is the fan base of team or their customers. The bigger name team the better the team is going to do with selling tickets. For a example a team like Cleveland or Goldenstate are going to have a much easier time selling tickets because they are good teams and they also have a huge fan base. Compare to a team like Detroit Pistons who do not have a large fan base. Due to a larger fan base teams are able to raise there prices of the tickets because the fans are willing to pay for them. The average nba ticket is about $177 during the regular season but if the team makes it into the conference finals that raise to $717 per ticket. So the teams that have a large fan base are going to have huge profit compare to a team that going to have to sell their tickets for less because they don't have as a large fan base.
The third factor that play a factor in the NBA playoffs is who the team is playing. This mostly comes into play for a smaller team that don't have as money as superstar players on it. This would be like a teams that are lower seeds in the playoffs, like a 1 seed playing a 8 seed. For teams that are lower seed they still have a great trade off if it means they are going to lose in a couple games. For an example during the regular season when the Golden States Warriors traveled the tickets of the home team tickets were 10 times higher compared to a small team. This is during the regular image what teams do when it's the playoffs.
Lastly this means that the playoff are a huge economic buster for the NBA, the team and the city. There is a lot of money that is spent during the NBA playoffs, from making it into the playoffs to how big the fanbase is and who all wants to go games and is willing to spend that money, and lastly the superstars you get to watch. The playoffs are great for everyone that gets to experience them.
Work Cited
"BALLnROLL - By The Numbers: The Economics Of The NBA Finals."BALLnROLL - By The Numbers: The Economics Of The NBA Finals. N.p., n.d. Web. 03 May 2016.
"NBA Playoffs Bracket." NBA Playoffs Bracket. N.p., 25 Apr. 2016. Web. 03 May 2016.
"NBA Playoff Tickets: Avg Prices By Team." Tipiq. N.p., 20 Apr. 2015. Web. 03 May 2016.
Very good article, The NBA Playoffs are extremely beneficial to our nation because it brings an overwhelming abundance of money. With all the tickets sold, merchandise, betting on certain teams victories it's all growth to our economy. I don't necessarily agree with it because a lot of the money spent is all hyped based so that outrageous gear that you bought to support your top team and then your team loses it might possibly feel like a waste of money. So I personally wouldn't put my money towards the means of a sport, but I can understand why others do and more importantly why the economy heightens during this time of year. Great piece!
ReplyDeleteVery good article, The NBA Playoffs are extremely beneficial to our nation because it brings an overwhelming abundance of money. With all the tickets sold, merchandise, betting on certain teams victories it's all growth to our economy. I don't necessarily agree with it because a lot of the money spent is all hyped based so that outrageous gear that you bought to support your top team and then your team loses it might possibly feel like a waste of money. So I personally wouldn't put my money towards the means of a sport, but I can understand why others do and more importantly why the economy heightens during this time of year. Great piece!
ReplyDeleteJohn this is a very intriguing blog post and I truly enjoyed reading it. I completely agree with you about there being many economic factors that come into play throughout the NBA playoffs. First of all these playoff team generate a boat load of money just by making it to the playoffs and the farther you go, more money is made. For the teams that reach the finals, they have cashed in an extra 100 million or so than the non playoff teams. Because there is this extra money, they are able to put some back into the community and create a bigger fan base. By doing this the NBA gains popularity and just gets bigger and better each year. So by hosting the playoffs and allowing people to watch world wide, the NBA is never going to die and it economic ways will keep increasing.
ReplyDeleteIsn't it amazing how the price of tickets increases so greatly? My family has Packer tickets and when they make it to the playoffs, the ticket price triples in price. That is business, but seems like price gouging to me. Supply and demand sure is evident during playoff time for any sport. I am glad the city has a rise in revenue and tourism. Anything to bring money into your community is a good thing.
ReplyDeleteAlso the fact that the cities make a lot of money off the fans from other cities and states that come to watch their team play make a lot of money off of the hotels and other stores in the city that the fans use while they are in that particular city. Very good article.
ReplyDeleteThis post was very intriguing and interesting. The playoffs can generate almost more money than the regular season does, depending on how far you go. If you get swept in the first round, you obviously wouldn't see the same type or revenue as a team who wen seven games the entire way and won an NBA championship. I didn't know just how much money each team got for their games, so that was something new I learned. The teams lucky enough to have a superstar in the NBA like LeBron James or Russell Westbrook, they often see the most results because their team success is high and they also sell more merchandise. The NBA playoffs definitely had a bigger economic impact than I had thought. Good blog post.
ReplyDeleteThis is a very interesting post, the overall revenue that can be brought in from basically winning more than 50% of the games. It is also a good point to make how the General Managers are also looking forward to the monetary side of the NBA. Being able to win more games equals more money coming into the franchise. For a team like Milwaukee the revenue would be extremely helpful not only for the franchise but also in a tax purpose for all the players that play in the city. #OwnTheFuture #FearTheDeer
ReplyDeleteThe NBA playoffs are where small market teams make a name for themselves. A team like the Pistons will increase their fan base and attendance by making the playoffs. That generates fan happiness and interest which in turn increases ticket sales. The Boston Celtics have grown in popularity again in the last few years due to them making the playoffs twice in a row now. The big names teams may generate more popularity and attendance but they weren't always big name teams and making the playoffs is what made them grow.
ReplyDeleteThe playoffs can generate almost more money than the regular season does, and the playoffs are a much shorter time span. So it just goes to show how important it can be for the teams organization and state with all the revenue making the playoffs generates. I felt that you brought up so good facts about the total revenue a team makes in a single game, and it is good to show and why their is a benefit to having a professional team in your state. With this being said it is important for organizations to be able to a get a superstar in the NBA like LeBron James or Stephen Curry, they often see the most results because their team success is high and they also sell more merchandise. The NBA playoffs definitely had a bigger economic impact than most people think, and that’s why it is important we keep our professional teams in Wisconsin.
ReplyDeleteThe NBA playoffs generate so much money like you said in the points above. We also cannot forget about all the bandwagon fans that as teams get further in the playoffs random people buy their apparel from other cities just for fun. This is the same for all sports playoffs but like all sports playoffs there is one big economic deficit: when they make a bunch of apparel preparing for the winner of the play offs the make a bunch of apparel for both teams that says winner. When obviously there can only be one winner and all the other apparel goes to waste. Usually they donate it to third world countries which is really nice but that's still a money loss.
ReplyDelete-carson Cotterell
It makes sense that the teams that are expected to do better will generate more revenue, since those teams tend to have the larger fanbases and going to see those teams play seems like it would be an overall more rewarding experience.
ReplyDeleteKelin Olson
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