The league of the United States moves billions. However, the coronavirus outbreak put this money-making machine in the freezer
The world of sports is shocked: the NBA announced Wednesday that he is temporarily suspending the season after a Utah Jazz player, whom he did not identify – but who was revealed to be Rudy Gobert – tested positive for coronavirus.
“The NBA suspends the season after tonight’s games, “the agency said in a statement.
“A Utah Jazz player has preliminarily tested positive for COVID-19. The test result was released shortly before the start of tonight’s game between Jazz and Oklahoma City,” said the NBA, who said the player was not present at the game.
“The NBA will use this break to determine the next steps to take regarding the coronavirus pandemic.“, he pointed.
According to the report of casualties of the NBA, Two Utah Jazz players were not going to participate in this game due to “illness”: French center Rudy Gobert and Congolese-born baseman Emmanuel Mudiay.
How many dollars are lost?
The National Basketball Association (NBA) is one of the pioneering entities in making gaming a great business.
Each of the franchises that represent a city has a certain value, made up of the prestige of the brand, facilities and players on the squad, among other variables. Therefore, it is not strange that the teams change owners and even in some circumstances, a little less usual, some change cities.
NBA franchises have an average value of $ 1.9 billion. It is estimated that in the last year, all have increased their value by an average of 13%. This has to do with individual issues of each team, but also with the collective growth of the NBA and its foray into new markets, such as Asia where the popularity of basketball grows day by day, an issue that had a particular boom with the World Cup this year.
The most valuable franchise in the best league in the world, remains, despite its poor sports results, New York Knicks. Despite having been the team with the worst record the previous season and not being champion 46 years ago, based on the historical prestige and the roots and tradition that link the franchise with the city, its value is $ 4. 000 million.
Certain arrangements, aimed at modernizing the legendary Madison Square Garden, have increased its value by approximately 11% compared to last year. They are followed by the Los Angeles Lakers and Golden State Warriors, with a value of $ 3.7 billion and $ 3.5 billion.
The league itself has a large number of sponsors. The most important companies in the world have agreements with the NBA, from Nike to Gatorade, the State Farm insurer or KIA Motors. Following all these contributions, The league was going to take over advertising, in the 2019-2020 season, more than $ 1.5 billion. However, the suspension will alter those figures.
Starting in the 2017-2018 season, the association first authorized teams to wear advertising on their jersey. Based on an agreement with Nike, to make it the brand of the shirt for all the teams, franchises were also given the possibility of adding the logo of a company, in small dimensions, in the upper left to their uniforms. , on the opposite side to the logo of the sportswear brand.
Back then, the most important contract was signed by Golden State Warriors with the company Rakuten, one of the largest online store in Japan that was looking to land in the United States and paid the Oakland team $ 20 million for the season.
For 2019-2020 the NBA was going to move $ 1.9 billion just for advertising
NBA: astronomical wages
The league has what is known as a “salary cap”, a figure of which franchises cannot exceed the sum of the salaries of all its players. For 2019 that figure was u $ s109.14 million. That team that exceeded this amount, had to pay a luxury tax that amounts to US $ 132.62 million.
This huge sum means that most franchises take care not to go over the top and as a result, there is always a competitive parity. On the other hand, also in the search to maintain a high average level, there is a minimum wage, which in this case will be $ 98,226,000.
In 2019, according to Forbes magazine, Lebron James was the player who made the most money between his salary and his sponsorship contracts. If the analysis were limited only to the salary part, the current Los Angeles Lakers player would be surpassed by Stephen Curry, but in terms of sponsors James is unmatched. He received a total of $ 88.7 million for the entire year, $ 35.7 million in salary and $ 53 million for sponsors.
Among the most notable contracts during the past year were the arrival of Kevin Durant to the Brooklyn Nets, with a contract of $ 164 million for four seasons, that of Tobias Harris to Philadelphia 76ers for five seasons in exchange for $ 180 million and the Jimmy Buttler to the Miami Heat for $ 142 million to pay over four seasons.
The average amount of money offered to players who participated in free agency was $ 58 million.
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