Milwaukee Bucks among 9 NBA teams that lost money last season, ESPN says
James B. NelsonThe Milwaukee Bucks are one of nine teams that lost money last season even after receiving revenue sharing payouts from other teams, a new report by ESPN says.
The report, based on confidential NBA financial records, did not provide specific figures about the Bucks finances. The Bucks declined to comment on the report.
"There's a humongous difference between the haves and have nots in the NBA," said ESPN reporter Brian Windhorst in a video interview posted with the story.
The report said the Los Angeles Lakers finished the season with a $115 million profit, even after paying out $49 million to help smaller market teams.
Meanwhile, the Detroit Pistons lost $63.2 million before receiving $17.6 million in revenue sharing.
The Brooklyn Nets finished with a $44.3 million loss after revenue sharing, the report said. That loss, however, doesn't account for money made from the Barclay's Center, which the team's parent owns, the report said.
The report shows that the NBA's $24 billion television deal "is not a panacea," Windhorst said. "It does not create parity."
The report includes some startling figures about the bottom lines for NBA teams.
- Fourteen teams, including the Bucks, lost money last season before receiving revenue sharing tied to the TV deal.
- Nine lost money even after receiving the payments. In addition to the Bucks, those teams are the Atlanta Hawks, Brooklyn Nets, Cleveland Cavaliers, Detroit Pistons, Memphis Grizzlies, Orlando Magic, San Antonio Spurs and Washington Wizards.
- The Pistons' $63.2 million loss was "the largest loss by a wide margin, despite being one of the NBA's larger markets," ESPN said.
- The Bucks are among five teams that have received at least $15 million in each of the past four seasons. The other teams are Memphis, Charlotte, Indiana and Utah.
The profitability gap will be discussed by NBA owners at their annual meeting next week in New York, ESPN said.
The report said the Grizzlies lost nearly $40 million, in part because the team had a league-low $9.4 million in local media rights. Their losses were offset by $32 million in revenue sharing, the most in the league.
The Milwaukee Bucks' bottom line is sure to improve once they move into their new $526 million arena, under construction just north of their present home, the BMO Harris Bradley Center. The Bucks will run the arena and retain the profits from concessions, parking and other events such as concerts.
Scheduled to open in the fall of 2018, the arena is being built with $250 million in public money.