Rough estimates project a loss of a billion dollars if no more games are played in the 2019/2020 NBA season. That’s why the league is pitching every possible idea and seeing what sticks. The last one we heard of is a one-and-done tournament in Las Vegas. All these are scenarios that will depend on what epidemiologists say is safe or not, but one thing is clear. Teams will lose a lot of money this year either way.
How much money is that? It varies from team to team, as they have different local TV deals, sponsorships deals, arena profits, etc. Word of projected losses would leak out so far with no-one daring to put a number on it. Clippers owner Steve Ballmer went on Bloomberg yesterday and gave at least some reference points.
“Let’s just put it this way. It’ll be eight digits, how’s that? You gotta start with what we were gonna make or lose before the season started. But, netSteve Ballmer, via Bloomberg
net net, it will certainly be an eight-digit loss for us.”
Ballmer pointed out several times he was fortunate to acquire great wealth in his life and feels it is his responsibility to make sure all Clippers employees and partners are taken care of. That’s why the Clippers are owning up to all deals arranged for this season, including the playoffs.
“We’re are being diligent about continuing to pay our employees. Especially for the smaller vendors, we’re fortunate; we’re deep-pocketed, we’re trying to take care of our smaller vendors. We had a t-shirt vendor we had a $100,000 committed to for playoff t-shirts. I think it’s important we pay that money, put it down now, and see what can happen over time.”Steve Ballmer, via Bloomberg
Most of the world’s economy basically stopped, and everyone will take a hit. It’s great to see examples of people who take on a lot of the burden because they know less fortunate can’t.