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How Do NBA Franchises Spend Their Revenue? Team Executives Reveal Financial Info

Related Topics: Franchising, Revenue

As in most pro sports, NBA teams make their money from a combination of ticket sales, suite sales, naming rights and local TV and radio deals, as well as leaguewide media, merchandising and sponsorship revenues. But how do these franchises spend their revenue?

On the condition of anonymity, executives from several NBA teams shared financial information with SI. What emerges is a Tale of Two Entities: large market teams and small market teams. Suffice to say, the balance sheets for the Lakers, Knicks, Bulls and Warriors look nothing like those of the Pacers, Grizzlies, Jazz and Magic.

And just as teams are constructed differently on the court, business models vary greatly among franchises.