14 of the 30 NBA teams reported that they lost money in the 2016-17 season and after factoring in revenue sharing, nine teams were still in the red, according to league financial documents obtained by ESPN’s Brian Windhorst and Zach Lowe.
The 14 teams that reported a loss last season include the Atlanta Hawks, Brooklyn Nets, Charlotte Hornets, Detroit Pistons, Indiana Pacers, Memphis Grizzlies, Milwaukee Bucks, Minnesota Timberwolves, New Orleans Pelicans, Orlando Magic, Phoenix Suns, Portland Trail Blazers, Sacramento Kings and Washington Wizards.
After factoring in revenue sharing and luxury tax payments, the Bucks, Grizzlies, Hawks, Magic, Nets, Pistons and Wizards all reported losses, as well as Cleveland Cavaliers and San Antonio Spurs.
Per JSOnline,
- 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 payouts in each of the past four seasons. The other teams are Memphis, Charlotte, Indiana and Utah.
According to ESPN, several ideas to fix this issue have been tossed around, including one owner suggesting expansion, noting that the 30 teams would split a massive expansion fee and not have to share it with players. Another owner reportedly suggested struggling small-market teams should move to bigger markets.
ESPN reports that the profitability gap will be one of the main topics discussed by NBA owners at their annual meeting next week in New York. You can read the full report here.
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