The Cost of Running a NBA Basketball Team

A. Definition of a NBA team

A NBA team is an outstanding men’s professional basketball team playing in a league that is overseen by National Governing Body for basketball in the United States, as well as from Canada.

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B. Number and names of NBA teams

The NBA is made up of thirty teams; twenty nine coming from the United States while an additional teams streaming from Canada (Phelps, Bourret, and Walters 14).

These teams include; New Jersey Nets, Boston Celtics, Philadelphia 76ers, New York Knicks, Toronto Raptors, Chicago Bulls, Cleveland Cavaliers, Detroit Pistons, Indiana Pacers, Milwaukee Bucks, Atlanta Hawks, Charlotte Bobcats, Miami Heat, Orlando Magic, Washington Wizards, Denver Nuggets, Minnesota Timberwolves, Oklahoma City Thunder, Portland Trail Blazers, Utah Jazz, Golden State Warriors, Los Angeles Clippers, Los Angeles Lakers, Phoenix Suns, Sacramento Kings, Dallas Mavericks, Houston Rockets, Memphis Grizzlies, New Orleans Hornets, and San Antonio Spurs (Rosner 67).

II. Purchase of a NBA team

A. Cost of a successful team

Among the most leading-successful and valuable teams in the NBA includes; New York Knicks (Forbes.com). The net worth for those aspiring to purchase the club could cost them an estimated value of $655 million, as of the season ending 2009/2010. This estimated value as quoted by Forbes, is derived from a breakdown of various aspects such as;

Sport which contribute 19% of the total worth ($117 million)

Stadium which contribute 28% of the total worth ($185 million)

Market which contribute 43% of the total worth ($282 million)

Brand management, which contribute 10% of the total worth ($71 million)

B. Cost of an unsuccessful team

Milwaukee Bucks NBA team appeared to be least valued, which was relatively related to its success profile. The estimates postulated by Forbes as of the season ending 2009/2010 puts an estimated worth of $258 million on the team. The estimated value is derived from a breakdown of various aspects such as;

Sport which contribute 52% of the total worth ($134 million)

Stadium which contribute 16% of the total worth ($40 million)

Market which contribute 24% of the total worth ($63 million)

Brand management, which contribute 8% of the total worth ($21 million)

III. Operation expenses

Some of the operating costs for most NBA teams as calculated in the Forbes report 2010 have shown a significant uniformity in the improvement, as almost all teams have similar plunges. For example, if one reflects on the New York Knicks team, their proceeds shot up and their operating cost drifted downwards.

Consequently, they had the benefit of an enormous jig in 2010 to the tune of $64 million in operating income ($43 million in excess of in 2009) (Sherman 8). That boost creates instinctive good judgment. In relation, to some of the expenses incurred by New York Knicks, such as in uniforms, transportation, licensing, among other expenses are summed in Table.1.

Table.1 showing annual operation cost on selected activities by New York Knicks for the season ending 2010/11 (Million dollars)

Type of ExpenseValue in U.S dollars
Uniform$ 4.7 million
Licenses$0.2 million
transportation of players$2.4 million
food and nutrition$3.1 million
athletic trainers expenses$4.4 million
medical team costs$2.4 million

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