Jack Toft
Years ago

Cost of running an NBL Club

With the poor financial record of some NBL clubs, I am wondering just how much it actually costs to operate a club and therefore what revenue is required to maintain the club in a healthy position.

I would expect the major costs are:
* Player salaries
* Coaching and medical staff
* Transport and accomodation
* Club Administration
* NBL fees
* Court Hire arrangements
* Singlet laundry etc

Overall, I would envisage that the budget would be in the order of around $5M/yr.

Would that be a fair cost?

Topic #18208 | Report this topic


HotRod  
Years ago

Don't forget the hidden costs like superannuation for all employees, holiday and sick leave for non-contract ('permanent') employees, prob company tax, advertising and promotion (which to me is on top of 'adminstration').

Reply #214107 | Report this post


Isaac  
Years ago

I would guess that it's less than what you've suggested. Maybe more like $2-3m for a club abiding by the cap, depending on the costs of hiring a venue, how many admin staff they have, etc.

Reply #214109 | Report this post


Kent Brockman  
Years ago

Jack i reckon you are about double what it is

Salary Cap is $800,000 ish even if you double that it is still only $1.6 mill and that would cover all staff wages.

Travel is equalised out amongst all the clubs, promotion would be all contra with the radio , tv whoever concerned

Reply #214110 | Report this post


Jack Toft  
Years ago

I suppose if you got the media on board, then advertising and promotion would be right down.

Sounds like $3M for a "budget" club, and possibly $10M for a big club. Still outside the range of my chequebook.

What would the deal be with the NBL? Is there an annual fee per club, or does the NBL distribute excess funds to clubs based on profits from global merchandising, TV rights etc ala the AFL. With the AFL, they seem to control the direction of the sport and then pay each club a "dividend". The Crows are owned by SANFL and distribute their profits to the nine SANFL clubs at the end of the season.

Reply #214124 | Report this post


Isaac  
Years ago

Still think you're miles off. Think 1.5-2m for a budget club, and 2-4 for one of the others. Very much doubt any NBL club is spending anywhere near 6m let alone 10m!

Look at the Tigers for example - might spend up to 2.5m on roster/coaching/support, but their admin is skeletal and they barely advertise at all. Their admin is shared out of Seamus' primary business - when I visited some years back, it seemed to be 2-3 rooms and a couple of staff besides Seamus himself. Quite shrewd.

Doubt there's any "global merchandising" to speak of in the NBL or that any TV money filters back to clubs at this point (if the league gets anything at all right now). There'd probably be some sort of annual dues and travel pool from clubs to the league though. I don't think, currently, that it'd be excessive though.

Reply #214125 | Report this post


Jack Toft  
Years ago

$3M seems a little low, but if that is the cost of running a club then let's take it as that.

Reply #214132 | Report this post


Money bag$  
Years ago

Question: What is the cost of running an NBL club?

Answer: $1.00 more than most of the owners currently have.

Reply #214134 | Report this post


Isaac  
Years ago

Jack, what makes you think it would be higher? Main costs are going to be salaries of players, coaches and support staff. You can probably guess at a general range for most of those. The rest are not quite as high - training court, game night venue, flights/accomm/per-diem, etc.

You might think flights/accomm is going to be huge, but some basic calculations:

15 road games, 12-15 people. $1,000pp or so would likely average out and cover (considering multi-game road trips, shorter trips balancing longer ones, bulk deals with corporate partners, players sharing rooms, etc) flight, accommodation and their per-diem payment per game. Might be about $200k for a season.

Reply #214139 | Report this post


RG  
Years ago

Following the debacle of Sydney Spirit, I think the first "n" in the title of this thread should actually be an "i"!

Reply #214143 | Report this post


ballerbands  
Years ago

well said RG!!!

Reply #214144 | Report this post


Number 44  
Years ago

36ers expenses vary from around 2.5m to 3m per year.

Reply #214182 | Report this post




You need to be a registered user to post from this location. Register here.



Close ads
Serio: Tourism photography and videography
Little Streaks - The fun and interactive good-habits app designed especially for kids.

Advertise on Hoops to a very focused, local and sports-keen audience. Email for rates and options.

Recent Posts



.


An Australian basketball forum covering NBL, WNBL, ABL, Juniors plus NBA, WNBA, NZ, Europe, etc | Forum time is: 4:07 pm, Fri 26 Apr 2024 | Posts: 968,026 | Last 7 days: 754