If you are Sydney, 90%

Good point mystro. They are putting on quite a game night that must be costing them.

Salary Cap does not include Coaches, admin staff, support staff.
To have a guess
Coaches 250K
Admin/Office 350K
Support staff 80K

Thats 680K

Then venue hire 200K
Plus Salary Cap 1000K

Plus travel, accommodation , marketing blah blah

My stab would be 2.5 mil to run a team

You are also forgetting sponsorship for income

are they selling any merchandise? that must bring something in..

from good authority 2.5m if you are the hawks to over 3.5 if you are perth

Can't see how merchandise would be all that lucrative once you factor in costs of production and other hassles.

Thanks ITK - I just thought about coaches also.

I counted merhcandise and marketing as an operating cost so I was extreme under assuming all these costs.

I did not include sponsorship as I wanted to see how much sponsorship as team needs to break even.

Questions

What would be the percentage of game night expenses?

What would be the percentage of operating expenses?

And by other accounts if it cost 2.5 to 3.5 to run a team then the ownership must find around 1.5Mil in sponsorship to break even.

Sorry that should be

And by other accounts if it cost 2.5 to 3.5 to run a team then the ownership must find around 500K to 1.5Mil in sponsorship to break even.

Flinders,
I think you are close at your last comment
"ownership must find around 500K to 1.5Mil in sponsorship to break even"
I am very sure they will not pull those sort of figures.
I heard somewhere that all the clubs were down last year between 300K and 800K
All adds up!

dont forget about the team doctors, physios etc. not to mention continuous medical supplies that players need.

I also wondered if NBL teams get any slice of the ONEhd pie. Or does that all go to the NBL.

SRT I figured those cost would also be part of the operating costs.

I guess where this is going is wondering why business man go into owning a team unless their pockets are extremely deep.

and hence why ticket prices need to be up that high

well thats the question flinders. Some because they love the sport and the team which is the impression i get from SOS and the belief that if they get the team back to winning that they can turn over a profit.

others with really deep pockets use it as a tax write off.

Income =
- Games Nights = $1,960,000 (based on 28 Games, 3500 Attendance and $20 tickets)
- Sponsorship = ?
- Media = ?
- Merchandice = ?

Expesnes = $3,000,000
- Salary Cap = $1,000,000
- Operating = $2,000,000

Need to find an extra $1,000,000 each year. Wow love of the sport = yes, deep pockets = better have.

Flinders, remember to only count home games.

wow - what a massive floor in my assumption. Cheers Isaac, now I'm massively confused why smart business man buy teams

what a fail - haha

Flinders, put your theory into practice and buy a team and let us know how it goes :P

Massive "flaw". Save the massive floors for the Dome. ;)

People buy in because they like the sport, think they can make it work (some right, some wrong) and are the type that can't stand back from a challenge.

Some expenses may be partly covered by contra-sponsorship deals. These are pretty common in basketball.

Corporate seating and boxes would bring in a bit (where they are not contra arrangements).

What about the corporate boxes ? I am sure they would bring in way above $20 per person assuming the rest of the crowd average is at $20

Crocs (and most other teams) have to rent the stadium - Adelaide dont do they???

Anyway i believe we have to pay about $20k per night for rent at the TECC

i think when i was reading up in the brochure one of the sponsor boxes up on the north side is 10k a year (correct me if im wrong). that does include free beer and some food i believe??

yeah the nbl would sell the tv rights to media ie onehd. in the case of the nba they would get money from selling it to espn or whoever sells it but would also sell its games overseas ( as in onehd would pay to screen so many games etc. ).

then the nbl would give each team a share of the revenue, that would be negotiated at some point but is likely to be fairly low. the afl broadcast rights sold for 780million for 5 years but i believe that teams get something like 3million a year of that (maybe works out to 240m over the deal to all teams).

DJ Rod, Sixers do pay rent for the stadium. this was the issue when Eddie groves was going bankrupt is that people didnt know if we would still be playing there but a deal was struck between the bank and the sixers i believe, However the sixers were looking to buy it but didnt have the funds. That would have been rent free.

Corporate boxes are closer to $20k. Doubt they include food/drink which is probably on consumption.

I have often wondered why owners bothers all the fuss to own a sport team, everytime thinking about it I have more respect for them. but in a way I guess it's a great way to boost their ego.

I don't think teams would get a cut of TV money, could be wrong but I think it's unlikely. Most of the money is made from playoff games. Regular seasons are built to help break even and post season to try make some money back. for some teams like Tigers there's only like 2500 capacity?

For Adelaide too, don't forget the inclusion of the Hollywood Seating as well (few clubs do this now).

If all the seats sell out, there's about $5000 from those seats alone.

Keep in mind the following too:

Platinum Ticket - Car Park Pass = $620 per season / 15 Games = $41.00 per game for Platinum ticket.

If you can sell 200+ Platinum tickts, that's about $8200 per game for the Platium tickets. So there's around 13-14k per game in the higher rollers. Now add your remaining season tickets (Gold + Silver) to that to get a guaranteed total each game.

Now add the general admission tickets at $20 per game for the remaining seats. You'll find that's a hell of a lot and would cover the cost of renting the stadium, food and other misc items.

Do you need to factor in the $1m bank guarantee to costs? Only if you go belly up I guess...

Marty, might be wrong, but I doubt they sell (m)any of those Hollywood Seats. I'd guess they are used as prizes and the like.

36ers also get hit up about 80k by council to use the car park

If your Brian Goorjian you need to remember to factor in the suppliment budget. From all reports it's a killer.

Flinders, don't buy a team, you can't spell, let alone count.wow - what a massive floor in my assumption Did yo mean "flaw".

you - that crappy keyboard again.

EC, sorry, but had to laugh!

Isaac, please don't use 'and the like', I thought for a second you were Camel 31!

What does 'and the like' even mean?

If you mean it, just say it!

Teams like the Breakers also have the cost of running their training facility and it's cafe for players and staff and their families ect.

doc, I have a very short attention span and start writing the next post before I've finished the previous one. "And the like" is code for "too lazy to write the rest of the list so you work it out" - means "more of the same."

In this case, prizes, incentives, gifts, celebrity treats - all about perceived value.

---

'874 is correct. Corp suite is $26k sans food/bev. Then there is corporate seating courtside as well. I think season ticket in row 3-4 is about $600-800ish. Remember that some portion will be contra though or purchased with sponsorship.

kb3's figures are pretty close to the estimates I have heard. I think Breakers are higher than Perth though with academy, training facility etc.