Two years ago
Is the NBL going to be sold?
There's a lot going on at the NBL.
SEABL is dead. NBL1 is looks like it’s going to push to be a second tier national competition.
The league does its own production and they really did that at the lowest possible cost and I’ve heard they ask photographers to sign away the rights to all their content.
LaMelo went to Illawarra of all places and just as well because they were using a financial Iron Lung to say alive. If he didn’t go it was a real question about how long they would have survived.
An NBL championship win by Sydney will help boost their audiences and they need it. When LaMelo came to town it was a full house and awesome game. The following week Qudos arena was half empty - so people come to see soon to be and recently retired NBA players - not so much for the local talent.
An expansion team in Tasmania is coming. The NBL is everywhere but still isn’t making a profit - they make lots of cash but they're spending a lot to generate that income. A lot of people have said the NBL isn't making a profit so how do you turn that around?
To sell an unprofitable business you take your fixed costs like back office salaries and administration and spread them out.
So if it costs a million a year in salaries to run the NBL you can magically make it half a million a year by saying $500K is for NBL and the other $500K are for NBL1. I mean you're paying these people for a full year but the NBL only runs for 6 months so rather than the NBL wearing the annual cost of salaries they can split it over two competitions.
In practice nothing really changes because they're really doing the same thing except over two competitions.
Suddenly, on paper, the numbers start to look very different helping to make it attractive to sell to someone especially if you’re charging associations more to be part of NBL1 than they were being charged by BA to be in SEABL.
Non-Sports businesses do this all the time.
The bad news is when someone buys a company they cut costs and increase prices to make their money back as fast as they can. That would mean spending less on the sport and increasing fees to be part of the competition.