js40
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.

Topic #46559 | Report this topic


Anonymous  
Two years ago

Do you think he would spend all that money on tas if it wasn't profitable?
All the nba talent buying into league are stupid?

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Anonymous  
Two years ago

#125
Yes I think he is stupid. The kings sold 17500 to watch Ball, it was always a one off, the follow up crowd was 9800 so not half empty, bottom tear was full and top tier closed. The nbl has never been better.

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KET  
Two years ago

I don't really get the OP points. It has made me think:

Would it be better if the WNBL was over a different period of months to the NBL?

The sub questions being:

1. Are there basketball fans that don't go to the WNBL because they're already going to an NBL match that weekend? I think part of AFLW success is it does not clash with the AFL.

2. Are there roles replicated in NBL/WNBL that could be serviced without replication if the seasons were over different periods?

Potentially, there could be increase in crowds/sponsorship and decrease in costs.

NBL 1 as a concept is perhaps born on that idea of spreading and reducing costs.

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Anonymous  
Two years ago

Why? What are you talking about?

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anon  
Two years ago

^ The WNBL dont get crowds because its not promoted, not even the radio stations bother reporting on the WNBL, but every time NBL has a game her in Melbourne several radio stations have the results or the pre game announcement on their stations news section throughout the day,the women get zilch. They also dont get main stream TV, one game per week is not going to do much to encourage support of the women's game, BA do nothing , Maley has done nothing to promote the league, Melbourne Boomers promote the hell out of their own club and get the results, now imagine if that same enthusiasm was given to the entire league, then they may end up with decent crowds at every gamer. You can run it at the same time as NBL1 as that would take from that level, which considering how good that was in its first season that would be a really stupid move.
They need to pair WNBL teams with NBL clubs like they have with the AFL/AWFL, run the women's game before the men, shared expenses of better venues, bigger crowds more interest and bigger sponsors, THAT is how you grow a sport.

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Anonymous  
Two years ago

I liked to watch it on the abc, enjoyed it but cuts meant the abc could not broadcast it any more. I always tried to get to a few games but lost interest when I could not get it free to air.
The annoying thing after that is the liberal government gave Foxtel $30 million for women sports but only a very small part population could watch.
I get pissed off with all the net ball that's pumped at us and it’s a game only played in a few countries where basketball is world wide.

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Perthworld  
Two years ago

OP raises some very good points about LK's structuring which could be for the future to help with a potential sale. WNBL not being a part of it is a good move. Last time NBL and WNBL were part of the same umbrella under BA the NBL had to subsidise it. No thanks.

Reply #781148 | Report this post


AussiePride  
Two years ago

Interest in netball kills the WNBL for sponsorship, attendance and TV. NBL doesn't have the same competition in that space and is flourishing.

Solution: All BBall fans must work to undermine and destroy the farce of a sport that is netball so the superior sport rises to the position it deserves!

Reply #781171 | Report this post


js40  
Two years ago

The WNBL doesn't come into the picture here.

The key points are:

1. I've heard from a few people say that the NBL hasn't made a profit since LK took over

2. Some of the clubs are on shaky financial ground - Illawarra might not have made the 2020/21 season if not for LaMelo being on the roster this season

3. Sydney has to win a championship this year. Biggest TV market in the country with tons of talent but fans that will walk without a championship win and at around half capacity every game against the cost of putting on a game and renting the stadium space don't know how profitable they are.

4. All the moves being made look like the setup for a sale.

5. If the sport was really valuable for TV rights then the NBL wouldn't be spreading it around every streaming platform in town, someone would pay to lock up the rights to maximise advertising revenue.

The big question is - if there's a sale, who'll buy the NBL and they won't be buying it to lose money so how will they make a profit?

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robt  
Two years ago

1. Is this the same LK who poured millions into DoDo and sold it for billions?
2. Is DoDo still doing well?
3. Is any-one upset over that sale?

4. Why should this be any different?

5. Only difference may be that we will have a new set of initials to criticise and ridicule.

6. Wonder if the trolling actually increases the value? They say that no publicity is bad! Certainly made LK well known. Who knew of him when he was DoDo?

7. LK will be fixing something else (and undoubtedly, laughing all the way to the bank. Half his f&*cking luck!).

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Anonymous  
Two years ago

How much would the nbl cost? Could delly afford to buy it?

Reply #781181 | Report this post


koberulz  
Two years ago

Nothing is worth big TV money anymore, so I wouldn't read the streaming deals as a problem.

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Anonymous  
Two years ago

Delly will be out of the NBA as early as mid next year. Could he buy the NBL and become the first player/ league owner. Dante Exum could probably afford to buy the NBL too.

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js40  
Two years ago

NBL has just a few revenue streams:

Club licence fees
TV Rights
League Sponsorship
Merchandising

Expenses include:

Broadcast costs for each game
Salaries for all NBL staff/refs and so on
Advertising done by the NBL

If they are currently unable to make a profit as some people say my question is anyone who buys it will pay LK at least equal to what he has put in to date which is purchase price + expenses.

That buyer will want to make a profit. So how do they do that without charging clubs more for franchise fees which will push ticket prices up or slash back office costs which will impact the product?

Not bagging or trolling anyone - just asking some questions

Reply #781252 | Report this post


js40  
Two years ago

NBL has just a few revenue streams:

Club licence fees
TV Rights
League Sponsorship
Merchandising

Expenses include:

Broadcast costs for each game
Salaries for all NBL staff/refs and so on
Advertising done by the NBL

If they are currently unable to make a profit as some people say my question is anyone who buys it will pay LK at least equal to what he has put in to date which is purchase price + expenses.

That buyer will want to make a profit. So how do they do that without charging clubs more for franchise fees which will push ticket prices up or slash back office costs which will impact the product?

Not bagging or trolling anyone - just asking some questions

Reply #781253 | Report this post


Vesta80  
Two years ago

The financial position of the league has and is continuing to improve in all major metrics at a macro level (attendances, quantity of sponsors, media coverage etc).

As a side note, consider the investment from LK's position. He owns or is a director in many companies - check out the LK Group website for a list.

The NBL as a stand alone entity maybe a break-even proposition. However if the NBL is being used as a loss leader for his other businesses and the group as a whole continues to grow, there would be no desire to sell the loss leader.

Without an insight into all his business assets and the cross-promotions it is impossible to gauge the importance of the NBL to the group. In saying that the NBL generates significant awareness, good-will and engagement that would be of significant greater value than the sponsorship of the league.

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krayola  
Two years ago

People commenting on Sydney's crowds surely are not from Sydney. It's a 20,000 seat stadium in the west of the city that would otherwise be empty. They're getting a decent rental rate to use it, don't worry.

A crowd like that in Sydney for a basketball match is actually quite good. I'd worry more about Brisbane and Illawarra's tiny crowds before I worried about Sydney's viability. 17k for the Illawarra game is higher than most or similar to what NSW NRL clubs got to any of their games last year and that is the biggest code in the state.

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KET  
Two years ago

Lol NBL wasn't making a profit before LK, hawks were struggling before LK and nothing outside of AFL NRL Cricket achieve decent broadcast deals.

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Anonymous  
Two years ago

" A crowd like that in Sydney for a basketball match is actually quite good."

Is it good for Sydney with an expensive roster? If their spending has increased then you would expect they are hoping crowds to rise with it.

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Anonymous  
Two years ago

LK is doing a great job with the nbl, the finical position of the league has never been stronger.

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