In this article it is talking about how some NBA teams are losing a lot of money, and need to cut back. The NBA is going above and beyond trying to please fans anywhere from fancy season ticket packages to paper Christmas cards. The NBA, when trying to please fans, is spending too much money. They are putting out more than they are bringing in. In doing this they are having financial problems, and are even considering dropping players.
To cut back, teams have been doing different things. One team allows a young boys basketball team to entertain the fans during half time. When letting the boys entertain the fans, even some of their parents are buying tickets to watch the boys perform. So when the boys entertain pro-bono, they also bring money in from the parents. The Cleveland Cavaliers are switching from paper Christmas cards to electronic ones, and this will save the Cavaliers $40,000. Also, the Denver Nuggets have eliminated free cell phone texting for employees.
Some of these cutbacks can hurt the team. The fans may not like the way the team does things after making cutbacks. Also, the usual player amount is 15. If they eliminate 1-2 players some players may get fatigue, and the most valued players will not get as many breaks or free time.
The teams make most of their money through TV contracts. The other money comes from the arena, through ticket sales, luxury suites, in stadium advertising, selling merchandise, local advertising and sponsorships, and local TV and radio broadcasting deals. I think they are doing the right things but they need to cut back on the things that don’t matter. For example, it doesn’t matter if you send your fans a paper Christmas card to their home or an electronic Christmas card to their computer. It is the thought that counts.