Despite On-Court Woes, Lakers Are Most Profitable NBA Team For '13-14 Season
The Lakers last season were the "most profitable franchise in the NBA -- by a large margin," according to an NBA memo cited by Eric Pincus of the L.A. TIMES. A memo distributed to teams by the league projects the Lakers will earn a profit of $158.3M from the '13-14 season, "before tax and revenue sharing." The Bulls were second on the list, earning "less than half that amount" at $75.7M. The Clippers were seventh at $30.4M, while the Nets were the "least profitable" with a loss of $51.5M. The Lakers also will pay $8.7M in luxury taxes and contribute $49.6M to NBA revenue sharing, "reducing their profits" to $100.1M. The Grizzlies will "receive a league-high" $23.1M in revenue sharing, followed by the Hornets at $22M. There are 21 teams that "project to finish with a positive cash flow, up from 17 before taxes and revenue sharing" (L.A. TIMES, 7/6). GRANTLAND's Zach Lowe reported the NBA's revenue sharing is "complex, with payouts and contributions tied to all sorts of variables -- market size, profitability, earnings benchmarks, and other stuff." The Lakers and Knicks are among the teams that "play in markets so large they are disqualified from ever receiving revenue-sharing payouts." The Knicks are "expected to take a net loss for the season" of around $3.5M, but they are still "insanely profitable." They made $58M "on their own, and will 'lose money' only because of their huge revenue-sharing contribution" of nearly $27M and the "giant tax bill they paid for a lottery roster" (GRANTLAND.com, 6/30).