The economic future of the NBA

[RaptorsVictim]

We can all see that inflation is hitting so hard all over the world. Some economists predict a major depression by 2025, others expect a total collapse in the world economy and they have many solid proofs to support it. There is a major real state bubble all over the world and the financial sector is the only sector in the world that is making a steady profit amid this chaos.

How will this economic turmoil affect the NBA ?

[MixxAOR]

I'll be more worried about my economic future

[Kagemusha]

I'll be more worried about my economic future

Pretty sure games will be cancelled when SHTF.

[DanH]

Economy collapses, multiple nukes go off, we're living in a Mad Max wasteland where fuel and food are worth more than gold, and worst of all...

The Raptors find themselves way over the tax line after the cap decreases instead of increasing by the expected 10% per year.

[Kagemusha]

Economy collapses, multiple nukes go off, we're living in a Mad Max wasteland where fuel and food are worth more than gold, and worst of all...

The Raptors find themselves way over the tax line after the cap decreases instead of increasing by the expected 10% per year.

watch party in your bunker?

[Apollo]

We can all see that inflation is hitting so hard all over the world. Some economists predict a major depression by 2025, others expect a total collapse in the world economy and they have many solid proofs to support it. There is a major real state bubble all over the world and the financial sector is the only sector in the world that is making a steady profit amid this chaos.

How will this economic turmoil affect the NBA ?

People have been saying this same thing for like 20 years. Billionaires rarely lose and they own the NBA.

[Primer]

People have been saying this same thing for like 20 years. Billionaires rarely lose and they own the NBA.

Yep. They got the TV deal done they're all guaranteed to rake it in. Selling tickets is just a bonus and they're converting most arenas to be more luxury boxes as well, those will sell even if the common man is struggling.

[grindhouse]

We can all see that inflation is hitting so hard all over the world. Some economists predict a major depression by 2025, others expect a total collapse in the world economy and they have many solid proofs to support it. There is a major real state bubble all over the world and the financial sector is the only sector in the world that is making a steady profit amid this chaos.

How will this economic turmoil affect the NBA ?

entertainment is one of things that will survive, israel war is not sustainable. japan had a bouce back today but that was a serious scare for them. renewables is the future and it will take a market crash to force adaptation. clearly the US is all talk on climate change otherwise they wouldnt had placed tarriffs on china ev’s.

the problem the nba has is its watered down version of basketball but as long as they making money nothing will change. eventually this will turn into a system that is about quick turnover as profit margins shrink

[The Claw Reborn]

We can all see that inflation is hitting so hard all over the world. Some economists predict a major depression by 2025, others expect a total collapse in the world economy and they have many solid proofs to support it. There is a major real state bubble all over the world and the financial sector is the only sector in the world that is making a steady profit amid this chaos.

How will this economic turmoil affect the NBA ?

Fans would still consume the product. Like people come in droves to watch the Olympics, as many venues they could get in and watch every sport they can attend to support the nations they are from. Poor people will stay poor. Rich individuals and those who can afford will drive the economy.

[golden]

The NBA is doing just fine economically. The massive financial gains they are making are at the expense of Hollywood content creators. This article explains it well...

https://www.hollywoodreporter.com/bu...ls-1235962457/

The NBA’s blockbuster $76 billion megadeals with Disney, NBCUniversal and Amazon Prime are a testament to its product, and the unrivaled reach and power of live sports. And the deals should also send shivers down the spines of almost everyone in Hollywood outside the network executive suites.

While the 11-year agreements are seen as a critical strategic maneuver by the media companies looking to build streaming business and are a financial boon for the league, they are also, in the words of one veteran media executive who declined to be named, the latest example of a “transfer of wealth from Hollywood to the sports leagues.”

Across the world of entertainment, sports appear to be eating up more of the overall budget. Disney said that it expects to spend $25 billion on content this year, down from $27 billion in 2023. Forty percent of its content budget is dedicated to sports and sports-adjacent programming.

“There’s less money overall, and more of that money is being allocated toward sports,” says Jonathan Miller, a former NBA executive who serves as CEO of Integrated Media, which specializes in digital media investments. “The sports audience is a more or less a guaranteed audience: predictable, you can sell against it, you kind of know where it’s going to fall within ranges.”

[RaptorsVictim]

Fans would still consume the product. Like people come in droves to watch the Olympics, as many venues they could get in and watch every sport they can attend to support the nations they are from. Poor people will stay poor. Rich individuals and those who can afford will drive the economy.

I do not think so, When the economy suffers, every sector will have its share of suffering. Sooner or later, the NBA will be affected by the economic crisis sweeping the whole world right now.

[slaw]

I do not think so, When the economy suffers, every sector will have its share of suffering. Sooner or later, the NBA will be affected by the economic crisis sweeping the whole world right now.

The guaranteed media rights deals largely insulate leagues like the NFL and NBA from major downturns, though, the idea there is no impact at all is foolish. Leagues like the NHL and MLB teams are more sensitive. Ultimately, the question will be whether these enormous media rights deals are worth it for the buyers and whether they can keep increasing exponentially to infinity (the spoiler answer is no, they will not increase exponentially for infinity) and what happens when the brakes go on.

[Primer]

The guaranteed media rights deals largely insulate leagues like the NFL and NBA from major downturns, though, the idea there is no impact at all is foolish. Leagues like the NHL and MLB teams are more sensitive. Ultimately, the question will be whether these enormous media rights deals are worth it for the buyers and whether they can keep increasing exponentially to infinity (the spoiler answer is no, they will not increase exponentially for infinity) and what happens when the brakes go on.

They don't need media rights to increase exponentially or to infinity, they just need go keep going up in value, and I think it's safe to assume they will continue to go up in value.

[golden]

They don't need media rights to increase exponentially or to infinity, they just need go keep going up in value, and I think it's safe to assume they will continue to go up in value.

Yeah, the article makes it pretty clear: live sports is becoming increasingly more valuable to advertisers, because of the predictability of time & audience. Produced content, which is consumed on-demand, is losing out big time. I don't see this trend slowing down anytime soon. Of course there is an upper limit to everything, although the NBA hasn't maxed out their market globally, so there's still that to work through.

[SkywalkerAC]

The American economy, though not without its warts, is the envy of the world. People were prognosticating recessesion since 2021 and it never came, in spite of rising rates. Air has already been let out of the can/USA housing bubbles, and the Fed now how plenty of room to drop rates and avoid recession.

Don’t panac! (Yes, this is an intentional typo - a little inside, I know)