The 2010 NBA finals is an exciting and frustrating time for fans, players and owners. Some fans will be happy their team made it to the finals. Others will be wondering what their team can do to improve next year. For the owners and players it is an exciting time as well. After all, this is a professional sport and a lot of money is at stake for owners, players and anyone else with a financial interest in the game.
In Pictures: Top 5 Most Hair-Raising Contracts
A look at the numbers will provide some insight on the game and what it means to interested parties.
By The Numbers
- $607 million: The value Forbes magazine set for the Los Angeles Lakers after winning the NBA championship in 2009. The New York Knicks came in second ($586 million), followed by the Chicago Bulls ($511 million), the Detroit Pistons ($479 million) and the Cleveland Cavaliers ($476 million). (Find out how money plays a part in the world of baseball. Read Money Can't Buy Happiness, But What About World Series Championships?)
- $91,377,313: The payroll for the Lakers for the 2009-2010 season. The Dallas Mavericks come in second at $86.9 million followed by the Boston Celtics ($86.5 million), the New York Knicks ($85.1 million) and then the Cleveland Cavaliers ($84.5 million). The Mavericks, Knicks and Cavaliers all failed to make it to the conference finals in 2010. Does a high payroll create more value for the owner? The table below compares team payrolls and the top 10 and bottom 10 teams by value as determined by Forbes. Eyeballing the list there is a correlation that the higher your payroll the better valuation you receive. It's unclear if the Clippers raised their payroll to the Lakers level they would see their valuation rise. Winning would go a long way to making a difference.
|Team||Value (Millions)||2009-2010 Payroll (Millions)||Ratio|
|Bottom 10 by Team Value|
- $23,239,561: Tracy McGrady's New York Knicks salary for the 2009-2010 season, making him the league's highest paid player. Kobe Bryant of the LA Lakers came in second at $23.0 million. (Learn about undervalued sports contracts in Financial Pro Sports Steals.)
- $51.1 million: The most operating income for an NBA franchise, by you guessed it, the Lakers. The Chicago Bulls produced $51.0 million followed by the Detroit Pistons with $46.9 million.
- 17: Most championships by an NBA team. The Boston Celtics have won 17 championships followed closely by the Minneapolis/Los Angeles Lakers, who have won 15 NBA championships. As of the writing of this article, the Celtics and the Lakers were playing for a spot in the 2010 finals.
- 2 of 3: Two of the top three teams in total payrolls have won the most championships, indicating that high salaries do contribute to on-the-court success.
Like any business, some NBA teams always are on top while others lag. As any sports fanatic knows there are many numbers that offer additional insight. Following the numbers distinguishes the best from the also ran. Just remember to enjoy the game.
Get a rundown of the latest financial news in this week's Water Cooler Finance: Buffett Buzz, Toxic CDOs And Facebook Privacy.
Investing NewsA ceo can seem to have it all: power, influence and gravitas. But it can all erode — along with a company’s share price — in the wake of a scandal.
Personal FinanceWhich companies are jumping on the growing athleisure wear trend and how can investors start getting in on this?
Personal FinanceCleats, pads and profits: we take a look at the top 10 most valuable sports teams in the world.
Fundamental AnalysisPart of fantasy sports’ success lies in one-day and week-long contests serving as an alternative to season-long games. FanDuel, a leader in this space, has recently surpassed a $1 billion valuation.
Personal FinanceThe popularity of golf peaked in 2003. To regain popularity and survive, the industry is adapting to appeal to a younger generation of players.
Stock AnalysisOther than style, do sneakers from any maker really differ that much? That's debatable. But this is certain: Nike sets the standard for selling an image.
EntrepreneurshipWhat does Nike's recent eight-year contract partnership with the NBA entail for its largest competitor Under Armor?
Personal FinanceThe National Basketball Association has moved past Major League Baseball to represent the second most popular sport in the United States. How does the NBA make money?
EconomicsDrawing interest domestically and abroad, the NBA has seen its popularity and revenue streams rapidly increase over the past few years.
Personal FinanceWith such a dominant presence in sports as demonstrated through substantial ratings and a firm online presence, some may consider ESPN a sports monopoly.
The takeover of Manchester United by the Glazer family beginning in 2005 saddled the historic club with substantial amounts ... Read Full Answer >>
Manchester United is one of the most popular U.K. soccer teams. Its principal stadium is Old Trafford, located in the heart ... Read Full Answer >>
Old Trafford Stadium was built for and is currently still owned by Manchester United Football Club (Man Utd.). This means ... Read Full Answer >>
According to Forbes, basketball player Derrick Rose holds the largest endorsement deal as of 2014; the deal is for more than ... Read Full Answer >>
The top three stadium naming rights deals of all time were all for stadiums hosting New York City teams. The largest was ... Read Full Answer >>
The Herfindahl-Hirschman index can be used to determine competitive balance in sports. Competitive balance is desired in ... Read Full Answer >>