Revenue Sharing: Quest for Certainty

  “We (NFL owners) are a bunch of fat-cat Republicans who vote socialist on football.” —Art Modell, former owner of the NFL Cleveland Browns/Baltimore Ravens “The NFL is a perfect portfolio.” —John Vrooman, The Economist League Think Over the last half-century the NFL has become the most economically powerful sports league in the world largely because it has also…

Posted by John Vrooman on June 11, 2020 in Major League Baseball, National Basketball Association, National Football League, National Hockey League, Sports Econ Blog

---

Salary Cap: Monopsony Power Play

Salary Cap Theory / Big 4 Cap History / Cap Graphs / Combo Graphs  / Cap Mechanics / QFV Theory / CBI & Beta Balance / Perfect Game / Two to Tango / Monopsony Power / “In theory there is no difference between theory and practice. In practice there is.” –Yogi Berra Quid Pro Quo Salary caps in professional sports originated in the 1984-85…

Posted by John Vrooman on April 23, 2020 in Major League Baseball, National Basketball Association, National Football League, National Hockey League, Sports Econ Blog

---

Coronaviral Impact

Interview with Wall Street Journal / Toronto Star / AFP /  What sports and what teams do you think are most likely to be financially impacted by fans not attending, or not being allowed to attend games? Hockey? Baseball? Minor leagues? Major leagues? Which sports and teams’ revenue models make them most vulnerable to this type…

Posted by John Vrooman on March 13, 2020 in Major League Baseball, National Basketball Association, National Football League, National Hockey League, Sports Econ Blog

---

NBA Logit Power Ranking

NBA V-Power Logit Ranking 3/5/20  /  Basketball Reference  NBA V-Power Logit Ranking 2/26/20  /   NBA V-Power Logit Ranking 2/7/20  /   NBA V-Power Logit Ranking 1/7/20 /  NBA V-Power Logit Ranking 12/4/19 / 

Posted by John Vrooman on March 5, 2020 in National Basketball Association, Sports Econ Blog

---

We the New North

Toronto Star 6/3/19 / Complete Interview: We the New North (PDF with Graphics) / Graphics XLS. Globe & Mail 6/14/19 / Article PDF / Complete Interview (PDF with Graphics) Globe & Mail–Will the Championship directly or immediately affect the team’s valuation? The first Canadian NBA Championship for the Raptors will certainly pay the bills and sell plenty of We…

Posted by John Vrooman on June 5, 2019 in National Basketball Association, National Hockey League, Sports Econ Blog

---

Tanking the NBA Draft

Interview with NPR Marketplace. NBA tanking graphic. Actual Draft Order. I’m working on a story about the NBA lottery, but not really the normal sports story. We’re looking at why the NBA does it this way, why people think it’s rigged, and what the economic gains of having the number one pick are (or could be). The…

Posted by John Vrooman on May 14, 2019 in National Basketball Association, Sports Econ Blog

---

On Thin Ice

The big market clubs in NYC (MSG), LA (Staples) and Chicago (United) are noticeably absent from the NHL and NBA playoffs. Toronto Maple Leafs were knocked out in the first round of the playoffs and they haven’t won a Stanley Cup in 50 years.  Why are high revenue clubs not dominating the NBA and NHL as expected?  See 2018 NHL…

Posted by John Vrooman on May 8, 2019 in National Basketball Association, National Hockey League, Sports Econ Blog

---

Post-Season Puzzle

Theory of the Big Dance.  My sh*t doesn’t work in the playoffs. My job is to get us to the playoffs. What happens after that is f***ing luck. —Billy Beane, GM Oakland Athletics In the first round of the current 2019 NHL playoffs five of the eight higher seeded teams with home ice advantage lost…

Posted by John Vrooman on April 28, 2019 in National Basketball Association, National Hockey League, Sports Econ Blog

---

NBA Playoff Match-ups Round 1

NBA VRX Playoff Chances Round 1. NBA VRX Power Pix 3/27/19. NBA VRX Power Pix 3/7/19. NBA VRX Power Picks 2/24/19 NBA VRX Power Picks 1/28/19. NBA VRX Power Rankings 1/15/19.  NBA Power Picks 12/14/18 Basketball Reference Playoff Probabilities

Posted by John Vrooman on April 11, 2019 in National Basketball Association

---

Money for Nothin’

Interview with Charlotte Biz Journal. L.A. All-Star Game Impact Study 2018. I’m working on some stories about the NBA All-Star Game coming here this month and wanted to ask about a couple of items. *The first is, the NBA estimates 150,000 visitors during the weekend of events. What do you think of that estimate given…

Posted by John Vrooman on February 1, 2019 in National Basketball Association

---

Nothing More or Less

Interview with Arizona Republic. The Phoenix Suns have been asking Phoenix to update its city-owned arena for years, and late last year, they brokered a deal that would have the city paying $150 million and the Suns paying $80 million. Unsurprisingly to me (but apparently surprising to the team and the city), the public was…

Posted by John Vrooman on January 18, 2019 in National Basketball Association

---

All-Star Gambit

Interview with Charlotte Biz Journal. I’m writing about the one-year mark before the NBA All-Star Game is played here in Charlotte. The impact estimates are between $60 million and $100 million and I’m fairly sure you have questioned the credibility of such estimates. My questions for you: what do you think a more realistic value…

Posted by John Vrooman on February 5, 2018 in National Basketball Association

---

Stone Cold Money

Interview with Houston Chronicle.  Most of the increase in NBA values across the board is the anticipation in the tripling of rights fees in the new media rights deals with ESPN and Turner 2016-25. When TV rights went from $29 million to 81.25 million per club the values of the clubs all increased by as…

Posted by John Vrooman on September 5, 2017 in National Basketball Association

---

The Golden Goose

Interview with ESPN. NBA’s Golden Goose What goes up must come down. The salary cap (max salary) explosion in the NBA caused by a tripling in media revenues (see attached) will be ultimately countered by an implosion in media right fees for ESPN and conventional (cable) sport broadcasting.  The NBA has attached its future to…

Posted by John Vrooman on March 29, 2017 in National Basketball Association

---

Boycott in Charlotte

Series of Interviews with Charlotte Observer and Charlotte Biz Journal. The economic threat of the additional loss of NCAA and ACC tournaments from HB2 is now becoming critically real in the research triangle and will soon be realized throughout Carolina sports heaven. The love of sports super-cedes political divisions and unites all of Carolina, and…

Posted by John Vrooman on September 29, 2016 in National Basketball Association

---

Season Ticket Pricing

Interview with Inc. Magazine Season Ticket Strategy I wanted to learn more about the differences  between the ticket pricing strategies of the Golden State Warriors and the Dallas Mavericks. The ticket prices for the Warriors seem to have increased significantly over the past few years as their popularity has increased. Mark Cuban’s strategy with the…

Posted by John Vrooman on June 9, 2016 in National Basketball Association, Sports Econ Blog

---

Whole Other Level

Interview with Pacific Standard.     

Posted by John Vrooman on September 14, 2015 in National Basketball Association

---

Playoff Money

Interview with International Business Times. — How does the revenue a NBA franchise earns from a single playoff series compare to the regular amount of money it earns during the regular season? The basic rule of thumb is that a playoff team grosses about $1 million per home playoff game. The big difference is that…

Posted by John Vrooman on April 17, 2015 in National Basketball Association

---

Exploitation of Kevin Durant

Interview with CNBC. KD Salary structure (updated) What would a major player like Kevin Durant be worth in a league without salary caps? Is his salary fair now? The NBA has essentially 3 salary caps. Since 1984 Each team has faced a soft salary cap (it can be exceeded for a variety of reasons)at 49-51%…

Posted by John Vrooman on January 23, 2015 in National Basketball Association

---

Basketball Jones

Interview with CBS and Associated Press. I am writing for CBS about Steve Ballmer’s purchase of the Clippers. Is the $2 billion purchase price a good deal? Here’s what I told you in the last interview:  There is a perfect storm brewing for the value of the LA Clippers to approach $1 billion. First, if the…

Posted by John Vrooman on May 30, 2014 in National Basketball Association

---

Do the Right Thing

Interview with Associated Press. I am working on a story about the NBA’s handling of the Donald Sterling race comments. I’m trying to get to the bottom of just what the league had to lose if it didn’t respond decisively and favorably in the eyes of its players, coaches and, almost as important, its sponsors….

Posted by John Vrooman on May 4, 2014 in National Basketball Association

---