The bu$ine$$ side of making the playoffs

[chawx]

According to https://www.insidehoops.com/business.shtml

The New York Times blog reports: The revenue generated by a single playoff game varies widely, depending on the playoff round and the city in which the game is played. One playoff game can take in as little as $500,000 or as much as $2.5 million, according to one league executive, who also noted that “Milwaukee couldn’t charge as much for a Finals game as the Lakers charge in the regular season."

So, between $500,000 and $2.5 million, I would say Utah (ie. Greg and Gail Miller) would get close to $750,000 to $1 million for each playoff game. Assuming we would most likely be the 7th or 8th seed (or if we hit our "goal", the 5th or 6th seed), we would still get bounced out of the playoffs with only 2 (maybe 3) games played.

That means, worst case, Greg and Gail make $1.5 million dollars for 2 games. Best case, the Jazz play 3 games and rake in about $3 million total.

Unfortunately, for a small market team with shallow pocket owners, it's not in their best interest financially to not make the playoffs (even if it's to get swept).

This is the sad reality why this team never made the big splash for free agents it needed to make back in the Malone/Stockton Finals days to put us over the top of Jordan's Bulls, and this is why they will probably NEVER make the big splash they will need to make to be a real contender.

Sadly, the only way to fix this is with new ownership. This is why I'm grooming my children to become entrepreneurs so they can buy this team and give it the love it deserves.

 

[Dr. Jones]

Still .. I, if the owner, would rather miss a 2 or 3 game playoff run in the interest of better building a team that can make deeper runs over a multi-year period.

emmiwrong?

 

[orangello]

Still .. I, if the owner, would rather miss a 2 or 3 game playoff run in the interest of better building a team that can make deeper runs over a multi-year period.

emmiwrong?

I would say that you are right. The other way to make the $1.5 million or so is through player salary. If the Jazz can get a player on a rookie contract to produce like the vets (which I feel like they all can), then they will be saving that much at the minimum. Suddenly it makes sense to get more playing time to the young guys and shed all the big contracts that you can.

 

[cowhide]

Yea getting an extra 1.5 million is really smart considering how many rookie salaries you are wasting by not playing them. Another smart move is picking up a FA that hasn't played more than 10 minutes since you signed him.

 

[mellow]

My eyes tell me that there are alot of empty seats at ESA. Even if those tickets are purchased, those folks who ain't comin' ain't buyin' over priced popcorn either. The extra 750k may seem like a drop in the bucket when Big Al makes 12 Million, but every little bit helps to reach that ever shrinking margin. Could it be that missing the playoff payday and following that up with another season with empty seats could put an end to this Jazz in Utah experiment? There may be some real urgency to make the play-offs now....and the trades that happen (or don't happen) could reveal just how urgent the Millers are.

 

[franklin]

That means, worst case, Greg and Gail make $1.5 million dollars for 2 games. Best case, the Jazz play 3 games and rake in about $3 million total.

Unfortunately, for a small market team with shallow pocket owners, it's not in their best interest financially to not make the playoffs (even if it's to get swept).

This is the sad reality why this team never made the big splash for free agents

You made a grand total of no sense there. Want to try again?

This is the sad reality why this team never made the big splash for free agents it needed to make back in the Malone/Stockton Finals days to put us over the top of Jordan's Bulls, and this is why they will probably NEVER make the big splash they will need to make to be a real contender.

Ah, you're competing with GlassBeater today.

 

[BluesRocker]

I think that Jazz fans are smarter than the FO gives them credit for. I said I think. I'm not really sure. Maybe there are a whole bunch of people out there who can't read between the lines and see what is going on. As a fan I am not interested in supporting a team financially by buying tickets, if they are going to make moves that only patch a leak.

I would be much more inclined to buy some tickets and go watch some young promising group of guys win a few, lose a few. Rather than pay money for a product I know isn't going anywhere. But I guess not all fans think that way. I suppose a lot of fans have no clue and are suckered into believing they have a chance if they make the playoffs.

For now, my money stays in my pocket. I won't be buying tickets again until the team demonstrates that their ultimate goal is to win a championship. Right now I think the team is trying to placate to casual fans and not the knowledgeable fans. It is a business I guess. And maybe the casual outnumber the rest.

When we had Deron I believed we could do it, and I went regularly. Now I don't even watch the game when it starts. It doesn't excite me like it used too. Now I TVO it, wait an hour and skip halftime and commercials. Heck, even halftime shows used to be interesting. Really all I watch for anyways is just to check on the young guys. So I'm usually web surfing when the younger guys aren't in.

 

[Cope]

This has been known for quite some time. I want to say a few years ago, when we were over the cap, that making the playoffs that year meant either breaking even or coming close vs. losing money.

I heard a number of around 1 million per game is on average what the Millers make and why its so important for them to make the playoffs. That is when they make their money. Otherwise, its either a push or losing money for the year.

 

[NAOS]

This has been known for quite some time. I want to say a few years ago, when we were over the cap, that making the playoffs that year meant either breaking even or coming close vs. losing money.

I heard a number of around 1 million per game is on average what the Millers make and why its so important for them to make the playoffs. That is when they make their money. Otherwise, its either a push or losing money for the year.

you need to consider all the exposure the jazz provide to their other businesses. The jazz do more for their bottom line than a straight sum of explicit jazz-related revenue shows.

 

[franklin]

Otherwise, its either a push or losing money for the year.

They get an estimated extra $10,000,000 under the new CBA. Keeping fans excited while minimizing salary is the optimal profit zone. Look at the structure of this team and you'll get the drift.

you need to consider all the exposure the jazz provide to their other businesses. The jazz do more for their bottom line than a straight sum of explicit jazz-related revenue shows.

Not to mention a CEO's salary. What is Kitty Kat Man paid?

 

[infection]

They get an estimated extra $10,000,000 under the new CBA. Keeping fans excited while minimizing salary is the optimal profit zone. Look at the structure of this team and you'll get the drift.



Not to mention a CEO's salary. What is Kitty Kat Man paid?

So is what you're saying that if we fire Greg we'll have more money to burn on commodities?

 

[Scorpjazz]

It's better to make the playoffs 99% of the time. Unless you are the Spurs and tank it and get lucky and get Tim Duncan, its always better to make the playoffs IMO.
But I do find it funny all the people who have for ever complained that the Jazz dont try to win and somehow have figured out perfectly how to be just good enough to keep making money..
They have as many rings in Utah as they do in New ****ing York since Malone and Stockton came here.
Take the tinfoil hats off people.

 

[Stifle Tower]

I think that Jazz fans are smarter than the FO gives them credit for. I said I think. I'm not really sure. Maybe there are a whole bunch of people out there who can't read between the lines and see what is going on. As a fan I am not interested in supporting a team financially by buying tickets, if they are going to make moves that only patch a leak.

I would be much more inclined to buy some tickets and go watch some young promising group of guys win a few, lose a few. Rather than pay money for a product I know isn't going anywhere. But I guess not all fans think that way. I suppose a lot of fans have no clue and are suckered into believing they have a chance if they make the playoffs.

For now, my money stays in my pocket. I won't be buying tickets again until the team demonstrates that their ultimate goal is to win a championship. Right now I think the team is trying to placate to casual fans and not the knowledgeable fans. It is a business I guess. And maybe the casual outnumber the rest.

When we had Deron I believed we could do it, and I went regularly. Now I don't even watch the game when it starts. It doesn't excite me like it used too. Now I TVO it, wait an hour and skip halftime and commercials. Heck, even halftime shows used to be interesting. Really all I watch for anyways is just to check on the young guys. So I'm usually web surfing when the younger guys aren't in.

I'm actually agreeing with BluesRocker. Living out of state, I can't purchase game tickets, but I was going to purchase new shirts, shorts and subscribe to League Pass to watch the games. Fortunately, because the NBA and Root Sports decided to block a certain number of Jazz games from Dish, I complained and got my LP subscription refunded.

I'm still a Jazz fan, but merchandise $ stays in my wallet until I see the organization make a commitment to building a contender. And that means taking a step back and playing the youngsters. All this talk about modeling the franchise after OKC. IIRC, they let their young guys play together and lost a ton of games in Year 1. And they were a lot better over the next two years.

 

[craig2112]

I have been hearing these kinds of complaints for 20 years. It never changes.
You all think you could do a better job than what Jazz management has done.
You all seem to think that the Millers could have any player they want if they just put out the money, but they are too cheap and don't want to.

WHAT- EVER.

I honestly wish I could put one of you in charge of an NBA team for 5 years and watch you run it into the ground.
Well, I got the next best thing: I got to watch Isaiah Thomas run the knicks into the ground, doing all the stupid kinds of things that you wish the Jazz would do.

You are the same kinds of people who work as waiters at a fine restaurant and spend your breaks mouthing off on how stupid the owner is and all the things you would do to make the place more profitable.
You are the same kinds of people who work at some company and spend your breaks badmouthing the boss.

I hear it all the time, but I never see these complainers get their own business and make it successful.

 

[BluesRocker]

I have been hearing these kinds of complaints for 20 years. It never changes.
You all think you could do a better job than what Jazz management has done.
You all seem to think that the Millers could have any player they want if they just put out the money, but they are too cheap and don't want to.

WHAT- EVER.

I honestly wish I could put one of you in charge of an NBA team for 5 years and watch you run it into the ground.
Well, I got the next best thing: I got to watch Isaiah Thomas run the knicks into the ground, doing all the stupid kinds of things that you wish the Jazz would do.

You are the same kinds of people who work as waiters at a fine restaurant and spend your breaks mouthing off on how stupid the owner is and all the things you would do to make the place more profitable.
You are the same kinds of people who work at some company and spend your breaks badmouthing the boss.

I hear it all the time, but I never see these complainers get their own business and make it successful.

You can't prove that I couldn't do better.

SO-THERE


Craig, Craig, Laid an Egg

 

[gomretat]

It's better to make the playoffs 99% of the time. Unless you are the Spurs and tank it and get lucky and get Tim Duncan, its always better to make the playoffs IMO.
But I do find it funny all the people who have for ever complained that the Jazz dont try to win and somehow have figured out perfectly how to be just good enough to keep making money..
They have as many rings in Utah as they do in New ****ing York since Malone and Stockton came here.
Take the tinfoil hats off people.

Bingo. Name the teams who tank and then have it work out and the Spurs are about the entire list. Building a winning culture matters. Learning to play in the playoffs matters. And if all we wanted was to make the playoffs, we resign Booz, keep Memo, KK etc. That team makes the playoffs but had no chance to ever contend. Taking a risk with Kanter, Favors, et al there is a shot.

 

[BluesRocker]

Bingo. Name the teams who tank and then have it work out and the Spurs are about the entire list. Building a winning culture matters. Learning to play in the playoffs matters. And if all we wanted was to make the playoffs, we resign Booz, keep Memo, KK etc. That team makes the playoffs but had no chance to ever contend. Taking a risk with Kanter, Favors, et al there is a shot.

So your money is on this group of veterans winning a championship?


How do the young guys get better by watching other people play?

 

[craig2112]

You can't prove that I couldn't do better.

SO-THERE


Craig, Craig, Laid an Egg

Well, I can name a whole bunch of NBA teams who aren't calling you to interview you for a job in their organization. That is some proof. Just some...

 

[vj_74]

Make the playoffs at minimum cost-that has been Jazz's dictum for many years(apart from "No luxury tax at any costs" till Larry was there). We will never know how pro-active(or creative) someone like KOC can be with FA signings or trades until he works for an owner like Cuban. Where KOC does take a lot of the blame is for the failed draft picks. But the trades not made, the FA signings not done, those have a lot of the ownership too behind it. No secret. That's how the Jazz have been for all these years. Which is why all the recent euphoria here over trading vets and stockpiling draft picks or youngsters from other teams do not make a lot of sense to me.Getting a bunch of young guys is one thing. Retaining them all after their initial cheapo contracts are up is a totally different matter altogether.

The only way for the Jazz to get to the promised land is if by some miracle they get a pick who is Durant-esque and is an all star even while playing on a rookie contract. So that way they still have the money left to surround him with 2-3 good players and have a 1-2 yr window to win it all. If either of Kanter or Favors AND Burks make a big jump from this season to next we might still have a chance.

 

[vj_74]

I remember starting a thread similar to this one about year or so back or even more, about the business side of winning a championship. I would like to re-initiate that discussion. what business sense does it make for a small market team fore the jAZZ to go out on a limb spending just to win a title. If the Jazz are presented with say 2 options,
Option1 -do whatever it takes to get to the playoffs and win a round or two for as many years as possible, and hope for a lucky break

Option 2 - spend that much extra to bring in a game-changer who could put us over the hump(say a difference of 4-5 million dollares to the payroll and possibley luxury tax territory)

why would Greg choose Option 2 as a business decision?

Forget the prestige issue or the label that comes with winning a title for the franchise and all that. As purely a business decision, winning a round or two more just to get a title for one year, is that worth breaking the bank?
Does the winner money and other extra playoff revenue compensate for that kind of spending?
Maybe it makes more business sense to stay below LT and aim to get playoff revenue from atleast 1 or 2 rounds every year, while keeping the fans hopes of winning a championship alive.