The Real Business of the NBA Playoffs

NBA PLAYOFFS...BUSINESS FIRST

The regular season is over and only the top contenders are left to battle it out for the championship.  If you are a Miami Heat fan, you are looking for a repeat.  If you are a fan of any of the other teams or players, you are looking for an upset.  While the owners can increase revenue by raising the prices of both the tickets, vendor concessions, and the team and player memorabilia, they also can make up for those poor ticket sales when no one cared to watch their team play the Charlotte Bobcats or Washington Wizards, and better yet, the years prior where the team had less than a 50% winning average.  But the NBA offices and the television networks are just as excited as the owners because of the extra money that funnels back into the league. It's a business and extending the number of games in the playoff rounds increases their overall return on investment (ROI) with these potential revenue-makers.

1. The referees are controlled by the league office.  No matter how upset we get as fans, it is a fact that their checks come from the league of which the commissioner is the boss.  Games are heavily controlled by the calls from the referees and the commissioner is ready, willing, and able to fine any player or coach that has anything negative to say about the calls made during a game.  The more games played, the higher the chances a player or coach will take to the media and speak the truth.  We are only fooling ourselves if we believe calls are not going to go the way of the marquee player or the team that the league favors to win.
2. Media sponsorship in the form of advertisement skyrockets for the playoffs, especially for the games where the underdogs are fighting their way to get to the next round.  The more games played, the more commercials have to run.  Not only the networks but the league make out for the extended playoff rounds 1, 2, and 3, that can go to a Game 7.  How many times can we see the Gatorade commercial with Dwayne Wade and Kevin Durant?  As many times as earthly possible while either of these two teams are playing in these extended playoff rounds.
3. If the players show emotions or better yet coaches during the games, they are subject to an ejection, fine, or suspension of future games.  Playoffs are nothing like the regular season games; there is a lot more passion to the win and getting to the next round.  Whether trying to draw fouls and inadvertently throwing elbows or trash talking and getting pushed to the floor with a deliberate flop, it is at the referee's discretion to call a technical, flagrant, and/or ejection.  But it is at the league's discretion to review and impose a fine. The more games that are played in each extended playoff round, the higher the probability the passion runs deep in the players and coaches and the league makes more money.

As fans we can enjoy the games and spend more money on the tickets and the team shirts and hats.  There is also the option to watch on television in the comfort of the home or at a local sports bar.  For us, it is athletic entertainment and we should not be surprised that this round has at least two series that go to Game 6 and two that go to Game 7.  But please players and coaches, don't let them take any of your hard-earned playoff money. I know it is frustrating to experience calls mostly in the favor of the league favorite team and/or player but you worked too hard to get there - focus on the wins and let the league make money elsewhere.

Picture courtesy of NBA

Read more »

Posted in: business expert,commissioner stern,nba,nba office,nba playoffs,sports business,Temeko Richardson