Category / NBA

by Hoosier Econ

Don’t Mess With Michael Jordan’s Trademark

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Photo courtesy of nesn.com

Last week I wrote about how the Woodstock Festival music bands were not business minded. This post is to show you how you protect your financial interests and brand legally via Michael Jordan

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by Hoosier Econ

NBA: “Number of teams losing money”

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Photo from officiallyoffsides.com

The NBA and players union are in Las Vegas meeting to discuss the upcoming season. Here is a surprising piece from the commissioner:
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by Hoosier Econ

NCAA & TV Ad Revenue from March Madness

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The NCAA Basketball Tournament kicks off in a few days. As America tunes in to watch the games the NCAA will watch their bank coffers fill up. How much does the NCAA make each year during tournament time. According to Andrew Zimbalist, an economics professor at Smith College, hundreds of millions:

    “The institution itself that’s based in Indianapolis, makes money primarily through television rights to the March Madness basketball tournament. They get somewhere in the neighborhood of $770 million dollars a year. That constitutes around 90% of all of the revenue that goes to the NCAA,”


Television stations are more then willing to pay that type of money to the NCAA for rights to air the games. Here is their ad revenue from 2013:

    Over the past decade (2004-2013), the NCAA men’s basketball tournament has triggered more than $6.88 billion of national TV ad spending from 269 different marketers. Ad revenue in 2013 was $1.15 billion, up 3.8 percent from the prior year.

by Hoosier Econ

How Much Money Goes Into March Madness Bracket Pools?

march madness
Tis the season where millions of Americans take a gamble in starting to fill out their NCAA tournament brackets. Men and women will take out their wallets and throw down some money to enter in a pool with other in the hope they make some easy money in applying their college basketball knowledge. How much money do Americans spend during this time of year? It’s very hard to estimate since 90% of all NCAA tournament gambling is off the books. But lets take a look at some history to guage this sports investing event.

In 1999 there was a report issued by then President Bill Clinton:

National Gambling Impact Study Commission, formed by President Clinton, released a 1999 report citing surveys showing that well over 90 percent of all sports betting nationwide takes place off the books. If accurate, that would push the total wagered on the NCAAs across the country closer to $1 billion.

Fast forward to 2014 where more data can be evaluated yet is still a rough estimate, one sports investing website gave this estimate:

The site Pregame.com estimates that wagering on this year’s March Madness tournament will exceed $12 billion, more money than was riding on the Super Bowl. Of that, $3 billion will be put into office pools of tournament brackets.

Comparing those two estimates, NCAA Tournament betting has exploded 1100% in America. Good luck with your tournament pools this year.

H/T The Fiscal Times and BetFirm.com

by Hoosier Econ

Vegas Sets 2014 Sports Gambling Records

The numbers are in and sports investing broke records in 2014 for betting revenue. ESPN supplied the breakdown:

The state’s 187 sportsbooks won $227.04 million off of the $3.9 billion wagered on sports in 2014. Both amounts are all-time records, according to Nevada Gaming Control.

Football, per usual, carried the load. The sportsbooks won $113.73 million on college and pro football in 2014, a giant 40.73 percent increase from 2013. Overall, $1.74 billion was bet on football in 2014, $12 million more than in 2013. Nevada Gaming Control does not track pro and college football separately, but sportsbook managers estimate the NFL accounts for around 55-60 percent of their annual football handle. From September through December, the books are up $98.16 million on football.

In comparison, the books won $54.2 million on basketball and $21.2 million on baseball in 2014. Both numbers were down, 8.36 percent and 26.88 percent, respectively, from 2013.

by Hoosier Econ

Indiana Pacers Worth Hundreds of Millions

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Forbes magazine is stating that the Indiana Pacers has spiked in value over the last year and is now edging up to the “Billion Dollar” mark. Here is more in their report:

The value of the Indiana Pacers franchise skyrocketed by $355 million just since last year to $830 million, according to Forbes magazine. The Pacers rank 21st among the NBA’s 30 teams. The Los Angeles Lakers were first at $2.6 billion. In the magazine’s annual report on franchise values, posted Wednesday, reporter Kurt Badenhausen attributed the huge growth of the NBA to “a massive new $24 billion television contract, a nearly six-year bull market in equities creating tremendous wealth, and cheap credit.”

The Pacers new financial numbers are perplexing considering the deal they struck last year with the city of Indianapolis using taxpayer money to subsidize their operations.

The Pacers’ value also increased 74 percent and could renew questions about the Capital Improvement Board’s decision, less than a year ago, to use $160 million in tax money to cover operating costs and upgrades at Bankers Life Fieldhouse. The Pacers keep revenue from all fieldhouse events — basketball and non-basketball alike.

The CIB who negogiated the deal gets money from taxpayers:

The CIB gets its revenue primarily from hotel, food and beverage, and admissions taxes. The agency also collects money from rental fees, parking garage income, car rental taxes, cigarette taxes and Downtown income and sales taxes.

While most of the CIB’s revenue comes from Marion County, six neighboring counties — Boone, Hamilton, Hancock, Hendricks, Johnson and Shelby — also pitch in through a 1 percent food and beverage tax.

H/T Indianapolis Star