The first thing you should take note of is the row labeled Total Operating Revenue, which rises steadily through the first three columns and then takes a massive jump in the last two. The number in that last column—$324.1 million—is the teams projected 2014 revenue, supplemented by the assumed windfalls that will come from the upcoming local and national TV deals that both the Clippers and the NBA will be signing. The important number is the last one in the row labeled EBITDA. The $178.5 million shown there is how much of that projected money will be left after the Clippers pay their players and expenses. The last number in the column labeled YE June 14 is how much projected earnings the Clippers currently have—$100 million—without factoring in the TV deals or payroll expenses. That number drops to $19.3 million when payroll is accounted for. Whats crazy is that the projected earnings, with expenses and payroll factored in, jumps up to $178.5 million when the TV deals are factored into future earnings. So, yes, now is a very good time to be an NBA owner (The forces driving this are obvious. The league slaughtered the players, forever disorganized and fighting among themselves, in the 2011 lockout. Players used to get 57 percent of all league revenue; they get 50 percent now, a savings of about $10 million per year for each team.)
Posted on: Sun, 27 Jul 2014 23:09:06 +0000
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