Pacers pain not isolated incident

April 27, 2009
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pacersThe Indiana Pacers are far from the only National Basketball Association franchise hurting financially. And the pain isn’t just striking small market teams.

While the first round of the playoffs rages on, several NBA teams are closing their financial books on the season.

The New Jersey Nets are showing an 8 percent revenue decline in the 12-month period that ended Jan. 31. The Nets’ financial results are detailed in the recently released financial disclosures of Forest City Enterprises, a publicly traded Cleveland-based real estate company which owns 23 percent of the team.

While the Nets’ revenue was down to $92.4 million during the most recent fiscal year, its losses were up, to $27.8 million. That compares to a $22.6 million loss during the previous fiscal year. The losses have escalated dramatically since 2006, when the team lost $9.5 million.

Indiana Pacers officials, meanwhile, have told city leaders the franchise-including what it pays to operate Conseco Fieldhouse-will lose about $30 million this year. The Pacers did improve their per-game attendance from 12,221 last year to 14,182 this year. That ranks 28th in the 30-team league, well below the 17,445 league average.
  • Looks like Stern's changes a few years back to strengthen all teams and not just the elite isn't panning out the way he had hoped. Time for new management at the NBA Level.
  • All major league sports need to look at mandatory salary caps that can make them viable. Until costs are kept down, salaries are one of the largest, this will be a problem across the board.
  • As I stated in a previous blog, unless the players union becomes realistic and is willing to trim player salaries by 15 to 20% accross the board, the league is in big trouble. Time for the union to step up!
  • Or step away. Why do professional athletes need a union? When was the last time you saw one working for $5 a day, 12 hour work days 6 days a week or getting black lung from unsafe working conditions?
  • I've said for years David Stern isn't the long term choice for the NBA Commish. Not blaming him for economic woes, but I just don't like the way the NBA has dealt with its changing landscape. The NBA product is down a little. From an entertainment standpoint, it is watered down, has been taken over by a thuggish image, has too many players in desperate need of a clinic in fundamentals, and has emphasized globalization in spite of domestic emphasis too much in recent years.

    And this is coming from a Pacers Ticket Package holder. It's easy to just bash the NBA from afar, but I see it and try to follow it, but it isn't what it used to be... and I'm still in my 20s and can see that clear as day.

    The Pacers did do a solid job of reaching out, running a solid marketing campaign, lowering prices, and making some needed changes. They have enough talent to work with, some cap room now, and if they can get Mike D healthy, fill Rasho's cap void, keep Jack happy enough to stay, and get some defense, they will see a nice jump up the East's standings next year.
  • A 20% salary reduction won't make much of a dent. For instance, the Pacers total player salaries for the 2008-2009 season were over $69,000,000. 80% of that is still $55,000,000. There is no way the Pacers could make money even at the lower amount.
  • Maybe not, but that would sure free up just about enough money for them to cover that $15 million to operate the Fieldhouse they're clamoring for.
  • A couple of points...the Nets have to report their numbers because their biggest share holder is a publicly traded firm. Their books are, to a certain extent, open. Also, their losses include carrying costs on their long delayed arena...not just the team.

    The Pacers have not opened their it's hard to tell how much of what they say is comprehensive or even true.

    The reason the NBA players have a union is that before they had a union they had no rights as players, as employees. They had no pension. It's why anyone joins a union.

    As for Stern, note that some months the NBA gets more revenue from China than it gets from North America. Suggesting that Stern hasn't been forward looking is silly.

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  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!