NBA Teams Lost Money in 2016-17

Local TV Revenue Disparity Causes Nearly Half of NBA Franchises to Still Lose Money

All of this, despite the NBA's new $24 billion TV deal, which was believed to be a potential fix for the league revenue disparity problem.

Even when they are losing, the Los Angeles Lakers stay winning. But even with revenue sharing and luxury tax payments meant to help less profitable teams, almost a third of the league actually lost money last season.

An expanding gap between the haves, who make huge profits even while paying luxury taxes, and the have-nots could threaten competitive balance, the theory being that the NBA's most profitable teams could hoard stars in an era increasingly of so-called "super teams".

The gap between the league's most profitable teams and its weaker siblings will be addressed at the league's Board of Governors meeting on September 27-28 in NY.

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On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.

Revenue sharing and luxury taxes are two contentious issues around the league because they can move some teams from the red to the black and vice versa. Yet because of the size of their market, a loyal fan base, and lucrative local television contract worth $149 million, the team was actually the league's most profitable in 2016-17. Only four teams even came within $100 million of the Lakers' local media revenue.

At the heart of the matter: The NBA's richest are still getting rich, but they're having to share more of their profits with teams in smaller markets that are having a hard time keeping up with a rapidly escalating salary cap. "The Knicks alone made $10 million more from TV than the six lowest-earning teams combined".

One ownership source in the story mentioned that front offices in the largest markets can "run their businesses poorly" and still make a profit. ESPN points to the Nets, which lost money, but the records do not account for the money made by the Barclays Center, which the Nets' parent company owns.

There remains a possibility that small-market teams or expansion franchises could land in former National Basketball Association havens, such as Seattle and Vancouver, or a new market altogether.

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