A Losing Game: How The NBA Lockout Can Affect Businesses

A LOSING GAME 0:00 SCORE NBA VS. BUSINESS HOW CAN THE NBA LOCKOUT AFFECT BUSINESSES? NBA coaches and players are deadlocked and time is ticking on the NBA Commissioner's deadline for players to accept the latest contract from owners. The 66th NBA season was slated to start on November 1. The first 2 weeks of the season have already been cancelled and with tensions flaring, more games are in jeopardy. Players and team owners are not the only ones who will suffer: small business and local economies will bear the brunt of the lockout. Here, we take a look at the business impacts of the NBA lockout. ΤΗICH PL ΑYERS STΑND ΓΟ OSE THE MOST? As of October 25, an estimated 400 NBA jobs have been lost due to lockout-related layoffs: approximately 200 in the league's office, and 200 positions among the 30 teams. The NBA announced it was canceling the first two weeks of the season after two days of failed negotiations in the labor dispute. Many players in the league, with their colossal paychecks, are seen as their own business empires. Who would lose most per paycheck, or two weeks worth of pay? KOBE BRYANT RASHARD LEWIS TIM KEVIN GILBERT DUNCAN GARNETT ARENAS 24 21 LÄKERS WIZARDS SPURS CELTICS MAGIC $1.9 MİLLION $1.7 MİLLION $1.6 MİLLION $1.6 $1.5 MİLLION MİLLION HARDE ST HIT CITIES According to The Atlantic, some towns may be more impacted by the lockout than others. In these cities, NBA games are the primary sports attraction, serving as important economic engines generating local revenue. PORTLAND POTENTIAL REVENUE LOST FOR ENTIRE SEASON TRALLBLAZERS UNEMPLOYMENT RATE PORTLAND $59 MILLION 8.4% THONDER OKLAHOMA CITY $60 MILLION MEMPHIS CRIESALIE MEMPHIS 5.5% $223 MILLION 10.3% OALANDO CIAGIC SPURS ORLANDO SAN ANTONIO $95 $92 MİLLION MİLLION 10.3% 7.9% BUSINESSES FEEL THE PINCH SHOES AND APPAREL Decreased Exposure Leads to Fewer Shoe Sales $500 million: Potential loss in basketball shoe sales due to the NBA Lockout. That's 25 percent of the current $2 billion basketball sneaker market, which includes big brands such as Nike. $125 to $150 million: Estimated amount that Adidas–the official outfitter of the NBA– stands to lose in sales of licensed NBA merchandise. LOCAL FOOD AND ENTERTAINMENT $55 million: How much Indianapolis would lose if the Pacers games aren't there to bring in tax, restaurant, and bar revenue. "We live for the biggest time of year." season. That's our XX -Mike Katsanevas, owner of Crown Burgers, a restaurant located near the EnergySolutions Arena, home of the Utah Jazz. Katseanevas estimates that a cancelled NBA season would cause him to lose 25% to 30% of his revenue. TV ADV ERTISERS Disney and Time Warner- which both own networks where NBA games are broadcast- would lose a combined $1.25 billion in potential ad revenue if the whole season was nixed. For a 30-second ad spot during the NBA Finals, ABC could miss out on up to $400 million. H.Y.P.E. gplus.com Swww.twittercom/#!/gplus http://www.facebook.com/gplus. SOURCES: FOXSPORTS.COM | THEATLANTIC.COM | USATODAY.COM | NBA.COM | SALT LAKE TRIBUNE