Buoyed by the grand opening of the all-new Chase Center, a rediscovered sports scene and a more influential Warriors brand than ever, Golden State became the highest-grossing franchise in the entire NBA with $474 million in franchise acquisitions. to the magazine Forbes. The other 29 teams in retro, ball and money go hand in hand in San Francisco.
This is a record amount, and it exceeds all of us. Never in the history of the great league has a franchise made so much money directly related to basketball in a single year. The previous record of the Knicks – 472 million – was beaten with difficulty, but nevertheless broke. However, it’s no secret that Golden State needs it. In total, the Warriors will have spent nearly $184 million this season on salaries and luxury tax payments, again by a large margin over other teams. Suffice it to say that Joe Lacobe’s checkbook has been very useful in this financial market. So, if you’re wondering how the defending champion could take so many hits, the answer is pretty straightforward: they had a lot of money. But it is still necessary to understand where all these cash inflows come from… because the sources of income are diverse, and they will undoubtedly increase over the years.
Let’s be honest right away, it is currently not possible to know the exact amount that warriors received in each of their areas of activity. We’d love to be in the Golden State accounting office, but we’d rather save our aspirin at Jazz-Spurs next winter. The goal is not to find out “how much?” Rather, “Where did it come from?” “. First, it’s important to remember that the franchise’s $474 million in revenue is just what Golden State collected from basketball. Here, we are mainly talking about the profits generated by the ticket office. And what a ticket office… At this new Chase Center where fans got so excited during the last qualifiers, the price of the place soon becomes… exorbitant. As a reminder, journalist the athlete Tim Kawakami had claimed that the Warriors were hoping to get roughly $15 million in revenue from each game of the 2022 NBA Finals. According to CBS, an average of nearly $1,759 had to be paid to attend. delirium. However, we must also account for jersey sales, where Stephen Curry is also number one in France, as well as TV rights or even sponsors ($20 million annually with Rakuten until 2023), which are guaranteed income sources to pay once the agreement is in place.
With 3 home games per West Tour, the Warriors grossed nearly $72 million at the box office. ($7 million per game in the first two rounds, $10 million per round).
They are now guaranteed at least two home games, with a total expected to be in excess of $15 million per game.
The grand total is 102 million dollars.
Tim Kawakami (@timkawakami) May 27 2022
However, according to CNBC, the real revenue of the franchise is understated due to partial counting by Forbes, ignoring the real impact of two revenue streams in particular. The first relates to non-NBA events taking place at the Chase Center. Because even though a large portion was incorporated into this $474 million, 25% wasn’t counted. And in the case of Golden State, that’s far from anecdotal. In fact, the franchise owns its hall (which cost $1.4 billion) and thus recoups all profits generated from concerts, shows, etc. Which can accommodate up to 19,500 people. Essentially: One in four, income from such events ends up in warriors’ pockets without necessarily counting as basketball-related income. We should also not forget that the franchise invests in the surrounding properties where it welcomes the tenant who is also a partner: Uber. The transition is complete because the second underestimated source of income relates to the franchisor’s startup partnerships.
If there is one non-sporting goal that Golden State does its best to achieve, it is to expand its influence to all possible areas of activity. In response to a question last April about it on CNBC, Team leader Brandon Schneider claimed it The Bout subordinate the Warriors was to become ” leaders worldwide in Friendly Project Termsgreening“. To do this, the latter made it clear that he wanted They innovate around technology for their presence in the Gulf region, which he considers ” epicenter the world of technologyThis is why the franchise is trying to expand its partnerships with ticket exchange platforms such as Stub Hub or Ticketmaster, for example by launching SuiteXchange A few months ago, its bifton exchange platform was dedicated to luxury suites at Chase Center and exploits blockchain technology. Then left to go in all directions, so you go for free. That’s why Golden State has struck a new $10 million sponsorship deal with FTX, a crypto platform that sells, among other things, NFT Having already brought 2 million dollars to the warriors. Golden State Entertainment (GSE), a subsidiary of Warriors, is also expected to produce documentaries, release albums and research music festivals with help from the company. Mandalay Entertainment Owned by… Peter Guber, second owner of the franchise. An activity that allows it to benefit from the income of Apple or Netflix, which will be able to absorb the content produced (and it has already started this year). A hell of a montage that Schneider justified during the same CNBC intervention:
«Disney to me I started as such a garden AttractionsAnd the they the Warriors You have I started as such aNot equipped From Bshut up. a look this is that Disney he is had becomeYou are And the a look this is that they the Warriors had become. […] when we they were building The Chasing centerAnd the we We are talking about we Transformation in aNot association From sports And the From entertainment with aNot BUn equipped From Bshut up as such Foundation stone. […] we You have a planAnd the We keep ourselves at a high standard and investAnd the And the we You have From The Coincidence take friends loans to me invest day and hNot Outside The a land. This is it Important And the we Given a Features competitor. »
– Brandon Schneider
Obviously, and what is not specified in the publication of these raw numbers… is that there are taxes in place, applicable to income affected by the lien, ie the owner Joe Lacope (and Peter Guber). Because if a state like Texas hardly takes the collections, this is not the case of California taking back up to 13.3% of all kinds of income. but this Income tax Initiation into the direction of the state is far from being the only one in force. In fact, another part is recovered by Adam Silver (especially the ticket or TV rights) while the last part goes to the federal state, in particular because of the entertainment tax that applies under the NBA. In 2021, despite the huge amount they owe to the League, the Warriors raised nearly $200 million in operating profit. More than enough to pay their taxes.
If that $474 million represents an unprecedented sum in the Great League, it is nonetheless possible that the latter could be quickly defeated. According to sources inside Golden State, the franchise hopes to reach nearly $700 million (!) in revenue this year, while continuing to have all kinds of ventures or partnerships. So the next time you’re wondering if the warriors’ finances are going to stop, you can rest assured.
Text sources: Forbes / CNBC / CBS / Bleacher Report