Quantcast
Wednesday, November 30th, 2011 at 1:50 pm  |  17 responses

Report: Lakers’ New TV Deal Worth Up to $5 Billion


The jaw-dropping number initially reported for the LA Lakers’ new TV deal with Time Warner Cable was $3 billion (a figure disputed by the cable giant), but according to the OC Register, team owner Dr. Jerry Buss and co. could be in line for up to $5 billion from the deal: “That $5 billion is over 25 years – or it’ll be merely $4 billion over 20 years if the future option isn’t exercised. It has been widely and wrongly reported as less. Let’s pause and appreciate how much money one club, starting next season, will get per year all to itself just from local TV: $200 million … when Forbes values the entire Milwaukee Bucks franchise at $258 million. It leads to a very good question: whether the NBA’s new supposedly prohibitive luxury-tax penalties to start in 2013 are really going to stop the Lakers from continuing to throw money at their problems – because they’ve solved a lot of them very well that way without having this new billionaire boys’ club. Well, there is a little thing called revenue sharing that has largely been forgotten while the players and owners have been arm-wrestling. The terms haven’t been hammered out by the owners yet, but it is understood the large-market handouts are increasing … exponentially. And those new penalties are plenty severe – particularly the extra dollar charged if a club is a taxpayer four out of five years. The Lakers’ 2010-11 $20 million tax bill would swell to $45 million under the new rules. Add the extra dollar as a regular taxpayer, and to field the sort of team the Lakers just did, you’re looking at writing a $65 million check – for a lot of nothing in return when you get swept in the second round. If you can win a championship and maintain the cachet that the Lakers’ brand holds, though, maybe it can be worth it. That’s a call the Lakers will have to make – or more accurately, hope they get to make – in the future.”

  • Add a Comment
  • Share
  • RSS

Tags: ,

  • Rick1V

    Not worth it?

    Maybe from a basketball results standpoint, but from a TV revenue generating standpoint, I think $200M/season TV deal begs to differ. Big names = big ratings = big TV deal.

  • http://cnbc.com JTaylor21

    What happened to revenue sharing between the owners?

  • http://redoftoothandclaw.ca/ niQ

    What!?

  • All Day

    If the owners agree to revenue sharing, it will not include local TV deals…maybe gates and concessions, but local TV deals will be off limits.

  • manu

    5 years = 1 billion?

  • All Day

    L.A. Lakers = N.Y. Yankees

  • http://slamonline.com nbk

    The revenue sharing is based off of the luxury tax as I understand it. Toronto is also supposedly working on getting their own TV Deal as well.

  • Danny_W_UK

    Salary Caps are always able to be sidestepped. In the UK many years ago the Salary Cap was about £150k, at that time one team had 3 players on £90k each. £20k was on the record, the rest was made up from promotional appearances for sponsors, and Kids Camps etc. The Lakers will be paying good money to good players for many more years.

  • http://slamonline.com nbk

    you don’t understand how the NBA salary cap works.

  • http://slamonline.com jumpman22

    nuts

  • LA Huey

    I see the owners have their cake and will get to eat it too.

  • Conor O.

    This will make the transition between Bryant Era and New Era much more seamless, lmao.

  • MUBWAR

    looooooooooooool at conor so true

  • BBaller

    So what Number will Dwight Howard and Chris Paul be wearing?

  • JoeMaMa

    Another (hidden) example of how this lockout was as much about owner vs. owner as anything else.

  • Everynowhere

    haha this is ridiculous. does time warner really have that much to gain by getting a deal with the lakers? give a small market team a chance!

  • mr.g

    Fox has deals with every team in sports so they all get the same exposed the sam way but i wouldnt want to see bob cats/charlotte on Sunday afternoon

Advertisement