From Deseret News archives:

Haslam says Jazz in no financial danger

Published: Sunday, June 11, 2006 12:05 a.m. MDT
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They gave Turkish big man Mehmet Okur a six-year, $50 million contract that paid $8.25 million in 2005-06 to leave then NBA-champion Detroit for Utah. They gave ex-Duke power forward Carlos Boozer a six-year, $68 million contract that paid $11,260,483 in 2005-06 to leave Cleveland and rising Cavaliers star LeBron James for Utah. And they gave one-time All-Star forward Andrei Kirilenko of Russia a contract extension that pays $86 million, including more than $10.9 million in 2005-06 and can keep him in Utah through the 2010-11 season.

That was all in 2004 alone.

"We sat down, and we said, 'Do we want to make this kind of investment in the franchise?' " Haslam said. "And Larry (Miller) said, 'Yes, I'm willing to make this kind of investment — and if we can put together a core of players, and build on that core, I think it's worth the risk for us to be competitive, because we want a championship.'

"Larry's interest is bringing a championship to Utah, and in order for us to do that we need to build a solid core of players, and that will take some money.

"That's the vision. That's the business plan."

It's a plan that also factors in multiple revenue streams beyond those calculated by a bean counter with tunnel-vision.

While it's true that attendance at the Delta Center has taken a hit as the Jazz have failed to make the playoffs each of the past three seasons, and per-game profit margin has dipped as a result, ticket sales typically comprise less than one-third of an NBA team's revenue.

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There is also substantial money dispersed to teams by the league from national television contracts, regional broadcast contracts and significant sponsorship and advertising income as well.

With all that as context, it is much more accurate to suggest the Jazz's actual losses for the recently completed season are in the $1 million to $2 million range. And if one were to offset losses against profits for a three-year period, those figures would be close to a wash.

But even that does not tell the entire story.

There are other income sources Miller would not have if it were not for the mere existence of the Jazz.

Concession sales at the Delta Center, for instance, fall into a separate bookkeeping category.

"We account separately for Delta Center operations," Haslam said. "Delta Center would include building facilities and food services."

The Jazz have plenty of means, in other words, to recoup whatever setbacks may be presented by the higher payroll and other basketball-related expenditures such as scouting, travel and salaries for front-office personnel, coaches and staff.

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Image

Big contracts for, from left, Andrei Kirilenko, Carlos Boozer and Mehmet Okur are among the reasons the Jazz lost money the past two seasons. But the team's president says the losses were expected.

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