From Deseret News archives:
Utah Jazz: Playoff payoff? Each home game has big impact on Jazz bottom line
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That's one of the main reasons the Jazz upped their value according to Forbes by 15 percent about $45 million, as was reported in the Deseret News in December from the previous season. Only Cleveland (20 percent), Toronto (18 percent) and Golden State (16 percent) had better valuation increases.
The magazine claimed that the Jazz's first NBA playoff stint since 2003 helped them earn $114 million in revenue for the 2006-07 season and $5.7 million in operating income (earnings before interest, taxes, depreciation and amortization).
According to Forbes,"the playoff run helped the Jazz add close to 6,000 new season ticket holders this year, one of the biggest sales gains in NBA history ... Miller can use the added revenue to help pay the $250 million worth of long-term contracts he doled out in 2004."
Rigby agreed that the playoffs are valuable and not just for financial reasons.
"Sports is all about hope, about breeding hope to a community. The excitement and hope (during the playoffs) has a big impact on ticket holders, sponsors and the future years for them wanting to be involved with you," Rigby said. "The community has been great about rallying around (the Jazz)."
For years, it's been rumored that NBA teams pocket about $1 million for each home playoff game. But that figure, Rigby said, is high. For one thing, the NBA takes a 45-percent cut of each home gate during the playoffs (up from just 6 percent per home game during the regular season) to cover its annual expenses.
If a playoff series goes an odd number of games, the visiting team also gets 25 percent of ticket sales from the final game on top of that.
"We share a big part of our gate," Rigby said. "That impacts us."
Franchises also don't get as big of a chunk from TV revenues because of national production and broadcasts. Players and some personnel also receive per-round bonuses for playoff success.
Even with the financial losses not to mention attractive purchasing offers, which Miller has received don't count on the Jazz beelining for Oklahoma City or anywhere else. For one thing, Miller loves having an NBA franchise in Salt Lake City for himself and his neighbors in the Intermountain West. That means the Jazz aren't going anywhere.
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