As National Basketball Association players and owners square off with contract talks, a number of businesses face a looming unknown. As it seems negotiations have stalled, it also appears that the regular season will not start on time.¬†
This could spell financial disaster for a number of organizations and employees in NBA markets throughout North America. No matter what side you may fall on the superstar athletes vs. team owners debate, you have to admit that economic realities exist in the wake of the decision-making process of how to split up the professional basketball revenue pie.
As the playoffs continue to be a strong performer on television, many sports fans don't start paying attention to the NBA until winter.
You would think that the union and the ownership group would want to strike a deal to shore up its fan base, but they know they have a little bit of time to get things in order.
In a struggling economy, the need for entertainment spending is crucial, and a late start to the season could have a hefty toll on Milwaukee and other NBA communities.
Variety reported¬†over the weekend that if the season is a total loss, that ABC/ESPN and TNT would lose out on $1.25 billion in ad sales revenue.
This macro example shows the wide-reaching impact it would have on advertisers and the goods and service that they pitch, the creative agencies that would have been employed for the media production, and the many more that would have gone into event-day production.
Closer to home, especially with the recent success of the Packers and Brewers, some people could care less if the Bucks return to play this season. However, all of us in southeastern Wisconsin would feel the economic impact of a lockout.
It's a sad state of business affairs that the NBA is in, as the fans and community are the lowest priority in inking a deal.Read more...