Ted Hoffman
The other Rick Zombo
- Dec 15, 2002
- 29,262
- 8,688
Fine, let's assume that the growth rate for gate receipts stagnates because ticket prices cannot rise any higher due to a lack of support from the general public, and that TV revenues either hold steady or (gasp!) decline due to low ratings.Yes that revenue was likely from an increase in ticket prices. Exactly the point discussed with Westcoaster above. Non-sustainable growth IMO
All those "revenue increases" you keep talking about are likely due to ticket prices increases for the most part. That cant be sustained in the long run in markets where you dont have support of the general public
1. There's other sources of revenue available to the league. Sponsorships? Merchandise? Team-specific revenue sources? All of those could easily push leaguewide revenues up even if the two categories above hold steady.
2. The amount that the players get at the end of the year is strictly tied to the amount of revenue the league generates; if contracts pay out more, the players have to pay back to the owners through escrow (like they will in '06-07). If contracts pay out less, the owners have to pay to the players (like they did in '05-06) ... so I (and I'm sure I'm not the only one here) don't get what you're trying to allege here.
3. As Sotnos states ... the assumption that ticket prices will hold steady flies in the face of evidence from every other major sport.