For example, the Memphis Grizzlies were a tremendous money loser up until a few years ago. They were not alone. Most insiders that talk about this topic say it takes a franchise roughly ten years to really get on solid footing in a new market, and neither the new labor deal or the current TV deal will be around in ten years. Many of the more frugal owners understand that taking in an expansion fee, even one that could cross the billion-dollar mark, is basically a loan against future earnings. That does not mean there are not some owners that would have interest in a cash infusion while the game is growing and revenue is pouring in. Expansion fees would be divided among the current owners, so a billion-dollar fee would equate to more than $33 million to each owner. That’s not an insignificant number.
The National Basketball Association will cease distributing its lowest-priced jerseys to sporting-goods chains beginning next season, the latest shift as sportswear makers aim to sell directly to consumers.
Silver, speaking Thursday before the Denver Nuggets’ 140-112 rout of the Indiana Pacers at London’s O2 Arena, said the NBA started studying the issue last year — specifically, the number of timeouts that are allowed in the final two minutes — and will review it again at the end of this season. “It’s something that I know all of sports are looking at right now, and that is the format of the game and the length of time it takes to play the game,” Silver said. “Obviously people, particularly millennials, have increasingly short attention spans, so it’s something as a business we need to pay attention to.”
After expanding to China last summer, retail and consignment sneaker shop Stadium Goods has announced its next power move — raising $4.6 million in new equity funding that will fuel new growth in the footwear market. According to a press release, the financing round was led by Forerunner Ventures, which has Warby Parker, Dollar Shave Club and Jet.com in its portfolio. Mark Cuban, Dallas Mavericks owner, is also a partner and advisor.
Today, the Miami HEAT announced a strategic partnership with the esports franchise, Misfits, a premium organization with professional teams competing in the genre’s premier games. The partnership, with the HEAT acquiring a stake in Misfits, is unique as it calls for the HEAT to assist in all duties including marketing, branding, promotion, retail, digital and sponsorship activation on behalf of the franchise, and to cross-promote the HEAT and Misfits. “The Miami HEAT pride ourselves on being innovative in all aspects of sports and business,” said HEAT Chief Executive Officer Nick Arison. “For us, it made perfect sense to partner with Misfits, a young and ambitious franchise in a sport that is blazing a trail in terms of 21st century recreational competition amongst Millennials.”