Owners of NBA teams are increasing ticket prices in response to falling attendance and falling television ratings.
Compared to the season before the pandemic in 2018–19, the average ‘gate,’ which refers to the amount of money collected from ticket sales, increased by 10.2 percent. According to the data, fans are currently spending $109 for each ticket.
Compared to the levels that existed before the epidemic, the overall revenue that NBA owners bring in has increased by 18.6 percent. But, even while there was an increase in income, there was a 7.1 percent decline in the number of paying spectators attending arena events.
A few teams from smaller markets have performed worse than average, with some clubs experiencing attendance losses of at least 30 percent. Throughout the 2021-22 NBA season, the San Antonio Spurs, the Indiana Pacers, and the Minnesota Timberwolves had significantly declined overall gate income.
The discouraging data comes when NBA owners are getting ready to renegotiate a new television agreement worth several billions of dollars. After the 2024–2025 season, the existing yearly arrangement between the league and ABC/ESPN, and Turner Sports, worth $2.66 billion, will end.
The NBA makes almost 70 percent of its revenue via television rights. NBA Commissioner Adam Silver is allegedly pursuing a new nine-year agreement to pay $8 billion per year.
Compared to the 2018-2019 campaign, television’s ratings for the most recent season were much lower.
A source who advises NBA clubs said he’d be wondering whether this is a canary in a coal mine.
He said if he were Silver, he would confront the clubs that have had the most significant declines in attendance and tell them that this is not acceptable.
The National Basketball Association has placed responsibility for the decline in attendance on COVID-19.
According to Mike Bass, a spokesman for the NBA, overall attendance was down during the regular season because of the Omicron spike; however, they have had record attendance, including 59 consecutive sell-outs to date during the playoffs.
Even while the NBA playoff ratings have gotten off to a good start this season, they are still much lower than before the epidemic began.
It seems NBA brass and observers deny that going woke has had an impact.
It most certainly has.