Frugal NBA is an article explaining the cut backs franchises have had to make to save money due to the falling economy. The NBA is in a pinch financially because the economy has dropped over the years. The franchises are not making as much money as they use to so they must make cut backs such as limiting assistant coaches, expensive holiday cards, and holiday socials. Most of their cuts backs are more of becoming efficient instead of cutting things back. Scouts from the New Jersey Nets have been grounded due to these cut backs. Instead of traveling to watch upcoming opponents play they are staying home. The Grizzlies have eliminated their whole scouting department. Some teams are even limiting their players to 13 or 14 compared to their usual 15 players. By doing this they are saving about $1 million a year; however it is also taking away their wiggle room. Coaches won’t be able to rest their key players like they use to or have certain plays.
NBA teams make money in a few ways. First they are granted some money for each game they have, which included ticket sales, concessions and so forth. Second they are paid off by the TV programs such as ESPN and TNT, which pay each team an average of $28 million a year. Then they get money from merchandise sales and local contacts. Each team gets about the same about for each of these categories; here is where they differ from large, medium, and small markets, sponsors. Large markets make more money from their sponsors, about $30-$40 million. Small markets only make about $10 million with their sponsors. In my opinion I think NBA teams are doing a good job at cutting back on unnecessary spending which is a good start to saving money, but what happens when you run out of things to eliminate? They need to find ways to pay their employees less. So you play a sport for a living, why do you need to make $15 million a year????