What’s the cost of an NBA Championship? Some would risk it all for a ring, but according to a new report, the Cleveland Cavaliers lost $40 million last season on their way towards an NBA Championship.
The Cavs famously came back from down 3-1 in the NBA Finals to defeat the Golden State Warriors, and they were the talk of the NBA all summer. Well, until Kevin Durant joined the Warriors.
Now it appears that despite the historic run and the amount of exposure the team received, they lost an estimated $40 million last season.
Following from Kurt Badenhausen of Forbes.
Gilbert’s massive commitment to spend whatever’s necessary to win a title led to a loss of $40 million last season by Forbes’ count in the sense of earnings before interest, taxes, depreciation and amortization. Forbes is wrapping up its annual look at the business of the NBA scheduled to be released Feb. 14, and the Cavs are one of only a handful of teams to lose money last season. Their loss was nearly four times greater than any other franchise, despite the windfall from hosting 10 playoff games.
Last season’s $115 million payroll triggered a $54 million luxury tax bill. Add in benefits, cash involved in trades and the team’s share for total NBA player costs to reach the mandated 51% of leaguewide revenue and Gilbert spent roughly $185 million last season on his roster.
Cavaliers owner Dan Gilbert spent an insane amount of money last season, and now LeBron James wants the team to spend more to get some more help. The two are apparently are at odds when it comes to what the team needs. So realistically, how much does another title cost to the Cavaliers?
