Quote Originally Posted by Raiders22: Because of the difference in aim for growth and target group, etc. it is different than in other businesses. Say, a mom-and-pop coffee shop will pay around 30% of their revenue to their baristas. However, say Starbucks, will pay less than 15% of their revenue to their baristas. So, in sense it is similar to this. The NBA and WNBA just cannot be compared because of scale and growth target at this point.Exactly....this is common sense
Not really.
Why can a small coffee shop pay out more in percentage of revenue can Starbucks can?
But the WNBA cannot match the NBA in percentage of revenue payout?
It is trickier than JUST that they do not have the revenue to do it. The small coffee shop does it.
So, you have to examine why they cannot because of their longterm aims. It is more than just lack of profit, now that some are making a profit.
The men's and women's soccer is a better comparison because the men's still has so very much more 'potential' growth than the NBA does, etc.
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Quote Originally Posted by ABooksNightmare:
Quote Originally Posted by Raiders22: Because of the difference in aim for growth and target group, etc. it is different than in other businesses. Say, a mom-and-pop coffee shop will pay around 30% of their revenue to their baristas. However, say Starbucks, will pay less than 15% of their revenue to their baristas. So, in sense it is similar to this. The NBA and WNBA just cannot be compared because of scale and growth target at this point.Exactly....this is common sense
Not really.
Why can a small coffee shop pay out more in percentage of revenue can Starbucks can?
But the WNBA cannot match the NBA in percentage of revenue payout?
It is trickier than JUST that they do not have the revenue to do it. The small coffee shop does it.
So, you have to examine why they cannot because of their longterm aims. It is more than just lack of profit, now that some are making a profit.
The men's and women's soccer is a better comparison because the men's still has so very much more 'potential' growth than the NBA does, etc.
Quote Originally Posted by ABooksNightmare: Quote Originally Posted by Raiders22: Because of the difference in aim for growth and target group, etc. it is different than in other businesses. Say, a mom-and-pop coffee shop will pay around 30% of their revenue to their baristas. However, say Starbucks, will pay less than 15% of their revenue to their baristas. So, in sense it is similar to this. The NBA and WNBA just cannot be compared because of scale and growth target at this point.Exactly....this is common sense Not really. Why can a small coffee shop pay out more in percentage of revenue can Starbucks can? But the WNBA cannot match the NBA in percentage of revenue payout? It is trickier than JUST that they do not have the revenue to do it. The small coffee shop does it. So, you have to examine why they cannot because of their longterm aims. It is more than just lack of profit, now that some are making a profit. The men's and women's soccer is a better comparison because the men's still has so very much more 'potential' growth than the NBA does, etc.
I was referencing your last point about WNBA and NBA...they are vastly different in terms of revenue stream
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Quote Originally Posted by Raiders22:
Quote Originally Posted by ABooksNightmare: Quote Originally Posted by Raiders22: Because of the difference in aim for growth and target group, etc. it is different than in other businesses. Say, a mom-and-pop coffee shop will pay around 30% of their revenue to their baristas. However, say Starbucks, will pay less than 15% of their revenue to their baristas. So, in sense it is similar to this. The NBA and WNBA just cannot be compared because of scale and growth target at this point.Exactly....this is common sense Not really. Why can a small coffee shop pay out more in percentage of revenue can Starbucks can? But the WNBA cannot match the NBA in percentage of revenue payout? It is trickier than JUST that they do not have the revenue to do it. The small coffee shop does it. So, you have to examine why they cannot because of their longterm aims. It is more than just lack of profit, now that some are making a profit. The men's and women's soccer is a better comparison because the men's still has so very much more 'potential' growth than the NBA does, etc.
I was referencing your last point about WNBA and NBA...they are vastly different in terms of revenue stream
You referenced the small coffee shop comparison and that is a TEENY bit in the vein I was attempting to discuss meaning the blanket comment about NBA makes more so they can revenue share that just is untrue on the surface. A company that "makes more" does not mean the company is profiting more nor that the costs of revenue outside wages (players) is lower because we have plenty of examples where that is not true.
The correct analysis would be to have the WNBA compare the income statements for their owners to the NBA owners and look at margins not revenues and see where they are different. Company A and B might have the same revenues and be in the same industry but WILL have different cost structures and margins, that has much more to do with efficiencies than it does revenues.
First step would be to get indy audits of the business and of sales/profits and analyze aside from revenues where the costs are and where the margin is or where it is lost then compare to the other league and make a determination.
Suggesting that more revenues means anything is not accurate, not saying that is your contention but to give equitable treatment to the players the first and only stop would be to have indy audits and analyze the differences between the leagues. Also not sure if the leagues are required to indy audits and financials aside from the owners and teams.
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@Raiders22
You referenced the small coffee shop comparison and that is a TEENY bit in the vein I was attempting to discuss meaning the blanket comment about NBA makes more so they can revenue share that just is untrue on the surface. A company that "makes more" does not mean the company is profiting more nor that the costs of revenue outside wages (players) is lower because we have plenty of examples where that is not true.
The correct analysis would be to have the WNBA compare the income statements for their owners to the NBA owners and look at margins not revenues and see where they are different. Company A and B might have the same revenues and be in the same industry but WILL have different cost structures and margins, that has much more to do with efficiencies than it does revenues.
First step would be to get indy audits of the business and of sales/profits and analyze aside from revenues where the costs are and where the margin is or where it is lost then compare to the other league and make a determination.
Suggesting that more revenues means anything is not accurate, not saying that is your contention but to give equitable treatment to the players the first and only stop would be to have indy audits and analyze the differences between the leagues. Also not sure if the leagues are required to indy audits and financials aside from the owners and teams.
All true and well and good. But to get to the same situation assumes that everything else is all equal — you have reached to total amount of audience and TV and sponsorship revenue that you are satisfied with. If that is the case and everyone would ‘agree’ they are done ‘growing by, and with intent’ — okay.
Then decide to pay coaches, staff, players all at the exact same percentage of revenue that the NBA does. But, as you pointed out, they are in the same business but at very different stages in growth, etc. So, it is not an apt comparison.
So, the folks that want the revenue sharing split to be the same as the NBA have to realize that it would stagnate growth at best and fold the league at worst.
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All true and well and good. But to get to the same situation assumes that everything else is all equal — you have reached to total amount of audience and TV and sponsorship revenue that you are satisfied with. If that is the case and everyone would ‘agree’ they are done ‘growing by, and with intent’ — okay.
Then decide to pay coaches, staff, players all at the exact same percentage of revenue that the NBA does. But, as you pointed out, they are in the same business but at very different stages in growth, etc. So, it is not an apt comparison.
So, the folks that want the revenue sharing split to be the same as the NBA have to realize that it would stagnate growth at best and fold the league at worst.
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