Organizations around the world have been impacted by the coronavirus pandemic, and sports teams are no different.
Teams rely on gameday sales — tickets, parking, merchandise, concessions, etc — for a good chunk of their revenue. Sure, TV deals move the needle more than any other revenue stream, especially for the NBA and NFL, but gameday sales are huge in terms of bottom line, but also for brand equity.
And unfortunately, some NBA teams just haven’t had that opportunity, as we’re now going on over a year since Rudy Gobert tested positive for Covid-19, causing the league to suspend play last season. Some teams have been hosting fans over the past few months, while others are still playing in empty arenas.
The Sacramento Kings have been in that situation, with California being strict in terms of its restrictions for businesses, similar to New York and Washington D.C., while other states such as Texas and Florida have gone in the other direction. And they’ve been hit hard from a financial standpoint as a result.
In fact, a report from The Athletic states that the Kings have lost approximately $100 million due to the coronavirus pandemic.
Other teams are likely in the same boat, but the Kings are a small-market organization that really feels the effects in a big way. The Warriors have surely lost more money, but their venture capital-based ownership can absorb the losses much easier.
Still, it really puts the fallout from the pandemic in perspective. The economy is still feeling the effects, one year later.