By Will Chan
Following their new media rights agreement, the NBA is expected to expand to 32 total teams. Possibly expanding to Las Vegas and Seattle. But what does that mean for the economy of the WNBA and NBA? What about the economy as a whole?
Cities like Las Vegas and Seattle have large populations and big markets. Seattle has a population of about 3.5-4 million people and is generally known as an extremely popular city. With Las Vegas, there are plenty of attractions and entertainment that it makes sense to promote an NBA team there. Due to where the NBA plans on expanding, business will boom more than if it were to expand in a lesser known state or city. WNBA teams are looking to expand to cities that already have an NBA team.
On October 5th, 2023, the Golden State Warriors announced that they were creating a WNBA affiliate team in the Bay Area. They are expected to begin play at the Chase Center in San Francisco in 2025. Portland is expected to follow with their own WNBA affiliate in 2027.
Where is the NBA at financially right now? How will expansion teams make a difference?
As of the most recent NBA season (2022-2023), the NBA made over $500 million in profit from the previous season. Since 2010, the NBA has only seen a steady increase in revenue aside from the COVID pandemic, going from $3.8 billion in 2010 to $10.58 billion in 2023. This number will only rise, especially with the addition of more organizations.
Through ticket sales, team merchandise, and media opportunities, NBA and WNBA teams will create exponential financial gain. The more teams there are, the more opportunity there is to create more profit. Expansion teams will create economic growth.
Not only would new NBA teams increase the revenue and profit of the league, but it would also increase profit for brands and sponsors that are involved. It boosts the economy for the cities they are located in because of the arena and any sponsorship deals the teams make with their respective cities.
Just within these new organizations, with expansion teams, it opens up thousands of new job opportunities for people. There are plenty of positions that need to be filled beyond the players and coaches. There are jobs for those involved in management, arena maintenance, restaurant
and bars in the arena, team merchandise store employees and more.
Sources:
https://hoopheadspod.com/the-nba-economy-how-basketball-contributes-to-the-american-econo my/#:~:text=The%20Direct%20Influence,those%20selling%20merchandise%2C%20and%20mo re.
https://www.statista.com/statistics/193467/total-league-revenue-of-the-nba-since-2005/#:~:text= During%20the%202022%2F23%20season,dollars%20from%20the%20previous%20year.
WNBA announcing expansion team in the Bay Area
