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Why is the new NBA season starting so soon after the last one?

Erika Beras Nov 27, 2020
Heard on: Marketplace
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LeBron James of the Los Angeles Lakers shoots a 3-pointer against the Miami Heat during the 2020 NBA Finals in the "bubble" on Sept. 30. Kevin C. Cox/Getty Images
COVID-19

Why is the new NBA season starting so soon after the last one?

Erika Beras Nov 27, 2020
LeBron James of the Los Angeles Lakers shoots a 3-pointer against the Miami Heat during the 2020 NBA Finals in the "bubble" on Sept. 30. Kevin C. Cox/Getty Images
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It’s been just over a month since the NBA’s “bubble” season ended, but another professional basketball season is set to tip off in December.

It will be a truncated campaign — and in some markets, teams will actually get to play in front of fans. So what are the economic arguments behind the league’s scheduling? 

Right now, the NBA is going through the same bad business climate as a lot of other businesses, said Kenneth Shropshire, CEO of the Global Sport Institute and professor of global sport at Arizona State University.

“There is a major concern about making sure revenues flow at a level where you can maintain salaries at the same level,” he said.

The NBA is getting its new season started when more people are spending time at home — and other sports are in their off-seasons.

“The NBA’s calculation may be to sort of take advantage of that and provide an earlier start, so they can capitalize a little bit on the demand due to winter and an indoor activity being more in demand,” said Raghu Kodige, founder and CPO at TV data company Alphonso.

The NBA relies on all of the ad money it brings in on Christmas Day. The league has invested a lot in selling Christmas as basketball’s holiday, the way Thanksgiving is for football, said Courtney Cox, assistant professor at the University of Oregon.

“The maintenance of that kind of hoops holiday is really important,” she said. 

The money made by starting in late December could add anywhere from $500 million to $1 billion to the NBA’s bottom line. 

This new season will also cost the NBA hundreds of millions less to put on, because the teams won’t play in a bubble. And some may end up playing in front of crowds. 

That poses some risks for the league, said David Berri, a sports economist at Southern Utah University. 

“We’re probably going to see outcomes like the NFL where you’re going to see games canceled [and] games postponed,” he said. 

And that would be bad for ad revenue. 

COVID-19 Economy FAQs

What are the details of President Joe Biden’s coronavirus relief plan?

The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.

What kind of help can small businesses get right now?

A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.

What does the hiring situation in the U.S. look like as we enter the new year?

New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.

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