The Los Angeles Lakers play in one of the biggest markets in the NBA. While this distinction helps the Lakers with their bottom line, the league’s revenue-sharing system requires these large-market teams to give up sizable chunks of their earnings.
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Once everything is taken into account, the Lakers are projected to make $100.1 million this season, by far the largest profit in the NBA. The Chicago Bulls and Houston Rockets are the closest, projecting to make $61 and $40.7 million respectively.
The Lakers large profit is even more impressive considering that they are also set to contribute the most to the revenue-sharing program according to Grantland’s Zach Lowe:
Holy cow, the Lakers! They end up with that huge profit despite contributing a league-high $49 million to revenue sharing […] A few teams, including the Lakers and Knicks, play in markets so large they are disqualified from ever receiving revenue-sharing payouts.
The NBA’s revenue-sharing plan was set up in order to help out the smaller market teams of the league. Teams such as the Milwaukee Bucks, Memphis Grizzlies, and New Orleans Pelicans are the teams which benefit most of the revenue-sharing plan.
The revenue-sharing payouts and contributions are tied to several different variables such as market size and profitability. With the Lakers going through one of their worst seasons ever, it is impressive that they still make this much money.
One can only imagine what the profit will look like if the team gets back to championship level, which they intend to do as soon as possible.
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