Report: Sweep could cost Warriors an estimated $22 million
The Golden State Warriors are halfway to an NBA Finals sweep — not to mention a perfect 16-0 run through the playoffs — courtesy of two blowout, home-court victories over the Cleveland Cavaliers.
It should go without saying that much works remain for the Warriors to avenge last year’s loss and win a second NBA title in three years, much less completing a sweep. But one interesting nugget about a potential sweep involves how the Warriors organization stands to lose a sizeable chunk of change should the team win its next two games at Cleveland’s Quicken Loans Arena.
ESPN’s Darren Rovell reports that missing out on two potential Finals games at Oracle Arena (Game 5 and 7) due to a sweep could potentially cost the Warriors organization at least a whopping $22 million.
The math involved in calculating the $22 million-plus number is convoluted — a full breakdown can be read here. It begins with revenues from season-ticket holders’ Finals tickets ($600 a pop, 14,500 seats resulting in $8.7 million per game).
Add the approximately 4,000 tickets the Warriors can sell at a higher price (an estimate $4.8 million per game), not to mention the cut the team receives from the secondary resale market (10 percent commission on sale price of each ticket, approximately $1.5 million total).
The NBA does take a 25 percent cut of the playoff gate revenue, which amounts to approximately $3,375,000.
In-arena concession and souvenir sales (estimated at $332,500 for Game 5 and $380,000 for Game 7) would further add to the potential booty.
In the end, the profits generated from a Game 5 and Game 7 — as calculated in the report — would total $11,087,500 and $11,345,000, respectively.
Obviously, the Warriors are more than willing to lose some money to secure a second NBA title in three years. And we’re talking about an NBA team that takes in an absurd amount of revenue on annual basis such that $22 million is simply a drop in the proverbial bucket.
It also merits mentioning that the Cavaliers similarly suffered blowout losses at Oracle last season before rallying back from a 3-1 deficit to shock the Warriors. In other words, a sweep would be nice but a series victory may be just as good, potential lost profits be damned.