How Does Nba Make Profits

How Does The National Basketball

Association Make A Profit?

Kuan Lu

In this day and age, the NBA (National Basketball Association) is one of the most popular professional organizations in the USA, even in the world. The NBA is now 54 years old. In 1946, in order to improve the use rate of gymnasiums, eleven gymnasium owners got together and created a new basketball organization called the BBA (Basketball Association of America). In 1950, the BBA bought the NBL (National Basketball League) and they became the NBA (National Basketball Association).

The reason that the BBA and the NBL came together was “two months into the BBA’S second season, Podoloff knew his league was in trouble. Travel expenses and player salaries were on the upswing, while attendance continued to hover around the 3000 mark –about the same as most teams in the smaller market NBL” (Kirchberg, 2007, p.59 ). Combining was good for both the BBA and the NBL because it helped them have more fans and become more famous. Also, the creation of the NBA had a deep meaning. At that time, the Second World War ended and people needed ways to relax; and sports and entertainment became popular for this purpose.

The NBA’s purpose is not only for sports and entertainment, but it is also a business organization. How did the game of basketball change from a small amateur league sport to big business, and how does it make money? The NBA is comprised of three parts: the association, the club, and the players. This paper will describe how the three parts earn money and come together as the NBA.

Association

The association is like an administrator in the NBA. Its duties include writing the rules, organizing games, finding investors, and expanding the NBA. The association has the power to punish infractions of the rules, and to talk with labor unions. Also, it organizes international games and some promotional activities.

The association has a lot of ways to get money, like advertising, broadcast rights,...