Businesses in cities across the country could see steep drop in revenue.
After Monday's announcement that the first two weeks of the regular NBA season had been canceled, a new game began: Learning who would end up taking the greatest financial hit in the wake of the decision.
The cancellations—100 games—mean nearly $83 million in lost ticket sales and as much as $1 billion in TV ad revenue from ABC, ESPN and TNT. Throw in the millions cut from player’s paychecks and it’s easy to see why negotiations have been so tense.
But the true losers in the situation are likely cities around the country, with businesses that depend on revenue from games to stay afloat. On the large scale, shareholders at the publicly-traded Madison Square Garden in New York City could lose $70 million in revenue if the league’s entire 82-game season is canceled, according to analyst estimates. As the first two weeks have already been canned, the company has reportedly lost $10 million. Smaller, local businesses that cater to sports crowds may fair even worse.
In Miami, at Los Ranchos Steakhouse, across from the American Airlines Arena, where the Miami Heat plays, the staff says a Heat game brings in a stream of customers—and as much as a $5,000 boost in nightly sales. “The lockout will affect not only us but it will be economically bad for many others here in the Bayside area since we are right by the Arena,” Alex Canas, a bartender at the restaurant, said to CBS Miami. “Hopefully we can get this resolved because we really need this. And on top of that, I am a Heat fan.”