“When you think you have done enough, do a little more, because someone out there is working harder than you.” That quote from Larry Bird’s When the Game Was Ours? It hits differently this time of year because the NBA Playoffs are finally here! The stage where legacies are made, buzzer-beaters echo forever, and heartbreaks become fuel for next year. Stars rise. Underdogs dream. April 20—mark it down. The biggest show in American sports is back.
But the NBA Playoffs? They’re way more than just buckets and buzzer-beaters. They’re an economic engine. A cultural wave. A boost that transforms host cities into buzzing hubs of activity. From jam-packed arenas to sold-out hotels, the ripple effect is real. Let’s break down how this basketball bonanza fuels local economies across the country.
The NBA Playoffs economy
For host cities, the NBA Playoffs are a goldmine. The buzz draws fans from all over, and with them comes a tidal wave of spending. Hotels get booked out, restaurants stay packed, and local businesses see a major boost. Everyone gets a slice of the pie!
The power of ticket sales and merchandise
The NBA Playoffs don’t just reward cities, they’re a massive win for the teams too. During the regular season, the league takes just 6% of home ticket revenue. But in the playoffs? That used to be a whopping 45%! In 2016, though, the NBA slashed its cut to 25%, giving teams a major chance to cash in. Finals tickets can cost 200% more than regular season matchups, giving teams a postseason jackpot!
No team has cashed in on playoff success quite like the Warriors. Golden State already leads the league in ticket revenue, pulling in over $4 million per regular-season game at Chase Center. That’s more than double what most teams make—only the Lakers and Knicks come close, each raking in around $3 million. All that revenue has helped the Warriors become the NBA’s most valuable franchise, now worth a staggering $9.4 billion. Winning big on the court has translated to winning big at the bank.
Jun 16, 2022; Boston, Massachusetts, USA; Golden State Warriors forward Draymond Green (23), guard Klay Thompson (11) and guard Stephen Curry (30) celebrates after beating the Boston Celtics in game six of the 2022 NBA Finals to win the NBA Championship at TD Garden. Mandatory Credit: Kyle Terada-USA TODAY Sports
Golden State’s 2022 title run wasn’t just iconic on the court! It was a financial juggernaut. The Warriors hosted 12 home playoff games that postseason, pulling in over $100 million in gross revenue before the NBA even took its cut. Their Finals opponents, the Boston Celtics, weren’t too far behind, grossing more than $50 million from ticket sales. All told, the 16 playoff teams combined for around $300 million in ticket revenue that year, according to Sportico.
On top of that, merch madness hits its peak during the playoffs. From jerseys and hats to all kinds of team swag, fans rush to rep their squads when the stakes are highest. That surge in merch sales doesn’t just fatten team pockets—it also boosts local retailers who stock up on playoff gear. It’s a win-win for the franchise and the city.
How soaring TV ratings and Ad revenue fuel the NBA’s financial engine
The numbers don’t lie—playoff basketball pulls in serious attention. From the play-in to the Eastern Conference Finals, the 2023 postseason racked up around 37 billion ad impressions—a 23% jump from the year before. Game 7 between the Warriors and Kings? It became the most-watched first-round game in 24 years, drawing nearly 10 million viewers on ABC. Overall, ABC averaged 6 million viewers throughout the playoffs, marking a solid 12% rise from the previous season, per Nielsen.
The 2023 playoffs brought in an estimated $339 million in national TV ad revenue across ABC, ESPN, and TNT, according to EDO Ad EnGage. That’s a dip from the $360 million pulled in last year, largely because there were more playoff games played in 2022.
The 2021-2022 NBA regular season marked a major rebound from the COVID-shortened season the year before. Ad spending across nationally televised games in the 2021-2022 season was up 114% over the 2020–2021 season, according to iSpot. That’s about $450 million spent on nationally televised games in the 2021-2022 season as opposed to $210 million in the prior one.Disney and Turner Sports brought in about $842 million from advertisers including AT&T Wireless, State Farm, Google Pixel, Kia Motors, and Taco Bell during the networks’ coverage of the 2022 playoffs, up 19% over 2021’s $705 million and 54% over 2019’s $546 million, per iSpot.
But the story flipped last season. The 2024 NBA Playoffs averaged just 4.53 million viewers across ABC, ESPN, and TNT—a 12% drop from the year before. The Finals between the Celtics and Mavericks didn’t help either, turning out to be the least-watched championship series since 2021. And if you leave out the pandemic-hit years of 2020 and 2021, it was the lowest Finals viewership since 2007.
Brand Sponsorships are redefining the NBA
This is where the real money was made. Team sponsorship revenue reached $1.4 billion in the 2023 season, a record high and an increase of 10% year over year, according to SponsorUnited. Brands in the finance category spent the most on NBA sponsorships, at $289 million.
But the money from the sponsors just keeps coming in! NBA team sponsorship revenue hit a record $1.5 billion during the 2023-24 season, up 7% from the previous year. This growth was fueled by the introduction of the In-Season Tournament, the Global Games, and the rise of stars like Victor Wembanyama.
The 2024 NBA Finals saw big money as well. The average price for an annual sponsorship deal? A whopping $21.1 million. And it doesn’t stop there. A total of 14 deals were in place, each worth $20 million or more annually. In the lead-up to the Finals, companies like eHi and United Wholesale Mortgage jumped on board. UWM, in particular, sealed the deal as the official mortgage partner through a two-year agreement worth $16 million.
How the Playoffs Supercharge Local Economies
Playoffs are a big cash cow for local businesses. Restaurants and bars near the arena see a major increase in customers before and after games as fans come together to socialize and celebrate. Hotels enjoy higher occupancy rates with out-of-town fans booking rooms for the weekend. Even businesses outside the sports industry, like retail stores and spas, reap the rewards from the added activity and the influx of visitors.
When the Denver Nuggets faced the Miami Heat in the 2023 NBA Finals, it was estimated that Denver generated $25 million in direct economic impact. “Based on analysis from our chief economist at the Denver Metro Chamber of Commerce, we are anticipating a direct economic impact to the region of up to $25 million, with a total impact four times that amount,” said J.J. Ament, president and CEO of the Denver Metro Chamber of Commerce.
More data suggests that playoffs do matter to host cities! Visit Milwaukee created the most comprehensive data analysis of the post-pandemic era when the Bucks won the NBA Championship in 2021. It found that the NBA Playoffs generated $57.6 million in economic activity for the city.
First round: $2.7 million
Second round: $12.8 million
Third round: $14.1 million
NBA Finals: $28 million
With all the benefits, there are challenges that come along with hosting the NBA playoffs. Let’s dive into some of the struggles a host city faces.
Challenges of Hosting the NBA Playoffs
First up, the sheer logistics. Managing crowds, traffic, and securing public safety for massive events can be overwhelming. Coordinating these efforts requires a lot of resources and planning. Then, there’s the temporary nature of the event. While the playoffs bring in short-term economic benefits, it can be tough for cities to turn that into long-lasting growth. When the games are over, so is the money flow.
And, of course, the competition. Cities with more established teams tend to get more attention, leaving others vying for their piece of the pie. These challenges certainly put pressure on local governments and businesses, but with the right strategies, they can turn the challenges into opportunities.
There’s no denying that the NBA Playoffs are an economic catalyst– not just for the teams chasing glory, but for the cities that host them. With the right planning, the economic ripple effect can stretch far beyond the final buzzer, fueling local businesses, boosting tourism, and reshaping communities for years to come. But for fans? It’s not about the numbers. It’s about goosebumps at tip-off, the deafening roar after a clutch three, and those heart-stopping moments that live forever. The NBA Playoffs aren’t just normal games, they’re memories in the making and money in motion.
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