Heat owner says team losing money: “Minnesota is a larger market than Miami.”
Miami Heat owner Micky Arison revealed in July that he expects his team to lose money again next season, according to a CNBC report from Darren Rovell. He said owning the team is “a hobby of passion, it’s not a business.”
Arison admitted that the Heat have been in the red every year since he took ownership in 1995, except for last season when LeBron James brought the city its second NBA Championship:
“The reality is we’re not a big market team,” Arison told CNBC. “Minnesota is a larger market than Miami. Where we find ourselves struggling is our local TV revenue is smaller than big markets and despite sellouts we’re only seventh or eighth in gate revenues. Obviously our payrolls are up and our revenues are not because of the limitations of our market.”
He also said that the new collective bargaining agreement negotiated before the season between the players and owners “works against us.” He estimates that while the New York Knicks and Los Angeles Lakers made up to $150 million in television rights, the Heat are closer to $20 million.