Which means an NRL club needs to generate $8-23m from football operations.
The operating budgeting for an NBL team is between $1.5-2.3m per annum. Roughly the cost of fielding a team in the Queensland Cup.
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The operating budget for an NBL team is not a fixed amount, but it depends on several factors, such as the salary cap, the number of players, the marquee players, the staff, the travel expenses, the marketing, and the revenue. Based on the web search results, here are some estimates of the operating budget for an NBL team:
- The salary cap for each team is $AU1.1 million as a 'soft cap' with marquee players able to be paid amounts that will exceed that amount for the team³. The NBL set its 2021-22 cap ceiling at $1,637,893.94, while teams must pay players at least $1,474,104.55¹. These figures will rise by four percent for the next season, the ceiling at $1,703,239.36 and the floor at $1,533,068.73¹. Each team must have at least eleven players plus at least one development player¹.
- The staff costs for an NBL team can vary depending on the size and quality of the coaching, medical, and administrative staff. A rough estimate of the staff costs for an NBL team is around $500,000 per season².
- The travel expenses for an NBL team can also vary depending on the distance and frequency of the games, the accommodation, and the transportation. A rough estimate of the travel expenses for an NBL team is around $300,000 per season².
- The marketing costs for an NBL team can depend on the level of promotion, sponsorship, and fan engagement. A rough estimate of the marketing costs for an NBL team is around $200,000 per season².
- The revenue for an NBL team can come from various sources, such as ticket sales, merchandise, broadcasting rights, and sponsorship deals. A rough estimate of the revenue for an NBL team is around $2 million per season².
Therefore, the operating budget for an NBL team can be calculated by adding the salary cap, the staff costs, the travel expenses, and the marketing costs, and subtracting the revenue. Using the estimates above, the operating budget for an NBL team can range from $1.5 million to $2.3 million per season, depending on the salary cap and the revenue. However, these are only rough estimates and the actual operating budget for an NBL team may differ significantly.
Source: Conversation with Bing, 8/12/2023
(1) National Basketball League (Australia) - Wikipedia.
https://en.wikipedia.org/wiki/National_Basketball_League_(Australia).
(2) Andrew Bogut reveals how financials work in Australian Basketball League.
https://basketnews.com/news-173248-...als-work-in-australian-basketball-league.html.
(3) Every NBL teams total spend for 2022-23 season - ESPN.
https://www.espn.com.au/nbl/story/_/id/36175408/every-nbl-teams-total-spend-2022-23-season.
Adelaide and Perth cannot afford to field a team in the Queensland Cup.