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Per report Pistons lost money last season, most in NBA

By Duncan Smith

AUBURN HILLS, MI - APRIL 10: A general view before the game between the Washington Wizards and Detroit Pistons in the final game at the The Palace of Auburn Hills on April 10, 2017 at The Palace of Auburn Hills in Auburn Hills, Michigan. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2017 NBAE (Photo by Brian Sevald/NBAE via Getty Images)
AUBURN HILLS, MI - APRIL 10: A general view before the game between the Washington Wizards and Detroit Pistons in the final game at the The Palace of Auburn Hills on April 10, 2017 at The Palace of Auburn Hills in Auburn Hills, Michigan. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2017 NBAE (Photo by Brian Sevald/NBAE via Getty Images) /
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Per a report by ESPN’s Brian Windhorst and Zach Lowe, the Detroit Pistons were the deepest in the red of 14 NBA teams that lost money last season.

In a report early on Tuesday, ESPN’s Brian Windhorst and Zach Lowe revealed details from a confidential report painting a bleak picture of the NBA’s financial outlook. According to the report, 14 teams lost money last year, and after factoring in revenue sharing nine teams remained in the red. Among these ranks were the Detroit Pistons, who came in dead last in money lost at a staggering $63.2 million.

After revenue sharing is factored in, the Pistons still lost $45 million, with the Brooklyn Nets close behind at just over $44 million. As is detailed in the piece, however, it’s clear that some revenue is not included. The Nets, for example, did not include revenue from the Barclays Center, which the team’s parent company owns.

We don’t know how the Pistons detailed their own financials, but Tom Gores (and minority partners) owns the team, Palace Sports and Entertainment, and the Palace itself. It’s safe to assume the actual shortfall after factoring that revenue is significantly less than $45 million.

The other teams falling into the red after revenue sharing include the Atlanta Hawks, Cleveland Cavaliers, Memphis Grizzlies, Milwaukee Bucks, Orlando Magic, San Antonio Spurs and Washington Wizards.

While owners cry poor at every opportunity but sell their franchises for numbers north of $2 billion, it’s important to be aware that there is more than meets the eye with these numbers. Particularly with the lack of transparency in how revenue from team-owned venues factors in, we can be fairly certain that the picture isn’t as grim as this report states.

On the other hand, the massive cap spike a year ago had significant unexpected results, as did the shortened playoffs this season which reduced the amount of basketball-related income (or BRI) teams were expecting.

Next: Pistons reveal new Statement jerseys

With the big TV contract already on the books and no clear new major revenue streams on the horizon, it’s no surprise to see teams signing advertising patch deals (like the Pistons did with Flagstar Bank) or court logo deals (as they did with Platinum Equity).

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