Lakers vs Mavericks: The Significant Business Aspects of NBA Trades

The Lakers vs Mavericks matchup on April 10

The Lakers vs Mavericks matchup on April 10 ended in a blowout, with 112-97 as the final tally on the scoreboard in the Lakers’ favor. On top of all the excitement that a late-season National Basketball Association (NBA) game brings, it also marked the first instance in which Luka Dončić — recently traded by the Mavs to the Lakers, played a game in Dallas as a player for Los Angeles.

Controversial Trade

That trade was enormously controversial — and that’s putting it mildly. Already considered one of the most important, not to mention unexpected trades in league history, the deal saw the Dallas Mavericks star’s stint in the team that drafted him end in exchange for the Mavs acquiring power forward/center Anthony Davis.

Reasons for Controversy

Why was the deal controversial? As the indubitably best player on the team and the centerpiece of an almost successful NBA finals run, Dončić was considered immune to trades. While the front office of the Mavericks later shared concerns regarding the star player’s weight and injury history, the arguments largely fell flat with NBA fans — although we do not mean this disparagingly, Davis is both six years older, more injury prone, and plays at a heavier playing weight.

Analyzing the Business of Basketball

This latest Lakers vs Mavericks matchup also offers an interesting lens through which the big business that is the world’s premier basketball league can be analyzed. It’s hard to quantify just how big of a business basketball is in the U.S. and globally — but we do have some estimates when it comes to the NBA. Per CNBC Sport, the average team’s valuation is $4.66 billion. The draw of matchups like Lakers vs Mavericks is undeniable, as the league’s recently signed media rights deal, which will cover the next 11 years, is worth $76 billion.

Revenue and Economic Impact

With average attendance at an all-time high, estimates place the league’s revenue in the 2023-2024 season at roughly $13 billion. Beyond that, there’s also a significant impact on the local economy, as cities that host NBA teams tend to see millions in new tax revenue.

The Stakes for the Mavericks

Unfortunately (for some, at least), when the stakes are that high, you have all the more to lose — and the Dallas Mavericks did. First, let’s backtrack and deal with the deal’s figures. Dončić is currently on a five-year, $215 million contract, which will see him earn an estimated $46 million next season. Davis isn’t far behind, as his 3-year contract will see him earn roughly $43 million next season.

Financial Consequences of the Trade

Here’s why the Dončić trade could easily end up costing the Mavericks more. Plummeting ticket sales and attendance have already forced the Mavs to hike prices by 8.61% for the next season. In addition, the drop in merchandise sales and severed sponsorship ties could see the team lose dozens of millions of dollars this season alone, with the ultimate cost projected to reach nine figures over the next several years, per anonymous team sources and ESPN.