Introduction
I choose the Miami Heat as the organization that I want to research. The reason why I have chosen this organization is that I want to be a basketball coach, and if not that I would like to work in the front office of a professional Basketball or Football organization. I also chose the Miami Heat because I have been a fan of them ever since I was a kid and would like to know what was happening behind the scenes throughout the years that have made them successful and unsuccessful.
This organization would be of interest to the audience because this research will show the strengths of this organization and the weaknesses as well as the missteps that may have hindered their ability to reach the historic levels of organizations such as LA Lakers, Boston Celtics or New York Knicks (Dollars, 2018). This paper would also be able to give insight as to how to and how not to run your very own organization. The Miami Heat organization wasn’t always as successful as it was in recent years like when it had Dwayne Wade, Chris Bosh, and LeBron James. They have been an average to below average organization most of their time in the NBA. I want to highlight when things went right and when things went wrong.
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The Miami Heat organization’s mission statement states that the group is focused on ensuring that it provides entertainment that is of high quality and that it should be offered in an environment that is friendly to the fans. The organization aims at fielding a team that will achieve success on the court and as for allows the organization to offer their fans good entertainment. The primary goal of the organization is to inspire the community and the guests of the organization. The organization states that it has been provided with empowerment and motivation that will enable them to develop an experience that is extraordinary to the fans as well as achieve more success. The goal of the organization is to make progress in the matches that are involved in and ensuring that the fans of the team are well entertained.
Financial Position
The Miami Heat professional basketball team joined the National Basketball Association League in 1988 as an expansion franchise. Ever since it entered the NBA, the team has won 3 championships and the most recent tournament that it won was in the year 2013. Since its inception, the organization has been increasing it is revenues. For instance, in the 2001/02 season, the revenue of the team was $96 million, in the following season, the revenue amount dropped to $91 million. Ever since the income of the team has been growing steadily. In the 2007/08 and the 2008/09 season, the team’s revenue dropped slightly to less than $130 million (Brautigan, 2018) . The organization has since regained, and its revenues have grown exponentially. In the 2016/17 season, the team reported that the revenue it had gained was $253 million.
According to the ranking by the Brautigan (2018) , the Miami Heat organization was ranked as the 7 th most valuable franchise or sports team that plays in the National Basketball Association. According to the valuation then, the organization was valued at $770 million ( (Brautigan, 2018) ). Some of the teams that were ranked ahead of the Miami Heat are the most established teams in the National Basketball Association and that have been excelling in the past. Previously in 2013, Forbes had valued the team at $625 million (Brautigan, 2018) . The franchise of the group grew for up to 23%, and up to $188 million was generated in the 2013/14 season.
There are several untapped revenue streams for the Miami Heat organization. For instance, according to the reports in the 2012/13 season, the games were attended by about 19,982 fans on average. Nearly 819,000 fans participated in the games during this season. The organization sold its tickets for approximately $78.3. And the average price for the tickets during that season was about $52.5 (Dollars, 2018). The team needs to expand its arena and also correctly promote its games so that more fans can pay to watch the team play. The team also needs to re-evaluate its tickets price to ensure that it collects more revenue from the sale of tickets (Dollars, 2018). The viewership on television has also been reportedly decreased over the last ten years; this is attributed to different technological advancements being experienced. The television deals have not been lucrative as before; there is need to develop a way to generate revenue from viewership. There is need to create proper licensing agreements and sponsorship deals to help the team increase the taxes that it earns.
The team also needs to implement different strategies to enable it to save on the costs that it uses in running different businesses that it is involved in. For example, the team can form up collaborations with other National Basketball Association franchises so that they can share the costs of doing some of the activities that they are involved in (Nath, 2018). The Miami Heat sports organization can also develop new strategies to handle some of the processes that it is involved in. For instance, the team can be able to produce proper procedures for revenue collection to avoid costly and wasteful methods that might be currently used. It also needs to embrace the use of technology so that it can be able to integrate its operations.
References
Brautigan, B. (2018). Forbes Welcome . Forbes.com . Retrieved 20 March 2018, from https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/baileybrautigan/2016/03/21/where-all-that-money-comes-from-nba-team-valuations-visualized/&refURL=&referrer=#37a66e98444f
Dollars, R. (2018). Miami Heat revenue 2001-2017 | Statistic. Statista. Retrieved 20 March 2018, from https://www.statista.com/statistics/196724/revenue-of-the-miami-heat-since-2006/
Nath, T. (2018). The NBA’s Business Model. Investopedia. Retrieved 20 March 2018, from https://www.investopedia.com/articles/investing/070715/nbas-business-model.asp
