While the Cavs work to defend their NBA title, the team has been making big money moves off the court.
The Cavs recently got a commitment for $140 million in public funding for renovations to Quicken Loans Arena. This week, the team announced a partnership with Akron-based Goodyear Tire and Rubber for its signature wingfoot logo to appear on jerseys next season.
WKSU commentator explains why both of these moves have been controversial but necessary:
The Cavs are the sixth NBA team to sell the rights to a company for advertising on jerseys 鈥� . Pluto says the deal with Goodyear will bring in about $10 million to the team annually.
鈥淭his sacrilege of the Goodyear wingfoot being on the jersey? Give me a break. That鈥檚 just how it is. And truthfully, sports has never been that pure. People don鈥檛 get into sports to lose money.鈥�
Pluto says some fans are concerned that their team will become a walking billboard, much like NASCAR drivers.
鈥淟et鈥檚 get real,鈥� Pluto says. 鈥淩ight now there鈥檚 an NBA logo on the uniform, which is a brand. You buy any authentic NBA products that鈥檚 what you get.鈥�
And he says the NBA has taken it further. 鈥淭hey鈥檝e already sold to Nike the rights to beginning next season.鈥�
Uncertain TV network dollars
Pluto says a main reason for the jersey rights is the uncertain future of the big TV networks like ESPN, which late last month laid off scores of journalists. that it鈥檚 lost 10 million subscribers over the past several years. At the same time, the cost of broadcasting major sports has continued to rise.
鈥淲hat if [the networks] can鈥檛 pay all that? And maybe they may have to end up re-negotiating with these leagues. This is the price you pay.鈥�
Public private dollars for arenas
The Cavs, Cuyahoga County and the city of Cleveland recently signed off on a deal to fund $140 million in renovations to Quicken Loans Area amid controversy.
鈥淛ust because you put the money in and build it once, doesn鈥檛 mean you鈥檙e not going to have put more money in it,鈥� Pluto says.
The city is committing $88 million from admission taxes for the Q renovations. Cuyahoga County has already agreed to sell bonds to help finance the project. The Cavs and Destination Cleveland will kick in the rest of the funding.
Under the deal, the public money will come from admissions taxes. 鈥淵ou鈥檙e not paying for this unless you鈥檙e buying a ticket to the event.鈥�
Pluto says in the 鈥�90鈥檚 when Gordon Gund owned the Cavs, 鈥渉e paid nothing in rent for years. What they used to do is charge off their own improvements against the rest and called it even.鈥�
Pluto says current owner Dan Gilbert put a lot of renovations into the arena himself at first.
鈥淭eams never pay for anything and the fact that they鈥檙e paying for half is a surprise. They hold these cities hostages for years. The cities don鈥檛 want to lose the teams.鈥�
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