Timberwolves’ owner Glen Taylor expects to lose $10 million to $15 million this season, another year of large losses for his NBA club.
Taylor told Sports Headliners the franchise has been losing that kind of money for the “last four years.” He also said “probably 24 to 25” of the league’s 30 teams will have deficits operating this season. “We fall into the middle, with 12 losing more and 12 losing less,” he said.
The Wolves haven’t played winning basketball in recent seasons including 15-67 last year and 17-51 so far in 2010-11. Taylor knows that a winning team will boost ticket sales and other revenues, but there’s more involved as he looks to the future and his continuing commitment as the club’s majority owner.
The NBA and the players must make a new collective bargaining agreement after this season. Taylor pointed out that many league teams are losing money and there’s a need to look at expenses including player salaries.
Taylor also talked about revenue sharing among league teams. The NBA has limited revenue sharing and he recalled that the largest of monies ever divided was about $60 million. That was split among 15 teams because in the league’s revenue setup not all teams qualify. A larger future pot shared among more teams will presumably ease the finances of many franchises.
Closer to home Taylor has been talking with city officials about a major renovation of Target Center. The building opened in 1990 and is already among the oldest in the NBA. Locally the facility suffers in comparison to the Xcel Energy Center.
While it’s been suggested that the Wolves might move to St. Paul’s Xcel Energy Center, Taylor said no. “I have a contract to play at the Target Center and plan to fulfill my contract obligation,” he said.
Taylor hopes Target Center renovations can be completed by the city-owned arena within the next several years. The building hosts concerts, family attractions and other events. “It won’t be fixed up (just) for Glen,” he said.
In the meantime, the Timberwolves do control the naming rights process for the arena and their deal with Target Corporation ends this year. Taylor said Target, Sanford Health and other companies are interested in buying the future naming rights.