Friday, January 16, 2015

Could A Super Bowl Commercial Really Be Worth $10 Million? Suprisingly, Yes. - Forbes.com

http://www.forbes.com/sites/chrissmith/2015/01/16/could-a-super-bowl-commercial-really-be-worth-10-million/

Earlier this week NBC executive announced that NBC has sold 95% of its advertisement inventory for the Super Bowl. A 30 second commercial will cost a company around 4.5 million dollars. This is a 12% increase from what Fox charged last year. NBC said the true value of a 30 second slot is around 10 million dollars; however, that is not the asking price. With 112 million people watching the Super Bowl each year a price tag of 4.5 million dollars is an absolute steal. Social media also helps make these ads more valuable. if someone really like a commercial they can look it up on YouTube and watch it.

10 million dollars is a lot of money to us, but to huge companies that have huge revenues, it is not. If I was in charge of NBC my asking price would be 10 million dollars, because that's the real estimated value. I think companies would pay that too because to them it is barely anything, and they will be getting a huge return from all of the people who watched the commercial.        

Wednesday, January 14, 2015

Sale Of Atlanta Hawks Could Yield Greatest Return In Sports History - Forbes.com

A few months ago Atlanta Hawks owner, Bruce Levenson, put is team up for sale. A group of New York investors bought the Atlanta Hawks for five hundred million dollars. The investment group also bought the operating rights to the Hawk's home stadium. If the group would sales the Hawks right now they would get an estimated 850 million dollars. This has to do with the new TV contracts the Hawks have signed. The Hawks signed a new deal with ABC/ESPN and Time Warner(TNT). A 70% return on their investment is absolutely massive. 

I think the value of the Hawks franchise has a lot to do with how they are doing this season. In previous years the Hawks were a very mediocre team in the NBA. This year they are first in the eastern conference. This results in more people wanting to watch them. Including fans at the games and fans on TV. This is why they signed so many new TV deals. I also think NBA teams are a great investment. The NBA is no where near its peak and I think it will continue to grow and prosper. 

http://www.forbes.com/teams/atlanta-hawks/