45
QUANTIFYING THE COSTS OF INTEGRITY BREACHES
FIGURE 4.6: INDIANA PACERS, ACTUAL VS. EXPECTED REVENUE, 2003–2010
Lower attendance and revenue undermined the team’s valuation. Assuming
that its $280 million valuation in 2003 would have grown at the average rate
of other NBA teams, the Pacers should have been worth nearly $440 million
by 2010. Instead, the team’s valuation reached just $269 million, a loss of 39
per cent (Figure 4.7).
0
30
60
90
120
150
2003 2004 2005 2006 2007 2008 2009 2010
$94.0
$94.0
$100.1
$104.0
$127.1
$122.7
$101.0
$118.4
$107.0
$114.3
$110.0
$110.3
$106.5 $108.0
$95.0
$97.0
$ Millions
Expected Revenue
1
Actual Revenue
2
Note:
1
Pre-scandal scenario assumes that Indiana’s actual revenue would have grown at the average rate of other
major NBA teams from 2005-2010 (3.6% CAGR);
2
Post-scandal revenue are based
Forbes
estimates.
Source:
Forbes
; ESPN.
© MONITOR QUEST LTD. 2011
GUARDING THE GAME Preserving the Integrity of Sport
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