Los Angeles Lakers

1. EBM Assignment 1 & 3
Los Angeles Lakers
Arianna Gomez
12/06/2021
Carol Wonsavage, Entertainment Business Models

2. Why I chose this company:
LA Lakers has been the only live sport event I have been to. Being born and raised in Los
Angeles I feel a sense of attachment and pride towards the Lakers. I have never imagined a
future in sports but am interested to learn more about a team I love and represent my hometown.
Background Information:
The Los Angeles Lakers, an NBA professional basketball team located in Los
Angeles, California owned by Buss Family Trust. The team was founded in 1946 originally
named the Detroit Gems but located to Minneapolis, Minnesota in 1947 where they renamed to
the Minneapolis Lakers in the National Basketball League. (Encyclopedia Britannica, n.d.) Now
they play at the Staples Center, soon to be Crypto.com Arena, in Downtown Los Angeles,
earning their title as the top 2 NBA team.
Los Angeles Lakers have won 17 championships tied with the Boston Celtics as the 2
teams with the most wins in NBA history. Having teammates like Magic Johnson, Kobe Bryant,
and LeBron James who are worldly recognized as a part of the best top 10 NBA players in NBA
history. Magic Johnson had a salary of $39 million with 5 championship rings. Kobe Bryant
passed January 26, 2020 but had a salary of $323 million with 5 championship rings. LeBron
James had a salary $387 million with 4 championship rings. Filling arena seats because of their
legendary players. (Sportrac.com, 2021)
The Lakers value at $5.5 billion with a revenue of $316 million. Their first global
sponsorship was Bibigo, a new jersey patch deal receiving more than $100 million. The value
attributes come from revenue (32.6%), city and market size (46.0%), stadium (4.3%), and brand
(17.1%).
Customer Segments:
o Men 10 - 60: Los Angeles Lakers target customer are males between the age of 10 to 60
who enjoy watching basketball. According to statistics male fans make up 70% of
viewership. (CitizenNet, 2021)
o Corporate Partners: Current corporate partners for the Los Angeles Lakers are: Adidas,
American Express, Beats by Dre, Beyond Meat, bibigo, BioSteel Sports Drink,
Budweiser, Cincoro, Comeric, Delta, DWS, East West Bank, Fifth Third Bank, G.O.A.T
Fuel, Hennesy, Hyperice, Jacob Emrani, Jack in the Box, Metro, Lexus, LG, Mano’s
Wine, MGM Resorts, New Amsterdam Vodka, Nike, Pechanga Resort and Casino, Pepsi,

3. Socios.com, Ticket Exchange, Toyota, UCLA Health, Verizon, and Wingstop.
(Rprimeaux, 2021) It consists of brands providing team jerseys, shoes, alcohol, food,
banking, and more.
Value Proposition:
o NBA Franchise: Los Angeles Lakers ranks top 2 of the greatest NBA franchise, having
17 championship rings and top athletes. Having fans anxious at every game with hope to
qualify for another championship to beat Boston Celtics.
o Key Athletes: Los Angeles Lakers gained fans by having athletes like Magic Johnson,
Kobe Bryant, and LeBron James. All 3 players are ranked in ‘Top 10 Best NBA Players
of All Time in NBA History’ having Magic Johnson and Kobe Bryant with 5
championship rings and LeBron James with 4 rings. (Scottfujita, 2021)
o Coach: Frank Vogel is the head coach for the Los Angeles Lakers. He has bounced
around NBA teams (Celtics, 76ers, Pacers, and Magic) but has been with the Lakers since
2019.
o Championship: Lakers are currently tied with the Boston Celtics with 17 championship
wins, the most wins in NBA history. (Swong, 2020)
o Staples Center: Los Angeles Lakers home is the Staples Center located in Downtown los
Angeles. Starting December 25, 2021 it will be renamed to Crypto.com Arena. (Sam
Dean, 2021)
Channels of Distribution:
o Live Games: Los Angeles Lakers has an average of 18,997 attendees as the Staples
Center can only seat 19,079 people during a basketball event. Live attendance allows the
Lakers opportunities to raise revenue by sales. (Gough, 2021)
o Local Television: Spectrum Sportsnet broadcasts live games for Los Angeles Lakers and
behind the scenes access. (Rprmeaux, 2021, Where to watch and listen)
o National Television: NBA Lakers partnered with ABC, TNT, ESPN, and NBA TV to
allow fans to follow Laker games outside the LA area.
o Streaming & Online: NBA League Pass and NBA Audio League Pass is a paid
subscription to watch NBA games with no commercials. You can view replays and
highlights for any game.

4. o Radio: 710 ESPNLA is a radio network that broadcasts Laker games throughout
Southland including Hawaii and New Mexico.
Customer Relationships:
o Social Media: Los Angeles Lakers have social media accounts on Instagram, Twitter,
Facebook, YouTube, Weibo, and Snapchat. They have 18.1 million followers on
Instagram. Social media allows fans to interact with the team and promoting the Lakers
more. (Rprimeaux, 2021, Connect: Social Hub)
o Merchandise: The Lakers have a store at the Staples Center and an online store to bring
in more revenue.
o Community: The Lakers Youth Foundation provides education, health and wellness, and
sports for communities in need. Los Angeles Lakers provide grants, fundraisers, and
scholarships to low-income families for a chance at a brighter future. Finding ways to
bring light and happiness to communities even if its donating for the holidays.
(November 18, 2021)
o UCLA Health: Partnership with Los Angeles Lakers provides facilities centers to practice
while enhancing the importance of health.
Key Activities:
o Scout Team Players: The NBA Franchise hires scouts to look for new talent or study the
opposing team’s talent. Scouts travel around the world looking for new players that have
skill sets like: a good IQ, tall or high jump, quick footwork, dribbling speed,
ambidextrous (able to use right or left hand equally), jump shot, scores, defense, good
sportsmanship, work ethic, work under pressure, leadership, coachable, long wingspan,
and fast instincts. Scouts look for players that are overall good or have a strong
background to grow from. (Skills and qualities, 2019)
o Team Practices: Due to the Covid-19 pandemic shutdown, Los Angeles Lakers went 9
weeks without training or practices. This has caused a huge dent int the athletes’ physical
abilities because they did not have access to the equipment and trainings, they usually
have year-round. Every player needs to slowly work their body up to the rigorous training
they do to lower injury risks. (3cbPerformance, 2020)
o Marketing & Partnership: The Lakers newest partnership has been Bibigo, the #1 food
company in Korea. Bibigo with replace ‘Wish’ by becoming the new jersey patch for the

5. Los Angeles Lakers. Bibigo is the Lakers’ first international partnership. This marketing
strategy and partnership allows both companies to benefit by bringing more customers.
(Starkand, 2021) The Lakers also market within the arena, broadcasting, website, and
social media for other partnerships like: Jack in the Box, Nike, Pepsi, UCLA Health, etc.
(Rprimeaux, 2021)
o Website: Los Angeles Lakers has its own website with NBA providing information about
game schedules, ticket sales, merchandise, news, channel distribution options,
community opportunities, etc. It is a website with easy access to many information
regarding the Lakers. (The official site of the Los Angeles Lakers, n.d.)
o Licensing: The Lakers have a ‘term of service’ to inform fans about all the licensing
rights that need to be followed within the arena or services. Provided are legal rules
regarding copyright, trademark, restrictions, etc. (Burchardt, 2020)
o Travel: NBA is the league that travels the most, over 40 away games around the United
States. Most teams fly charter flights, but the Los Angeles Lakers have a private airplane
for their players to have smooth travels. This allows team management to join them on
their flight. (James, 2021)
Key Resources:
o Arena: Staples Center is the Los Angeles Lakers home court since 1999. The Staples
Center is in Downtown Los Angeles with the capacity of 19,079. There has been talk
about moving back to The Forum in Inglewood for the 2024-25 season. (Zucker, 2019)
o Team Players: Los Angeles Lakers has had continues growth by having athletes like
Kobe Bryant, Lebron James, and Magic Johnson. Kobe Bryant has created a legacy for
future legends to follow with his success at the Lakers. Now the team looks for new faces
like Lonzo Ball who already have a fanbase that can be added to the Lakers fanbase.
(Writer, 2020)
o Staff: Laker games could not happen without the help of the amazing staff, this includes:
ushers, security officers, ticket sellers, ticket takers, parking attendants, merchandise
staff, food and beverage employees, housekeeping and operations staff and stage hangs,
etc. The Los Angeles Lakers along the LA Clippers and LA Kings created an employee
fund during the Covid-19 pandemic to benefit hourly event staff because players
recognize and value them. (Nkioski, 2020)

6. o Team Management: The team management for the Lakers goes through every team
member behind the scenes from the head coach to the physical therapist. There is a
person for every job to make sure the Los Angeles Lakers have the best team, and every
team member is feeling 100%. (Los Angeles Lakers staff & executives, n.d.)
o Doctors: Professional basketball requires a high demand on the human body. The Los
Angeles Lakers, along with their partnership, have a team of doctors from UCLA Health
to keep players strong and health. Daniel Vigil, associate head team physician and
director of primary health, Kristofer J. Jones, assistant orthopaedic surgeon, and Ray
Padilla, team dentist. They provide players with knowledge to help them learn more
about how to take care of their bodies. (Lakers team doctors, n.d.)
o Lawyers: According to NBA Careers, “The legal department provides advice and counsel
with respect to all of the company’s activities and businesses on a global basis. For the
NBA and WNBA, the department assists in the negotiation and administration of collective
bargaining agreements with players, including the salary cap system, the anti-drug
program, and the grievance/arbitration process. For both of these leagues and the NBA G
League, the department provides advice on the structuring of player contracts, trades,
disciplinary matters, and playing rules issues. League transactional lawyers administer
policies governing the transfer and relocation of teams, the approval of new arenas, and the
regulation of team ownership and debt. Our deal lawyers negotiate and advise on the
structuring of business arrangements with counterparties in a variety of areas, including
television, digital media, sponsorship, consumer products, gaming, and events. Our
intellectual property lawyers maintain and protect the company’s worldwide portfolio of
trademarks and copyrights. The legal department handles litigation, investigations, and
legislative affairs, and oversees a compliance program across all of our business lines and
offices.” (Legal, 2017)
Key Partners:
o NBA: The Los Angeles Lakers joined the NBA in 1947-48 when the team was called the
Minneapolis Lakers. As the Los Angeles Lakers they have become one of the most
successful and popular teams of the NBA, having 17 championship wins. (Encyclopedia
Britannica, n.d.)

7. o Arena: The Staples Center opened in 1999, being a prestigious arena for concerts,
sporting events, award shows, family shows and other attractions. This arena has had
historic events like Michael Jackson Public Memorial Service, Nipsey Hussle’s
Celebration of Life, Celebration of Life for Kobe and Gianna Bryant, legendary
performances by Prince, Beyonce, The Rolling Stone, Janet Jackson, etc. With the
ongoing history, the Staples Center has become an important, well-known arena
worldwide. (Center, n.d.)
o Sponsors: Adidas, American Express, Beats by Dre, Beyond Meat, bibigo, BioSteel
Sports Drink, Budweiser, Cincoro, Comeric, Delta, DWS, East West Bank, Fifth Third
Bank, G.O.A.T Fuel, Hennesy, Hyperice, Jacob Emrani, Jack in the Box, Metro, Lexus,
LG, Mano’s Wine, MGM Resorts, New Amsterdam Vodka, Nike, Pechanga Resort and
Casino, Pepsi, Socios.com, Ticket Exchange, Toyota, UCLA Health, Verizon, and
Wingstop. (Rprimeaux, 2021)
o Merchandisers: The merchandise provided by the Los Angeles Lakers are by the brands:
Forty Seven Brand, New Era, Nike, and Mitchell & Ness. Nike is one of the Lakers
partnerships, making players their jerseys and practice clothes. (Los Angeles Lakers Gear
& Apparel, n.d.)
o Radio: 710 ESPNLA is a radio network that broadcasts Laker games throughout
Southland including Hawaii and New Mexico. KWKW 1330 AM is where games are
translated in Spanish within the Los Angeles area. (Rprmeaux, 2021, Where to watch and
listen)
o Cable: Spectrum Sportsnet broadcasts live games for Los Angeles Lakers and behind the
scenes access. NBA Lakers partnered with ABC, TNT, ESPN, and NBA TV to allow
fans to follow Laker games outside the LA area. NBA League Pass and NBA Audio
League Pass is a paid subscription to watch NBA games with no commercials. You can
view replays and highlights for any game.
Cost Structure:
o Travel: Los Angeles Lakers have a private plane for the team to fly to away games.
Prices depend on the amount of passengers and how far the flight is, the average cost is
between $2,000 to $23,000 per hour. To rent for a who weekend it can range between
$100,000 or more. (Zinn, n.d.)

8. o Arena: Since opening in 1999, the Staples Center has undergone upgrades that has cost
roughly $20 million to $30 million. They upgraded suite renovations, 3 scoreboard
improvements, new seats, and changing the carpets twice. Plans on upgrading more of the
stadium is on its way with a budget of 9 digits. (Bizjournals.com, n.d.)
o Staff Salaries: Ushers, security officers, ticket sellers, ticket takers, parking attendants,
merchandise staff, food and beverage employees, housekeeping and operations staff and
stage hangs, etc. who work at the Staples Center get paid minimum wage in Los Angeles.
o Players contract deal: LeBron James is the world’s highest-paid athlete. He joined the
Los Angeles Lakers in 2018 with a 4-year commitment worth $153 million. (Forbes
Magazine, n.d.)
o Insurance: The NBA has incorporated a new insurance with United Healthcare to provide
a health insurance plan for all retired NBA players with 3 or more years including their
spouse and children. No other professional organization has done this in the US.
(Roberts, 2016)
Revenue Streams:
o Ticket Sales: The Los Angeles Lakers had a revenue of $80 million for ticket sales in
2019-20. This season had a lower revenue due to the Covid-19 pandemic. The average
ticket price is $246, it can range from $41 to $25,959 depending on where you sit. The
expensive seats are court side seats. (Gough Statista, 2021)
o Sponsorships: The Lakers sponsorships consists of brands providing team jerseys, shoes,
alcohol, food, banking, and more. The Lakers advertise for these sponsorships within the
arena, broadcasting, website, and social media. Sponsors get more followers due to the
prestigious name of the Los Angeles Lakers. (Rprimeaux, 2021)
o Merchandise: You can purchase authentic Laker merchandise at the store in the Staples
Center or their online store. You can find clothes for women, men, and kids. They sell
jerseys, headwear, and accessories by Forty Seven Brand, New Era, Nike, and Mitchell &
Ness. (Los Angeles Lakers Gear & Apparel, n.d.)
o Intellectual Property: The Los Angeles Lakers filed for trademarks for their name, logo,
clothing, footwear, and headgear. (Laker’s trademark of the Los Angeles lakers, n.d.)

9. Conclusion:
I think the Los Angeles Lakers is a solid business model both for its customers and
financially. Customers can have a fun night out with affordable prices starting at $41, if you want
closer seats than you can pay an average of $246. Fans get an experience of just walking into the
Staples Center because of all the historic events that have happened in this arena plus they watch
iconic basketball players. Financially it is also smart because they have a lot of sponsors paying
big money because of the prestigious name the Lakers have made for themselves winning 17
championships. An area that the company can improve on is not depending too much on popular
players to bring in fans. If one season they don’t have a popular player, then their whole revenue
income can be at stake. If viewership goes down that can result in sponsors wanting to pull out of
their deals.

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