How The 76ers And Flyers Benefit Financially From Second Round Playoff Appearances

“This is why we do it all year long,” Laws said. “The grind through all the games is to get to the playoffs. This is the fun part of the season.”

76ers And Flyers Are Marketing Next Season’s Tickets

By advancing in the postseason and playing additional home games, the teams generate more money through ticket sales, concessions and merchandise, although the 76ers are owned by Harris Blitzer Sports and Entertainment (HBSE) and lease the arena. Josh Harris, co-founder of Apollo Global Management, and David Blitzer, chairman of Blackstone’s tactical opportunities group, founded HBSE, which also owns the New Jersey Devils and the Prudential Center in Newark, N.J., among other assets. Harris has a net worth of $10.8 billion, while Blitzer has a net worth of $4 billion, according to Forbes.

While the 76ers and Flyers do not publicly disclose their financial information, a 10-K annual report filing from Madison Square Garden Sports Corp. from August 2024 provides a glimpse into how much teams can earn in the playoffs. MSG Sports Corp., which owns both the New York Knicks and Rangers, earned an additional $71.8 million in playoff-related revenue during the 2024 postseason compared with 2023 because the Knicks and Rangers played seven more playoff games. That extra revenue more than offset the $27.8 million in playoff-related expenses.

Although it is not a direct comparison between the Philadelphia and New York teams, Laws noted the 76ers and Flyers benefit financially from hosting as many playoff games as possible. Still, the major advantage for franchises advancing deep in the postseason comes in marketing to individuals and corporations who may have a renewed faith and optimism for next season.

“It’s an opportunity, in a lot of ways, to grow your season ticket holder base and to build upon your renewal effort,” Laws said. “As great as the playoffs are financially this year, the real boon to the building and to the teams is the following season. That’s where you really see the lift.”

76ers And Flyers Rebound From Subpar Seasons

The Flyers are in the playoffs for the first time since 2020. But back then, all the Eastern Conference postseason games were held in Toronto in an empty arena due to COVID-19 protocols. The last time the Flyers played in a postseason game at home was in 2018 when they lost in the first round to the Pittsburgh Penguins. Before defeating the Penguins in this year’s first round, the Flyers hadn’t won a postseason series since 2012.

“Fan bases, when you’ve been in year after year, they can get a bit jaded about the first round or the early rounds and kind of say, ‘Hey, call me when you get to the second or even the conference finals,’” Laws said. “But this was a big lift to the (Flyers’) sales teams to have the opportunity to both leverage this and just the general excitement that the playoffs bring to the team.”

The 76ers, meanwhile, missed the playoffs last season after finishing 24-58, their worst record since the 2015-16 season. This season, they went 45-37 and made the playoffs with a victory over the Orlando Magic in the play-in game, clinching the No. 7 seed. They then upset the No. 2 seed Boston Celtics in the first round, coming back from a three games to one deficit and defeating the Celtics in the playoffs for the first time since 1982.

The 76ers claim that new season ticket sales are up 42% year-over-year since the start of the playoffs, while season ticket renewals have increased 23% and deposits for group tickets have increased 15%. In addition, the team has seen an uptick in merchandise sales, including for the 76ers Hardwood Classic jerseys that players wore at times during the regular season and in the play-in game to honor the 25th anniversary of the 2000-01 team led by Allen Iverson that lost in the NBA Finals. That was also the last time the 76ers advanced past the second round.

“This playoff run has created incredible energy and momentum for our organization,” said Owen Morin, chief revenue officer of partnerships for the 76ers. “We’re seeing that excitement from our fans translate directly into strong playoff ticket demand, early interest for next season, increased team store sales and renewed engagement from our corporate partners who want to be part of this run.”

76ers And Flyers Eye More Home Playoff Games

In February, Bruce Springsteen and the E Street Band announced its tour schedule for this spring, including a stop at Xfinity Mobile Arena on Friday night. But when the 76ers made the second round, the NBA had already set Game 3 for that night, leading to the arena moving the Springsteen concert to May 30. Laws said that most contracts with musicians and other touring acts from mid-April through mid-June contain a clause noting that the 76ers and Flyers get preference if they are in the playoffs and have a backup date in case there is a conflict.

“In this case, we were fortunate,” Laws said. “There was something that did work. Sometimes you’re not that lucky, for all sorts of reasons that no one can control…It can always be a tricky proposition this time of year, particularly in the Northeast.”

The arena has events scheduled for June 5 and June 13, which coincides with Games 2 and 5 of the NBA Finals, respectively. The NHL has not announced the schedule for the Stanley Cup finals, although the stadium is also booked on May 24, June 4 and June 7. There are no other events on the arena’s schedule for this month or next month.

“When we look at this time of year, we always are conscious that we’ve got to have at least a plan B, if not a plan C,” Laws said. “These are good problems to have. We want to maximize the dates on the calendar in the arena business. Your real estate is the dates on a calendar. You have only so many of them, so we're always trying to maximize that. But this time of year, the understanding is clear on all sides that (the 76ers and Flyers) have the priority in the building.”

The 76ers and Flyers haven’t made the conference finals in the same year since 1985 when the 76ers lost to the Celtics in the conference finals and the Flyers lost to the Edmonton Oilers in the Stanley Cup final. Back then, the teams played at the Spectrum, which was located near the current arena and has since been demolished.

The teams face an uphill climb making it to the next round this year, too. The Flyers lost to the Hurricanes 3-0 in Game 1 Saturday and 3-2 in overtime two nights later, while the 76ers lost to the Knicks by 39 points in Game 1 before making it more competitive in Wednesday night’s 108-102 loss at Madison Square Garden. Joel Embiid, Philadelphia’s star center, missed Game 2 with right hip and ankle injuries.

Still, the series are far from over, as both teams lost their games on the road and should have an advantage at home. No matter how their seasons end, the franchises are in a better position than they were a year ago and hope to build on the success.

“People are just more energized about the teams,” Laws said. “It raises your profile in the market for sponsors and corporate partners. The playoffs have all these downstream business effects that are more important than what happens with the events. The extra money from a couple extra games is obviously a welcome reward, but the real benefit is looking out towards next year.”

This article was originally published on Forbes.com