NBA Players are proposing a 53%-47% split of revenues while owners want a 50%-50% split. Each 1% is worth $40 million and since the contract is for 6 years, that $720 million. Not chump change. But, it also means a full season is worth $3 to $4 billion. Since the lock-out has already wiped out 15 games they have already lost more than the $720 million they are fighting over!! Positions will harden as losses mount.
Tag Archives: NBA
NBA Lockout
With an NBA lockout a possibility some NBA players are threatening to play in Europe. Don’t believe them. Aside from legal issues there are physical worries: an injury suffered while playing in Europe could void a player’s NBA contract. Also, it’s doubtful any European teams could afford any marquee NBA players. Deron Williams just signed with a Turkish team; his pay will go from $16 million to about $4 million.
Pro Sport, Small Impact
Despite its popularity, when compared to other industries, pro sports is very small. The $400 million recently paid for the Detroit Pistons is equal to the 468th ranked firm in the S&P 600 Small-Cap index (Stein-Mart). And Stein-Mart makes 10 times the revenue. When sports franchises try to shake down local governments for free stadiums, politicians should recall this.