Wednesday, August 24, 2011

Player Revenue Splits

By far the biggest issue facing this labor situation is the division of overall revenues. In the NBA, revenues are referred to as Basketball-Related Income. Under the current system, the players take home 57% while the owners are left with 43%.

Over the last year or so, the owners have raised a number of reasons they feel their share should be bigger: costs associated with stadiums, additional expenses incurred through long-term debts, the rising costs of travel and so on.  The NBA has claimed that 22 of its 30 franchises lost money this past season.

The easiest way to fix that problem, of course, is to drastically reduce costs associated with players. In other words, by cutting their salaries significantly. Options on the table: rolling back future salaries of previously agreed to contracts, reducing the length of contracts (less years = less money) and reducing the amount of guarantees in a contract (allowing an owner to get out of a bad contract more easily or more quickly). It goes without saying that the players are opposed to all of those ideas on principle, given that they represent major concessions to what they have previously negotiated for themselves.  

2. The Type of Salary Cap

So... who is acctualy happy about it....

I'll tell you first off that is not and of us =(.
And that goes beyond just the U.S. More than 300 million people play basketball recreationally in China, which has a deep fascination with the Nation Basketball Leauge and its superstars. Mr. Bryant was treated like a rock star -- some might even say a god -- when he played for the U.S. team in the 2008 Olympics in Beijing.
And what of the sneaker business? The basketball shoe market is a $2.4 billion market. Between the traditional Nike brand and Nike-owned Jordan Brand and Converse, the Swoosh controls 94% market share in basketball shoes. Nike is a marketing partner of the ; NBA Adidas is a marketing and merchandising partner.


 Why the NBA and not other basketball organizations around the world? Maybe its because we have the most over paid players, or could it be that the owners want a LARGER cut than what they already have. Phhhh..... what about the audience, when do we get a word on the situation. We fund the NBA millions just to sit and watch them play for 4 quarters.

"Nobody is anxious to have a lockout or a work stoppage," said Neil Pilson, the former CBS Sports president who now runs his own consultancy, Pilson Communications. "From a cable [network] standpoint, a lockout would be manageable. But then you have a lot of goodwill there that's threatened."