OT: NBA's Financial Model Broken?

[ABM]

From: The O

The NBA, already dealing with a faltering economy and the likely prospect of less revenue, faces an even bigger potential problem next season.

Most teams' cash flow is decreasing while players' salaries continue to rise. That scenario probably will prompt owners to request significant changes in the next Collective Bargaining Agreement (CBA) to help keep their franchises -- and ultimately the league -- financially viable.

"The (NBA's) financial model is really a challenge -- it's broken," Trail Blazers owner Paul Allen said. "The league financial model continues to be very challenging, especially for small markets. That's got to be addressed in the next CBA, especially how salaries are currently structured."

The league could push for a hard salary cap -- similar to the NFL's -- by eliminating many exceptions to the current salary cap. Or it could ask for concessions such as shortening the maximum amount and length of player contracts, eliminating mid-level contracts, a higher age limit for incoming players and scaling back annual pay raises.........................

 

[Draco]

non-guaranteed contracts

 

[PapaG]

Federal bail-out money being used to relocate the Nets?

http://www.northjersey.com/breakingnews/barclays17.html

BY JOHN BRENNAN
NorthJersey.com (Bergen Record)

AIG’s distribution of $8.5 billion in federal bailout money to Barclays Bank means Barclays should call off its $400-million naming-rights deal for a proposed Brooklyn arena, project critics charged Tuesday.

A spokesman for Develop Don’t Destroy Brooklyn — a group which for several years has protested the Atlantic Yards arena and housing project — questioned the propriety of Barclays’ continued financial interest in the plan.

The New Jersey Nets are slated to be the marquee tenant at the proposed arena.

“Why are federal taxpayers being forced to pay for Barclays’ marketing scheme?” Daniel Goldstein, the spokesman, asked in a statement. “The federal bailout of AIG was not intended to assist Barclays in hyping its brand in Brooklyn, or to help them slap their logo for 20 years on a basketball arena already heavily dependent on city, state and federal subsidies.”

 

[MARIS61]

A good place to freeze salaries would be the refs, who get ridiculous money and are allowed to fix games and gamble on them.

 

[PapaG]

A good place to freeze salaries would be the refs, who get ridiculous money and are allowed to fix games and gamble on them.

It was just one ref though! Ask David Stern!!!!????

 

[The_Lillard_King]

Wow . . . I never thought it would be Allen complaining about small market disadvantage.

Allen needs a new phrase . . . the broken finanacial model shtick was already used when he thinking of either selling the Blazers or buying the Rose Garden.

 

[PapaG]

Wow . . . I never thought it would be Allen complaining about small market disadvantage.
Allen needs a new phrase . . . the broken finanacial model shtick was already used when he thinking of either selling the Blazers or buying the Rose Garden.

He already gave up the Rose Garden once. If he's complaining, you know things are REALLY bad.

 

[Natebishop3]

non-guaranteed contracts

exactly. Darius Miles problem fixed.

 

[SpamKing99]

Oh my God! I guess Stern better cheat a Celtics vs l*kers finals redux "for the good of the league"...