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Old 07-06-2011, 01:46 AM   #4
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Default Re: NYTIMES reporting that nba crying foul over financial crisis

Originally Posted by boozehound
look at it over the entire graph. player salaries go from 420 to 2200 (a 525% increase) while other expenses go from 394 to 1400 (355% increase). so...., basically the cost of paying players has grown much more than other operating expenses. It is also the largest operating cost (accounting for 61% of total expenditures) for the league.

Just look at the operating margins across the entire graph and then since the last cba. Its pretty clear than owning an nba team in the modern era has never been less profitable. And I cant blame the owners for wanting to fix that. Especially when we see a small latin american countries entire GNP riding the pine or barely playing every year. Partial guarantee contracts would be the best thing to ever happen to this league imo.

The last 10 years represent the period since the last work stoppage. Prior to that there were no cap on max contracts, so there was a huge spike in salaries. If you look at just the last 10 years you will see the salaries have come back in line with revenues, and have only grown 24.3%. Revenue increases have actually increased more than salaries at 27.9%.
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