Hmmm, the NBA predicted losses for the season, but actually had revenues increase. Something fishy going on here.
Overall yes. but players salary increased as well and still amazes me that 57% of the revenue goes to players.
This short read got me interested so I googled around a bit to get a better picture of why a new CBA is needed (according to Stern). been wanting to do that for a while, but didnt have the time.
According to multiple articles, more than 22 of the 30 teams are currently running at losses right now.. These are Stern's words though.
The main issue for Stern for the new CBA is revenue sharing between franchises, so that smaller teams don't go broke/lose value.
Quote:
The league's proposed solution is a system that includes both robust revenue sharing and better player cost containment. It's a one-two punch of first ensuring the league as a whole is in the black, and then spreading the money around so that the big markets are on a level playing field with the small markets.
"It's about coming up with a system, if you think about it, where every team has the same amount of chips," Stern said.
I got the numbers below from som random article, not sure if its legit. still postworthy:
Quote:
•05-06: 19 clubs ran at a loss, total losses of $220 million
•06-07: 21 clubs ran at a loss, total losses of $285 million
•07-08: 23 clubs ran at a loss, total losses of $330 million
•08-09: 24 clubs ran at a loss, total losses of $370 million
•09-10: 23 clubs ran at a loss, total losses of $340 million
•* 10-11 23 clubs ran at a loss, total loss of $300 million
Pretty bad right?
However, the losses may be the result of the way that accounting has been done for these teams. Here's a long*ss article from ESPN on the league "losing" money. Interesting read (although I skimmed through a part, shit is longggg).
I am not denying that many teams lost money. It's the amount they are claiming that I am suspicious of. Any accountant can show a loss. Accountants were able to show that the first Harry Potter movie actually lost $167 million.
Since the players get a set percentage of the revenue, yes, if the overall revenue goes up, player salary will increase. Seems simple enough.
oops, I didn't know it was a fixed percentage. Figured that the percentage was based on players salaries weighed of against the total league income (well it is, but I though the the percentage had risen over the years, wasn't set). I was wrong.
Like I said, I didnt read up on this before now really ..
Quote:
Originally Posted by Sarcastic
I am not denying that many teams lost money. It's the amount they are claiming that I am suspicious of. Any accountant can show a loss. Accountants were able to show that the first Harry Potter movie actually lost $167 million.
Google "hollywood accounting"
yup. It's possible that some teams aren't even losing money at all and that their balances would show profits if you tweek the numbers a bit (see article).
Earlier - and in earlier threads I posted - not necessarily pro-NBA/ownership, but absolutely NBA/ownership sympathetic.
The NBA admits that it made money last year? Then f-the owners for making their sharing problem about the players and costing us a season. This is now the same as the NFL, where the owners were soooo in the wrong.
Moreover, I'm a little embarassed as a Knick fan (never a Dolan fan, but he's my team's owner) because he should share. Lucky enough to have fans that spend money on your product, no matter how lousy it is (even in 10 years of losing times)...go share with Sac, so we can have a season.
that being said, we get rid of the Bobs and the WNBA and we've got no problems.
NBA financial information for 2010-11 season
