Comments on: David Falk’s State Of The NBA http://www.sportsagentblog.com/2009/02/27/david-falks-state-of-the-nba/ Sports Business, Sports Law, Sports Negotiations, NCAA Rules Thu, 01 Dec 2011 15:23:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Nate Jones http://www.sportsagentblog.com/2009/02/27/david-falks-state-of-the-nba/#comment-120833 Nate Jones Thu, 05 Mar 2009 02:40:49 +0000 http://www.sportsagentblog.com/?p=4378#comment-120833 http://jonesonthenba.com/2009/03/nbas-real-economic-problem-lack-of.html <a href="http://www.twitter.com/JonesOnTheNBA" rel="nofollow">follow @JonesOnTheNBA on twitter</a><a></a> http://jonesonthenba.com/2009/03/nbas-real-economic-problem-lack-of.html

follow @JonesOnTheNBA on twitter

]]> By: Nate Jones http://www.sportsagentblog.com/2009/02/27/david-falks-state-of-the-nba/#comment-120151 Nate Jones Fri, 27 Feb 2009 19:18:54 +0000 http://www.sportsagentblog.com/?p=4378#comment-120151 I think Falk is wrong to put this all on the players. The major problem with the NBA right now is not the players share of the money (remember, the escrow system makes sure that players don't receive more than 57% of the revenue), but the fact that the league is behind the MLB and the NFL. Just a little portion of what I am talking about: In the NFL, home team splits the gate 60-40 with the road team. In the NBA the home teams keep everything. In the NFL 70%-75% of team revenue comes from revenue sharing. In the NBA it is only 20%-25%. In the MLB 35% of each teams local media revenues (TV, Radio, etc.) are put into a pot and redistributed. There is no such agreement in the NBA. In the NBA $49 million was redistributed for revenue sharing (via the lux tax and the escrow system) in 2008, while in the MLB $300 million was redistributed. Look at the income distribution from last year: http://www.forbes.com/lists/2008/32/nba08_NBA-Team-Valuations_Income.html Outside of the Spurs, the small market teams are struggling while the large markets are thriving. The discrepancy is only going to get larger as the league is handing off local digital rights to the individual teams. Of course the large market teams will pocket a ton of money, while the small markets will hardly see a dime from this arrangement. The players association needs to take a stance and force the owners to get their financial houses in check before they come and ask the players to give up money. <a href="http://www.twitter.com/JonesOnTheNBA" rel="nofollow">follow @JonesOnTheNBA on twitter</a><a></a> I think Falk is wrong to put this all on the players. The major problem with the NBA right now is not the players share of the money (remember, the escrow system makes sure that players don’t receive more than 57% of the revenue), but the fact that the league is behind the MLB and the NFL. Just a little portion of what I am talking about: In the NFL, home team splits the gate 60-40 with the road team. In the NBA the home teams keep everything. In the NFL 70%-75% of team revenue comes from revenue sharing. In the NBA it is only 20%-25%. In the MLB 35% of each teams local media revenues (TV, Radio, etc.) are put into a pot and redistributed. There is no such agreement in the NBA. In the NBA $49 million was redistributed for revenue sharing (via the lux tax and the escrow system) in 2008, while in the MLB $300 million was redistributed. Look at the income distribution from last year: http://www.forbes.com/lists/2008/32/nba08_NBA-Team-Valuations_Income.html Outside of the Spurs, the small market teams are struggling while the large markets are thriving. The discrepancy is only going to get larger as the league is handing off local digital rights to the individual teams. Of course the large market teams will pocket a ton of money, while the small markets will hardly see a dime from this arrangement. The players association needs to take a stance and force the owners to get their financial houses in check before they come and ask the players to give up money.

follow @JonesOnTheNBA on twitter

]]>