Crazy⑧s
Evacuee
Though the CBA negotiations have received substantial media attention, there is very little detailed analysis of the real issues.
Under the current CBA the players are guaranteed 57% of "BRI" (Basketball Related Income). That, obviously, leaves the teams with the remaining 43%. I have seen on several occasions that the players' share of current BRI is $2.17 billion. This translates into about $1.64 billion for the teams. In a 30 team league, this is an average of about $55 million a team. Bear in mind, this is a more a gross figure than a net figure because, in theory at least, all costs other than player compensation must be deducted.
It takes over 20 pages of the current CBA to define BRI. To some extent it looks like gross proceeds from every income source from any NBA related entity, e.g. "aggregate operating revenues." But there are numerous adjustments and sub-definitions too time consuming and complicated to try to figure out. For example, proceeds from broadcassts are "net of reasonable and customary expenses." And for certain things, such as luxury suites or arena signage, the BRI includes only 40% of the gross proceeds net of taxes.
There has got to be some creative accounting going on. Fifty-five million dollars does not seem an appropriate "gross" for an NBA team. I would expect substantial expenses in addition to players' salaries. The Golden State Warriors were recently purcased for $450 million. The debt service at 5%, for example, would be $22.5 million a year.
Although I could be wrong on this, it also appears that despite its inclusion in the BRI, an individusl team's local broadcast revenues are not shared with other teams. This makes little sense and is apparently part of the union argument suggesting that the large market teams share with the small market teams. Let them, and not the players, subsidize the teams in markets that do not command substantial broadcast revenue.
In short, I find the coverage of the CBA negotiations totally lacking in substance. What the hell is really going on?
Whew. Thanks for the in depth read, OT. The BRI is beyond my reckoning entirely! There'll never be any sort of pervasive coverage of the CBA talks. The NBA can't afford the torch and pitchfork reaction they'll get from fans.