Monday, February 23, 2009
THE FUTURE OF THE NBA
The nations economy is buckling. Many of the teams in the NBA are losing money. The Leagues revenue is flat, and the salary cap is about to shrink. In 2011, the leagues collective bargaining contract expires which will make even harder times for the NBA. "The owners have the economis wherewithal to shut down the thing for years", said David Falk, an NBA agent. "Whatever it takes to get a system to work long term." Faulk, an agent for the NBA for 35 years as an NBA agent is known by many for his reputation for brutal honesty. Falk talks about the current state of the agent idustry, saying "there's a rampant cheating going on" and "the quality of the representation is low". He blames the union, which certifies agents but provides almost no oversight. The NBA made $3.6 billion last year. The players made $2 billion. Where did the $1.6 billion dollar difference go? Operating costs? Many changes have been made to the NBA's collective bargaining agreement (luxury tax, salary cap, escrow tax). More work needs to be done when it expires after the 2010-2011 season.
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This issue is one that does not surprise, as the NBA and other sports institutions have been overpaid and overrated for years. It is not surprising that the NBA will suffer the same economic hardships as the rest of the country. Alot of it would probably be due to the fact people who have always been willing to pay $200 and $300 for an NBA ticket can simply no longer afford it due to the rough economy.
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