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Friday, April 24th, 2009 at 11:00 am  |  36 responses

Stern on NBA Economics: No Crisis Here

by Marcel Mutoni

With the world economy going down the crapper, much has been made about the financial outlook of several NBA teams, and there’s even been talk of some franchises possibly facing the option of closing up shop.

According to David Stern, however, the NBA’s financial demise isn’t on its way. There are issues, yes, but the picture is perhaps not as bad as you may think.

Newsday reports:

The NBA will see a slight increase in revenue this season, but the actual results from 2008-09 are, according to commissioner David Stern, “lower than we had projected.” The league also expects revenues to be down again in 2009-10, mainly because of the struggling economy and the lowering of ticket prices by teams adjusting to the recession.

But the notion that the league with the greatest global reach of any of the four major pro sports in the U.S. is in a financial crisis or that any of its teams are in trouble was quickly dismissed by Stern Thursday during an annual meeting with the Associated Press Sports Editors at the NBA offices in Manhattan.

“We have no teams that are in any trouble,” said Stern, who earlier this season celebrated his 25th anniversary as commissioner. “Our owners are substantial people who are used to, in many cases, funding operating losses. It’s not their preference and we’re striving hard to increase revenues collectively and to ultimately have a collective-bargaining agreement and a revenue-sharing agreement that allows every club, if well-managed, to be profitable.”

As for the dozen or so teams that asked for a loan this season, Sterns insists that the money was to be used to pay down other debts. Okay, then.

The CBA talks this summer should be something else.

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  • http://www.slamonline.com GotHandles?

    D. Stern is a Pimp

  • Sesa

    Bull ish!

  • http://www.manutd.com Z

    “We have no teams that are in any trouble” Sure. That’s why a playoff team tried to trade away their starting center for absolutely nothing. Because they don’t have any financial trouble. That’s why two owners are trying to set up shop in Vegas, because it’s going great where they are right now. That’s why teams are trading away their first round picks in order to avoid taking a guaranteed salary, because they’re balling like that.

  • http://www.obviated.blogspot.com nick

    PAY NO ATTENTION TO THE FINANCIAL TROUBLES BEHIND THE CURTAIN. LOOK! OVER THERE! AMAZING IS HAPPENING!

  • http://sfdjilf.com Jukai

    Considering David Stern is opening up all financial records on all teams to the Players Union, I’m guessing the dude is pretty damn confident.

  • http://www.hoopsvibe.com/christopher_sells-authorHV106.html chiqo

    i am automatically condition to not believe a word that stern says. ever.

  • http://www.shawn-kemps-offspring.blogspot.com/ TADOne

    “Now, could you explain your definition of “crisis”?” Stern decided to add.

  • http://www.broy7.com nate the great

    liar liar pants on fire!

  • http://allanzuss@yahoo.com Mendel

    Is does not take financial genious to know that theres no problem with the best basketball leauge in the world. At the end of the day the product on the floor will always sell out, its just you sell out might not justify say, paying a Rashad Lewis or possibly Gilbert Arenas 100 plus million. So in the future they or their like may have to accept 60 million dollar deals, which is the reality, and thus no finincial problems. And if you don’t like it well you can always take your game to Siberia, literally.

  • Clockwork

    Is the NBA still going to continue pouring money into the WNBA in these economic times? The WNBA was loosing money when the economy was booming, God knows what financial state they are in now.

  • http://allanzuss@yahoo.com Mendel

    Trust me I’m sure Stern recieves significant tax credits for the administration of the WNBA by Uncle Sam

  • Tavoris

    lol @ nick….u hit the nail on the head…lol

  • Tavoris

    Clockwork, the WNBA has already lost teams

  • http://slamonline.com Russ Bengtson

    nick wins.

  • Clockwork

    Teams? As in more than one? I thought it was just the Comets

  • playboy

    well duh if you make someone like chris bosh your franchise big man with a max contract you aint gona have much more money to spend on other players. they suck=no playoffs=less attendance. Of course there’s no crisis when the tickets are still the same expensive price erry year

  • http://lastknickstanding.blogspot.com Bryan

    The team that tried to trade their starting center for nothing is owned by george shinn if I’m not mistaken. You can’t let an owner like him define anything of relavance pertaining to nba ownership.

  • rav

    all the nba needs to do is get GM’s/owners who dont cave into agents ridiculous demands (see the ridculous contracts of the likes of marko jaric and corey maggette) and then the NBA will be in a much better state

  • http://mindyourbusiness@getalife.com Allenp

    Nick still wins

  • Tavoris

    u may b right…I know it was at least 1

  • Tavoris

    allenp, nick posted the most dead-on comment I’ve read in over a year…lol..still laughing at that one…

  • http://allanzuss@yahoo.com Mendel

    Yes, Nick said everything

  • http://www.obviated.blogspot.com nick

    good to know that that degree in creative writing is paying off…

  • http://www.obviated.blogspot.com nick

    Of course, hypothetical internet respect =/= real money, but hey, gotta start somewhere.

  • http://mindyourbusiness@getalife.com Allenp

    Maybe if you updated your blog more often you’d get more “real” respect.
    Just saying, I checked it out on the strength of your comment, but was very disappointed.

  • http://www.obviated.blogspot.com nick

    Allenp–that’s not actually my blog. It’s a friends that I linked to to help him out. Turns out, he’s a slacker…or I’m a slacker for not having a blog in the first place. Oh well.

  • http://slamonline.com Russ Bengtson

    The Nets are moving to Brooklyn any day now!

  • http://www.youtube.com/user/officerbarbrady what

    “Greatest global reach”? Really? More than the NHL which is almost entirely foreigners or the MLB which is much more popular in the Western Hemisphere and just as popular in East Asia? I’m not trying to hate, just asking…

  • drob50

    Executives who made dumb decisions should share a cell with Madoff.

  • madamerica

    What, how can you dispute that NBA is more popular globally than NHL and MLB? NHL’s reach is limited to Canada and northeastern Europe. And only the Japanese *may* give a crap about MLB outside of North America. NBA has players from Europe, Africa, South America and China. And fans all over the world. If you add up the international ratings of the World Series and the Stanley Cup, it wouldn’t even come close to the NBA finals.

  • ab_40

    lockout season… coming up ah well at least we’ll see some stars play half seasons in europe then haha

  • http://www.basketballjerseyworld.com nba-jersey-king

    no lockout, they’ll work it out earlier

  • Alan

    who cares if millionaires lost 10M.$?? or 50?? only if u have so much, you can lose it.

  • Herfdawg

    Alan is partly right. When you have a 1billion dollar business back you up, losing 10m a year hurts. But it won’t KILL you. The NBA has nothing to worry about because their revenues aren’t down by much at all compared to everyone else. 92% of the people in this country are employed to begin with.

  • chintao

    @ Jukai Posted: Apr.24 at 11:33 am ==> I think the books are being opened, so that he can tell the players that there’s no money to be had. That would mean that Stern’s quote is just bravado.

  • http://www.triplejunearthed.com/dacre Dacre

    ….and the NBA now has ‘million-dollar-ties with the film and movie industries off the back of Steve Nash and Baron Davis’ short-film work.

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