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Tuesday, October 18th, 2011 at 9:15 am  |  10 responses

Players Ready to Lower Share of Basketball-Related-Income to 52%?


NBA players and their reps have insisted that they will not go any lower than 53% on the split of the BRI (down from their previous share of 57%), but according to CBS Sports, they may be prepared to come down yet another percentage point: “As we can all hear deputy commissioner Adam Silver saying in our sleep, the NBA came into this negotiation with two goals in mind: to create a system in which all 30 teams can compete for a championship and, if well managed, have the opportunity to make a profit. With the National Basketball Players Association having agreed to reduce its share of BRI to 53 percent from 57 percent, the owners already have achieved the lion’s share of their economic goal. Based on the infamous letter that seven super agents sent to their clients recently — and corroborating information from multiple sources — the players appear prepared to go as low as 52 percent. Such a percentage would represent a transfer of $1.3 billion from players to owners over a six-year deal — more than $200 million of the $300 million the league says it is losing on an annual basis. But the owners remain committed to addressing not only their aggregate losses, but also a system that they believe is tilted too much in favor of big-market, big-spending teams. Initially, they wanted an NFL-style hard salary cap; the players rejected it. They shifted gears to an NHL-style flex cap, with a spending band for each team; the players rejected it and suggested a more punitive luxury tax instead. So the owners obliged, proposing an increase in the dollar-for-dollar tax to $1.75 for the first $5 million over the tax threshold, with 50 cents added for each subsequent $5 million. Under such a system, the Lakers — with a $90.4 million payroll — would’ve paid $50 million in tax as opposed to $20 million under the old system. The problem is, neither the Lakers nor anybody else would pay such an exorbitant amount. In other words, assuming Jerry Buss was willing to pay not a penny more than the $110 million he spent last season in payroll and taxes, the Lakers’ payroll would need to be reduced to $80 million to avoid exceeding that expenditure. So basically, Derek Fisher — the union president himself — would no longer be a Laker.”

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  • http://www.cbssports.com/nba/story/15751808/taxation-with-representation IAMORANGE4EVER

    That article was a great read. I’ve been saying all along, 52% was the magic number for the players to come down to regarding BRI, and I also like the concept behind the flex cap, as well as forcing teams to increase their payrolls from 75% of the cap to 85%.

  • http://www.optimabbc.be Max

    There is hope..

  • http://www.wayandpath.com Phil Winram

    In a capitalist system the owners of the companies that make the big bucks. That’s just the way it is. I did a bit of research and it seems that typically employee salaries are AT MOST 30% of the revenues. See this link to check it out yourself. http://www.bizstats.com/corporation-industry-financials/professional-scientific-technical-services-54/
    When a typical player is making 5 million a year it seems a bit excessive to be demanding even more money. But I can also understand that in this open book environment it’s also ridiculous for teams to be asking the general taxpayer to pay for their buildings (stadiums) which is the case in professional sports. How about fixing both issues. Take the difference of 20% and use that to built nice buildings (stadiums) for the people who support the games we love to watch and play.

  • http://www.slamonline.com UNFROZEN CAVEMAN LAWYER

    SO, EACH PERCENTAGE POINT IS OVER 200MIL? THE PLAYERS ALREADY DROPPED 4 POINTS. 800 MIL, AND THE LEAGUE SAYS ITS LOSING 300 MIL A YEAR, SO WHY ARE THEY FIGHTING TO GET THE PLAYERS TO DROP EVEN MORE??

  • http://www.slamonline.com UNFROZEN CAVEMAN LAWYER

    THAT MADE NO SENSE. EXTREME SLEEP DEPRIVATION CAN PLAY TRICKS ON YOUR MIND. I SEE THAT 52 SHOWS THE 200 MIL.

  • http://slamonline.com Allenp

    Each percentage point is about $40 million.
    Also, player costs are actually are about 50 to 51 percent of total revenues, they are 57 percent of BRI. With the reduction in the BRI split, player revenues will likely be about 47-48 of total revenue.

  • http://cnbc.com JTaylor21

    I love how the players are the only ones willing to reduce their percentage of the BRI, yet when you listen to the news or read the comments section of sports site, everyone makes it sound like they are the greedy ones.

  • http://myspace.com/gametimeweezy Gametimeweezy

    I think the fans know WAYY more than we should regarding these numbers. It forces the players union (Derek Fisher) to stand and not back down because the WHOLE WORLD will know how much LESS money the players will be making. With the NFL lockout we all know it was pretty much about pension reform and concussions. Period. But EXACTLY HOW MUCH EVERY SINGLE DAMB PLAYER WAS STANDING TO LOSE/GAIN… the media never got into detail with that part. Somebody LEAKED this information from the League or Players camp, it does’t matter which side. It doesn’t matter if it was on purpose. But the fact is by us knowing this information how much the players are standing to lose if they back down, its information that is tying the players hands right now. Because any deal they accept it seems like they are “Bowing Down” to the owners. Not a favorable position for Derek Fisher to be in with everyone knowing all the cards he holds.

  • robb

    c’mon f*cking owners, you can’t ask for more

  • ManOfMystery

    That’s why Derek Fisher is a championship point guard, he is the ULTIMATE leader and team player. He will always push for what’s good for the team, even if that meant him coming off the bench which will happen. He will be involved in the league whether he is playing on the court or not.

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