NBA Commissioner David Stern is expecting losses of up to US$300 million: NBA Update
The National Basketball Association (NBA) commissioner David Stern is expecting losses up to US$300 million in this season. However, Stern has acknowledged the fact of tremendous success in current 2010-11 season and that the NBA’s earning will surpass US$4billion gross revenues.
Stern emphasised on the leagues’ financial structure and it should be changed for betterment of the NBA. Stern officially stated in the Annual Commissioner Meeting and pointed out that some very good suggestions for the future financial programme for the NBA.
Stern said, “We are still likely to lose collectively somewhere in the neighbourhood of $300 million, which is lower than $370 million of a few years ago and $340 [million] last year, But we still remain very much intent on having a system that actually allows us to both have a sustainable business model.”
The NBA’s new collective bargaining agreement is going to expire in this coming June while all the players and the league itself waiting for the next agreement, which will provide certain benefits to the players. The deputy commissioner of NBA, Adam Silver was also attending the annual meeting and conformed to this new agreement that all the players will now receive 57 percent of gross revenues from the league.
Silver also told the media, “But it looks a lot like a gross number, and we said we want it to look a lot more like a net number, We don't want to take every penny out, but we should be able to take out a lot more of our expenses and share that with [the players] - that net number rather than off the gross number.”
Both the executives further told the media that every NBA player is earning about an average of US$5 million per season and they are planning to help eight out of 30 teams to build their financial structure more sustainable, which eventually will make them more competitive in the league.
At end of the meeting, Stern said that we have plenty of time to get this deal done with full confidence and more importantly we do not want these continuous financial losses in future.
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