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NBA BASKETBALL BUSINESS NEWS STORIES
July 22, 2012: The new labor agreement changed the rules on players signing extensions before free agency. It made it wiser for players to wait to become free agents because they can sign longer, more lucrative deals. (So much for helping teams keep their stars.) -- Terry Pluto, Cleveland Plain Dealer
July 20, 2012: The BMO Harris Bradley Center board of directors and the Milwaukee Bucks have been discussing a new six-year lease that, if approved by the National Basketball Association, will provide stability for both sides as discussion continues over the possibility of a new, multi-purpose arena. Details of the lease were not released. Information on an extended lease came from the minutes of the BMO Harris Bradley Center's March meeting, which were released this week. If approved by the NBA, a six-year lease would be, by far, the longest lease the two sides have had in years. In general, the Bucks and the BMO Harris Bradley Center have gone year-to-year on leases. -- Milwaukee Journal Sentinel
July 19, 2012: The NBA Board of Governors approved a new look for uniforms and a couple of changes in the use of video replay. Commissioner David Stern met with the media Thursday after the Board of Governors held their annual summer meeting. He said the league is looking to add possibly $100 million in revenue by permitting small advertising patches on uniforms starting in the 2013-14 season. "The view is, that the teams would need a significant time; one, to sell the patch; and number two, for Adidas to manufacture the uniforms, because the patch that would be on the players' uniforms would also appear on the jerseys at retail," said Deputy Commissioner Adam Silver, who is handling the uniform change. -- Fort Worth Star-Telegram
OLDER NBA BUSINESS STORIES
July 31, 2011: ON KINGS POSSIBLY MOVING TO ANAHEIM, STILL
SI.com reports: The NBA, however, wants substantial concessions from the players. If substantial progress has not been made on a new agreement by June 30, the league is poised to halt operations -- that is, to impose a lockout. The NBA would be motivated to start the lockout on July 1 because, while the timing of payments on players' contracts varies widely, some players are paid in the offseason. If locked out, those players would not be paid, thereby saving teams money. Reducing staff and limiting business operations would also help teams cut costs.
SI.com reports: Foremost, the NBA demands a reduction in the percent of Basketball Related Income (BRI) that is paid to players in salaries and other compensation under the collective bargaining agreement. Currently, 57 percent of BRI is paid to players; the NBA reportedly wants players to receive 45 percent. The NBA also seeks a hard salary cap, which would prevent high-spending teams from substantially exceeding the cap through payment of a luxury tax, and fewer guaranteed contracts, which would enable teams to cut disappointing players without an obligation to pay them the remainder of their salaries. These changes would reportedly result in a reduction of NBA salaries by about 30 percent.
SI.com reports: The NBPA does not believe the NBA is losing as much money as it says it is. The union also attributes teams' economic woes primarily to a lack of sharing among big-market and small-market teams -- if teams shared local television revenue, which varies considerably by team, fewer would be in financial trouble, the union claims.
May 26, 2010
The New York Times blog reports: The revenue generated by a single playoff game varies widely, depending on the playoff round and the city in which the game is played. One playoff game can take in as little as $500,000 or as much as $2.5 million, according to one league executive, who also noted that “Milwaukee couldn’t charge as much for a Finals game as the Lakers charge in the regular season.”
Bernacchi said the Pistons need a buyer who's youthful, aggressive and willing to take chances to stimulate a state fan base. Increasing the fan base will be tough with the Pistons' play in decline. They won the 2004 championship and advanced to six straight Eastern Conference finals from 2002-08. But the core of those teams is slowly being disbanded, with only Tayshaun Prince and Richard Hamilton the primary holdovers. The Pistons are 15-26 this season and 11th in the Eastern Conference. They'd miss the playoffs if the regular season ended today. Bernacchi predicts the Pistons' value will be considerably less next year because of several factors, one of which is the team's recent lackluster ticket sales. The Pistons' 259 straight sellout streak ended last season, and they are not expected to earn a profit this season. Detroit News
NBA attendance is down -- CBS Sports report: Average paid attendance is down 3.7 percent in the NBA through the first quarter of the regular season, sending gate receipts plummeting 7.4 percent, according to league documents obtained by CBSSports.com. Net gate receipts, the money teams make from ticket sales, fell to an average of $828,985 per game, down from $894,823 at the same point last season. Only nine teams were up or flat in average net gate receipts through Nov. 29, while 21 teams saw a decline. The numbers are important because they reflect how even teams with relatively healthy paid attendance – such as the Mavericks, who are averaging 15,373 – are suffering due to pricing pressure from the recession. Dallas’ paid attendance is down 8.2 percent, but its gate receipts are down 15.9 percent.
After the Lakers clinched the championship, NBAstore.com broke its previous sales record, set after the Boston Celtics won last year, said NBA spokeswoman Kristin Conte, who didn't give sales figures. The biggest sellers were T-shirts, hats and a replica of a towel draped over Kobe Bryant's shoulder during a postgame interview. Some fans were having trouble ignoring the harsh economic times. News that the city would shoulder some of the financial burden for throwing today's $2-million parade brought widespread criticism given the yawning municipal budget deficit. LA Times
April 24, 2009: The Milwaukee Journal-Sentinel (Bob Wolfley) reports: Television ratings for National Basketball Association regular-season games were up 9% this season on ABC-TV but remained flat on both ESPN and TNT. The 18 regular-season telecasts on ABC had an average rating of 2.4 this season, compared with a 2.2 average for the 19 games carried on ABC last season. On ESPN this season, the average rating for the 69 games it carried was 1.1, the same as the rating for the 68 games it carried last season. TNT's 53 telecasts also averaged 1.1, the same rating as the previous season when it carried 52 games.
The Minneapolis Star Tribune reports: Nine players started this NBA season with a $20 million salary or more, led by Kevin Garnett's $24.75 million. The New York Knicks' -- the Knicks! -- payroll surpassed $94 million. On the Wolves alone, Brian Cardinal and Jason Collins earn $6.3 and $6.2 million. Wolves owner Glen Taylor last fall became the new NBA Board of Governor's chairman, which means he's the owner most entrusted with the money. "I'm very concerned for pro sports," he said. "I could talk about banks or health care or the media business. I don't think pro sports is protected in any sense."
March 2, 2009: NBA revenues
The Wall Street Journal (Matthew Futterman) reports: In the last two decades, the NBA has exploded in size, popularity and profitability. Revenues have risen to $4 billion from about $400 million in 1989. The value of a top-end NBA franchise grew over that span from less than $100 million to more than $400 million. The average player salary also jumped from $275,000 in 1982-83 to $5.6 million today. In boom times, the league liked to hold up these figures as points of pride. Teams that wanted to build themselves into contenders generally did so by spending large sums of money to acquire a few great players. Orlando, the newest of the league's elite teams, has earned this position largely by committing more than $40 million, about two-thirds of the team's entire payroll, to its four top players.
Feb. 23, 2009
The New York Times (Howard Beck) reports: The nation’s economy is buckling. Too many teams are losing money. League revenue is flat, and the salary cap is about to shrink for only the second time in its history. The N.B.A.’s system is broken, David Falk says, and fixing it will require radical measures that almost guarantee a standoff in 2011, when the collective bargaining agreement expires. “I think it’s going to be very, very extreme,” Falk said, “because I think that the times are extreme.” How extreme? Falk said he believed Stern, the commissioner, would push for a hard salary cap, shorter contracts, a higher age limit on incoming players, elimination of the midlevel cap exception and an overall reduction in the players’ percentage of revenue. And, Falk said, Stern will probably get what he wants.
Feb. 19, 2009: Sacramento Kings team revenue
Highly placed Kings sources project the franchise to lose between $25 million and $28 million before Wednesday's moves. And, as always, the Maloofs have plenty of friends. Their fellow owners in Milwaukee, Indianapolis, Memphis, Minneapolis, Charlotte, New Orleans and even large-market Phoenix reportedly are being pummeled by the economy as well. Reacting to the league's fiscal concerns during All-Star Weekend, NBA Commissioner David Stern and Players Association executive director Billy Hunter broached the possibility of reopening and revising the collective bargaining agreement before it expires in 2011. Sacramento Bee
Feb. 17, 2009: NBA to borrow $175 million
The Sports Business Journal reports: The NBA is set to borrow $175 million Feb. 26, marking one of the first league financings since the implosion of the credit markets last fall. The money, which will be available to 15 teams, supplements an existing $1.7 billion leaguewide credit facility that uses the NBA’s media contracts as collateral to secure loans for the clubs. The NBA surveyed its teams, and 15 responded they would like to tap into the new borrowing. While the league said it is pleased to borrow in an extremely illiquid credit market, the deal came at a cost, with interest rates up to 8.27 percent, hammering home the notion that the era of cheap money in sports is over. The 15 teams can use the money for any purpose, but covering operating losses may be high on the list.
The Sports Business Journal reports: Harvey Benjamin, the NBA’s executive counsel for business and finance, said it’s important not to compare the rates with what the NBA had been paying before the credit market collapse — about 200 to 300 interest points less for similar debt, sources said — but rather, what borrowers of similar standing are paying in today’s environment. In that light, he said, the 8.27 percent the NBA will pay on $100 million of the debt, and the 7.45 percent on the remaining $75 million, is favorable.
The Sports Business Journal reports: Of the NBA’s $1.7 billion facility, $1 billion is from short-term loans that renew annually. This would be the segment that would term out if the league were to go in that direction. The remainder, like the pending deal, consists of private placements.
Jan. 26, 2009
Sports Business Journal (John Lombardo) reports: National Basketball Players Association Executive Director Billy Hunter did not receive a raise from his $2.4 million gross salary during the 12-month period ending June 30, according to the union’s most recent filing with the U.S. Department of Labor. According to the latest LM-2 filing, Hunter’s total salary during the previous reporting period was $2.4 million, the same as in the 12-month period a year earlier. But other top union executives saw their annual salaries rise. NBPA general counsel Gary Hall earned $382,869, up from $361,314 during the reporting period a year earlier. Hall is the second-highest-paid union executive behind Hunter. NBPA associate general counsel Ron Klempner earned $222,375, up from $214,812 during the 12-month reporting period.
Rock Financial's parent company, Livonia-based Quicken Loans Inc., is owned by Dan Gilbert. Quicken has decided to focus its marketing efforts toward the NBA team that Gilbert owns, the Cleveland Cavaliers, who happen to play in Quicken Loans Arena, Hauser said. Because the Rock Financial presence is only in Michigan, supporting the Pistons doesn't help parent Quicken Loans highlight its national presence the way sponsoring the Cavaliers will. Detroit News
Feb. 25, 2008: The Milwaukee Journal Sentinel (Bob Wolfley), quoting Sports Business Daily, reports: American Airlines is to pay $195 million over 30 years ($6.5 million annually) for the American Airlines Center in Dallas, home of the Dallas Mavericks and Dallas Stars. Royal Philips Electronics is to pay $185 million over 20 years ($9.25 million annually) for Philips Arena in Atlanta, home of the Atlanta Hawks and Atlanta Thrashers. Rounding out the top five is Minute Maid Co., which agreed to pay $170 million over 28 years ($6.07 million annually) for Minute Maid Park in Houston, home of the Houston Astros. Sources told the Journal Sentinel that Bradley Center officials could be expected to be looking for $20 million over 10 years, or $2 million annually. Of the 71 deals listing a total payout and number of years, 30 of them were for $2 million or less annually. A total of 28 of the deals were for 20 years.
"Those were among the key findings in a report by Berk & Associates, a Seattle-based consultant that also showed the city of Renton could reap up to $20.5 million in taxes over 25 years from the arena. Renton Mayor Kathy Keolker, whose city commissioned the economic analysis, urged lawmakers to use the report as justification to fund the Sonics arena. However, two others -- an advocate for taxpayers and an economics professor who studies arena financing -- criticized the plan as too rosy and questioned whether the projections would come to fruition." Seattle Post-Intelligencer
"The City Council was not asked to vote on the agreement, which lays out how the cost of building and running the $480 million arena would be shared. A vote was in Dyer's original plan, but late Wednesday he delayed it after county officials said a decision would be premature. Dyer said he'll bring the agreement for a vote Jan. 22. In the meantime, city staffers and Magic representatives will meet with county officials to talk about the county's concerns." Orlando Sentinel
"The Magic would contribute $50 million in cash, buy -- or find investors to purchase -- $100 million in bonds to help finance the building's construction, and pay rent of $1 million a year. The team also would pay the city $1.75 million a year for naming rights, luxury suites and advertising, an amount that would increase 3 percent a year." Orlando Sentinel
January 10, 2007
"According to financial figures released Tuesday for the fiscal year ending June 30, 2006, the Bradley Center owes the Bucks a total of $5.4 million. That money is expected to be paid out in three increments. According to the terms of the deal, $2.1 million is payable in the current fiscal year, $1.1 million has been deferred until no later than August 2008, and $2.2 million has been deferred until no later than August 2009." Milwaukee Journal Sentinel
"The Suns' season ticket holders have renewed at a 93 percent rate, which Suns President and Chief Operating Officer Rick Welts said ranks third in the league and is well above the league's 85 percent target. With about 2,000 new season tickets sold, Phoenix has more than 13,000 "season ticket equivalents" (a term that accounts for how many seats are completely sold for every game, including partial-season packages) sold for the coming season." Arizona Republic
"The tax would generate at least $1.2 billion over 15 years. That money would go toward paying the bulk of the arena's price tag, estimated at between $470 million and $542 million. Also, a minimum of $594 million would go to the county and its cities for unspecified local projects." Sacramento Bee
"The most recent proposal would require voter approval for an increase in Sacramento County's sales tax. The revenue would help pay for a sports/entertainment complex to replace 18-year-old Arco Arena, along with other community projects for cities within the county. Though the participants remain divided on some fundamental issues -- foremost among them the cost of construction and the percentage of public and private contributions -- ongoing informal talks prompted a renewed, if tempered, sense of optimism and led to the upcoming meeting at the Palms in Las Vegas."
"The league wants its icons associated with the game. Magic Johnson owns a piece of the Lakers. Larry Bird is president of the Pacers. And now Jordan owns a piece of the Bobcats. It also makes one of the most popular people on the planet the face of its only minority-owned major league sports franchise. For NBA commissioner David Stern, this is the culmination of a dream." Rocky Mountain News
"Time Warner put the value of the teams and Philips Arena rights at $250 million when it sold them to Atlanta Spirit last year. That figure included $142 million in arena debt. Atlanta Spirit hasn't disclosed and perhaps hasn't fully decided the individual ownership percentages that will be held by the remaining partners. "It's uncertain how things will come out within a range," Seydel said." Atlanta Journal Constitution / November 8, 2005
August 9, 2005: 2007 ALL STAR GAME IN VEGAS: Non-gaming economic impact for 2007 NBA All-Star is projected at $27 million. Other recent impact numbers include: 2005 Denver, $30 million; and 2004 Los Angeles, $30.3 million. Houston is projecting $50 million in 2006. (all figures provided by local convention and visitors bureaus)... All-Star 2007 is projected to draw more than 25,000 visitors who would utilize nearly 43,000 room nights in local hotels, including The Palms, MGM Grand, Mandalay Bay, The Bellagio, Monte Carlo and The Venetian. The NBA will utilize almost 5,000 room nights.
"After lowering prices on several season-ticket packages for the 2005-06 season and changing some of their marketing strategies, the Hornets are recording their highest sales figures since the team relocated to New Orleans in 2002, team officials said last week. Hornets' chief marketing officer Tim McDougall said the franchise has surpassed last year's total for first-time season-ticket buyers and have approached $1 million in new season-ticket sales revenue." New Orleans Times-Picayune / June 6, 2005
"But one financial marker during the second quarter of each year - from April to June, during the playoffs - shows some consistency: the Garden division's revenues, as high as $193.9 million in 2000, when the Knicks played eight home playoff games, fell to $133.2 million in 2003, when there were no playoff games. During last year's second quarter, when the division's revenue jumped to $165.8 million, the Garden benefited from $6 million in higher Knicks revenue, $4.2 million in higher MSG Network revenues and a $10.3 million bonus from the Charlotte Bobcats expansion fee. The Garden also recorded a windfall when the Mets paid $54 million to get out of their FSNY contract after 2005; the Garden then gave itself a $41.8 million credit to reverse a liability tied to the TV deal." New York Times / April 22, 2005
"While Nike is not expected to put Bryant in commercials immediately, shoe retailing sources, who previously had indicated Nike would not use Bryant for the rest of the basketball season, now say they've been told the shoe company still might use Bryant in the near future. Despite his off-court troubles, many in Nike's core young market still support Bryant." ESPN.com / Mar. 2, 2005
"Nike and Adidas have been hanging around China for years, quietly building brand loyalty through grass-roots basketball clinics and boutique sales. Their target is a middle class that, by Adidas' estimates, is expected to surge from 60 million consumers in 2002 to 150 million by the end of the decade. China's population is 1.3 billion. Now Canton, Mass.-based Reebok International Ltd. is taking the plunge with a campaign featuring favorite son and National Basketball Assn. star Yao Ming. All three firms are aiming to dramatically increase their retail outlets by 2008, when Beijing hosts the Summer Olympics." Los Angeles Times / Dec. 25, 2004
"Worldwide athletic-goods giant Nike, Inc. announced Thursday that University alumnus and current Chairman and Chief Executive Officer Philip H. Knight will step down as CEO, effective Dec. 28. Knight, the top donor to the University in recent years, will retain his position as chairman of the Board of Directors when he is replaced by William D. Perez next month. The Knight family helped finance the $27.4 million renovation of the University library, which was completed in 1994. In 1996, Knight also donated $10 million to build the William W. Knight Law Center -- named after his father, who graduated from the University's law school in 1932 -- as well as $15 million more to finance endowed chairs and professorships, according to the University." Oregon Daily Emerald
"The Charlotte Bobcats' aggressive recruiting campaign for naming rights at the uptown arena calls for a commitment of a decade or more at $4 million per year. According to sources familiar with the pitch, the Bobcats deal would be at the top of any NBA naming-rights pact for a market this size, double the dollars the Indiana Pacers generated in the Conseco Fieldhouse agreement." MSNBC.com / Nov. 15, 2004
"An SFX spokeswoman said agency executives are confident that they can keep Tellem, who was out of the country and unavailable for comment. SFX is offering Tellem a larger role within the firm, say sources inside SFX, but he has told friends and co-workers that he wants to avoid making a long-term commitment. Should the two sides fail to cut a deal, Clear Channel could soon find itself competing against one its former top agents, a position that is not unique within the sector." Washington Post / Oct. 23
"Nike could still pick up Gordon's college teammate Emeka Okafor, who was drafted second overall by the Charlotte Bobcats, but, in the eyes of shoe executives, power forwards and centers are not considered as marketable as small forwards and guards. The last of this year's high-profile shoe free agents, Shaun Livingston, just signed with Reebok. Ralph Greene, Nike's director of global basketball, told ESPN.com that Nike had interest in Livingston "but he chose to sign for more money." ESPN.com / Sept. 16, 2004
"James
participated in the process to select his namesake flavor. This past winter,
Coca-Cola chemists went to the Ritz Carlton in Cleveland and put cups of sample
flavors in front of the NBA Rookie of the Year, who, like Jordan, wears the number
23. James chose a red sourberry flavor. He then selected the color of the drink
from a palette of possibilities, ultimately arriving at something very similar
to the Cavaliers' wine color." ESPN.com
"Coca-Cola is counting on James to have a greater
effect with Powerade, which has experienced considerable growth since it was brought
to market in 1992. Powerade's
share of the market is currently 14.9 percent compared with Gatorade's 81.2 percent,
according to Beverage Digest, an industry trade publication. James' deal with
the Powerade and Sprite brands is worth approximately $2 million a year, but there
are incentives in his contract that will reward him if it is determined that his
endorsement leads to greater sales." ESPN.com
July 2, 2004: "Thomas wouldn't estimate the value
of the Kings' cable
rights, though the NBA average last season was $7.5 million a year, according
to Shaw Sports Business. Such additional revenue could spell the difference between
a profitable or financially losing season for the Kings. The club last year turned
a $4 million profit, but has lost close to $30 million over the past five seasons,
according to records provided to The Bee." Sacramento
Bee
June 18, 2004: Final 2003-04 NBA Season Attendance
This year’s average regular season attendance of
17,050 fans per game is the highest since the 1997-98 season (17,135), the last
season the NBA averaged more than 17,000 fans per game. NBA arenas were filled
to more than 89.2% capacity, the fourth highest percent capacity all-time and
the highest total since the 1997-98 season. Team-by-team
attendance.
June 18, 2004: Final 2003-04 NBA Season TV Ratings
ABC - The full season on ABC (29 games) averaged a 4.6
rating, up +10% versus last year's 27-game average (4.2 rtg.).
TNT – The full season on TNT (95 games) averaged
a 2.3 rating, up +10% versus last year’s 98-game average (2.1 rtg.).
Game 6 of the Western Conference Finals earned a 7.3 rating
and averaged 6.5 million households, making it the most viewed NBA Playoff game
in cable history.
The ratings for the NBA Playoffs helped TNT become the #1 ranked cable outlet
for the important sweeps month of May.
ESPN – The full season on ESPN (90 games) averaged
a 1.8 rating, up +20% versus last year’s 90-game average (1.5 rtg.).
Game 6 of the Eastern Conference Finals earned a 5.0 rating
and averaged 4.4 million households, making it the most viewed basketball game
in ESPN history and the most viewed 2nd Quarter program in the network's history.
June 18, 2004: NBA Finals TV Ratings
Game 5 Registered the Highest Rating for any NBA Finals
Game since Game 6 in 2000 and the Highest of any NBA Finals Games 1 through 5
since 1998
ABC PRODUCES DOMINANT RATINGS WITH NBA FINALS
ABC Dominates Competition with NBA Finals Game 5 defeating
NBC by 92%, CBS by 202% and Fox by 338%
13.8/23 Household Rating is 123% Higher Than Last Year’s
Game 5
Game 5 had the most viewers, 21.84 Million, of any NBA
Finals Game 1 through 5 since 1998
Five-Game NBA Finals Series Average is Highest Since 2001
Among Households, Total Viewers and Key Male and Adult Demographics.
ABC's Sunday, June 15 broadcast of the NBA Finals Game
5 in which the Detroit Pistons defeated the Los Angeles Lakers 100-87 to win their
first NBA Championship since 1990 posted a national household rating of a 13.8/23
to rank as the No. 1 television program on Tuesday night and the highest rated
Game 5 in an NBA Finals series since 1998.
The top rated markets for the five-game series are:
Detroit: 41.3
Los Angeles: 29.6
San Antonio: 20.1
Salt Lake City: 16.7
Houston: 16.3
April 13, 2004: Most
popular NBA jerseys
See the 25 most popular NBA player jerseys and 10 most popular NBA team jerseys
of the season.
April 3, 2004: "Operations and bookings at the
city-owned Target Center will be handled by a partnership created by Minnesota
Timberwolves owner Glen Taylor under a deal approved Friday by the Minneapolis
City Council. Target Center's primary tenants are the NBA Timberwolves and the
WNBA Minnesota Lynx, also owned by Taylor. Taylor's firm will handle personnel
matters at the arena. His partners in the Midwest Entertainment Group, the James
M. Nederlander Co., will book concerts and other events." Minneapolis
Star Tribune
Mar. 16, 2004: The Miami HEAT and Sunshine Network,
a Fox-owned regional sports network, today announced a new long-term agreement
providing Sunshine exclusive regional television rights to the NBA franchise.
This agreement extends a successful television and marketing partnership that
began between the two parties more than a decade ago.
Mar. 4, 2004: "The Rockets, beginning next season's
season-ticket drive, raised the price on 2,900 club seats and lowered the price
on 4,200 other lower-bowl tickets. In addition to the price changes, the Rockets
have brought their payment schedule more in line with much of the NBA, with the
first 25 percent payment for renewals due March 15." Houston
Chronicle
Mar. 4, 2004: "The lower bowl's $50 season tickets
were reduced to $45 per game, and the $60 season tickets were cut to $55. The
club seats that have been $175 per game were increased to $180. The $135 club
seats were increased to $150, and the $125 club seats were increased to $130.
Those club seats have been sold out this season with a waiting list. "It
was our first year doing club products, so we took our best shot with the pricing,"
McDougall said. "The $175s and $125s hardly moved (in price) at all. The
$135s, we have a huge waiting list. We know we have a lot of demand for them.
Rather than take a price increase across the board, in the area we have a lot
of demand and a product that's gotten very good reviews from our customers, we're
taking a price increase." Houston
Chronicle
Mar. 1, 2004: "Only seven of the 47 owners of
Rose Garden luxury suites with contracts that expire after the Portland Trail
Blazers finish this NBA season have said they will renew their leases. Team
officials assured fans it would be business as usual after the Oregon Arena Corp.,
which owns the Rose Garden, declared bankruptcy last week. But the luxury suites,
which have a median price of $116,000, are a significant source of income for
a team already losing many millions of dollars." Source: Associated
Press
Feb. 28, 2004: "In the collective bargaining negotiations
under way, the NBA will soon seek a deal in which it can use the National Basketball
Development League as a limited farm system. Players drafted into the NBA
would earn their NBA paychecks but could play and improve in the D-League instead
of rotting at the end of NBA benches." Houston
Chronicle
Feb. 28, 2004: "It has not been brought up yet,"
a source familiar with the NBA's negotiation plans said on condition of anonymity.
"But if the players association does not agree to an age limit, that is definitely
a topic that will be discussed." The union will fight it. But with so many
players coming into the league without the training to be professional basketball
players, it would seem to be to their benefit to develop in a situation designed
for little else." Houston
Chronicle
Feb. 28, 2004: "Two weeks ago, the NBA said it
expected to send the Hawks sale to the league's owners for an approval vote "in
a week or so." Two weeks later, the league still hasn't done so. Which
can come as no surprise, really, to those who have followed the protracted Hawks-Thrashers
sale. "The process is still ongoing," NBA spokesman Tim Frank said Friday,
"and we have not committed to a date" for a vote." Atlanta
Journal-Constitution
Feb. 28, 2004: "One issue being hashed out in
the past week involved legal language regarding how the nine-man Atlanta Spirit
ownership group, which has no majority partner, would deal with the NBA and
NHL requirements that one person have authority to represent ownership on league
matters." Atlanta
Journal-Constitution
Feb. 28, 2004: "The Hawks-Thrashers buyers have
been considering candidates for the position of CEO, who would oversee the teams
and Philips Arena on a day-to-day basis. Word is, they've zeroed in on their
top candidate: Bernie Mullin, a longtime sports executive who has been the NBA's
senior vice president of team marketing and business operations since 2000. Word,
too, is that he'll be visiting Atlanta this weekend." Atlanta
Journal-Constitution
Oct. 23, 2003: Yao Ming signs with Reebok. It's
a multi-year contract. Yao's previous deal was with Nike. Yao will be in television
ads, print ads, promotional appearances and other things on the side, plus he
will have his own line of sneakers and apparel.
Oct. 10, 2003: Sonny Vaccaro now works for Reebok.
Sonny is a legend in the sneaker-related basketball world. He's more or less why
Michael Jordan originally signed with Nike and why adidas developed into the powerhouse
it did. He's one of the most influential figures in the history of amateur basketball
as well, starting the first-ever high school all-star tournament.
Oct. 3, 2003: Shoe companies sold almost $8 billion
worth of sneakers in 2002.
Sept 29, 2003: NBA TV has signed deals with Time Warner,
Cablevision and Cox Communications, and will be much more available to the
masses starting this season. See details.
Sept 3, 2003: USBL salaries average around $400
a week, InsideHoops.com reports.
Sept 3, 2003: CBA salaries average around $15,000
a season, InsideHoops.com reports
August 22, 2003: LeBron James signs with the Coca-Cola
company. It's said to be a six year deal that will have James helping to promote
Sprite and Powerade. The deal is said by the NY Times to be worth around $2 million
per year. James had recently been negotiating with PepsiCo, who own Gatorade.
But, nothing came of it, and he's now with Coke.
August 6, 2003: Kevin Garnett signs with Adidas.
KG was with Nike for five years, And 1 for two years, and now he's with Adidas.
ESPN sources claim that it's for about $2 million a year. It's considered a "lifetime"
type of deal, which means that there's no definite end in sight. If things go
well for both Garnett and Adidas, it could last for a long time. Tracy McGrady
and Tim Duncan are also with Adidas.
August 2, 2003: LeBron James Jersey Sales: The
AP reports that sales of LeBron James' jerseys have exceeded $4 million since
they went on sale just 5 weeks ago on the night of the NBA draft, June 26. James
is single-handedly reviving the marketability of the Cleveland Cavaliers.
July 29, 2003: NBA Television Info: In the 2003-04
NBA regular season, ABC will televise 18 games. Last year they had 14. ESPN will
televise 72 games, most of which will be on Wednesday and Friday nights. TNT will
televise 52 games, most of which will be Thursday nights.
July 28, 2003: Streetball Salaries: InsideHoops.com
sources state that the AND 1 mixtape streetball team members, who spend about
three summer months touring all around the country, earn salaries ranging from
$50,000 to $100,000.
July 28, 2003: ESPN TV Ratings: The NBA provided
a tremendous lift to ESPN last season (2002-03 season), the first of a six-year
agreement. ESPN's regular-season games achieved a 54% increase in the audience
compared to the same time slots in 2001-02. The increase among men 18-34 was 100%.
July 10, 2003: Nike has bought Converse. Yes, the
company has bought the company. Sources say the deal was for $305 million. Converse
is best known for their Chuck Taylor All Star shoe and the Converse Weapon shoe
that Larry Bird and Magic Johnson wore. Converse dominated the sports footwear
market for decades, but Nike became the leader in the 1980's. In the early 1990's,
Converse had serious financial problems and was forced to declare bankruptsy,
reorganizing their company. Now, they're Nike's. In 2002, Nike had $10.7 billion
in revenues, while Converse had $205 million. - InsideHoops.com
July, 2003: Kobe Bryant's new contract with Nike
is for 5 years, $41 million. Kobe also makes $10 to $15 million more in other
endorsement contracts.
July, 2003: Kobe Bryant's Other Contracts: His
deal with McDonalds ends in late 2003, and his deal with Sprite ends in 2005.
Random Fact (July 12, 2003): Texas has no state
income tax.
May, 2003: LeBron James Nike Deal. LeBron James'
deal with Nike is for a reported 7 years, $90 million. He signed it in May.
April 17, 2003 - ESPN TV Ratings: For its first
season of NBA coverage in 18 years, ESPN averaged a 1.20 rating for 69 regular-season
games. This represents an increase of 54% for the time slots, from a 0.78 for
the 2001-02 season. Among men 18-34, the increase was 100%, from 0.63 to 1.26.
Among men 18-49, the increase was 80%, from 0.61 to 1.10.
David Stern Speaks (April 11, 2003) David Stern on the future of NBA TV coverage.
(July 22, 2002): New NBA television contracts:
For games from the 2002-03 to 2007-08 seasons, ABC/ESPN is paying $2.4 billion
for 6 years. For games from the 2002-03 to 2007-08 seasons, TNT is paying $2.2
billion for 6 years.
(July 22, 2002): Games on (free) network television:
There will be 15 games (plus some playoffs and finals games) on free network television
(ABC) from 2002-03 till 2007-08. In 2001-02 there were 34 games (plus playoffs
and finals) on free network television (NBC). In 2000-01 there were 69 games on
free network television (NBC). In 1999-00 there were 71. The previous 8 years,
each season there were 50something games on free network television.