Categorized | NUMBERS

The $400 Million Loss…(Saving the NBA)

“We need to make significant changes to deal with the very substantial losses that are in the  hundreds of millions of dollars.”

David Stern, Commissioner of the National Basketball Association

The TSR staff is as concerned about the financial success of professional sports leagues as we are about helping people to get employment with them. The recent statement made by Commissioner Stern should be one of concern for everyone (Players, Owners, Employees, Content Providers, Concessionaires, etc…).

We offer a solution that would reduce the amount of annual losses and help to increase revenue. The solution will return the games’ popularity. A collaborative effort between the union and the league owners is necessary for this to work.

SOLUTION: A player is eligible to participate in the NBA draft only after 3 years since graduating from high school.

This solution would actually benefit the NBA and the NCAA. If implemented, the number of “loyal fans” will rise. The NCAA would retain its star players for a longer time period. This would re-create the great rivalries of the ’80′s and ’90′s (UNC vs. DUKE, Georgetown v. Syracuse, Michigan v. Michigan State). There are barely any second looks when these teams compete against one another today. In college and the NBA, most of the focus is on the individual players than on the team (In college basketaball, this is very evident during March Madness).

All ”team” rivalries are bound to have star players. The longer they remain in college the stronger the relationship between basketball fans. This relationship will continue up to the NBA draft while in the NBA. Each “loyal fan” could represent over $10,000 in annual revenue for the NBA through various means (NBA sportswear, cable subscriber, ticket purchaser, NBA.com traffic, etc..). The attention and focus on the individual player and the NBA as a whole will continue to grow. It would also re-create the former rivalries amongst NBA teams as well.

When the Celtics won the title a few years ago in beating the L.A. Lakers, the attention leading up to and during the Finals series focused on the past series between both teams, the players and fans. When both teams play now the focus is on individual player achievements against their opponent (Kobe v. Ray Allen, Paul Pierce). What happens when the star players are injured? The fans turn their attention to another entertainment venue.

The NBA can return to prosperity. Many will not be excited about this proposal if implemented, especially the college basketball players. However, in the long term it will benefit them and the NBA.

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