20.6 C
New York
Wednesday, September 28, 2022

NBA money problem: 3 things you never knew

NBA money problem: 3 things you never knew

The next time you accuse the NBA of being cheap, step back and look at the facts. Thanks to a new report containing inside information, we now know that nearly half the league lost money in 2016. With players earning astronomical paychecks, how is that possible? Well, let’s look at the facts.

THE NBA HAS A SERIOUS MONEY GAP

Just like the rest of America, the NBA has a big gap between rich and poor. Take the Los Angeles Lakers for example. They racked up a huge profit of $115 million after the 2016-2017 season. Keep in mind, this was their fourth straight year with less than 27 wins and no star players to entice fans.

Still, they had the highest net income of any player in the league at nearly $15 million. On the other side of the spectrum, the Grizzlies lost nearly $40 million.

HERE’S WHY SOME NBA TEAMS ARE LOSING MONEY

How does the NBA determine the salary cap? Well, all 30 teams get together and their ultimate combined income decides the salary cap. Of course, the most popular teams make the most money and that raises the ceiling for everyone else. It only makes more money for the best players and the best teams, while the rest fall well below the threshold.

Look at the Golden State Warriors for example. Despite playing in the biggest arena and paying $42 million in revenue sharing, they still profited $92 million. Compare that to teams in smaller markets, and the number is downright laughable. So is there a solution?

THE SOLUTION TO THE NBA’S MONEY PROBLEM

Some league owners say teams should split revenue. This way, all 30 teams finish in the dark. One bold owner even came up with the idea that all crews should be promised a profit of $20 million. As you can imagine, top teams will challenge these proposals, but they will certainly raise some interesting points.

This problem is not going away anytime soon and these small market teams are unlikely to take advantage of it without some sort of intervention. The coming years will be entertaining in basketball news, that’s for sure.

NBA money problem: 3 things you didn't know

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
3,506FollowersFollow
0SubscribersSubscribe

Latest Articles