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Old 09-14-2011, 02:45 PM   #1 (permalink)
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ESPN: Raptors top 5 in NBA revenue

It’s time for the rich teams to kick in. But how much, and by what formula?

Although the Lakers, Knicks, Bulls, Celtics and Raptors are expected to be the biggest paying teams, all eyes turn to Lakers owner Jerry Buss, who -- in some proposals under consideration -- would be asked to share as much as $50 million next season alone. That puts him at the top of the list, followed by Knicks owner James Dolan, with no one else close.
The league’s proposal
NBA owners have discussed various plans to make revenue sharing work. Serious consideration is being given to a model that seems to have the potential to address the big market/small market/well run/poorly run issues.

Instead of simply taking from the owners in the biggest cities, or from the moneymaking teams -- both schemes would punish owners who run their teams well, while rewarding the clueless -- the NBA has discussed assigning each market an expected level of annual revenue. Teams that fall below that threshold would in essence be punished for underperformance.

In other words, they’d say the Denver market, based on size, wealth, history and the like, can reasonably be expected to generate a certain level of ticket, local TV and sponsorship dollars. If the salespeople in Denver generate less than that -- in other words, if the business is not well run -- then tough. The Nuggets would contribute or receive money from the revenue sharing formula as if they had made this minimum number.

And to the extent they made more than their expected revenue, they could expect to share the wealth.

An important element of the plan is that it puts pressure on owners to run their businesses well -- some teams struggle because they face long odds, and there’s an appetite among owners like Buss to help those owners.

But nobody wants to help owners who simply aren’t running their businesses seriously.
Digging deep to share revenue - TrueHoop Blog - ESPN

Last edited by jeffb; 09-14-2011 at 02:48 PM.
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