The NBA Isn’t Immune To The Economic Problems
March 2, 2009 – 10:21 am by Jimmy ShapiroThe NBA just secured up to $200 million for NBA teams (12 have shown interest) that are in need of extra funds. The money can be used for anything including helping teams offset operating losses. The stands are empty at many games and more importantly for NBA franchises many of the luxury boxes are barren.
David Stern says “It’s the exact opposite of a bailout. This was a show of strength in the creditworthiness of the NBA’s teams.” Agent David Falk earlier last week said he thought the NBA may have to take a year or two off after the current agreement is over. Bill Simmons of ESPN wrote his best column in a long time about the NBA’s financial problems. Like Simmons, I’m a loyal NBA fan and the way big salaries like Raef LaFrentz this year or Theo Ratliff in past years was a bargaining chip is sad.
Jerry Colangelo, better known as the Godfather of Phoenix, joined KTAR with Doug & Wolf on Friday to discuss the NBA’s financial issues. The first five minutes or so of the interview are Colangelo talking about the loss of his good friend and NBA legend Johnny “Red” Kerr.
Colangelo on if the problems are as bad as everyone thinks they are:
“No, it really isn’t. Every league has a line of credit. Regardless of what commissioners or league officials want to say, there is quite a bit of disparity that exists within leagues because of big market/small market. No matter what is said about salary caps and how you know the playing field is balanced, it isn’t because big markets have a tremendous advantage. I would say the league that does the best job of leveling the playing field would be the NFL because of it’s massive revenue sharing and it’s weighted schedules.”
On the state of sports in general:
“There are major challenges for all professional sports leagues. Why do you think Roger Goodell just took a pay cut. Everyone is paring back, cutting back because no one is immune.”
On the extra line of credit the NBA received:
“I think this extra line credit just gives the 15 teams or so access to be of help during a difficult time. But at this point I’d say there’s no red flag.”
“The reality today is that ownership today has major challenges in trying to be competitive. Try to operate close to a break even because you don’t want to go into your pocket.”
On the future of sports:
“Now with the salaries that are being paid it will be interesting . The new collective bargaining agreement negotiations will be very, very interesting in each sport because if there was ever a time that the system has to be fixed or tweaked, this is it.”
Listen to Jerry Colangelo on KTAR in Phoenix
Tags: Jerry Colangelo, Johnny "Red" Kerr, NBA collective bargaining agreements, NBA financial problems, Robert Sarver
