Congratulations NBA. In
just 3 short years; the league has gone from being perceived as full of “thugs”
and hemorrhaging money to having its future interests firmly secured by totally
restructuring their image and taking progressive financial steps to secure a
massive influx of revenue.
Image. While no one is ready to claim that the NBA
is ready to rival the NFL, the fact that ESPN/ABC and Turner sports are willing
to triple the media deal with the NBA proves just how desirable the league currently
is. Players like LeBron James, Kobe
Bryant, Kevin Durant, Carmelo Anthony, Dwight Howard, Blake Griffin, and Chris
Paul are among the most recognizable faces in sports. Don’t believe it? Try to tune in to an hour of TV without
seeing one of their commercials.
While it can be argued that much of this is due to those
respective stars and not the league, the league’s contribution cannot be
denied. The NBA’s implementation of the dress
code, exile of Donald Sterling and willingness to embrace ideas other leagues
have been historically tone-deal to (i.e. gambling), that have made it easier for
the casual fan to accept the product.
Influx of Revenue. Beyond the revenue being produced by the new
TV deal; the NBA has taken several steps to make the NBA a more financially
healthy league. The first and likely
most significant was the CBA of 2011 which not only increased the money that
the owners are entitled but also strengthened revenue sharing among the teams to
ensure that cash-strapped teams have an additional stream of cash.
While the effects of the mega media deal on the CBA, salary
cap, etc. are yet to be determined; the most significant development of this
new deal is how expertly the NBA has navigated the tumultuous waters that permeated
the league after the ugly labor battle.
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