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Report: Escrow to the Players

NBA.com is reporting that when all the math is done, the players' salaries will compromise less than their guaranteed 57% of BRI for the 2010-2011 season, the first time this has happened under the current CBA. This may not seem like big news, but it could have serious ramifications. For starters, the players will have about $160M due to them, 8% of their salaries.

There are two big takeaways here: First, the players will get a sudden infusion of cash. 8% of their salaries breaks down like this: A league-minimum guy making $473,604 would be due $37,882. The highest-paid player in the league, Kobe Bryant ($24,806,250), would be due $1,984,500. This means that even the most irresponsible members of the players' union, guys who spent every cent they've made to this point in their entire careers, they're going to be getting a fat check equal to 8% of their total salary for last season. If you're hoping for a quick resolution to the lockout, this isn't good news. At the very least, it's giving the players a longer window before they feel the pain of no paychecks. That pain was probably going to be the straw that broke the camel's back, now the players should be able to last longer before the short-sighted among them start making noise.

The second takeaway plays strongly in the owners' favor. Two factors contributed to the players' share being less than 57% of BRI: (1) Increased league-wide revenues and (2) Frugality on the owners' part. Taking a look at the contracts that were handed out last summer, I'd say the second part played a minor role. Meaning BRI raised, possibly dramatically, and the league as a whole still lost money, and probably a lot of it (the league's estimates put the losses at $300M). The players "proposal" was to drop the players' share to 54.5% and then have the teams share their revenues. It's ludicrous to think those concessions would even come close to bridging the gap.

Here's a fun game for you to pass the day:

  • What will Gilbert Arenas do with his $1.41M check?
  • Ron Artest with his $505K?
  • Jason Kapono with his $531K?
  • and so on.

by Brian on Jul 13 2011
Tags: Basketball | Lockout | Sixers |