Monday, February 15, 2010
The Economics of the NBA
This article sheds some light on the financial side of the National Basketball Association. As the article describes some of the current problems, such as the projected league-wide loss of nearly $400 million this year, we realize that even something as immensely popular as the NBA can have financial problems that are not easily solved.
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This is being seen in almost all sports because a lot of people's "entertainment" budgets are being hit the greatest by the recession. The NBA and all leagues have to find new ways to cut costs, but they are walking a thin line because of a potential labor strike starting July 2011 if a new labor agreement is not met. The NBA looks to cut rookie's salaries and bonus' which has already been rejected by the NBA player union rep. This isn't the first player strike in pro sports; the NBA, NHL, and MLB had one in the 90s and the NHL had one again just a few years ago.
It is interesting to see how the bad economic conditions have effected professional sports. As talks about pay cuts for athletes start becoming more serious, so have been threats about possible strikes both in the NBA and the NFL.
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