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Wednesday, October 28, 2015

NBA and paying 'Money for Nothing' in Perpetuity

Sorry there was no post for Tuesday.. Just one of those 'under the weather' days that autumn brings about..

Last night, the NBA began its new season..

A league full of venomous profit-hungry self-interest snakes and rats (like I suppose all owners of all sports leagues are) whether only 15% sincerely does and spends what it takes to win a Championship and the other 85% give lip-service to their gullible fan base.

I guess there is a special place of animus in my heart toward the NBA because they collectively kicked an owner, Donald Sterling from running and operating his business because some harmless words illegally recorded in his private residence by a mulatto bitch he was sleeping with..
And yet a complete scumbag parasite piece of shit like Philadelphia 76ers owner Josh Harris who makes his billions as a Wall Street Venture (Vulture) capitalist buying up distressed companies under the guise of rebuilding to profitability then gutting them into insolvency and bankruptcy, collecting full profit before any other debt collector can..

This Prick who spends the absolute minimum on salary and intentionally tanks season after season while collecting $25-$35m profit annually due to revenue sharing is allowed to keep hold of his team

Say 'nigger' & say you don't prefer ghetto riff-raff attending games -- lose your franchise; gut the team and make it unwatchable -- you're commended by the Commissioner.
So that's why the following true fact is so deliciously fun:

Did you know there is a basketball franchise that hasn't been in existence in nearly 40 years that NBA gives a portion of their shared revenue toward??

They were called the Spirits of St. Louis, a former ABA franchise.

In the summer of 1976, with the ABA at the point of financial collapse after nine years, the 6 surviving franchises (the Virginia Squires went bankrupt immediately after the final season) began negotiating a merger with the NBA.

But the senior circuit decided to accept only four teams from the rival league: the then New York Nets (then became New Jersey Nets), Denver Nuggets, Indiana Pacers and San Antonio Spurs.
The NBA placated John Y. Brown, owner of the Kentucky Colonels, by giving him a $3.3 million settlement in exchange for shutting his team down.

But the owners of the Spirits, the brothers Ozzie and Dan Silna, struck a prescient deal to acquire future television money from the teams that joined the NBA, a 1/7 share from each franchise (or nearly 2% of the entire NBA's TV money), in perpetuity.

That means forever..

With network TV deals becoming more and more lucrative, the deal has made the Silnas wealthy, earning them $186 million as of 2008, according to the Cleveland Plain Dealer, and $255 million as of 2012 according to The New York Times.
The NBA nearly succeeded in buying out the Silnas in 1982 by offering $5 million over eight years, but negotiations stalled when the siblings demanded $8 million over five.  In 2007, it was extended for another 8 years, ensuring another $100 million+ windfall for the Silnas.

In 2014, the Silnas reached agreement with the NBA to greatly reduce the perpetual payments and take a lump sum of $500 million.

In the last few years before the lump sum agreement, the Silnas were receiving $14.57 million a year, despite being owners of a team that hadn't played one minute of basketball in more than 35 years.
The Silnas will, however, still be receiving a cut of television revenue through a new partnership with the former ABA teams the Nets, Nuggets, Pacers and Spurs, though smaller thanks to the half a billion agreement, but are currently suing the NBA for a cut profits from 'NBA League Pass'

I have no sympathy or empathy for the NBA..  This is a sports league that as early as next season will be placing corporate advertising patches on their uniforms like NASCAR and soccer does..

Sports is cut-throat..
Maybe a very small handful of owners genuinely care about winning Championships (the Buss family which owns the Lakers and Jerry Jones of the NFL's Cowboys are among the exceptions)

The rest.. They sell their fan base nothing but lies and 'hope' and the more loyal and generational the support for such teams, the more they keep buying the bullshit...  Literally..  

Buying the season tickets and seat licence fees and over-paying for parking and concessions and the merchandise...

The best sports fans when it comes to sports live in places like Jacksonville and Tennessee.   They have no deep loyalty to any professional franchise..  Its not yet fully ingrained in their DNA..

So if a team is terrible and/or its obvious ownership doesn't care, they simply stop going; stop following altogether which leads to empty seats and football blackouts..
This Forces ownership to care and act, whereas in a city like Philadelphia, there's no need to pretend to try all that hard..

The fans there treat the sports businesses with a perverse local pride and are so stupid at times, they will vent about players, managers and GMs and never lift their heads high enough to attack the owners.

Something Pavlog dog about that..

So another NBA season begins.. and if you love Golden State, Cleveland or maybe 2-3 other teams, expect to have an enjoyable season watching & following

And if you root for the other 25 franchises or so, well.. enjoy mediocrity.