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Tuesday, November 8, 2011

What lies behind the 50-50?

The NBA has been adamant with the players: the best offer they put on the table with the distribution of BRI (basketball related income) will be a fair 50-50. Besides putting the expiration date to the offer (Thursday at five pm local time in New York) also made it clear that they have no agreement on this difficult point to end the lockout the following offers are down: a lower percentage in the distribution of BRI, a salary cap harder and current salary cuts and various exceptions such as the 'midlevel' rights and the players 'Bird'.

David Stern as noted in any of the following offers to 50-50 will be so beneficial to the players.

What lies behind this offer in the 50-50 division of the BRI?

It is important to explain the BRI and its distribution over points as well as the concept of ' escrow ': 1. What is it and which includes LBBB? The BRI is an acronym for Basketball Related Income, ie basketball-related income as well, indicates essentially includes all revenues generated by NBA, NBA Properties and NBA Media Ventures. The guru Larry Coon breaks down what is included in the BRI includes entries during the regular season and playoffs, broadcasting rights, parking and profits generated in: exhibition games, promotions teams, sponsors, campus preseason sales drinks, 40% of the luxury suites of the pavilions, premium locations, 40% of the signing of the wards, between 45% and 50% of 'naming rights''of the pavilions, the granting of Halls stores and the revenue generated for the All Star, Open McDonald's, other similar events, international television rights and obtained by NBA Properties.

2. What is 'escrow'? is a percentage of the salary of the player who holds every franchise every year.

With this in mind, let's breakdown the possible agreement of 50-50 in the distribution of BRI: 1. In a previous agreement, the players had 57% of BRI. They agreed to drop to 52.5%. The NBA offers a 50-50. 2. Add all the salaries of the players as well as a number of benefits that are in addition to their salaries, pension plan, health insurance, health, life, ect.


Taking the above distribution of 43-57: 1. If the total wages and benefits represent less than 57% of total BRI, the owners are returned to players wages withheld (escrow). And if despite all do not reach the 57% agreed, the NBA will split the remainder. 2. If the total wages and benefits account for 57% of total BRI, the owners retain that percentage of the 'escrow'. 3. If Total salaries and benefits exceed 57% of total BRI, the owners retain is a percentage of the 'escrow'. If despite all the percentage of players still higher, that amount will be deducted from their salaries next season.

With this in mind: 
1. Every percentage point that has been negotiated BRI is about 40 million dollars. Players would fall from 57% to 50%. 7% less than 280 million annual losses would almost annually that the owners claim to have. 2. If the percentage of BRI is reduced to the players, it is mathematically simpler than the total of their salaries approaches or exceeds 50 % with what the 'escrow' tax return and are not would be very difficult in some cases the owners had to pay them a percentage of the profits of BRI. As we showed recently Hunter players had been getting in summer a compensation check in 'escrow' retained. 3. The other option is to pack the union dissolution and legal action against the NBA as individuals.

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