NBA International Ownership: Kiss the Salary Cap Goodbye!
The NBA is on the brink of expanding its ownership globally.
With Russian billionare Mikhail Prokhorov making his bid and charging his way into NBA Ownership, it raises many questions that excite me to the core as a basketball fan.
The Salary Cap Cold War is near. (Credit: picapp.com)
Is Andrei Kirlenko on his way to the Nets?
This is more minor a detail comparatively to our larger questions, but it is worth mentioning.
Who wouldn’t take advantage of the chance to play for a team owned by your native land?
I see many marketing opportunities exploding for Kirilenko as a member of the Russian-owned Nets resulting in his heightened desire to leave Utah.
Look for the Medvedev Nets Jersey soon! (Credit: picapp.com)
David Stern: is this a blessing or is this catastrophic to your vision of NBA globalization?
Sure David Stern has been ardent in expanding the league via NBA Europe and NBA China, but those ventures have been with his hands behind the controls. What happens when someone who does not care about Sterns rules decides to challenge the rules by flexing financial power?
What does this mean for the future of the NBA salary cap?
One thing is certain: As foreign ownership expands, the NBA salary cap is going either going to be dissolved or at the minimum dramatically restructured in the immediate future.
Based on the current example of world wide ownership in the world’s most popular sport, soccer, there are more players making Kobe money than you would imagine.
To make matters worse for the NBA, these franchises in world soccer also loan players, pay agent fees, and absorb all of the player’s income taxes.
With like-minded international ownership already conducting business under this model, how long can the NBA hold out while Prokhorov shrugs off luxury tax, and pays players ridiculous money to assemble handpicked teams win rings?
Will this result in teams eventually experiencing relegation?
Speaking of relegation….
Wouldn’t it be a good thing if a team like the Milwaukee Bucks was owned by an ambitious owner paying damn near anything to make the team a contender?
Some might argue that these potential events are unfair, but this is America, and capitalism rules. Pure and simple.
The answer to these questions could lead to radical changes to the financial structure of the game.
As a basketball fan, I want all teams competing towards the top of the tier.
If bringing in money from overseas results in people wanting to play for Milwaukee, than I am all for it.
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Thu, Sep 24, 2009 by Adam Sedie
News, Opinions