Monday, February 21, 2011

NBA Commissioner Stern Talks About Serious Need For Change

In Mike Bresnahan's LA Times article David Stern says change is needed, NBA Commissioner David Stern talks about the need for serious change to the NBA business model.

"The numbers are real, the losses are real, and the need from our perspective for a different business model, that's what's governing our decision," Stern said.

Forbes magazine has reported that 12 of the NBA's 30 teams lost money last season.

NBA is projecting losses of $350 million.

With small markets having a tough time competing, escalating salaries and with almost half the franchises reportedly losing money, the NBA wants significant changes to its business model.

This is looking a little like the NHL in 2004-2005, where the league lost an entire season to a labor stoppage.

With labor fatigue creeping in among sports fans together with potentially unforgiving sponsors and fans, a prolonged work stoppage may not be in the cards. However, some type of work interruption remains possible as the real negotiating may be more likely to take place at the 11th hour. 

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