Worst. Timing. Ever.
Wednesday, July 25th, 2007In all the commentary on the NBA ref scandal, one rather important economic point seems to have been overlooked - the 2007-08 season is the final season for the NBA’s current television contracts. The current cable and broadcast contracts pay just under $800 million per year. In exchange for these sums, networks have gotten a league whose players increasingly look like extras from “Oz,” and assault fans in the stands, and the players’ criminality is now exceeded by the refs. As they prepare to negotiate new multi-year contracts, I’m guessing the networks won’t feel compelled to cough up the same kind of money, let alone the 50%-plus increases that have been the norm ever since Larry Bird and Magic Johnson came into the league. Fun fact: when Bird and Johnson came into the league, network contracts were worth just under $20 million per year.