The day many NBA fans have dreaded may be coming sooner than anticipated. NBA Commissioner Adam Silver recently announced that the NBA will allow companies to buy advertisements on teams’ jerseys in the future. While the issue is a somewhat controversial choice, as many fans don’t want to see the league “sell out,” it is one that will likely be necessary in the near future.
The league’s money issues peaked in 2011 when the NBA argued that 22 of the 30 teams were losing money. The result was a lockout that cancelled almost a third of the 2011 season. Money is a problem in basketball.
Things have gotten better though. Today there are only four teams in the league operating in the red (Atlanta Hawks, Philadelphia 76ers, Minnesota Timberwolves and the Brooklyn Nets), and revenue around the league is significantly up.
Despite the financial rebound, the league will likely be selling ad space next to their logos soon. The move is a solid business decision for the league that could be worth upwards of $100 million and should help to solidify the recent financial success of the NBA.
While I might not like seeing a Coca-Cola logo next to my favorite team, I certainly understand the decision. Money is the wheel that keeps the sports machine running and sometimes causes some issues. March Madness is coming up later this month, which is sure to reignite the debate over whether NCAA athletes deserve to be paid.
The NCAA, broadcasters and corporate sponsors are seemingly the biggest winners of big collegiate sporting events such as March Madness, making billions in revenue annually. According to Forbes, some TV broadcasting companies can make over $1 billion on the revenue from March Madness alone.
With the athletes raking in so much money for others, the question of whether they are entitled to some of their own is a fair one.
There are several reasons why paying players is a good idea.
Players are risking a potential career-ending injury without pay, athletes coming from lower socioeconomic classes have trouble supporting themselves in school and it may even prevent players from leaving to go pro early and taking bribes from sports agents.
