One year ago the Internet was popping with speculation of $30 million to $50 million salaries in Europe for LeBron James and Kobe Bryant. One year later and the reality is sobering: European basketball is suffering in ways that appear foreign to the NBA.
Players at a number of European teams are receiving their paychecks behind schedule, and some clubs are in danger of not meeting payroll. But that’s not the real story.
“The biggest problem is that the agents aren’t collecting their fees,” said one of the many NBA executives who study European basketball. “Think about it: If a team is struggling to make ends meet, the team is going to pay the players first and worry about paying the agents later.”
In the NBA, the agents are paid by players. In Europe, however, agents receive their commissions directly from the clubs.
Sponsors are disappearing in Europe much as in the United States, where NBA franchises are not receiving the anticipated income from auto manufacturers, banks and other sponsors that are suddenly unable to pay. The difference is that the NBA was able to secure a $200 loan to be distributed among 15 cash-poor teams.
The leagues in Europe can’t dream of that kind of security because basketball isn’t a profitable enterprise.
March 6th, 2009 at 12:20 am
“… the NBA was able to secure a $200 loan”?!
$200 million perhaps?
March 6th, 2009 at 3:14 pm
Good catch Tom.
:)