Stern: Financial Losses Unacceptable
NBA owners claim they will lose an estimated $300 million this season, a figure described by NBA commissioner David Stern as not acceptable or sustainable.
“We’re not going to lose any money,” Stern said. “I’m not going to be commissioner of a league that is comfortable [losing money]. Because I don’t have a group of owners who find it acceptable for me to have that conversation with them.
“You don’t have $4 billion worth of revenue and pay out over $2 billion in salary and benefits to lose money. It’s something that we have sort of gotten used to as the revenues have gone up … but the world has changed about the prospect for all franchises, the world has changed for a lot of reasons – and economically – and now people who make investments in buildings and things expect not to lose money.”
Owners are seeking significant changes to the league's financial structure, including a hard salary cap and a drastic reduction in player salaries.