kcgone
Years ago

The new NBL should own 50% of each club

I think the only way the league can survive long term and manage all the Salary cap and Financial info/issues is to own 50% of every club.
Pay each license $1,000,000 payable on the signing of Fox and Naming Right Sponsor for the League.

Then have their own Finacial accountant appointed for each club reporting to the new BA/NBL.

Topic #19672 | Report this topic


Isaac  
Years ago

With what money though? League couldn't afford that. The Fox deal would bring in $1-2m/yr all up, at best.

If they had 50% ownership, would they cover 50% of losses?

I had wondered about the league taking care of franchises, players, coaches and leaving the chosen clubs to handle local marketing, ticketing and sponsorship, but that'd reduce the sense of ownership and leave a "they dropped the ball", "no, it's their fault" problem worse than now exists.

I remember reading a while back that someone suggested each club could keep one part in-house (recruiting and so on) and leave marketing and game-nights to a contracted third party who received a substantial part of their fee based on the results achieved.

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Falkman  
Years ago

What would be great is if all players, coaches, etc we're contracted to the league and paid by the NBL. The clubs could basically put up the money at the start of the season and it would become the newNBL's responsibility to pay the players, coaches, etc.
This way there wouldn't really be any need for the bank guarentee as such and would ensure that everyone can play out their full season as the clubs are covered up front for the running of their programs.

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Anonymous  
Years ago

Falkman, most clubs operate off their cashflow. They wouldnt be able to just "put the money up".

With the right model and right structure I would like to see each state assocaition taking a 49% stake in their capital city NBL team.

I know this is going back to the BASA days but the model was wrong and BASA was poorly governed. A state association / privately funded partnership could work well if the governance was shared. It also links in with the new links between the NBL and BA.

Right now the owners can effectively just go and setup their own league again if they want to.

Reply #233041 | Report this post


kcgone  
Years ago

The BA/NBL entity would have to own the profitable half of the business

Reply #233049 | Report this post


Isaac  
Years ago

Falkman, that was an idea I had also and emailed to the NBL.

Anon, yes, cashflow is the key problem, but it'd be better than putting up a $1m bank guarantee that you can't touch at all - that'd impact cashflow more, right?

As I suggested in my idea, since the money would be under NBL control (audited so as not to be abused), they could collect interest on around $8-12m (down to zero once it was paid out to players by season's end). That interest could cover league costs and limit that being asked of owners (e.g., the marketing pool, league office subsidy, whatever).

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Isaac  
Years ago

Also anon, if the owners set up their own league, people have suggested that it wouldn't be FIBA sanctioned meaning that it might only attract sub-par refs (the standard of which is already a point of complaint for many fans) and those players with no interest in playing for their country (e.g., imports and the low to mid-range of players at best).

Anyone know if that's correct?

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Anonymous  
Years ago

if the owners made a league, the newnbl wouldn't exist at all.

Reply #233063 | Report this post


kcgone  
Years ago

Come on Super League take 2

Reply #233212 | Report this post


Crazy  
Years ago

Isaac Fiba Ref's would still be entitled to work games in the Nbl even if it were not sanctioned by Fiba.

IMO the standard of officiating is not bad in the Nbl, the poor management of the umpires is not good and has not been good since they sacked Gary Fox who was a full time person

This means there is no one in position to make sure games are called consistantly

Reply #233276 | Report this post


FOC  
Years ago

I wonder of kcgone has ever actually run a business with 7-8 figure revenues?
Anonymous 233041 you're on it - and Falkman - no doubt that if you wanted to just 'put up' a million dollars everyone would be stoked!
The issue is the viability of a franchise, NOT having cash tied up as security in a bank account - which generally makes it harder to fund day-to-day operations, not easier.
BA should be looking at business plans and KPI issues, not lump sums.

Reply #233284 | Report this post


Isaac  
Years ago

Crazy, would working in a rogue league stop them from being elevated to the Olympics or an official league?

Reply #233293 | Report this post




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