The NBA is in the midst of its Golden Age. A new TV deal created a massive spike in the maximum salary cap this summer. That led to many players receiving historically large deals.
It doesn’t appear as though the league is stopping anytime soon. According to ESPN’s Darren Rovell, the league is projecting a massive jump in revenue this season:
Told NBA revenues are projected to hit $8 billion next season.
— Darren Rovell (@darrenrovell) September 8, 2016
For some perspective, last year, the NBA had a basketball-related income (RBI) of $5.289 billion (h/t Dan Feldman of Pro Basketball Talk). If Rovell’s report is accurate and the projection comes true, that would be a 51.3% increase.
The BRI is shared between the owners and players with the former group taking 51% of the cut.
This is a significant jump and it could be even more significant as it relates to the collective bargaining agreement. Both the NBA and the NBPA can opt out of the current CBA by December 15th. That could lead to a potential lockout in the summer and some have speculated that that is a probability.
But if the NBA continues to haul in all this money, it makes it much less likely that a deal is not made quickly. Neither side will want to lose any money brought in next season and the consequent years.
