Saturday, October 8, 2011

Basketball Related Income (BRI)

Definition: Basketball Related Income - BRI, for short - is a term used to describe most of the revenue generated by NBA teams. BRI includes revenue generated by:
  • Ticket Sales (regular season, exhibition and playoffs)
  • Television Contracts (ESPN, TNT, etc.)
  • Concessions
  • Parking
  • "Temporary" Stadium advertising
BRI also includes a portion of the revenues generated by stadium naming rights deals, luxury suites and "fixed" advertising signage.

BRI, the Salary Cap and the CBA

The BRI number is important because it is used, under the current NBA collective bargaining agreement, to set the league's annual salary cap. Under the deal set to expire on June 30, 2011, the players receive 57 percent of BRI as their salaries.

The owners object to that split, partly because BRI does is based on gross revenue. Expenses are not factored in. A team can increase attendance by spending more on marketing and promotions; the players get the benefit from the increased attendance, but don't have to share in the investment that generated that revenue.

The NBA's initial proposal for a new collective bargaining agreement reportedly included a 61-39 split of BRI in favor of the owners.

Examples:

One of the biggest issues to be settled in the NBA's next collective bargaining agreement: how will the league and players decide to split basketball related income?

View the original article here

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