Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, May 2, 1993 TAG: 9305020088
SECTION: SPORTS PAGE: B1 EDITION: METRO
SOURCE: Jack Bogaczyk
DATELINE: LENGTH: Medium
Drugs were out of control, not to mention salaries. The once-dominant Boston Celtics were turning green. TV networks and spectators began to ignore pro basketball. Then, the NBA found some Magic and its fortunes - like a blond Bird - soared.
In 1983, the NBA became the first pro sports league to adopt a drug rehabilitation program. In '84, the NBA instituted a salary cap. The same year, the man who would take the NBA to new heights arrived.
No, not Michael Jordan. David Stern. OK, as big men in the NBA go, he's only taller than Muggsy Bogues. However, since Stern moved from the NBA's general counsel to commissioner, he moved the league from improved credibility to what some consider incredibility.
While Shaq brings down backboards - isn't destruction of property a misdemeanor in most states? - Stern continues to break new ground for his league. Others would be wise to build on his foundation.
Twice last week, the NBA showed why it has become the most regarded of the major pro sports leagues. It strengthened its penalties and fines against players and teams for fighting, before fans went to see the NBA playoffs and watched a hockey game break out. Of more significance for the NBA's future, Stern brought a new level of civility and common sense to negotiations for a television contract.
Maybe it shouldn't be surprising for a league that nine seasons ago began to pay its players 53 percent of the gross under a salary cap, but the NBA and NBC Sports signed a four-year contract renewal that includes revenue sharing. However, the concept seems as mind-boggling as the money networks have doled out for major sports telecast packages in recent years.
While the networks have been showering in red ink on baseball and NFL contracts for several years, NBC already has made "more than a modest profit," NBC Sports president Dick Ebersol said, on its four-year, $600 million NBA contract that runs through next season.
The NBA wanted more in rights fees. NBC wanted to continue making a profit. So, they agreed to agree, and with the revenue-sharing concept, each will be helping the other sell the package, in which the rights payments are front-loaded.
Up from the average $150 million a year, NBC will pay the NBA $180 million in 1994-95, followed by $191 million, $203 million and then $176 million in 1997-98. Over the four years, NBC will keep 100 percent of the advertising sales revenue on the NBA until that figure reaches $1.06 billion. All dollars above that are split 50-50 between the league and the network.
Stern says there will be profits to share, even if the advertising prospects in sports television remain stagnant. Believe him. The commish hasn't committed many turnovers. Don't be surprised if TNT renews its NBA cable deal soon, too.
While the NBA continues its reputation as a trend-setter in professional sports, the NFL and baseball would do well to pay attention. Each will be negotiating TV contracts this year, as will the International Olympic Committee for the 1996 Summer Games in Atlanta.
Baseball is finishing four-year contracts with CBS and ESPN worth $1.46 billion; it will get less than $1 billion this time. With five networks, the NFL has received $3.64 billion in rights fees from 1990-93; it will do well to hold that line. The Olympics want in excess of $500 million; it will take some negotiating gymnastics to reach that kind of gold.
The networks want a chance to play sports without losing. The NBA has shown them how.
You have to play Sternly.
Keywords:
BASKETBALL FOOTBALL
by CNB