STL Post Dispatch: Blues [players] get economics lesson
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11-13-2003, 11:30 AM
Join Date: Nov 2002
Originally Posted by
How much of those luxury boxes go towards the NBA's revenues was determined by the CBA. If that CBA didn't specify 50% then the Lakers would be submitting an even lower percentage. In other words, that's not a loophole, that's what was agreed upon.
Are you certain on that? I have my doubts.
Still, there's a million, legal ways to get around CBA specifications. All you need is creative accountants, and since Andersen has gone belly-up, there's been a bunch of them looking for work.
A good example is what's happened in Ottawa with TicketMaster. Melnyk was unhappy with Ticketmaster, and has now created a company called CapitalTickets.ca that sells and distributes tickets for various Ottawa events. Now, the reasoning behind this move makes sense from a business view. A dispute with a supplier, lead to Melnyk creating a new business as an alternative.
If ticket surcharges aren't covered under the CBA (as 29 other teams do not have any control over it) then Melnyk just needs to raise his price to save money on revenue sharing.
Now, the easy solution would be to say that the new CBA would cover this, however, if it didn't happen right before the CBA, no one would likely think about it. THere's probably dozens of other similar scenarios that can be conceived as well. If they are not thought about at the outset, then there will be loop-holes.
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