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Joel Litvin Says $14M Was Paid
To Small-Market Clubs In '05-06
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NBA BOG last week approved changes to “an existing assistance plan for small-market
teams,” according to Don Walker of the MILWAUKEE JOURNAL SENTINEL. The owners
“endorsed a plan that guarantees a total of $30[M] will be paid out this
season and next to small-market teams.” The program is scheduled to expire
after next season. NBA President of League & Basketball Operations Joel Litvin
said that a total of $14M was “paid out to needy clubs” in the ‘05-06
season and added that the decision was made to “expand the program and guarantee
the money,” which comes from tax revenues collected under the CBA. Litvin:
“The [BOG] can choose to vote next October to change the plan. But we have
a committee of owners that we put together specifically to address this issue.”
A league source said that the Bucks are one of the “low-revenue teams that
will benefit from the guaranteed money.” Bucks Owner Herb Kohl said of revenue
distribution, “We get some amount of money from it. It’s a revenue-sharing
kind of program, but it’s not significant enough. I know if you come back
in three years, five years and ask that question, we will have a revenue sharing
program” (
MILWAUKEE JOURNAL SENTINEL, 4/26).
The
new revenue-sharing plan was first reported in SportsBusiness Journal.
