SBD/Jan. 17, 2011/Leagues and Governing Bodies

NBA To Offer Refunds With Interest In Case Of Missed Games

NBA would determine interest rate on ticket refunds in case of work stoppage

The NBA “is calling for all 30 clubs to offer a specific interest rate as part of their season-ticket refund policies for any games lost due to a work stoppage,” according to John Lombardo of SPORTSBUSINESS JOURNAL. NBA teams are about to begin their season-ticket renewal efforts, with "some teams hitting the market later this month." During the NBA’s '98-99 lockout, teams "offered season-ticket holders full ticket refunds plus 6 percent interest." The “planned refund approach is a noted departure from other league lockout ticket policies, which typically have not carried leaguewide specific interest rates as part of the ticket refund.” If a fan buys an NBA season-ticket package and games are lost because of a lockout, “the team would pay a full refund plus interest on a monthly basis.” The league "will determine the interest rate to be paid along with the ticket refunds closer to a work stoppage, but it will reflect prevailing market rates, which currently range" between 1-2%. One team ticket rep said, “What the league doesn’t want is the wild west, where teams offer a wide range of interest rates.” In addition to the league’s interest-payment policy, “teams will be able to offer incentives to renewing season-ticket holders to counter any possibility of missed games.” Like the NFL, NBA teams “will be allowed to craft their own policies on premium inventory” (SPORTSBUSINESS JOURNAL, 1/17 issue).

SILVER SAYS STOPPAGE NOT INEVITABLE: In Houston, Jonathan Feigen reported NBA Deputy Commissioner Adam Silver "disputed the assumption that a work stoppage is inevitable." However, Silver did indicate that no meetings between the league and the NBPA "are scheduled, that there has been no movement since the owners' proposal a year ago and union counter-proposal last spring, and could only cite the history of avoided work stoppages as a reason for optimism." Silver: "It's not inevitable. We have a long-time relationship with [NBPA Exec Dir] Billy Hunter and other union officers. ... We've been forthcoming with our financials and I'd like to believe they understand the position we find ourselves. I don't think anything is inevitable and there is a lot of time left to get a deal done." Silver added that any meetings between the two sides "during All-Star weekend would 'make sense' but be 'largely symbolic'" (HOUSTON CHRONICLE, 1/15).

Return to top
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug