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Leagues and Governing Bodies

NBA, PART II: LEAGUE TO COMPENSATE USAB FOR LOSS REVENUE?

          While the NBA and USA Basketball "have decided to
     prevent" the World Championships from being shown on U.S. TV
     "because NBA players will not be participating," the NBA is
     "willing to consider giving" USAB money to "compensate for
     the lost revenue," according to Athelia Knight of the
     WASHINGTON POST.  Turner Sports and NBC Sports were
     scheduled to televise the games, but NBA Deputy
     Commissioner/USAB President Russ Granik said the decision
     not to show the games was made because sponsors and the
     networks bought the rights "based on the assumption that top
     NBA players were playing."  The U.S. rights to the event
     were sold by FIBA to NBA Properties, which also was serving
     as USAB's "representative in the transaction."  NBAP then
     sold the TV rights to NBC and Turner, "but in an unusual
     arrangement, maintained control of the advertising time
     during the networks' broadcasts -- time it intended to sell
     at least primarily" to USAB's corporate sponsors, with USAB
     "sharing the rights and ad revenues."  Granik "declined to
     discuss the amount of money involved in any of the
     transactions related to the world championships."  Knight
     writes that with the NBA players not participating in the
     games, USAB "is still facing a significant revenue
     shortfall," with the loss of advertising, TV rights and
     merchandising dollars.  As a result, NBA Senior VP
     /Communications Brian McIntyre said that the league would
     consider compensating USAB: "We will consider anything that
     is reasonable."  FIBA spokesperson Florian Wanninger said,
     "Obviously, we are not happy" with the decision not to air
     the games in the U.S, but added it is "a complete internal
     matter of the NBA" (WASHINGTON POST, 7/21).  Granik said
     USAB's loss in marketing revenue is "going to be a killer. 
     The revenue just isn't there" (BLOOMBERG NEWS, 7/21). 
          THE COOL RULER? USA TODAY reports that arbitrator John
     Feerick ruled yesterday that "he has jurisdiction to
     determine if players with guaranteed contracts should be
     paid during the owner-imposed lockout."  Feerick will hear
     from both sides on July 30 "to determine if the facts
     warrant his hearing the case."  NBPA Exec Dir Billy Hunter
     and NBA Commissioner David Stern will meet today in NYC,
     their first meeting in almost a month (USA TODAY, 7/22). 
          A TIME TO GILL: Nets F Kendall Gill said "the league is
     counting on the players to cave in.  I think they're
     counting on guys who are living from paycheck to paycheck. 
     Honestly, how many guys are like that?" (N.Y. POST, 7/22).
          NBA NOTE: Richard Lapchick, the Dir of Northeastern
     Univ.'s Center for Sport & Society, addressed the NBA on the
     subject of race last year, and in Boston, Peter May wrote
     that Stern "liked what he heard so much," he has recommended
     that teams participate in diversity workshops.  The Rockets
     will be the first team to do so (BOSTON GLOBE, 7/19).

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