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- Jan 11, 2011
More "gospel" from RealGM
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Another ignorant player. Only someone who knows nothing about business would decide that the increased revenue means a healthy business. This all just shows that the players are not smart enough to understand the difference in inflation against rise in revenues, or the costs that are associated with doing business. Revenues have increased, the players salaries prove that, but the bottom line has progressively gotten worse the books that the union audited prove that.
Here is an analogy that some of you may understand, let's say a car manufacturer keeps their price on a model the same for 15 years, each year the deal gets a little better and every year they sell more. Meaning every year the company generates more revenue, however based on the rising costs of everything that goes into the car the profit becomes less, add in the yearly increases that the workers fell they deserves, and pretty soon the company is losing money. The NBA is in the same spot, revenue is increasing at a rate lower then inflation, meaning their hard costs are getting higher for every dollar earned. The players salaries continue to rise based on those increased revenues, and the higher costs have had no effect on their salaries. Something has to give, the money to keep pace with inflation has to come from somewhere, and by far the biggest expense is players salaries, not to mention their benefits.
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Another ignorant player. Only someone who knows nothing about business would decide that the increased revenue means a healthy business. This all just shows that the players are not smart enough to understand the difference in inflation against rise in revenues, or the costs that are associated with doing business. Revenues have increased, the players salaries prove that, but the bottom line has progressively gotten worse the books that the union audited prove that.
Here is an analogy that some of you may understand, let's say a car manufacturer keeps their price on a model the same for 15 years, each year the deal gets a little better and every year they sell more. Meaning every year the company generates more revenue, however based on the rising costs of everything that goes into the car the profit becomes less, add in the yearly increases that the workers fell they deserves, and pretty soon the company is losing money. The NBA is in the same spot, revenue is increasing at a rate lower then inflation, meaning their hard costs are getting higher for every dollar earned. The players salaries continue to rise based on those increased revenues, and the higher costs have had no effect on their salaries. Something has to give, the money to keep pace with inflation has to come from somewhere, and by far the biggest expense is players salaries, not to mention their benefits.
