This deal was based on the argument that all seven remaining ABA franchise deserved an equal share of the TV revenue of the ABA teams that joined the NBA… NBA To Pay $500 Million To Get Out Of The Worst Deal Ever Signed.

Roughly once a month, the NBA cuts 31 checks to NBA teams as revenue from its multibillion-dollar national television contract. In exchange for dropping their claims, the plaintiffs say they were promised a portion of the economic benefit – including TV revenue – they would have earned had they been allowed to join the NBA. But it's become a financial windfall for the Silnas. Every year, when it came down to take a look at the budgeting process we would all just shake our heads.”. Eventually, the NBA and the other teams wanted to buy the brothers out of their contract -- and, in 2014, in a complex transaction created after the brothers filed suit demanding their share of international broadcast and other revenue streams that didn't even exist in the 1970s but were likely covered by the language in the original agreement, they reportedly effectively paid the brothers an additional $500-Million, plus a small fixed annual amount, to get out of the original agreement.
Another key component is that Silna, anticipating the NBA expanding, capped the brothers’ portion of shared television revenue at a maximum of 28 teams. The Silna brothers and their attorney, however, turned down such an offer, and negotiated a totally different type of deal. There are many practical lessons that can we learn from the Silnas - here are four: 1. “I’ve yet to talk to anybody who can say it can be broken. "Every five years, someone calls up with this story and it puts a dagger in my heart," Pacers president Donnie Walsh told the New York Times a few years ago. The NBA has long tried to get out of the infamous arrangement, which paid out a reported $19 million last season alone. The Spirits and the Kentucky Colonels were not invited to … 1 pick, The people with all the power in NBA free agency, What our NBA experts like and don't like about a pre-Christmas start, Best and worst cases for the Warriors, the Knicks and the teams we haven't seen since March, NBA free agency and trade debate: How the Pelicans help Zion, and bold predictions, Predicting the big decisions surrounding Giannis, the 76ers, CP3 and the Warriors' pick, How former NBA star Nate Robinson ended up boxing on Mike Tyson's undercard, NBA Power Rankings, way-too-early edition: What's next for Lakers, Heat and all 30 teams, These Lakers made it through every moment that could have broken them, Formerly at the New York Times, 1998-2004. The Spirits are represented in New York County Court by Robert Jossen with the Dechert law firm. One of two brothers who signed what is likely the greatest deal in sports history -- earning the two of them and their attorney $800-Million as team owners without their  having to pay a player or build and operate an arena -- died this past week, with relatively few people outside the industry recognizing his name. The Spirits claim the NBA breached a deal made when the ABA dissolved in 1976. Three decades ago when the Silnas struck their deal, the renegade ABA, known for its red-white-and-blue ball, three-point shots and star Julius Erving, was struggling financially. This deal was based on the argument that all seven remaining ABA franchise deserved an equal share of the TV revenue of the ABA teams that joined the NBA; such an argument made logical sense, and, as, at the time, basketball-related television viewership and revenue was tiny compared what it is today -- the NBA playoffs were not even broadcast live -- the parties agreed to the arrangement. Thirty years ago, Ozzie Silna, with attorney Donald Schupak, negotiated a deal that cleared the way for the ABA to merge with the NBA. But, when you hear what he achieved, you will quickly realize the importance of knowing -- and learning from -- his story. The Times endorses one incumbent and three newcomers for the Los Angeles Community College District Board of Trustees.

Le championnat American Basketball Association (ABA) réfère à deux championnats américains de basket-ball. 4. The Silnas will retain an unknown but smaller share of TV revenues, but the NBA will have a future option to buy them out. Because the Silnas' cut diminishes the dividends of the NBA's 30 team owners, the league has long sought to settle the contract. Part of the Silnas’ deal called for them to receive one-seventh of the annual TV revenue from each of the four ABA teams entering the NBA. Basketball blew up not long after, and that small fraction of TV royalties has netted the Silnas $300 million so far, with payments set to continue on forever. Now the city is the first urban center in California where the risk of infection is rated as minimal. That's how we came up with the one-seventh" figure. Even the best investors sometimes make mistakes. “The process never even entered our minds of how high it would get,” Ozzie Silna said. They quickly moved the team to St. Louis, which was … As we all now know, basketball became a mainstream of entertainment; by 2014, the Silnas had netted a total of nearly $300 million from the deal. La seconde fut fondée à la fin des années 1990 (ABA), et est une ligue mineure.

Colonels owner John Y. “I can’t say we haven’t met and tried to settle it. Four of the ABA's seven teams joined the NBA. The existence of the ABA resulted in increased salaries for players in both leagues as the ABA and NBA competed with each other to sign players.The Robertso… The Silnas recognized that acquiring an ABA team meant that NBA would need to negotiate a deal with them if it wanted to merge with the ABA; similar opportunities exist in real estate, IP investing, and other areas of business in which larger enterprises need specific assets belonging to a smaller entity.

He is an active environmentalist in his hometown of Malibu, the small beachside city in Los Angeles County. Now that he's got the money, the 73-year-old textile magnate doesn't just sit around counting it. No agreement has been reached, but talks are ongoing. Don't be too hard on yourself if something fails, just keep up the good work. All they have to do is open the mail. That four-word phrase pretty much says it all for multimillionaire Ozzie Silna, one of the architects of arguably the best sports deal -- and maybe one of the best in the annals of all American business -- ever negotiated. The money goes to brothers Ozzie and Dan Silna, co-owners of the long-forgotten ABA team, the Spirits of St. Louis. It's not cheap. How San Francisco became a COVID-19 success story as other cities stumbled. After failing in an attempt to buy the Detroit Pistons, they decided to take a shot at the ABA. Owning something that others with deep pockets need creates great opportunity. Brown, owner of the Kentucky Colonels, quickly accepted a $3.3-million buyout as compensation. There are only 30 NBA franchises, so who gets the extra check? Let me tell you a story about two geniuses. At the time, it seemed like an irrelevant concession by the league. Brown haggled the ABA up … However, the ABA owners needed to reach unanimous approval for the merger to take place. In 1982, after several years of cashing TV checks, the Silnas came close to accepting a new buyout. "But you've got to see the stuff, too. Giving the Silnas annual payments of 4/7 of the television revenue that the other NBA franchises received did not seem like a heavy cost, even if translated to approximately 2% of the entire NBA's television revenue. Ozzie and Daniel Silna owned the ABA's Spirits of St. Louis, but when the NBA merged with the ABA in 1976, the Spirits were one of two teams the owners didn't want to join. But consider it a hedge. 7. MALIBU, Calif. -- "In Spirit, In Perpetuity.". But the Silnas negotiated something a little different. About 25 years ago, they offered $5 million over eight years. The brothers managed to negotiate other favorable terms that would exaggerate their income if the NBA was successful - for example, that their share of the television broadcast revenues could never drop below the percentage that would apply if the league had 28 teams; if the NBA grew to larger than 28 its television revenues would grow, but the brothers' percentage of those revenues would not decline. When it's all said and done, shortsightedness will cost the NBA near a billion dollars. Silna wanted to be equitable to the owner who was excluded. “I think nearly every single attorney and sports executive from those four franchises has taken a look at the deal to see if they can break it,” said Gary Hunter, a former Nuggets executive. L.A. County reports 830 coronavirus cases and 4 deaths. “When we accepted the arrangement, the big thing was that the NBA had television” and the ABA didn’t, said Silna.

Overall, they've collected about $168 million since the merger, an amount that has grown mightily through investments. The NBA failed to understand the value of its future television revenue stream; the Silnas recognized the golden opportunity.

Sometimes turning down a cash offer for a long-term annuity with growth potential can pay off handsomely.
La première ABA fut fondée en 1967 avant de fusionner durant l'été 1976 avec la ligue concurrente NBA. Silna wasn't willing to go away that easily. “We just wanted a piece of the action.”. This deal was based on the argument that all seven remaining ABA franchise deserved an equal share of the TV revenue of the ABA teams that joined the NBA… After getting rejected by the NBA, the brothers went shopping for an ABA team. All of that made them a lucrative property when it came time to merge -- not so much for the team they were, but for the individual parts they could produce, each of which would be scavenged by the original NBA teams, who were hungry for the talent. He and his brother are set for life, the result of the gift that keeps on giving. “We honor the deal,” said Donnie Walsh, the Indiana Pacers’ chief executive. “But if I look at it retrospectively over what I would have gotten, versus what I’ve received now, then I’m a happy camper.”. "I got into basketball not to make the money," Silna said. The owners of the Spirits, however, allegedly demanded and received a deal to get a slice of TV revenue from the ABA teams that joined the NBA. Harry Weltman, former general manager of the Spirits, argued to the Supreme Court in 1991 that he was entitled to a share of the revenue to no avail.

I just looked at it as a way of being fair.".

A look at California’s November ballot propositions.

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