The NBA has finally broken free from what may have been the worst contract in the history of professional sports.
The
NBA will pay two brothers $500 million to end a deal that required the
league to give the former ABA owners an annual share of the league's
television revenue according to Richard Sandomir of The New York Times.
As
part of the NBA-ABA merger in 1976, Ozzie and Daniel Silna accepted a
share of the NBA's "visual media" rights in exchange for folding their
ABA franchise, the Spirits of St. Louis. The deal was to last "in
perpetuity." With the growth of the NBA and its television revenue, the brothers were receiving 1.9% of the revenue in recent years, or about $17.7 million annually.
There
were also concerns that the amount would go up as the brothers were
suing for a share of "visual media" that did not exist in 1976,
including online broadcasts, the NBA's own network, and international
broadcasts.
According to the
report, as part of the settlement, the brothers will still receive some
television revenue as well as some revenue from the additional media
mentioned in the lawsuit. However, there is a buyout clause in the new
agreement which would allow the NBA to end the deal at any time.
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