Without question, the NBA is a millionaire's club. But the prospect of the new Collective Bargaining Agreement is creating fear that the good times and glorious contracts are soon coming to an end. In anticipation, multiple players have asked their agents to restructure their deals to gain long-term security. Lost in this cloud of ambiguity is the fact that new CBA will impact different portions of the income distribution differentially.
If economics has taught us anything over the years, it is that capital will flow to where it's valued the most. Owners, while incompetent (at times), are not crazy—they know which side butters their bread. Superstars are the ones who get fans to buy season tickets, jerseys, and watch their teams on cable. As a result, superstars, like LeBron James, Kobe Bryant, and Dwyane Wade, will still be swimming in tens of millions of dollars in NBA salary under the new agreement.
Even if they do take some sort of a salary hit, superstars still have the luxury of substituting any shortfall in labor income with advertising and o ...
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Article written by ken park
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