Apparently good things do come to those who wait! The NBA reportedly reached a $500 million deal over a dispute stemming from the 1970s merger with the American Basketball Association (ABA). The history of the deal goes back to 1976 when the ABA was failing financially, the two associations attempted to merge but there was only room for four teams. The NBA offered the doomed franchises close to $3 million each to shut their doors forever. The owners of the St. Louis team at the time, Daniel and Ozzie Silna, held out and eventually received “visual media” rights.
Allegedly, both the NBA and the Silna’s regret shaking on the deal, for different reasons of course. The Silnas believed they were entitled to revenue from international broadcast, the NBA’s cable network, digital streaming and other sources of revenue that did not exist in 1976. The parties reported earlier in the week they reached a conditional settlement in which the Silna’s will received $500 million up front as well as continued television revenue with the possibility they can be bought out at a later time. Most notably, the $500 million settlement is in addition to the estimated $300 million the Silnas have already received throughout the years.
Do you think the NBA and the Silnas came to a fair deal, here?