ABA Team Reaches $500 Million Settlement With NBA
What if we told you there was a business deal in sports, worse then the sale of Babe Ruth to the New York Yankees?
That very well happened in 1976 as the NBA was merging with the ABA in 1976.
During negotiations for the merger, the Spirits of St. Louis we being left out as one of the teams that will join the new NBA.
Ozzie and Daniel Silna negotiated their way into getting “visual media” rights of the four teams that did make the NBA (New York Nets, Denver Nuggets, Indiana Pacers and the San Antonio Spurs).
This would mean until the NBA would no longer exist (could we see that happening,) the Silna’s would receive one-seventh of the national television revenue that each of the four teams get.
As a settlement, according to Richard Sandomir of The New York Times reports that the NBA has reached a settlement for $500 million to stop the approximately $17.7 million that they were getting.
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.
They will continue to get some television revenue, some of it from the disputed sources named in their lawsuit, through a new partnership that is to be formed with the Nets, the Pacers, the Nuggets and the Spurs, according to the people with knowledge of the agreement. But at some point, the Silnas can be bought out of their interest in the partnership.
Not bad for not having your team included in the league.