NBA projected to lose $400 million this year

DALLAS (Reuters) – The NBA could lose around $400 million this year because of the flagging economy and a crippling labor agreement, according to commissioner David Stern.

Stern told a news conference Saturday that players’ union representatives negotiating a new collective bargaining agreement had been shown figures outlining the NBA’s current economic circumstances.

“And basically what those numbers showed, give or take, was this year we are projecting a league-wide loss of about $400 million,” he said.”

Stern said the deficit would double previous losses under the agreement.

“In each of the first four years of the deal. probably losses of a couple of hundred million, at least $200 million a year,” he said. “At our current level of revenue devoted to players’ salaries, it’s too high.”