Basketball Related Income or BRI is any income or revenue that is received as a result of activities that are directly or indirectly related to the game of basketball and/or basketball operations.
The National Basketball Association (NBA) has a Collective Bargaining Agreement (CBA) with its players. The players represented by the National Basketball Players Association (NBPA) negotiates with the league on how revenues are divided between the league and its teams and players.
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What is the definition of Basketball Related Income (or) BRI
What does Basketball Related Income (or) BRI include?
A detailed breakdown of Basketball Related Income (or) BRI
How is Basketball Related Income (or) BRI related to the salary cap?
Summary of Basketball Related Income (or) BRI
Definition of Basketball Related Income (or) BRI
The National Basketball Association (NBA) has a Collective Bargaining Agreement (CBA) with its players. The players represented by the National Basketball Players Association (NBPA) negotiates with the league on how revenues are divided between the league and its teams and players.
League revenue or income is called Basketball Related Income or BRI.
In simple terms, BRI is any income or revenue that is received as a result of activities that are directly or indirectly related to the game of basketball and/or basketball operations.
Basketball Related Income (or) BRI inclusions
BRI includes any income received by:
- The NBA
- NBA Properties Inc.*
- NBA Media Ventures*
- Businesses in which the league, a league entity or a team has an ownership stake of at least 50%
*NBA Properties and NBA Media Ventures controls the licensing rights for the names, logos, photos & footage, uniforms, league & team programming, and editorial content for the league and teams.
Detailed breakdown of Basketball Related Income (or) BRI
- Regular season gate receipts, minus taxes, facility fees, reasonable expenses, and certain charges including those related to arena financing
- Broadcast rights
- Exhibition game proceeds, minus summer league expenses
- Playoff gate receipts
- The value of all complimentary tickets, minus “excluded complimentary tickets” (1.9 million tickets in 2018-18, increasing by 50,000 each season thereafter)
- The value of complimentary suite admissions
- Novelty, program and concession sales (at the arena and in team-identified stores within proximity of an NBA arena)
- Parking
- Proceeds from team sponsorships
- Proceeds from team promotions
- Arena club revenues
- Proceeds from summer camps
- Proceeds from non-NBA basketball tournaments
- Proceeds from championship parades
- Proceeds from mascot and dance team appearances
- Proceeds from beverage sale rights
- Proceeds from cart/kiosk sales in and around the arena
- 50% of proceeds from tours and ATM fees in arenas
- 50% of proceeds from arena signage
- 50% of proceeds from luxury suites
- 50% of proceeds from arena naming rights
- 50% of the proceeds from team practice facility naming rights
- Proceeds from other premium seat licenses
- Proceeds received by NBA Properties, including international television, sponsorships, revenues from NBA Entertainment, the All-Star Game, and other NBA special events.
- Proceeds from gambling on NBA games, except from casinos or other gambling businesses owned or operated by a team, a related party or a league-related entity
Some of the things specifically not included in BRI are proceeds from
- The grant of expansion teams
- Fines
- Interest income
- The sale of assets
Basketball Related Income (or BRI) and the Salary Cap
The NBA Salary Cap is a limit on the amount NBA teams can spend on player contracts.
Every year, the league, its teams and players project what the Basketball Related Income (or) BRI will be for the upcoming season.
The three parties discuss and agree to a figure called Projected BRI.
The salary cap is then set by taking 44.74% of the Projected BRI, and then divided by the number of teams, i.e. 30 NBA teams.
If the three parties cannot agree on a figure for the Projected BRI by the end of the previous season – June 30th – then they lock on a figure that is a total of:
- Amount the NBA will earn as broadcast rights from the upcoming season, plus
- Previous seasons BRI increased by 4.5%.
Guaranteed revenue earned by NBA players
NBA players earn:
50% of the Projected BRI, plus
60.5% of excess or shortfall from Actual BRI
The final amount cannot fall lower than 49% or rise higher than 51% of Actual BRI.
Summary
In summary, Basketball Related Income (or) BRI is an important part of the salary that NBA players earn during a season.
It is the first number that needs to be decided in a season’s salary negotiations.
BRI is also among the most important points of discussions when the NBA and the NBPA are negotiating the CBA.
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