While the Silna brothers were left out of the NBA, they nonetheless managed to turn it into one of the greatest deals in the history of professional sports.
[10][11][12] Of the seven teams that finished the final ABA season, the NBA would only accept 4 in the merger. The
Virginia Squires folded shortly after the season.
[13] The Colonels negotiated a $3.3 million buyout from the remaining ABA teams.
[14] [13] However, the Spirits held out for more
[15] and in June 1976, the owners of the four merging ABA teams, the
Denver Nuggets,
Indiana Pacers,
New York Nets and the
San Antonio Spurs, agreed to pay the St. Louis owners $2.2 million in cash up front and an additional 1/7 share of the four remaining teams' television broadcast revenues "for as long as the NBA or its successors continues in its existence" in return for the Spirits folding.
[13][3][11][16] This was based on the principle that all seven remaining ABA franchise should get an equal share in the TV revenue of the merged teams.
[13][14] Thus the Silnas would receive checks from the NBA on a yearly basis, representing a 4/7 share of the television money that would normally go to every NBA franchise, or roughly two percent of the entire league's TV money.
[3][17]Additionally, the Silnas inserted a clause in the contract stipulating that their share could not drop below the amount generated from a 28-team league.
[13] With the NBA expanding to 30 teams, each of the former ABA teams was required to pay the Silnas a 1/196 share (1/7 of 1/28) of total league TV revenues, instead of 1/210 (1/7 of 1/30), giving the Silnas a 1/49 share. The contract defined broadcast revenues very broadly, so that as their attorney during the merger negotiations,
Donald Schupak, said it "could not be evaded or made obsolete".
[18] The Silnas brothers wanted to join the NBA and had originally hoped to parlay the deal into a NBA franchise of their own.
[15][14]
The first year the deal yielded revenue for the Silnas, in 1980-81, they received only a modest $521,749.
[19] However, as the NBA's popularity exploded in 1980s and 1990s, the league's television rights were sold to
CBS and then
NBC, and additional deals were struck with the
TNT and
TBS cable networks; league television revenue soared into the hundreds of millions of dollars. Thanks to the deal, the Silnas made millions through 1980s and at least $4.4 million per year through 1990s.
[17] From 1999 through 2002 the deal netted the Spirits' owners at least $12.53 million per year; from 2003-2006 their take was at least $15.6 million per year.
[10] By 2010-11 they were receiving $17.45 million annually.
[19] In 2014, the deal was costing each former ABA team $5 million a year.
[20] The Silna brothers have received roughly $300 million in revenue as of 2014,
[21] despite the fact that the Spirits never played an NBA game.
[22] The two Silna brothers each get 45% of that television revenue per year and their attorney Schupak receives 10%.
[10] They credit their terrific deal to planning they had done ahead of the merger for the Virginia Squires owners; the Silnas had expected the Spirits and Colonels to enter the NBA but for the ailing Squires to be left out, and the Silnas thought up the television revenue deal as a way to treat the Squires' owners fairly if the Squires did not join the NBA with the other ABA teams.
[10] However, the deal cut by the Silna brothers and the incredible amount of revenue it has produced over the years has itself become legend.
[10]
There have been numerous attempts by the NBA and the former ABA clubs to buyout the deal.
[13][21] It has been reported that a $6 million settlement was under consideration in the 1980s.
[19] With
New Orleans Saints owner
Tom Benson purchasing the
New Orleans Hornets from the NBA in 2012 and planning to rename the team, there had been talk that the NBA might negotiate a deal to end the TV deals for the Silna brothers in exchange for rights to the Spirits name.
[23] This ended up not happening, as the Hornets were renamed the Pelicans.
In January 2014, a conditional settlement agreement between the NBA, former ABA clubs and the Silnas was announced.
[24][14][25] As part of the deal, the Silnas are reported to be receiving a $500 million upfront from the former ABA teams.
[21][13] In return, the former ABA teams will get majority stake in the Spirits of St. Louis Basketball Club, L.P., which will retain control of a portion of the TV revenue streams of the former ABA teams, with the option to purchase the remaining stake held by the Silnas in the future.
[24][26][21][19]Also, the Silnas will drop their litigation against the league seeking a share of additional media revenue streams, with the NBA agreeing to grant some of the disputed funds to Spirits.
[25][24][21] The deal must still receive court approval.[/IQUOTE]
these dudes got rich off the NBA without having a team. They literally had a deal so good that the league couldn't even hate. Last I read, the one still like living is about to get 500 million. Any brehs ever heard of this? Might be the most ridiculous thing in professional sports ever.
