Knicks owner James Dolan wants the NBA to adopt a more open accounting process for its finances and he plans to call for a vote on a resolution to that effect when the board of governors meets later this month, according to Tim Bontemps of ESPN.
In a letter sent this week to the league office and the board of governors, Dolan stated that the NBA needs “increased financial transparency and operating efficiency.” His proposed resolution, which would take effect beginning with the 2025/26 fiscal year, would “adopt a zero-based method of budgeting operating costs, headcount, and capital expenditures for all League and Affiliate League operations” and “adopt a process to present and distribute the League’s annual proposed budgets inclusive of all underlying account detail summarized by department and type of expense, headcount, and fully allocated costs against each League revenue stream.”
The letter was co-signed by Dolan and Madison Square Garden chief operating officer Jamaal Lesane, who serves as the team’s alternate governor. They point out that the league’s operating budget has risen by nearly 8% over the previous year and cite an increase of more than 800 people in “League office headcount.”
The letter also requests further details “summarized by department and type of expense — including headcount, capital expenditures, and fully-loaded budgeted costs with respect to the League and each of its subsidiaries and Affiliate Leagues.” Dolan and Lesane are seeking an estimate of projected costs and employment numbers relating to the NBA’s new media rights deal, along with “any contemplated NBA Europe league operations.”
In addition, the Knicks are calling for next year’s budget proposal to be presented at the annual Las Vegas meeting in July so a vote can be taken in September when the owners meet again prior to the start of next season.
Bontemps points out that Dolan has clashed with the league on numerous topics over the last few years. He resigned from the advisory/finance and media committees in the summer of 2023 and sent a letter to the league last year criticizing its new television deal, which he claims will make regional sports networks “unviable.”
Eric Fisher of Front Office Sports notes that Sphere Entertainment Co., which is led by Dolan, released a statement Monday saying that its MSG Networks may have to file for bankruptcy soon unless $800MM in debt can be restructured. The company warned that the NBA’s new national media deal could take too many games away from local outlets.
Most of the world wants more transparency around finances to see who is really pulling the strings of these politicians…
Do we get Dolan being more transparent as well?
Huh? What are you yammering about now? What does the NBA have to do with campaign finance laws?
Charles Oakley calls for James Dolan to meet him outside.
The player fine money goes to charity but the player should be able to designate the charity
Valid discussion – ironic source
I feel like in general its a reasonable request, arguably Dolan would have access to these numbers if he didn’t resign from his positions on the advisory/finance boards, but considering who the request is coming from you can’t help but wonder what ulterior motive is at play here. Like it would not surprise me if Dolan is just trying to do whatever he can to delay/stop the new media deal.
The condition of the budgetary process (essentially, no process) is a testament to the unique unilateral power Stern yielded over the NBA. I’m no fan of Stern overall, but I must admit he did run the league office lean and mean. He also reigned was over a less bloated, and more competitive, association, and one that was relatively unified at the owership level.
Silver is as incapable of efficiency as he is of brevity. It’s fair to note, though, has to deal with a bloated and divided association, which Stern, as much as he, set in motion. But his lack of respect for the sport, and absence of character, has greatly aggrevated the problems. New blood is needed.
If they are thinking bankruptcy then they are the most poorly run business ever.
I don’t think Dolan is great at running the team… but I must say he always seems on point with the financial side of things.
At the end of the day he has the right to see whatever he wants as the NBA works for him and the other owners.
I do like someone who gets feisty and keeps challenging the status quo, so I hope Dolan gets what he wants and keeps fighting the league.