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Professional Basketball Employee Benefits - PowerPoint

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					Professional Basketball Employee Benefits
Lauren Grodsky Brad Stein

Agenda
• • • • Employee Benefits Background NBA Benefits WNBA Benefits Compare and Contrast

Employee Benefits in Sports
• Benefits play an important role in contract negotiations • Labor Unions attempt to negotiate league wide benefits which are documented in collective bargaining agreements (CBA) • The NBA received pension coverage in 1965 • The WNBA’s first CBA was ratified in 1999

NBA Benefits
• Pension
▫ ▫ ▫ ▫ NBA Player’s Pension Plan Vesting Requirements Payout determination Pre-Retirement Survivor Annuity

NBA Benefits (continued)
• Medical and dental insurance
▫ $300 deductible/family member, max of $900/family ▫ $3000 maximum co-insurance benefit

• Life insurance • Worker’s compensation
▫ Paid in accordance with state statutes

• Disability insurance

NBA Benefits (continued)
• 401(k)
▫ IRC limitations ▫ Team requirements ▫ NBA Benefit Pool

• Additional Programs
▫ HIV/AIDS Education Program ▫ Players Association High School Basketball Camp

WNBA Benefits
• First Collective Bargaining Agreement in women’s professional sports • Health Insurance
▫ Medical ▫ Dental

WNBA Benefits (continued)
• 401(k)
▫ 25% employer match ▫ Additional contribution for years of service

• Life Insurance - $100,000 • Disability due to Pregnancy complications • Off-Season Benefits - $75,0o0
▫ Education, career, financial management

Compare NBA to WNBA
• Justification for differences
▫ Revenue generated ▫ Length of a season

• Medical and Dental seem similar

Compare NBA to WNBA (continued)
• WNBA lacks a Defined Benefit plan, survivor annuities, post-career medical benefits • WNBA deserves Defined Benefit plan
▫ Consider revenue generated
NBA Annual Revenue Value of DB Plan % Value/Revenue $3.5 billion $120 million 3.4% WNBA $85 million $2.89 million 3.4%

Compare NBA to WNBA (continued)
• 401(k)
NBA Employer Contribution IRC limitations applied WNBA 25% match + 2-4% based on years of service

• Not fair match for the women

Conclusion
• Differences should continue to exist
▫ Funding limitations ▫ Popularity and revenue generation

• Women still deserve better benefits as professional athletes

Questions…..


				
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posted:5/30/2008
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