The TV Deal the NBA Wishes It Had Not Made

Roughly once a month, the NBA cuts 31 checks to NBA teams as revenue from its multibillion-dollar national television contract.

There are only 30 NBA franchises, so who gets the extra check?

The money goes to brothers Ozzie and Dan Silna, co-owners of the long-forgotten ABA team, the Spirits of St. Louis.

Thirty years ago, Ozzie Silna, with attorney Donald Schupak, negotiated a deal that cleared the way for the ABA to merge with the NBA. It ranks as one of the best sports deals in modern times, one that has paid the Silnas about $168 million and continues to pay off.

"I would have loved to have an NBA team," said Ozzie Silna, 73, a Malibu resident and environmental activist. "But if I look at it retrospectively over what I would have gotten, versus what I've received now, then I'm a happy camper."

Part of the Silnas' deal called for them to receive one-seventh of the annual TV revenue from each of the four ABA teams entering the NBA. The deal turned out to be so lucrative that several NBA teams have tried to break it, without success.

"We honor the deal," said Donnie Walsh, the Indiana Pacers' chief executive. "I can't say we haven't met and tried to settle it. But it's the greatest deal known to man. What more can you say?"

The key line in the Silnas' TV contract that makes NBA executives cringe reads: "The right to receive such revenues shall continue for as long as the NBA or its successors continues in its existence."

In other words, the deal lasts as long as the NBA does.

Another key component is that Silna, anticipating the NBA expanding, capped the brothers' portion of shared television revenue at a maximum of 28 teams. The other NBA teams share their revenue among all 30 teams.

The Silnas' contract stands ironclad, despite occasional court challenges. Harry Weltman, former general manager of the Spirits, argued to the Supreme Court in 1991 that he was entitled to a share of the revenue to no avail.

Still, the four ABA teams now in the NBA -- the Denver Nuggets, Indiana Pacers, New Jersey Nets (formerly the New York Nets) and San Antonio Spurs -- have spent plenty in legal fees searching for wiggle room out of the Silnas' contract.

"I think nearly every single attorney and sports executive from those four franchises has taken a look at the deal to see if they can break it," said Gary Hunter, a former Nuggets executive. "I've yet to talk to anybody who can say it can be broken. Every year, when it came down to take a look at the budgeting process we would all just shake our heads."