Executive Compensation at the National Basketball Players Association (2020)
The National Basketball Players Association (NBPA) is a tax-exempt, non-profit 501 (c) 5 – a trade union representing the 450 basketball players (30 teams with 15 players) in the NBA. So, this association serves a very small populatlon.
In 2020, ,the NBPA reported total revenue of $67 million (compared to $45 million the previous year), most of which came from royalties ($51 million), membership dues $7 million), and investment income/gains ($6 million). It is unclear how much each NBA player pays in membership due because the NBPA also has dues for agents which ranges from $2,500 – $7,500 annually, depending on how many players the agent represents.
Total expenses were $27 million in 2020 with the largest expenses reported to be compensation ($12 million), office-related expenses ($5 million), fees for services – primarily consultants and speakers ($4 million) and travel and conferences ($3 million).
75 employees received $12 million in compensation, an average of $160,000 annually. However, only 35 employees received more than $100,000 in compensation. The most highly compensated employee was Michele Roberts, the Executive Director who received $1.5 million in compensation in 2020. The 8 most highly compensated employees were reported to be:
- $1,537,821: Michele Roberts, Executive Director
- $ 956,155: Gary Arrick, CFO
- $ 603,914: Ronald Klempner, Senior Counsel, Collective Bargaining
- $ 584,172: Clarence Nesbitt, General Counsel
- $ 529,964: Matteo Zuretti, Chief International Relations
- $ 527,372: Chrysa Chin, EVP, Strategy and Development
- $ 381,340: Joseph Rogowski, Director of Sports Medicine
- $ 247,301: Eric Rhodes, Director of Security
The 8 most highly compensated employees received more than $5 million in compensation. Michel Roberts, the Executive Director has received nearly $8 million in compensation over the past 4 years:
- 2020: $1,537,821
- 2019: $2,887,467
- 2018: $2,218,385
- 2017: $1,226,635
NBPA paid for first class travel. For specific details, see the Form 990, Schedule J, Part III, Supplemental Information
13 independent contractors received more than $100,000 in compensation with the five most highly compensated reported to be:
- $620,216: The Durst Organization, of Philadelphia, PA for forensic accounting services
- $500,000: Renaissance Associates, of New York, NY for forensic accounting services
- $250,000: Wipfli, of Reston, VA for software development
- $205,209: Winston and Strawn, of New York, NY for legal services
- $197,883: William Parhan, of Los Angeles, CA for mental wellness consulting
To read the IRS Form 990 (for the year ending June 30, 2020), click here.
Executives are not employed by non profits for simply providing a service to the community but they are also not there to be paid excessive salaries and fly first class while the organization does not pay taxes.
Who said Executives in Non Profits are there for the simple act of providing a service to the community?