Executive Compensation at the National Basketball Players Association (2021)

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 2021, the NBPA reported total revenue of $34 million (compared to $26 million in 2020, $68 million in 2019 and $45 million in 2018), most of which came from royalties ($21 million), membership dues $4 million), and investment income/gains ($3 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.  The decline in revenue in 2020-2021 appears to be due to the covid pandemic.

Total expenses were $78 million in 2021 with the largest expenses reported to be a rebate of excess dues ($43 million) followed by compensation ($13 million), office-related expenses ($7 million), fees for services – no detail provided; in 2021 these other fees were primarily for consultants and speakers ($5 million) and travel and conferences ($2 million).

71 employees received $13 million in compensation, an average of $189,000 annually. However, only 31 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 2021.   The 8 most highly compensated employees were reported to be:

• $1,539,298:  Michele Roberts, Executive Director
• $  720,109:  Gary Arrick, CFO
• $  596,587:  Clarence Nesbitt, General Counsel
• $  512,270:  Ronald Klempner, Senior Counsel, Collective Bargaining
• $  501,066:  Joseph Rogowski, Director of Sports Medicine
• $  428,515:  Chrysa Chin, EVP, Strategy and Development
• $  409,614:  Matteo Zuretti, Chief International Relations
• $  253,572:  Eric Rhodes, Director of Security

The 8 most highly compensated employees received more than $5 million in compensation.  Michele Roberts, the Executive Director received nearly $11 million in compensation from 2016-2021:

• 2021:  $1,539,298
• 2020:  $1,537,821
• 2019:  $2,887,467
• 2018:  $2,218,385
• 2017:  $1,226,635
• 2016:  $1,226,211

The second most highly compensated employee was Gary Arrick, the CFO who received nearly $1 million in 2021 and $4.5 million from 2016-2021:

• 2021:  $720,109
• 2020:  $956,155
• 2019:  $900,740
• 2018:  $874,183
• 2017:  $573,919
• 2016:  $428,212

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:

• $1,371,622:  Renaissance Associates, of New York, NY for forensic accounting services
• $  669,091:  Wipfli, of Reston, VA for software development
• $  384,402:  Winston and Strawn, of New York, NY for legal services
• $  275,000:  William Parhan, of Los Angeles, CA for mental wellness consulting
• $  244,726:  Dechert LLP, of Philadelphia, PA for legal services

To read the IRS Form 990 (for the year ending September 30, 2021), click here.