Executive Compensation at the National Basketball Players Association (2023)

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 – by some very highly compensated employees (the most highly compensated employee received more than $3 million in 2023) – serves a very small population.

In 2023, the NBPA reported total revenue of $311 million (compared to $38 million in 2022, $34 million in 2021 and $26 million in 2020), which is unusual in that historically the organization generates $25-$40 million annually. What makes 2023 unique is that $240 million in NIL (Name Image Likeness) Dues were reported with a corresponding offset on the expense side as a rebate of excess dues, thereby zeroing the revenue out, meaning revenue was actually $71 million in 2023 – still significantly higher than previous years.

Specifically, “AS PART OF THEIR ANNUAL DUES, NBA PLAYERS CONTRIBUTE THE RIGHT TO LICENSE THEIR NAMES, IMAGES, AND LIKENESSES (“NIL”) ON A GROUP BASIS TO THE NBPA. BY CONTRIBUTING THESE RIGHTS, THE PLAYERS AUTHORIZE THE ASSOCIATION TO LICENSE NIL TO THIRD PARTIES AND THE VALUE ASSIGNED TO THESE RIGHTS IS THE AMOUNT OF REVENUE THAT THE ASSOCIATION RECOGNIZES FROM THESE TRANSACTIONS. NBPA REPORTS AN OFFSETTING EXPENDITURE ON PART IX TO REFLECT UTILIZATION OF THE NIL WITHIN THE SAME PERIOD; THIS EXPENSE IS CHARACTERIZED AS A REBATE OF EXCESS DUES…”

Most of the $71 million in revenue came from royalties ($58 million), membership dues and revenue ($6 million of which $3.6 million is membership dues), and investment income and gains ($4 million). It is unclear exactly how much each NBA player pays in membership due but the average appears to be $8,000 annually.

Total expenses were $80 million in 2023 with the largest expenses reported to be fees for services  – primarily management fees ($20 million with no detail) and “other” with no detail ($31 million), compensation ($20 million), office-related expenses ($9 million), office-related expenses ($9 million),  and travel ($9 million).

100 employees received $20 million in compensation, an average of $200,000.  However, only 51 employees received more than $100,000 in compensation.

The most highly compensated employee was Tamika Tremaglio, the Executive Director who received $3,066,056  in compensation followed by Michele Roberts, the former Executive Director who received $1,541,974 in compensation in 2023    The 10 most highly compensated employees were reported to be:

• $3,066,056:  Tamika Tramaglio, Executive Director
• $1,541,974:  Michele Roberts, Former Executive Director
• $  937,343:  Joseph Rogowski, Chief Medical Office (thru 10/22)
• $  919,427:  Gary Arrick, CFO
• $  854,938:  Clarence Nesbitt, Former General Counsel
• $  680,836:  David Okhumale, Chief Operating Officer
• $  550,737:  Ronald Klempner, Senior Counsel, Collective Bargaining
• $  499,814:  Matteo Zuretti, Chief International Relations
• $  450,086:  Chrysa Chin, EVP, Strategy and Development
• $  355,754:  David Foster, Deputy General Counsel

The 10 most highly compensated employees received $10 million in compensation in 2023.

NBPA paid for first class travel. For specific details, see the Form 990, Schedule J, Part III, Supplemental Information

24 independent contractors received more than $100,000 in compensation with the five most highly compensated reported to be:

• $1,311,069:  Renaissance Associates, of New York, NY for forensic accounting services
• $  806,466  :  Winston and Strawn, of New York, NY for legal services
• $  450,000:  TNLT Group, of NY, NY for event production
• $  333,264:  Talecent, of Brookline, MA for executive consultant
• $  280,362:  William Parham, of LA, CA for mental health and wellness consultant

It is important to note NBPA reported spending $20 million for fees to non-employees for management services but this is inconsistent with the above list of independent contractors (if only 24 independent contractors received more than $100,000, and the five most highly compensated received $280,362-$1,311,069 for a total of $3 million, then the remaining 19 independent contractors received $15 million and those 15 contractors had to receive less than $280.362 each, which can’t be correct).   In addition, NBPA reported paying fees  to non employees for “other” services which is also inconsistent with the above list of independent contractors.

To read the IRS Form 990 (for the year ending September 30, 2022), click here.