Executive Compensation at the National Basketball Players Association (2024)

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 $2.3 million in 2024) – 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.

In 2024, the NBPA reported total revenue of $291 million with NIL Dues reported to be $229 million which had a corresponding offset on the expense side as a rebate of excess dues, thereby zeroing the NIL Dues out, meaning revenue was actually $62 million in 2024.

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 $62 million in revenue in 2024 came from royalties ($42 million), membership dues and revenue ($7 million of which $3.7 million is membership dues), and investment income and gains ($9 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 $66 million in 2024 with the largest expenses reported to be fees for services  – primarily management and other fees ($22 million with no detail), compensation ($19 million), office-related expenses ($9 million), other expenses ($9 million) -primarily “other” and bad debt,  and travel ($4 million).

103 employees received $19 million in compensation, an average of $185,000.  However, only 60 employees received more than $100,000 in compensation.  If the 10 most highly compensated employees (see below) received $7 million, then the remaining 96 employees received $12 million.  50 of the 96 employees received more than $100,000 while 46 of the 96 received less than $100,000.

The most highly compensated employee was Tamika Tremaglio, the Executive Director who received $2,278,896  in compensation (although she left after 2 months into the fiscal year) followed by Gary Arrick, the former CFO who received $840,330 in compensation in 2024    The 10 most highly compensated employees were reported to be:

• $2,278,896:  Tamika Tramaglio, Former Executive Director (departed 2 months into the year in 11/23)
• $   840,330:  Gary Arrick, Former CFO (thru 7/24)
• $   652,931:  Ronald Klempner, Senior Counsel, Collective Bargaining
• $   649,322:  Chrysa Chin, EVP, Strategy and Development
• $   578,837:  David Okhumale, Former COO (thru 11/23)
• $   533,214:  Matteo Zuretti, Chief International Relations
• $   433,184:  Andre Iguodala,  Executive Director (as of 11/23)
• $   413,022:  Purvis Short, Chief Player Programs
• $   349,455:  David Foster, Deputy General Counsel
• $   200,000:  Donovan Mitchell, VP

As illustrated above, there were several staff departures in the fiscal year.  The 10 most highly compensated employees received $7 million in compensation in 2024.  8 of the 10 most highly compensated employees are male while 2 are female.

NBPA paid for first class travel and provided a housing allowance or. residence for personal use. For specific details, see the Form 990, Schedule J, Part III, Supplemental Information

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

• $1,529,720:  Renaissance Associates, of New York, NY for forensic accounting services
• $1,415,223:  Winston and Strawn, of New York, NY for legal services
• $  799,742:  Dechert LLP, of Philadelphia, PA for executive consultant (law firm)
• $  722,781:  Talecent, LLC of Brookline, MA for consulting (address is for a residential apt that associated with Angelina Chheng, a former partner at Deloitte)
• $   477,787:  Precision Strategies, of Washington, DC for communications consulting

It is important to note NBPA reported spending $22 million for fees to non-employees for management and other services.  If only 35 independent contractors received more than $100,000 and the 6 most highly compensated received $5 million collectively, then the remaining outside fees paid were $17 million.   The remaining 30 independent contractors had to receive more than $100,000 but less than $477,787, which means as a group, the 30 received $3-$14 million collectively, leaving $3-$14 million for all the independent contractors who received less than $100,000 (which means there were a lot of of independent contractors who were compensated less than $100,000).

And so, why does the NBPA need to spend $22 million on management and other consultants when they had an executive who was being compensated more than $2 million?

To read the IRS Form 990 (for the year ending September 30, 2024), click here.