Greek Basketball

Greek basketball case study

Greece is the epicenter of the European economic crisis, and with the country's economy in shambles, the Greek professional basketball league, once considered the best in Europe, is deteriorating. The all-star game in 2011 was canceled to save money. With government cuts common these days, the revenue from state television significantly diminish each year. The 2012-13 league was delayed for a week after the broadcaster made an offer regarded by ESAKE small. Eventually, the league started on the 9th of October, after the two parties decided that the teams will share € 3 million for television rights and another € 600.000 in commercial time.

(www.sigmalive.com/sports/all+other+sports/basketball/greece/531515 )

Teams are compiling huge debts even as player salaries shrink. Desperate for relief, the league last year has asked players who are owed money to accept a 50 percent "haircut," just like Greece's bondholders did. Ten of 13 clubs are several months late on payments, said the players' union, describing the problems as "urgent."

Players are fleeing either because they're not getting paid or they can simply earn more money elsewhere. "Basketball is dead in Greece," said Yannis Gagaloudis, Maroussi's former point guard who is owed nearly $20,000 from the team. He left in February. "It's like being in a coma. In two or three years, Panathinaikos and Olympiacos will be in the same situation." Three historically strong teams -- Maroussi, Panionios and Aris -- are banned from signing new players. The Basketball Arbitral Tribunal of FIBA imposed the sanctions after those clubs failed to pay overdue salaries.

Compared to other countries, the disputes in Greece have led to the biggest number of sanctions being imposed for a failure to pay players. Like elsewhere in Europe,