Jaylen Brown Advocates for NBA Players' Equity Stake as Franchise Values Skyrocket

Jaylen Brown, vice president of the National Basketball Players Association, has called for NBA players to be granted equity in team ownership as franchise valuations reach unprecedented levels. Brown argues that the current labor rules do not reflect the economic realities of the league. He compares players to corporate executives who often receive equity in the companies they work for.

The Boston Celtics forward highlights the disparity between the value created by the sport and the compensation structure for players. Brown emphasized that while players are rewarded for their performance, they are not compensated for the long-term growth of the league. This, he argues, contrasts sharply with corporate structures where employees receive equity for their service.

The NBA's most recent collective bargaining agreement, signed in 2023, restricts direct investment by players in their teams. While it allows limited participation in publicly traded companies tied to ownership, it largely bars direct ownership stakes. This restriction remains a point of contention for the NBPA, which seeks to align player compensation with the league's financial success.

Why Did This Happen?

NBA franchise valuations have surged in recent years, driven by lucrative media deals and private equity investment. In 2024, the league signed an 11-year media rights deal with Walt Disney, NBCUniversal, and Amazon valued at $76 billion. This has led to a sharp increase in team valuations, with marquee franchises selling for billions.

The Celtics, for instance, were acquired in a $6.1 billion deal last year. Just months later, the Los Angeles Lakers were sold for $10 billion. These figures underscore the financial growth of the league and the potential for equity-based compensation to provide long-term gains for players.

How Did Markets React?

Brown's comments have reignited a broader discussion about the structure of player compensation in professional sports. Similar equity-based programs are emerging in other leagues, such as the PGA Tour, which expanded its equity program to reward current performance. The PGA's program awards recurring grants based on performance metrics like the FedEx Cup.

This trend reflects a growing recognition that athletes can benefit from long-term financial strategies beyond traditional contracts. The PGA Tour's program aims to ensure more members share in the league's financial success. If implemented in the NBA, such a model could redefine how players engage with the league's economic growth.

What Are Analysts Watching Next?

The NBPA's push for equity in team ownership is likely to face resistance from league executives, who have historically emphasized financial sustainability. Brown's earlier proposal for an expansion team owned by players was dismissed, highlighting the challenges of securing ownership changes.

However, the rising valuations of NBA teams have made the argument for player equity more compelling. With franchise values reaching into the billions, players could stand to gain from a shift in the current compensation model.

The upcoming collective bargaining agreement negotiations will be critical in determining whether the league embraces this new financial paradigm. If the NBPA secures a change in labor rules, it could mark a significant shift in the economic landscape of professional basketball.