Monaco GM questions controversial LNB salary cap and the impact it could have / News - Basketnews.com

AS Monaco GM Oleksiy Yefimov believes that the recently implemented LNB regulations are detrimental to the development of club basketball in the French market.

Credit: AS Monaco/Direction de la Communication Credit AS Monaco/Direction de la Communication

The decision by the French League (LNB) to implement a salary cap and luxury tax for upcoming seasons has sparked reactions within the European basketball community.

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The LNB officials later clarified that the regulations wouldn't limit player salaries but rather impose a luxury tax to maintain a healthy budget and payroll balance.

The impact of this decision will be mostly felt by the current top French league team, AS Monaco, who, for the first time in the club's history, secured home-court advantage in the EuroLeague playoffs.

It could also affect ASVEL Villeurbanne and any future French market team hoping to compete in EuroLeague.

AS Monaco's general manager Oleksiy Yefimov has officially addressed the issue and provided a statement explaining why this decision could potentially harm the French club basketball scene.

"Prior to quoting any answer from me, please, take a look at how European basketball and sports media have reacted to this decision as well as at the reaction from the basketball community itself, including French national team representatives… Does this help to improve the LNB's image?" Yefimov stated in a press release.

"The LNB officials say that they use NBA experience. But did anyone check the economic background of the NBA salary cap? This limit is calculated as a percentage of the league's revenue from the previous season.

Does LNBgenerate any profit? Does the League distribute any revenues among the participant clubs? Does LNB have any TV deal in place which is the main source of income not only for the NBA but also for all major sports leagues worldwide?" Yefimov thinks the comparison with the NBA is not fair.

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"I think, at first, we all, as the French basketball stakeholders, need to think about how to improve the league and the product it delivers and make the league sexy and attractive for TV & sponsors. And it's not just words.

We have already proposed to LNB specific steps that can significantly improve the league's recognition, attractiveness, and awareness. My main question is: what benefits does LNB expect from this decision? How will this help to improve the French league?"

"We all have responsibility for our decisions. And I think that each of the decision-makers shall always remember that every vote or implementation of any rule will affect the future and have some consequences.

Implementing such a rule has high risk as the luxury tax plus heavy French income tax might reduce almost to zero possibility of having top domestic players ever coming back home," Efimov warned of the potential risks of losing top-tier talent in French clubs.

"While budgets in most of the top European leagues are consistently growing, will a salary cap or any other limitation increase the chances of the French clubs to achieve big goals in European competitions?" he added.

"French basketball was on the map recently with two French league teams not only participating but also making noise in the EuroLeague: ASVEL beating Barca in Barcelona, Monaco defeating Real in Madrid with an incredible 3+1 play, Monaco going as far as game 5 in one of the craziest playoff series versus Olympiacos last year and historically clinching the home court advantage for the playoffs this time.

With Wembanyama's worldwide exposure, French club basketball probably was or is in its golden age in terms of getting recognition abroad," he pointed out.

"I believe that achievements in international competitions show the real level of the league. And by putting such limitations, the LNB just limits the capabilities of increasing the image of the quality of the competition playing abroad.

Let's take a bigger look: how will this decision affect Paris EuroLeague dreams? Will it make the French capital closer to the goal of having a EuroLeague team?" Efimov questioned how these limitations would affect the third EuroLeague team potentially coming off the French market.

"I want to underline one fact: 2022-23 is the first ever season when AS Monaco operates with the biggest budget among the LNB clubs. Since joining the French Pro A league, we have never had the biggest budget prior to the current season.

It's very easy to check with open sources, as the league's financial commission publishes LNB budgets every year. So we have already proven that we can achieve big goals with reasonable and smart investments," Efimov said.

"And the biggest goal that has been achieved without the biggest financial input is that according toNielsen - a global leader in audience insights, data, and analytics - last season, the Roca Team became the most recognized French basketball brand. We are attractive to sponsors, our sponsorship deals grow year by year, and we have a clear sustainable business model," Monaco GM concluded.

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