Before the black-box operation in NBA, Cleveland Cavaliers and Hornets bosses were punished by the league for a series of reasons such as black-box operation and had to sell their teams. The owner of the Timberwolves once signed a secret contract with joe smith, and both of them were severely punished in the end, which was not worth the loss. The NBA league has also cooperated with the IRS, and if there is any breach of contract, it even needs serious punishment.
Risk sharing of private contracts
In the past, there have been cases in which the boss privately paid wages and bonuses to players without the approval of the league. But now, if there are unknown funds, players will be punished if they don't explain the source of funds. After the private money was exposed, it was in big trouble. This is no longer the case, because the NBA imposes heavy penalties on such private contracts, which may offend the whole league and even violate the law at the same time. This kind of risk is really too great.
Secret advertising contract
There is also a method similar to private contract, that is, advertising endorsement in private, obtaining endorsement fees by secretly advertising endorsement for players, asking the boss to pay less money to the players and paying taxes through sponsors, because this will be much lower than luxury tax. The NBA can do nothing about this situation, but it is also risky. Big companies are fine, but small companies can't afford problems. What do you think of this? Welcome to comment.