NBA PLAYERS HEALTH AND WELFARE BENEFIT PLAN: Form 990, tax year 2018

View the entire original 990 at ProPublica ↗

Organization
NBA PLAYERS HEALTH AND WELFARE BENEFIT PLAN (EIN 20-1260597)
Tax period
2018-07-01 to 2019-06-30
Filed
2020-07-14
IRS object ID
202031969349303678
Schema version
2018v3.2
Source
Download XML · Original 990 at ProPublica

Every field in the e-filed return. Faint text is the IRS element name, for citing.

Return header ReturnHeader

FieldValueIRS element (for citing)
Return2020-07-14T14:36:40-05:00ReturnTs
Tax Period End2019-06-30TaxPeriodEndDt

Preparer Firm PreparerFirmGrp

FieldValueIRS element (for citing)
Preparer Firm EIN161131146PreparerFirmEIN

Preparer Firm Name PreparerFirmName

FieldValueIRS element (for citing)
Business Name Line1BONADIO & CO LLPBusinessNameLine1Txt

Preparer US Address PreparerUSAddress

FieldValueIRS element (for citing)
Address Line1171 SULLYS TRAILAddressLine1Txt
CityPITTSFORDCityNm
State AbbreviationNYStateAbbreviationCd
ZIP14534ZIPCd
FieldValueIRS element (for citing)
Return Type990ReturnTypeCd
Tax Period Begin2018-07-01TaxPeriodBeginDt

Filer Filer

FieldValueIRS element (for citing)
EIN201260597EIN

Business Name BusinessName

FieldValueIRS element (for citing)
Business Name Line1NBA PLAYERS' HEALTH AND WELFARE BENEFITBusinessNameLine1Txt
Business Name Line2PLANBusinessNameLine2Txt
FieldValueIRS element (for citing)
Business Name ControlNBAPBusinessNameControlTxt
Phone8047186092PhoneNum

US Address USAddress

FieldValueIRS element (for citing)
Address Line1C/O ALIGHT 1025 BOULDRS PKWY NO 405AddressLine1Txt
CityRICHMONDCityNm
State AbbreviationVAStateAbbreviationCd
ZIP23225ZIPCd

Business Officer BusinessOfficerGrp

FieldValueIRS element (for citing)
PersonROBERT CRIQUI GARY ARRICKPersonNm
Person TitleTRUSTEESPersonTitleTxt
Phone8047186092PhoneNum
Signature2020-07-13SignatureDt
Discuss With Paid PreparerYes (1)DiscussWithPaidPreparerInd

Preparer Person PreparerPersonGrp

FieldValueIRS element (for citing)
Preparer PersonDAWN MINEMIERPreparerPersonNm
PTINP01339753PTIN
Phone5853811000PhoneNum

Filing Security Information FilingSecurityInformation

IP Address IPAddress

FieldValueIRS element (for citing)
I Pv4 Address64.201.232.104IPv4AddressTxt
FieldValueIRS element (for citing)
IP2020-07-13IPDt
IP Tm21:22:37IPTm
IP TimezoneEDIPTimezoneCd
Filing License TypePFilingLicenseTypeCd
At Submission Creation Device IdDA39A3EE5E6B4B0D3255BFEF95601890AFD80709AtSubmissionCreationDeviceId
At Submission Filing Device Id101C5B7212EC88EE0E9B23FAA05451CCC5FBB977AtSubmissionFilingDeviceId
FieldValueIRS element (for citing)
Tax2018TaxYr
Build TS2021-09-10 13:11:23ZBuildTS

Form 990 IRS990

FieldValueIRS element (for citing)
Principal OfficerG ARRICK N AARONPrincipalOfficerNm

US Address USAddress

FieldValueIRS element (for citing)
Address Line1C/O ALIGHT 1025 BOULDRS PKWY NO 405AddressLine1Txt
CityRICHMONDCityNm
State AbbreviationVAStateAbbreviationCd
ZIP23225ZIPCd
FieldValueIRS element (for citing)
Gross Receipts$121,955,151GrossReceiptsAmt
Group Return For Affiliates0GroupReturnForAffiliatesInd
Organization501cYes (X)Organization501cInd
Website AddressN/AWebsiteAddressTxt
Type Of Organization TrustYes (X)TypeOfOrganizationTrustInd
Formation2004FormationYr
Legal Domicile StateNYLegalDomicileStateCd
Activity Or MissionTHE PLAN PROVIDES CERTAIN HEALTH AND WELFARE BENEFITS TO ELIGIBLE (CONTINUED ON SCHEDULE O) (CONTINUATION OF LINE 1) CURRENT AND FORMER NATIONAL BASKETBALL ASSOCIATION ("NBA") PLAYERS AND THEIR SPOUSES AND ELIGIBLE DEPENDENTS PURSUANT TO THE ELIGIBILITY RULES FOR EACH BENEFIT.ActivityOrMissionDesc
Voting Members Governing Body6VotingMembersGoverningBodyCnt
Voting Members Independent6VotingMembersIndependentCnt
Total Employee0TotalEmployeeCnt
Total Volunteers0TotalVolunteersCnt
Total Gross UBI$0TotalGrossUBIAmt
Net Unrelated Bus Txbl Incm$0NetUnrelatedBusTxblIncmAmt
PY Contributions Grants$0PYContributionsGrantsAmt
CY Contributions Grants$0CYContributionsGrantsAmt
PY Program Service Revenue$2,956,188PYProgramServiceRevenueAmt
CY Program Service Revenue$21,451,564CYProgramServiceRevenueAmt
PY Investment Income$7,895,649PYInvestmentIncomeAmt
CY Investment Income$10,961,871CYInvestmentIncomeAmt
PY Other Revenue$30,000PYOtherRevenueAmt
CY Other Revenue$0CYOtherRevenueAmt
PY Total Revenue$10,881,837PYTotalRevenueAmt
CY Total Revenue$32,413,435CYTotalRevenueAmt
PY Grants And Similar Paid$0PYGrantsAndSimilarPaidAmt
CY Grants And Similar Paid$0CYGrantsAndSimilarPaidAmt
PY Benefits Paid To Members$8,043,714PYBenefitsPaidToMembersAmt
CY Benefits Paid To Members$32,464,199CYBenefitsPaidToMembersAmt
PY Salaries Comp Emp Bnft Paid$0PYSalariesCompEmpBnftPaidAmt
CY Salaries Comp Emp Bnft Paid$0CYSalariesCompEmpBnftPaidAmt
PY Total Prof Fndrsng Expns$0PYTotalProfFndrsngExpnsAmt
CY Total Prof Fndrsng Expns$0CYTotalProfFndrsngExpnsAmt
CY Total Fundraising Expense$0CYTotalFundraisingExpenseAmt
PY Other Expenses$1,024,126PYOtherExpensesAmt
CY Other Expenses$786,928CYOtherExpensesAmt
PY Total Expenses$9,067,840PYTotalExpensesAmt
CY Total Expenses$33,251,127CYTotalExpensesAmt
PY Revenues Less Expenses$1,813,997PYRevenuesLessExpensesAmt
CY Revenues Less Expenses-$837,692CYRevenuesLessExpensesAmt
Total Assets BOY$290,152,785TotalAssetsBOYAmt
Total Assets EOY$295,035,339TotalAssetsEOYAmt
Total Liabilities BOY$811,174TotalLiabilitiesBOYAmt
Total Liabilities EOY$246,388TotalLiabilitiesEOYAmt
Net Assets Or Fund Balances BOY$289,341,611NetAssetsOrFundBalancesBOYAmt
Net Assets Or Fund Balances EOY$294,788,951NetAssetsOrFundBalancesEOYAmt
Info In Schedule O Part IIIYes (X)InfoInScheduleOPartIIIInd
MissionTHE PLAN PROVIDES CERTAIN HEALTH AND WELFARE BENEFITS TO ELIGIBLE CURRENT AND FORMER NBA PLAYERS AND THEIR SPOUSES AND ELIGIBLE DEPENDENTS PURSUANT TO THE ELIGIBILITY RULES FOR EACH BENEFIT.MissionDesc
Significant New Program Srvc0SignificantNewProgramSrvcInd
Significant Change0SignificantChangeInd
DescHEALTH REIMBURSEMENT ACCOUNTS (HRAS) FOR ELIGIBLE CURRENT AND FORMER NBA PLAYERS AND THEIR FAMILIES THAT COVER HEALTH-RELATED COSTS QUALIFIED UNDER IRS RULES.Desc

Prog Srvc Accom Acty2 ProgSrvcAccomActy2Grp

FieldValueIRS element (for citing)
DescMEDICAL AND PRESCRIPTION DRUG COVERAGE TO ELIGIBLE RETIRED NBA PLAYERS AND THEIR FAMILIES.Desc

Prog Srvc Accom Acty3 ProgSrvcAccomActy3Grp

FieldValueIRS element (for citing)
DescMEDICAL, PRESCRIPTION DRUG, DENTAL, VISION, LIFE/AD&D AND DISABILITY INSURANCE COVERAGE TO ELIGIBLE CURRENT NBA PLAYERS AND THEIR FAMILIES.Desc

Prog Srvc Accom Acty Other ProgSrvcAccomActyOtherGrp

FieldValueIRS element (for citing)
DescEX-PATRIATE MEDICAL, DENTAL, PRESCRIPTION DRUG AND VISION COVERAGE FOR ELIGIBLE CURRENT INTERNATIONAL NBA PLAYERS AND THEIR FAMILIES AND TUITION REIMBURSEMENT BENEFITS FOR ELIGIBLE CURRENT AND FORMER NBA PLAYERS.Desc
FieldValueIRS element (for citing)
Described In Section501c30DescribedInSection501c3Ind
Schedule B Required0ScheduleBRequiredInd
Political Campaign Acty0PoliticalCampaignActyInd
Subject To Proxy Tax0SubjectToProxyTaxInd
Donor Advised Fund0DonorAdvisedFundInd
Conservation Easements0ConservationEasementsInd
Collections Of Art0CollectionsOfArtInd
Credit Counseling0CreditCounselingInd
Temp Or Permanent Endowments0TempOrPermanentEndowmentsInd
Report Land Building Equipment0ReportLandBuildingEquipmentInd
Report Investments Other SecYes (1)ReportInvestmentsOtherSecInd
Report Program Related Invst0ReportProgramRelatedInvstInd
Report Other Assets0ReportOtherAssetsInd
Report Other Liabilities0ReportOtherLiabilitiesInd
Include FIN48 FootnoteYes (1)IncludeFIN48FootnoteInd
Independent Audit Fincl StmtYes (1)IndependentAuditFinclStmtInd
Consolidated Audit Fincl Stmt0ConsolidatedAuditFinclStmtInd
School Operating0SchoolOperatingInd
Foreign Office0ForeignOfficeInd
Foreign Activities0ForeignActivitiesInd
More Than5000 K To Org0MoreThan5000KToOrgInd
More Than5000 K To Individuals0MoreThan5000KToIndividualsInd
Professional Fundraising0ProfessionalFundraisingInd
Fundraising Activities0FundraisingActivitiesInd
Gaming Activities0GamingActivitiesInd
Operate Hospital0OperateHospitalInd
Grants To Organizations0GrantsToOrganizationsInd
Grants To Individuals0GrantsToIndividualsInd
Schedule J Required0ScheduleJRequiredInd
Tax Exempt Bonds0TaxExemptBondsInd
Loan Outstanding0LoanOutstandingInd
Grant To Related Person0GrantToRelatedPersonInd
Business Rln With Org Mem0BusinessRlnWithOrgMemInd
Business Rln With Fam Mem0BusinessRlnWithFamMemInd
Business Rln With Officer Ent0BusinessRlnWithOfficerEntInd
Deductible Non Cash Contri0DeductibleNonCashContriInd
Deductible Art Contribution0DeductibleArtContributionInd
Terminate Operations0TerminateOperationsInd
Partial Liquidation0PartialLiquidationInd
Disregarded Entity0DisregardedEntityInd
Related EntityYes (1)RelatedEntityInd
Related Organization Ctrl Ent0RelatedOrganizationCtrlEntInd
Activities Conducted Prtshp0ActivitiesConductedPrtshpInd
Schedule O RequiredYes (1)ScheduleORequiredInd
IRP Document0IRPDocumentCnt
IRP Document W2 G0IRPDocumentW2GCnt
Employee0EmployeeCnt
Unrelated Bus Incm Over Limit0UnrelatedBusIncmOverLimitInd
Foreign Financial Account0ForeignFinancialAccountInd
Prohibited Tax Shelter Trans0ProhibitedTaxShelterTransInd
Taxable Party Notification0TaxablePartyNotificationInd
Nondeductible Contributions0NondeductibleContributionsInd
Indoor Tanning Services0IndoorTanningServicesInd
Subj To Tax Rmnrtn Ex Prcht Pymt0SubjToTaxRmnrtnExPrchtPymtInd
Subject To Excs Tax Net Invst Inc0SubjectToExcsTaxNetInvstIncInd
Info In Schedule O Part VIYes (X)InfoInScheduleOPartVIInd
Governing Body Voting Members6GoverningBodyVotingMembersCnt
Independent Voting Member6IndependentVotingMemberCnt
Family Or Business RlnYes (1)FamilyOrBusinessRlnInd
Delegation Of Mgmt Duties0DelegationOfMgmtDutiesInd
Change To Org Documents0ChangeToOrgDocumentsInd
Material Diversion Or MisuseYes (1)MaterialDiversionOrMisuseInd
Members Or Stockholders0MembersOrStockholdersInd
Election Of Board MembersYes (1)ElectionOfBoardMembersInd
Decisions Subject To Approva0DecisionsSubjectToApprovaInd
Minutes Of Governing BodyYes (1)MinutesOfGoverningBodyInd
Minutes Of CommitteesYes (1)MinutesOfCommitteesInd
Officer Mailing Address0OfficerMailingAddressInd
Local Chapters0LocalChaptersInd
Form990 Provided To Gvrn BodyYes (1)Form990ProvidedToGvrnBodyInd
Conflict Of Interest PolicyYes (1)ConflictOfInterestPolicyInd
Annual Disclosure Covered PrsnYes (1)AnnualDisclosureCoveredPrsnInd
Regular Monitoring EnfrcYes (1)RegularMonitoringEnfrcInd
Whistleblower PolicyYes (1)WhistleblowerPolicyInd
Document Retention PolicyYes (1)DocumentRetentionPolicyInd
Compensation Process CEO0CompensationProcessCEOInd
Compensation Process Other0CompensationProcessOtherInd
Investment In Joint Venture0InvestmentInJointVentureInd
Upon RequestYes (X)UponRequestInd

Books In Care Of Detail BooksInCareOfDetail

Business Name BusinessName

FieldValueIRS element (for citing)
Business Name Line1ALIGHT SOLUTIONSBusinessNameLine1Txt
FieldValueIRS element (for citing)
Phone8047186092PhoneNum

US Address USAddress

FieldValueIRS element (for citing)
Address Line11025 BOULDERS PARKWAY 405AddressLine1Txt
CityRICHMONDCityNm
State AbbreviationVAStateAbbreviationCd
ZIP23225ZIPCd
FieldValueIRS element (for citing)
No Listed Persons CompensatedYes (X)NoListedPersonsCompensatedInd

Form990 Part VII Section A Form990PartVIISectionAGrp (6 entries)

TitleTitleTxtAverage Hours Per WeekAverageHoursPerWeekRtIndividual Trustee Or DirectorIndividualTrusteeOrDirectorIndOfficerOfficerIndReportable Comp From OrgReportableCompFromOrgAmtReportable Comp From Rltd OrgReportableCompFromRltdOrgAmtOther CompensationOtherCompensationAmt
DANIEL RUBE
TRUSTEE1.00Yes (X)Yes (X)$0$0$0
ERIC HUTCHERSON
TRUSTEE1.00Yes (X)Yes (X)$0$0$0
NEIL AARON
TRUSTEE1.00Yes (X)Yes (X)$0$0$0
RONALD KLEMPNER
TRUSTEE1.00Yes (X)Yes (X)$0$0$0
GARY ARRICK
TRUSTEE1.00Yes (X)Yes (X)$0$0$0
PURVIS SHORT
TRUSTEE1.00Yes (X)Yes (X)$0$0$0
FieldValueIRS element (for citing)
Total Reportable Comp From Org$0TotalReportableCompFromOrgAmt
Tot Reportable Comp Rltd Org$0TotReportableCompRltdOrgAmt
Total Other Compensation$0TotalOtherCompensationAmt
Indiv Rcvd Greater Than100 K0IndivRcvdGreaterThan100KCnt
Former Ofcr Employees Listed0FormerOfcrEmployeesListedInd
Total Comp Greater Than150 K0TotalCompGreaterThan150KInd
Compensation From Other Srcs0CompensationFromOtherSrcsInd

Contractor Compensation ContractorCompensationGrp (2 entries)

Address Line1ContractorAddress/USAddress/AddressLine1TxtCityContractorAddress/USAddress/CityNmState AbbreviationContractorAddress/USAddress/StateAbbreviationCdZIPContractorAddress/USAddress/ZIPCdServicesServicesDescCompensationCompensationAmt
WELLINGTON TRUST COMPANY NA
280 CONGRESS STREETBOSTONMA02210INVESTMENT MANAGEMENT$588,352
WELLS FARGO BANK
12 E 49TH STREETNEW YORKNY10017CUSTODIAL$165,987
FieldValueIRS element (for citing)
Cntrct Rcvd Greater Than100 K2CntrctRcvdGreaterThan100KCnt

Program Service Revenue ProgramServiceRevenueGrp (2 entries)

DescDescBusinessBusinessCdTotal Revenue ColumnTotalRevenueColumnAmtRelated Or Exempt Func IncomeRelatedOrExemptFuncIncomeAmt
NBA TEAMS CONTRIBUTIONS624100$18,955,563$18,955,563
SELF-PAY CONTRIBUTIONS624100$2,496,001$2,496,001
FieldValueIRS element (for citing)
Total Program Service Revenue$21,451,564TotalProgramServiceRevenueAmt

Investment Income InvestmentIncomeGrp

FieldValueIRS element (for citing)
Total Revenue Column$6,143,303TotalRevenueColumnAmt
Exclusion$6,143,303ExclusionAmt

Gross Amount Sales Assets GrossAmountSalesAssetsGrp

FieldValueIRS element (for citing)
Securities$94,360,284SecuritiesAmt

Less Cost Oth Basis Sales Expnss LessCostOthBasisSalesExpnssGrp

FieldValueIRS element (for citing)
Securities$89,541,716SecuritiesAmt

Gain Or Loss GainOrLossGrp

FieldValueIRS element (for citing)
Securities$4,818,568SecuritiesAmt

Net Gain Or Loss Investments NetGainOrLossInvestmentsGrp

FieldValueIRS element (for citing)
Total Revenue Column$4,818,568TotalRevenueColumnAmt
Exclusion$4,818,568ExclusionAmt

Total Revenue TotalRevenueGrp

FieldValueIRS element (for citing)
Total Revenue Column$32,413,435TotalRevenueColumnAmt
Related Or Exempt Func Income$21,451,564RelatedOrExemptFuncIncomeAmt
Unrelated Business Revenue$0UnrelatedBusinessRevenueAmt
Exclusion$10,961,871ExclusionAmt

Benefits To Members BenefitsToMembersGrp

FieldValueIRS element (for citing)
Total$32,464,199TotalAmt

Fees For Srvc Invst Mgmnt Fees FeesForSrvcInvstMgmntFeesGrp

FieldValueIRS element (for citing)
Total$724,718TotalAmt

Fees For Services Other FeesForServicesOtherGrp

FieldValueIRS element (for citing)
Total$589TotalAmt

Other Expenses OtherExpensesGrp (3 entries)

DescDescTotalTotalAmt
PARTICIPANT IMPUTED TAX$56,419
PCORI FEES$4,263
BANK CHARGES$939

Total Functional Expenses TotalFunctionalExpensesGrp

FieldValueIRS element (for citing)
Total$33,251,127TotalAmt

Cash Non Interest Bearing CashNonInterestBearingGrp

FieldValueIRS element (for citing)
BOY$575,747BOYAmt
EOY$2,290,708EOYAmt

Savings And Temp Cash Invst SavingsAndTempCashInvstGrp

FieldValueIRS element (for citing)
BOY$3,700,631BOYAmt
EOY$3,878,950EOYAmt

Investments Pub Traded Sec InvestmentsPubTradedSecGrp

FieldValueIRS element (for citing)
BOY$131,854,651BOYAmt
EOY$136,717,533EOYAmt

Investments Other Securities InvestmentsOtherSecuritiesGrp

FieldValueIRS element (for citing)
BOY$153,561,902BOYAmt
EOY$151,583,011EOYAmt

Other Assets Total OtherAssetsTotalGrp

FieldValueIRS element (for citing)
BOY$459,854BOYAmt
EOY$565,137EOYAmt

Total Assets TotalAssetsGrp

FieldValueIRS element (for citing)
BOY$290,152,785BOYAmt
EOY$295,035,339EOYAmt

Accounts Payable Accr Expnss AccountsPayableAccrExpnssGrp

FieldValueIRS element (for citing)
BOY$811,174BOYAmt
EOY$246,388EOYAmt

Total Liabilities TotalLiabilitiesGrp

FieldValueIRS element (for citing)
BOY$811,174BOYAmt
EOY$246,388EOYAmt
FieldValueIRS element (for citing)
Organization Follows SFAS117Yes (X)OrganizationFollowsSFAS117Ind

Unrestricted Net Assets UnrestrictedNetAssetsGrp

FieldValueIRS element (for citing)
BOY$289,341,611BOYAmt
EOY$294,788,951EOYAmt

Total Net Assets Fund Balance TotalNetAssetsFundBalanceGrp

FieldValueIRS element (for citing)
BOY$289,341,611BOYAmt
EOY$294,788,951EOYAmt

Tot Liab Net Assets Fund Balance TotLiabNetAssetsFundBalanceGrp

FieldValueIRS element (for citing)
BOY$290,152,785BOYAmt
EOY$295,035,339EOYAmt
FieldValueIRS element (for citing)
Reconcilation Revenue Expnss-$837,692ReconcilationRevenueExpnssAmt
Net Unrlzd Gains Losses Invst$6,285,032NetUnrlzdGainsLossesInvstAmt
Other Changes In Net Assets$0OtherChangesInNetAssetsAmt
Method Of Accounting AccrualYes (X)MethodOfAccountingAccrualInd
Accountant Compile Or Review0AccountantCompileOrReviewInd
FS AuditedYes (1)FSAuditedInd

FS Audited Basis FSAuditedBasisGrp

FieldValueIRS element (for citing)
Separate Basis Fincl StmtYes (X)SeparateBasisFinclStmtInd
FieldValueIRS element (for citing)
Audit CommitteeYes (1)AuditCommitteeInd
Federal Grant Audit Required0FederalGrantAuditRequiredInd

Schedule D IRS990ScheduleD

FieldValueIRS element (for citing)
Total Book Value Land Buildings$0TotalBookValueLandBuildingsAmt

Other Securities OtherSecuritiesGrp (3 entries)

DescDescBook ValueBookValueAmtMethod ValuationMethodValuationCd
RUSSELL 3000(R) INDEX NL CTF4$76,844,975F
WTC-CTF INTERNATIONAL RESEARCH EQUITY PORTFOLIO$46,379,571F
WTC-CTF OPPORTUNISTIC INVESTMENT ALLOCATION$28,358,465F
FieldValueIRS element (for citing)
Total Book Value Securities$151,583,011TotalBookValueSecuritiesAmt
Footnote TextYes (X)FootnoteTextInd
Total Rev Etc Audited Fincl Stmt$37,973,749TotalRevEtcAuditedFinclStmtAmt
Net Unrealized Gains Invst$6,285,032NetUnrealizedGainsInvstAmt
Revenue Not Reported$6,285,032RevenueNotReportedAmt
Revenue Subtotal$31,688,717RevenueSubtotalAmt
Investment Expenses Not Incld$724,718InvestmentExpensesNotIncldAmt
Revenue Not Reported Fincl Stmt$724,718RevenueNotReportedFinclStmtAmt
Total Revenue Per Form990$32,413,435TotalRevenuePerForm990Amt
Tot Expns Etc Audited Fincl Stmt$32,526,409TotExpnsEtcAuditedFinclStmtAmt
Expenses Not Reported$0ExpensesNotReportedAmt
Expenses Subtotal$32,526,409ExpensesSubtotalAmt
Investment Expenses Not Incld2$724,718InvestmentExpensesNotIncld2Amt
Expenses Not Rpt Fincl Stmt$724,718ExpensesNotRptFinclStmtAmt
Total Expenses Per Form990$33,251,127TotalExpensesPerForm990Amt

Supplemental Information Detail SupplementalInformationDetail

FieldValueIRS element (for citing)
Form And Line ReferencePART X, LINE 2:FormAndLineReferenceDesc
ExplanationIN GENERAL, FOR EMPLOYEE BENEFIT PLANS, THEIR TAX-EXEMPT STATUS ITSELF IS DEEMED TO BE AN UNCERTAINTY, SINCE EVENTS COULD POTENTIALLY OCCUR TO JEOPARDIZE THEIR TAX-EXEMPT STATUS. THE PLAN FILES THE RETURN OF EXEMPT ORGANIZATION FROM INCOME TAX (FORM 990) AND THE ANNUAL RETURN/REPORT OF EMPLOYEE BENEFIT PLAN (FORM 5500) IN THE U.S. FEDERAL JURISDICTION.ExplanationTxt

Schedule O IRS990ScheduleO

Supplemental Information Detail SupplementalInformationDetail (6 entries)

Form And Line ReferenceFormAndLineReferenceDescExplanationExplanationTxt
FORM 990, PART VI, SECTION A, LINE 2BECAUSE THE PLAN IS JOINTLY OPERATED AND ADMINISTERED BY THE NBPA AND THE NBA, (I) GARY ARRICK IS IN A "BUSINESS RELATIONSHIP" WITH EACH OF RON KLEMPNER AND PURVIS SHORT BY VIRTUE OF RON KLEMPNER AND PURVIS SHORT EACH BEING EMPLOYED BY THE NBPA, OF WHICH GARY ARRICK IS THE CHIEF FINANCIAL OFFICER AND (II) THE NBA TRUSTEES ARE IN A "BUSINESS RELATIONSHIP" WITH EACH OTHER BY VIRTUE OF ALL BEING OFFICERS OF THE NBA.
FORM 990, PART VI, SECTION A, LINE 5THE DIVERSION IN QUESTION WAS THE USE BY FIVE PLAN PARTICIPANTS OF HEALTH REIMBURSEMENT ACCOUNT ("HRA") ASSETS WITHOUT SUBSTANTIATION ADEQUATE TO VERIFY THAT THE FUNDS WERE PROPERLY SOUGHT AND DISBURSED. IN OR ABOUT MAY 2019, THE PLAN'S THIRD-PARTY ADMINISTRATOR IDENTIFIED CERTAIN IRREGULARITIES IN CONNECTION WITH SEVERAL PARTICIPANT CLAIM SUBMISSIONS SEEKING REIMBURSEMENT FROM THEIR HRAS, SOME OF WHICH HAD BEEN PAID AND OTHERS FOR WHICH PAYMENT WAS PENDING. TO EXAMINE MORE CLOSELY THE IRREGULARITIES DESCRIBED ABOVE, AND TO ENSURE FULL COMPLIANCE WITH THEIR OBLIGATIONS, THE TRUSTEES PROMPTLY RETAINED TWO INDEPENDENT AND HIGHLY-QUALIFIED NATIONAL LAW FIRMS TO CONDUCT A COMPREHENSIVE REVIEW OF THE IRREGULAR CLAIMS AND OTHER CURRENT AND HISTORICAL CLAIMS IN ORDER TO IDENTIFY POTENTIAL CASES OF DISBURSEMENT OF HRA FUNDS OTHER THAN FOR ELIGIBLE EXPENSES. THE REVIEW IDENTIFIED REIMBURSEMENT PAYMENTS MADE IN CONNECTION WITH CLAIMS SUBMITTED BY THE FIVE PLAN PARTICIPANTS REFERENCED ABOVE FOR SERVICES THAT COULD NOT BE VERIFIED AS HAVING ACTUALLY BEEN RECEIVED BY THE PARTICIPANTS. THE AMOUNT OF THE PAYMENTS MADE FOR THESE UNSUBSTANTIATED CLAIMS IS $1,327,677 IN THE AGGREGATE. A PAYMENT TO A SIXTH PARTICIPANT IN THE AMOUNT OF $37,790 WAS IDENTIFIED DURING THE NEXT TAX YEAR. THE TRUSTEES TOOK IMMEDIATE CORRECTIVE AND PREVENTATIVE STEPS. THE PLAN FOLLOWED IRS CORRECTION PROCEDURES WITH RESPECT TO THE IMPERMISSIBLE PAYMENTS, INCLUDING SEEKING RECOUPMENT FROM THE SIX PLAN PARTICIPANTS FOR PAID AMOUNTS TO WHICH THEY WERE NOT ENTITLED, FREEZING THE HRAS OF THE PARTICIPANTS UNTIL SUCH AMOUNTS ARE RECOUPED, AND TREATING AND REPORTING THE AMOUNTS AS TAXABLE DISTRIBUTIONS TO THE EXTENT THE PARTICIPANTS HAVE NOT REPAID OR ARE NOT IN THE PROCESS OF REPAYING SUCH AMOUNTS. TO DATE, THE TRUSTEES HAVE SUCCEEDED IN RECOUPING $387,865 ($350,075 OF WHICH IS ATTRIBUTABLE TO THE 2018-19 TAX YEAR) AND CONTINUE TO TAKE ACTIONS TO RECOUP THE OUTSTANDING BALANCE. THE TRUSTEES ALSO IMPLEMENTED ADDITIONAL DETECTION PROCEDURES AND MORE STRINGENT SUBSTANTIATION REQUIREMENTS AND TOOK OTHER ACTIONS TO FORTIFY THE PLAN'S EXISTING INTERNAL CONTROLS.
FORM 990, PART VI, SECTION A, LINE 7ATHE NBA HAS THE RIGHT TO APPOINT AND REMOVE THREE NBA TRUSTEES, AND THE NBPA HAS THE RIGHT TO APPOINT AND REMOVE THREE NBPA TRUSTEES, EACH PURSUANT TO THE TRUST AGREEMENT ESTABLISHING THE PLAN.
FORM 990, PART VI, SECTION B, LINE 11BTHE FORM 990 IS REVIEWED AND COMMENTED ON BY PLAN COUNSEL AND THE TRUSTEES.
FORM 990, PART VI, SECTION B, LINE 12CEACH TRUSTEE ANNUALLY SIGNS A STATEMENT THAT AFFIRMS SUCH PERSON'S UNDERSTANDING OF THE FUND'S CONFLICT OF INTEREST POLICY; THIS CONFLICT OF INTEREST POLICY WAS PREVIOUSLY AGREED TO BY THE TRUSTEES. PRIOR TO THE SIGNING OF THE MOST RECENT STATEMENT, PLAN COUNSEL ADVISED THE TRUSTEES THAT THEY ARE NOT AWARE OF ANY CONFLICTS OF INTEREST OR POTENTIAL CONFLICTS OF INTEREST THAT INVOLVE THE TRUSTEES. THE TRUSTEES ARE REQUIRED TO DISCLOSE ANY CONFLICT OR POSSIBLE CONFLICT IN ACCORDANCE WITH THE TERMS OF THE CONFLICT OF INTEREST POLICY, AND ARE OTHERWISE PRECLUDED FROM ACTING AS A TRUSTEE WITH RESPECT TO ANY MATTER THAT WOULD POSE A CONFLICT OR POSSIBLE CONFLICT WITH THE CONFLICT OF INTEREST POLICY. TO ENSURE THE FUND OPERATES IN A MANNER CONSISTENT WITH ITS TAX EXEMPT STATUS AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX EXEMPT STATUS, PERIODIC REVIEWS ARE CONDUCTED.
FORM 990, PART VI, SECTION C, LINE 19NO DOCUMENTS ARE AVAILABLE TO THE PUBLIC.

Schedule R IRS990ScheduleR

Id Related Org Txbl Partnership IdRelatedOrgTxblPartnershipGrp (27 entries)

CHICAGO PROFESSIONAL SPORTS LIMITED PARTNERSHIP
DALLAS BASKETBALL LIMITED
DENVER NUGGETS LIMITED PARTNERSHIP
ROCKET BALL LTD
LA CLIPPERS LLC
MIAMI HEAT LIMITED PARTNERSHIP
MINNESOTA TIMBERWOLVES BASKETBALL LIMITED PARTNERSHIP
NEW ORLEANS PELICANS NBA LLC
NEW YORK KNICKS LLC
ORLANDO MAGIC LTD
PHILADELPHIA 76ERS LP
SACRAMENTO KINGS LIMITED PARTNERSHIP LP
WASHINGTON BULLETS LP
ATL INVESTCO LLC
BANNER SEVENTEEN LLC
BROOKLYN BASKETBALL HOLDINGS LLC
HORNETS BASKETBALL LLC
CAVALIERS OPERATING COMPANY LLC
GSW SPORTS LLC
PACERS BASKETBALL LLC
MEMPHIS BASKETBALL LLC
MILWAUKEE BUCKS LLC
THE PROFESSIONAL BASKETBALL CLUB LLC
SUNS LEGACY PARTNERS LLC
SAN ANTONIO SPURS LLC
DETROIT PISTONS BASKETBALL COMPANY
MAPLE LEAF SPORTS AND ENTERTAINMENT PARTNERSHIP

Id Related Org Txbl Corp Tr IdRelatedOrgTxblCorpTrGrp (3 entries)

THE LOS ANGELES LAKERS INC
TRAIL BLAZERS INC
JAZZ BASKETBALL INVESTORS INC
FieldValueIRS element (for citing)
Receipt Of Int Annts Rnts Rylts0ReceiptOfIntAnntsRntsRyltsInd
Gift Grnt Or Cap Contri To Oth Org0GiftGrntOrCapContriToOthOrgInd
Gift Grnt Cap Contri From Oth Org0GiftGrntCapContriFromOthOrgInd
Loans Or Guarantees To Other Org0LoansOrGuaranteesToOtherOrgInd
Loans Or Guarantees From Oth Org0LoansOrGuaranteesFromOthOrgInd
Div Related Organization0DivRelatedOrganizationInd
Asset Sale To Other Org0AssetSaleToOtherOrgInd
Asset Purchase From Other Org0AssetPurchaseFromOtherOrgInd
Asset Exchange0AssetExchangeInd
Rental Of Facilities To Oth Org0RentalOfFacilitiesToOthOrgInd
Rental Of Fclts From Oth Org0RentalOfFcltsFromOthOrgInd
Perform Of Services For Oth Org0PerformOfServicesForOthOrgInd
Perform Of Services By Other Org0PerformOfServicesByOtherOrgInd
Sharing Of Facilities0SharingOfFacilitiesInd
Paid Employees Sharing0PaidEmployeesSharingInd
Reimbursement Paid To Other Org0ReimbursementPaidToOtherOrgInd
Reimbursement Paid By Other Org0ReimbursementPaidByOtherOrgInd
Transfer To Other Org0TransferToOtherOrgInd
Transfer From Other Org0TransferFromOtherOrgInd

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