In a resolution dated Dec. 19, 2000, the GAB, under chair Dominador Cepeda, Jr., ruled in favor of a BAP (Basketball Association of the Phils.) petition, asking the body to declare the PBL a pro league since its players are being paid and therefore must be considered professionals.
To provide evidence to the BAP petition, the country’s amateur cage body enclosed the player contracts of PBL players Cyrus Baguio and Nino Gelig, both playing for Hapee Toothpaste, and eight other player contracts which indicated the players’ monthly salaries and other compensation.
With the ruling, the PBL must now provide its own facilities for game venues and remit to the GAB 3 percent of its gross gate receipts and income from radio and TV rights.
Before the GAB committee formed to look into the matter and composed of the late Atty. Eduardo Velasco, Estela Nimedez and Celia Santiago, all handling sensitive positions in the GAB, the PBL contended that, while its players are under contracts with their respective teams, this does not mean that they are professionals.
The PBL cited Article 5 of the International Basketball Federation (FIBA) rules, allowing players to enter into a written contract with a club that may provide for payment for the players. The PBL also asserted that it is "governed by its own set of rules, run by its own officials and composed of its own members."
The PBL also claimed that it is neither under the jurisdiction of the GAB nor under the supervision of the BAP because the FIBA recognizes non-professional ballclubs not under the authority of the FIBA-recognized league such as the PBL. The PBL also said that as a non-professional league, it may choose to undergo or forego supervision of the BAP, choosing the latter.
The BAP, however, argued that the Article 5 of the FIBA rules was taken out of context by the PBL because that rule applies only to player participation in FIBA competitions. The BAP also cited Article 2 of the FIBA rules that provides that "only players of clubs or organizations registered with a national basketball federation affiliated with the FIBA may participate in its official competitions."
Before the start of the inquiry, the GAB said its result will be straightforward: if the PBL is a pro league, then it should be regulated by the GAB; otherwise, it should be regulated by BAP, which is duly recognized by the Philippine Olympic Committee, the Philippine Sports Commission and FIBA.
After the inquiry, the committee recommended that the GAB should declare the PBL a pro league based principally on its finding that its players have existing player contracts with their respective teams, providing salaries and other financial benefits.