MANILA, Philippines -- The Supreme Court has upheld an appellate court ruling that binds the Philippine Basketball Association (PBA) to pay the Games and Amusements Board more than P3.4 million as the GAB’s share in the professional league’s broadcast revenues in 2002.

The case stems from the PBA’s non-payment of the GAB’s three-percent share in the television and radio broadcast revenues in 2002 after its then media partner, Viva Vintage Sports, Inc., defaulted in its payment of broadcast fees to the league.

The league and the board agreed to present their dispute to the Office of the President. They also agreed to place the assessed amount, PhP3,452,233.32, in escrow in a bank.

The Office of the President in 2004 ruled in favor of the board on the grounds that Presidential Decree No. 871 intended the PBA to pay the GAB three percent of its gross revenue and income from TV and radio broadcast once earned; that income is considered earned when one’s right to it becomes fixed under the terms of the government contract; that it does not matter whether PBA has actually received the fee due it from its franchisee, or whether this franchisee has physically transferred the amount to PBA, among others.

The PBA filed a motion for reconsideration of the decision but was dismissed.

It elevated the case to the Court of Appeals when the GAB sought the release of the funds from escrow in its favor.

However, the Court of Appeals in July 2005 ruled in the board’s favor finding the Office of the President committed no grave abuse of discretion in interpreting PD 871 and in effect requiring the PBA to pay the GAB’s three-percent share.

Late last week, the Supreme Court upheld the appellate court’s verdict and denied the PBA’s bid for relief.