It appears to be a whine-off between warring clans of out-of-touch rich guys. With the NBA owners and players both opting for bombast over balance in their overtures, it’s difficult to see exactly what happened Monday afternoon.
This much is certain: The NBA offered players a deal and threatened that if they didn’t bite, the deal would get worse. The National Basketball Player’s Association didn’t vote on the proposal, disclaimed interest in its union (ending collective bargain negotiations) and is threatening to file a class-action antitrust suit against the NBA. The chance of a 2011-2012 season is now slimmer than your likelihood of hitting a full-court sky hook blindfolded.
This much is uncertain: everything.
The players and owners lose a great deal of control in the courts. The range of possibilities is now vast. It could be as simple as a judge ordering both sides back to the bargaining table, or it could result in billions in damages that owners say could bankrupt the league and play out in the courts for years.
Remember, this isn’t a strike, and the players will make the case in court that the league lockout prevented them from playing, i.e. earning a paycheck. They will be represented, in part, by David Boies, an attorney with some lofty antitrust credentials.
Move past NBA Commissioner David Stern’s talk of “nuclear winter” and the players’ and NBPA ex-executive director Billy Hunter’s chatter about strong-arming and ultimatums, and it appears both sides played hardball a little too well.
ESPN’s Michael Wilbon said he was sick of the fiasco and alleged “both sides seem completely oblivious as to what’s happening in the real world.”
The real world, of course, is experiencing debt crises and other staggering blows to the economy. Unemployment and foreclosures are soaring. Protests abound, from the Middle East to Europe to Wall Street. It’s a tough time to curry empathy over six-digit game checks.
Negotiating for two years only to walk away from the table now is tantamount to “running 26 miles of a marathon and then sitting down on the pavement and refusing to complete the final two-tenths of a mile. For what amounts to pennies on the dollar, the owners and players are putting a basketball season in jeopardy … jobs, careers, reputations, legacies,” Wilbon host wrote Tuesday.
Sports Illustrated’s Ian Thomsen also felt scapegoats could be found among both players and owners.
“They will continue to blame and complain about each other. But any person of reason, watching from afar, is going to recognize blame on both sides of the table,” Thomsen wrote. “You may feel more anger for the owners or for the players, but if you are a fan of basketball then the bottom line is that you are angry with everybody who had anything to do with the fact that there is $4 billion in revenue on the table and they can't even talk any longer about how to share it.”
The one positive for basketball fans is that the players disclaimed interest in the union as opposed to decertifying it. As Rick Bonell of the Charlotte Observer reported, the decertification process could have taken time, where the disclaimer process is pretty speedy and allows the NBA to approach Hunter with another deal. It also allows the players to sue the NBA immediately.
According to Stern, the union threatened to disband in February and Monday's move took owners by surprise because the players could have disbanded in the summer. Point guard Deron Williams, who is now playing in Turkey, tweeted, "This is why I said we should have done this in July bc at least the process would have been underway… even over!"
It’s difficult to say which issues ultimately dissolved the talks because the sides are keeping their playbooks close to their chests, but one widely reported bone of contention was the revenue split.
Last year, players took 57 percent of the overall revenue. The NBA would like to see the divide closer to 50-50, but players reportedly wouldn’t go lower than 51 percent, according to CBS’ Ken Berger, who reported the sides were as many as 20 percentage points apart at one point in negotiations.
The league says, under its proposal, the players could swing 51 percent of revenue depending on league growth, a claim the players denied. In their counteroffer, the players said 1 percent of their 51 percent would go to retired players’ pensions and medical benefits, something the union funded in the past.
Other thorny issues were the soft salary cap and the luxury tax. A hard cap does not allow teams to exceed the salary cap for any reason, where a soft cap allows teams to exceed the cap to retain a player under the so-called Larry Bird rule. The luxury tax kicks in when teams exceed the soft cap by a certain amount.
Last season, the salary cap was $58 million and the luxury tax level was $70.3 million. Teams were taxed a dollar for every dollar they exceeded the threshold. The luxury tax money is generally split up among teams who did not pay the tax. Reports indicate the league wanted to raise the tax, while the players wanted it lowered.
There were many other complicated matters being argued, including reductions in minimum salaries and some rookies’ salaries, year-round drug testing, an escrow account to reimburse owners for money spent over the 50-50 split, exceptions to the luxury tax for certain players and sign-and-trade deals for taxpaying teams.
But the bottom line is the two sides couldn’t figure out how to split their enormous pie. While it might not break anyone’s heart to see millionaire ball players out of work or billionaire team owners dusting their stadiums for a season, reports are starting to emerge that the ramifications will be more widespread.
In addition to the arena workers, concessionaires, janitors, ushers, parking lot attendants and merchandise hawkers – average folks who pull minimum wage or near it as the players and owners make bank – CNN reported last month that the lockout’s effect will ripple beyond arenas.
As Slam magazine reports foreign teams are recruiting the NBA's newly unemployed, restaurants and shops near American basketball stadiums are bracing for the worst, with employers and employees wondering how much revenue they can draw without crowds flocking to games 41 nights a year.
Fran Berger, CEO of Farm of Beverly Hills near Los Angeles’ Staples Center, said she would have to cut some workers’ hours, and several stadium employees told CNN they feared they might not get the 1,100 annual hours needed to qualify for health insurance.
There’s also the fans, who notoriously dislike lockouts. During the lockout-shortened 1998-1999 season, television ratings and attendance dropped significantly and didn’t rebound for years.
The New York Times reported in a 1998 story that formerly hardcore fans were sickened by the squabbles between owners and players and had come to the conclusion that “basketball is disintegrating into a game of greed.”
It seems odd to me that those with all of the "future" money these guys are arguing about is actually in the hands of the fans who have no seat at the table. If this drags out and the players win, the prices will go up and we will just not show up. Who will look like the fool then? I can get by on college hoops just fine, it is the only true form of the sport left anyhow.
Agreed, let the NBA disolve. I'm not paying higher prices so these guys can make more money.
Don't care, never will. Nincompoop Basketball League....full of overpaid, undereducated thugs. Let them fail.
Whaaaaaa!!!!! Those big ol' black guys are making more money than me!!! Whaaaaaa!!! That's not fair! I'm an educated whiite male....I DESERVE more than they have!!! Whaaaaaaa!!!!!
Saddest part of this story will be written next year when the sheep fill up the pens as always.
my hospital is LAYING EMPLOYEES OFF and these guys can't share. my family of four can't afford to go to an NBA game and now WE WON'T.........enjoy your 'off' season
LOL! You ever notice that the people who complain about some guy getting paid millions to put a ball through a hoop, or who complain about some guy who gets paid millions to throw a ball, or who complain about some guy getting paid millions to hit a ball, are the SAME people who are standing in line to buy lottery tickets so they can get paid millions for doing absolutely NOTHING?
I don't like pro basketball anyway. Go NCAA! Go Cardinal!
Well it is a shame,the players will have to drive there new cars an extra yr instead of trading it in every yr.The balack cars and GOLD CHAINS might get a little dirty and RUSTY,poor BABIES.I hope they stay on strike or lock out for the whole damn year.
Well they found a way to make basketball interesting since Jordan retired.
Does any even care about the NBA anymore? I say do away with the NBA completely!
Just dropped my Lakers jacket in the dumpster along with my coffee mug. I don't care if they do work it out, not another dime of mine will go to the player's or league - ever. Quite frankly I hope all professional basketball goes out of business and they all have to find a real job.
Who cares, unlike the NFL, most of the players can't spell.
So what's your excuse for not being able to use punctuation properly?
KILL THE SEASON...Heck, KILL THE NBA...Nothing but a BUNCH OF GREEDY people anyway!
Oh and by the way true sports are not "played" what these guys do for a living is a game. You don't play Boxing.
In their own little bubble, oblivious to what happens out of it. They talk in millions and we talk in hundreds or thousands. Ultimately, it's up to the fans. Without basketball games, we can spend that money on our communities. Instead of going to a game, eat out at a nice restaurant or buy something at the bookstore. Help the small businesses in your town that can really use your money. I didn't teach my children to be spoiled and I don't like to see it by other people. Call off the season... that's okay.
Do you know why it appears to be a whine-off between warring clans of out-of-touch rich guys? BECAUSE IT IS! Just like when two kids fight over one toy, the only fair thing to do is take it away from both of them. Nobody gets nothin'. So I say shut down the whole thing and see how they like that.
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