Sorting through the mess that may have ended the NBA season
With Monday's NBA news, it's increasingly unlikely that hoops fans will see their favorite stars this year.
November 15th, 2011
04:00 PM ET

Sorting through the mess that may have ended the NBA season

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.”

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Filed under: Basketball • Courts • Lawsuit • NBA • Sports
soundoff (852 Responses)
  1. Trebor

    Too much ego and way too much greed for a kid's game. I guess thats why both sides act like spoiled children. What about the 1,000s of people who rely on NBA games for income? I'm talking about the people who sell the drinks, the popcorn, the tickets, the parking attendants, etc. Once again those who need it the most get less at the expense of the super rich. The players and owners should be ashamed of themselves.

    November 15, 2011 at 6:02 pm | Report abuse |
  2. Help

    NBA = Nothing But A h o l e s.

    November 15, 2011 at 6:02 pm | Report abuse |
  3. Debbie

    Maybe the "fans" can find something much more worthwhile to devote their energies to.
    Basketball isn't worth it.

    November 15, 2011 at 6:02 pm | Report abuse |
  4. peppy

    B-ball is the one sport where college is so much better than pro.

    November 15, 2011 at 6:02 pm | Report abuse |
  5. moe smith

    Let it kill the entire fnkking league! Let those divas get real jobs and make the money that they deserve for their actual skills they have to benefit society... McDonalds is hiring!

    November 15, 2011 at 6:02 pm | Report abuse |
  6. jT

    These fools should count their blessing to be making this kind of money playing a stupid game. Saying that they are college or university grads is a joke, probably wouldn't qualified or have the brains to work at Wall Mart. If it wasn't for sports more than half of them would still be in the ghetto.

    November 15, 2011 at 6:02 pm | Report abuse |
  7. marty

    Here's my suggestion: For the first half of the game just play old movies. This will keep the Mrs happy and the hubby can take a nap. Then start the game for the second half at a score of 50-50. The players can do what they want for the first half. Play cards or splash water on themselves so they look like they were playing and sweating. But only pay the 50% of their contracts for half the work.

    November 15, 2011 at 6:03 pm | Report abuse |
  8. Matt

    There should be a period of time – say, a year – after decertification before a group can form another union.

    This business of "Today, we're a union, tomorrow we de-certify, and Friday we form a 'new' union" is insane.

    November 15, 2011 at 6:03 pm | Report abuse |
  9. John T.

    Just wondering any chance the owners could pull a replacement program, like the football movie the replacements or something like that. Have the owners bring in new people that are not in the union and tell them how its going to be.

    November 15, 2011 at 6:03 pm | Report abuse |
  10. Robert

    I lost interest when they moved out of Seattle. Fire all the players and replace them only with 4-year college grad's with minimum 3.75 GPA.

    November 15, 2011 at 6:04 pm | Report abuse |
    • Robert

      Also, cap seat prices so that a family of 4 can go and enjoy a game. Decent seats for no more than $25 each.

      November 15, 2011 at 6:19 pm | Report abuse |
  11. Mark

    I have not watched a game in the last two (boring) season's.....I would not miss this one....but I do feel bad for the people who work the venues – no work – no pay.

    November 15, 2011 at 6:04 pm | Report abuse |
  12. Moby49

    Once again the rich guys screw the pooch and the little guys pay the price. Feel sorry for all the minimum wage vendors impacted by this. Can we get our tax dollars back from subsidizing the statiums??

    November 15, 2011 at 6:04 pm | Report abuse |
  13. ElroyBusby

    And does anybody really care? True fans of basketball stopped watching the NBA years ago. Spend your money at college games where:
    1. People actually play defense
    2. They actually play team ball
    3. Players over 6' 10" understand that they are post players – not small forwards.
    4. Players actually listen to their coach
    5. There aren't special unwritten rules for "superstar" players – players who can assualt an opponent and not called for a foul, but their opponent gets called for a foul when they breathe hard on the "superstar."
    6. They have an exciting post season format (NCAA tournament)

    November 15, 2011 at 6:04 pm | Report abuse |
  14. FrankinSD

    Is there any way that both sides could lose here? With any luck, they will find one.

    November 15, 2011 at 6:04 pm | Report abuse |
  15. fan

    we should make protest and called us "fans strike". The owners/players cannot live without us...we paid tickets, jeresys and etc to make them richer than us...FAN STRIKE!!!! spread the words!!!

    November 15, 2011 at 6:04 pm | Report abuse |
    • moe smith

      oh boy... fan strike. good luck with that. the lot of you couldn't put together a game of Go Fish.

      November 15, 2011 at 6:11 pm | Report abuse |
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