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. Hatch

    Good cancel basketball forever. Go support your local mls team.

    November 15, 2011 at 7:00 pm | Report abuse |
    • Chris

      I would rather watch 2 goats....ummm _ _ _ _. You fill in the blanks.

      November 15, 2011 at 7:11 pm | Report abuse |
  2. Shut Up Bloggers

    Why is their business negotiations on front pages anyway? It's none of anybody's business unless you own stock in a company what a person makes. The OWNERS are the one's who originally hired these guys at the rate they are complaining about. It is what it is. This is business and you people ranting about what somebody should be happy with can go jump.

    November 15, 2011 at 7:01 pm | Report abuse |
  3. rolandi

    sham on nba players go on thers world countrys and see how ist

    November 15, 2011 at 7:01 pm | Report abuse |
    • Chris

      Where in the hell did you learn to write?

      November 15, 2011 at 7:10 pm | Report abuse |
    • Steven

      What the heck did you just say?

      November 15, 2011 at 7:18 pm | Report abuse |
  4. pbo2274

    Cancel it.. Who gives a rats A$$ about basketball.. Overpaid thugs that run up and down the court like they are on a playground.... Stop trying to fix it and just give up...

    November 15, 2011 at 7:03 pm | Report abuse |
    • Noise

      Shut the floc Up clown.

      November 15, 2011 at 7:05 pm | Report abuse |
  5. steven

    Do they still get paid while not working?

    November 15, 2011 at 7:03 pm | Report abuse |
    • Chris

      No. Their first checks were due today I think.

      November 15, 2011 at 7:13 pm | Report abuse |
  6. chillipepper

    This is what happens when you let thugs in the NBA. You get the thug mentality of a greedy cold hearted more money pimp making demands

    November 15, 2011 at 7:03 pm | Report abuse |
  7. NBA

    The NBA is great to watch and I'll watch it when it returns. As a fan that's all that matters to me. I don't care for Hockey, so I don't watch it or go on blogs knocking it. It's that simple.

    November 15, 2011 at 7:03 pm | Report abuse |
  8. Philadelphian

    I wonder if more of you peons would take the players side if most of the players were white.

    November 15, 2011 at 7:03 pm | Report abuse |
    • Noise

      They would. That's how pathetic their so-called lives are. "I hate successful black people waaaahhhhhh."

      November 15, 2011 at 7:07 pm | Report abuse |
    • Mel

      I don't know if other people are really only on the side of the white owners and against the black players. I think both sides are losing out and not thinking about the big picture. Short term they may all win if and when the madness ends. Long term I am not sure what they will receive. Owners will be white, I'm sure, for many years to come. Just like only men (regardless of ethnicity) can apparently be President of the United States. But that is another story. And, yes, I am a woman who thinks that is also stupid. But that is for another day and blog. Bottom line – discrimination is BAD, but this really isn't discrimination. Both sides are greedy.

      November 15, 2011 at 7:20 pm | Report abuse |
    • Steven

      What an idiotic thing to say. The white players are just as greedy, stubborn and shortsighted as the black players. Stupid is an equal opportunity affliction.

      November 15, 2011 at 7:22 pm | Report abuse |
  9. Victor

    I think everyone needs to relax and let the dispute play out. None of us own any part of the NBA, we do not make money from it and do not lose money because we have no games. Its like complaining that grocery store workers need to stop picketing and get back to work because you do not like waiting in line for your milk and cookies. If you had a multi-million dollar talent (unless it was the cure for cancer or something) I would support you in your negotiations for higher pay. All of us will be there when the dispute is over, both sides know it.

    November 15, 2011 at 7:05 pm | Report abuse |
  10. fedup

    This is so disgusting! Come on man! You guys are so all about yourselves.......owners and players. I vote for this season to go down the toilet, and none of you make a penny! I am sick of it, and probably will never watch the NBA again.Ridiculous!
    Your egos and money make me want to hurl!
    And what really sticks in my crawl, is the rest of our country is sucking wind economically, and you pukes are all looking to make more! I would rather watch reruns of Sesame Street, than watch you play !

    November 15, 2011 at 7:05 pm | Report abuse |
  11. The american brain

    Time for the real football (soccer) to take over.

    November 15, 2011 at 7:06 pm | Report abuse |
  12. Mel

    If I were a rich man...da da da da da da da...I wouldn't be a whining baby. Your pot of ridiculous amounts of money are bigger than MY ridiculous amounts of money. REALLY?? Start a short, bald man's league. We are SO OVER you and all the other athletes and coaches (ala Sandusky) who think they are better than everyone else, can screw (literally) people out of whatever they want. Sick of this garbage. And I have been a FAN of sports my entire life. No more. DONE!

    November 15, 2011 at 7:06 pm | Report abuse |
  13. Buffalo2002

    Funny thing is that it seems like nobody really cares if the season got cancelled

    November 15, 2011 at 7:07 pm | Report abuse |
    • JimH52

      So very true

      November 15, 2011 at 7:08 pm | Report abuse |
    • Mel

      NOPE! Not anymore.

      November 15, 2011 at 7:09 pm | Report abuse |
  14. chucknorrislovetap

    People still watch the NBA ? Didn't they get rid of dribbling ?

    November 15, 2011 at 7:07 pm | Report abuse |
    • Mel

      Good one!

      November 15, 2011 at 7:10 pm | Report abuse |
  15. JimH52

    Who gives a flip. Let these rich, spoiled idots go get a real job. Let them drag out of the bed at 5:30 each morning and join the working class. The NBA can go away and no one cares.

    November 15, 2011 at 7:07 pm | Report abuse |
    • Mel

      Who gives a "flip"? Are you from Utah? I am, which is why I ask. It made me laugh (in a good way). Such a "utah thing" to say!

      November 15, 2011 at 7:11 pm | Report abuse |
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