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. Tony P

    I agree with Bombo, let them go play in Europe and Asia where their virtual nobodies and see a fraction of the salary they enjoyed in the NBA. This might make them more humble in the future and appreciate what they really have. Believe me, even though their making millions, these guys are burning through cash at another level. A year or two without those fat salaries and they'll be in the hood again without their trophy white wives!

    November 15, 2011 at 5:32 pm | Report abuse |
    • NorthPhoenix

      Excactly. I hope they all end up broke and homeless. Serves them all right.

      November 15, 2011 at 5:37 pm | Report abuse |
  2. david

    it does not matter whether these two sides make an agreement, if only these stupid so called fans would not buy tickets, and these stadiums show up empty, then all sides will really see who is in charge

    November 15, 2011 at 5:32 pm | Report abuse |
  3. hawaiiduude

    over paid for sports really we should be paying armed forces and teachers more money ball players have no clue to real world economy. Get a real job and work not play for a living then there will be more sympathy.

    November 15, 2011 at 5:33 pm | Report abuse |
  4. rm

    Good. Basketball sucks anyway. Football sucks. Soccer sucks. Hockey sucks. Baseball sucks. Syncronized swimming rules.

    November 15, 2011 at 5:34 pm | Report abuse |
    • NorthPhoenix

      You forgot to mention watching paint dry. Now THAT'S a good time!

      November 15, 2011 at 5:39 pm | Report abuse |
  5. Paul

    Look at them pouting in the picture. I hope the owners and players all go broke! Who cares, anyway? Crybabies!

    November 15, 2011 at 5:34 pm | Report abuse |
  6. Liz B

    Fire them all and get players that love the game, sick of these babies crying, we need real players.
    Missing basketball

    November 15, 2011 at 5:35 pm | Report abuse |
  7. WOW

    I'm extremely excited about the season being canceled. A bunch of tatooed thugs and rich fatcats can attempt to rebuild the fan base over the next decade. It is yet to rebound from the last feeding frenzy over the billions. My sympathy to fans that over the years to come will have to pay ever increasing ticket prices to cover ever increasing salaries. If only the season could be canceled forever. One can only pray.

    November 15, 2011 at 5:35 pm | Report abuse |
  8. mike2

    Let's put together a few NBA teams consisting of illegal aliens, they'll do the jobs the NBA players don't want to do!

    November 15, 2011 at 5:35 pm | Report abuse |
  9. astro24102

    The general public is really doesn't care any more! We wonder how players making 100 times the average annual salary of most workers are suppose to dictate to owners who give them the opportunity to play. Get Unions involved and this is what you get.....(its not like owners were mistreating them, the players just want more). Good Bye and farewell. The only people i feel for are those that work honest jobs in and around the stadium.

    November 15, 2011 at 5:35 pm | Report abuse |
  10. Rob Stumpf

    What exactly is the relevance that these guys have money? Of course anyone that can buy a pro basketball team is not going to be on food stamps. It makes no difference....they have to agree on a way to structure their business, and that's it. If the fans don't like it, they can start to support a new league with different owners and different players.

    November 15, 2011 at 5:35 pm | Report abuse |
  11. francisco medina

    MONEY, MONEY, MONEY. $$$$$$$$ USA WAY BABY !!!!!!!! THE RIGHT WAY !!!!!!!!!!!!

    November 15, 2011 at 5:36 pm | Report abuse |
  12. mike2

    hahaha can't wait to see these 6'5" idiots working at McDonalds!!

    November 15, 2011 at 5:36 pm | Report abuse |
  13. mm

    There are plenty of important things to be concerned about and this ain't it.
    And to all you fans, when are you going to get it...these overpaid millionnaires don't care about you!!!

    November 15, 2011 at 5:36 pm | Report abuse |
  14. chaz

    I am so mad I could spit...there I did. anyone have monitor cleaner?

    November 15, 2011 at 5:36 pm | Report abuse |
    • vodka

      Pee on it.

      November 16, 2011 at 12:10 am | Report abuse |
  15. PulTab

    Good riddance.

    November 15, 2011 at 5:37 pm | Report abuse |
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