Blog Entry

NBAPA filing collusion charges against league?

Posted on: July 19, 2010 12:54 pm
Posted by Royce Young

If you didn't think the relationship between the league and its players was already strained, then sit right down and take a sniff at this story today from Sports Business Journal .

Basically, the Players' Association is strongly considered filing charges against the league and the owners. Why? Last summer the NBA was telling teams that basketball revenue was dropping dramatically and that would mean a cut in the salary cap this year. The league projected the cap could drop below $51 million, but more likely settle in the $53 million range, down from the $57.7 million it was this season.

Where did it land? Up at $58.1 million. That means basketball revenue went up last season. That means the players feel like they were duped by the league. Would the league release low cap projection numbers in an effort to pull down the amount teams could spend on salaries? The players are sort of thinking so. Hence the potential charges.

Last week in Vegas, David Stern said the league lost $370 million. Yet, the NBA recorded all-time highs in revenue. Of course the league credits slashes in ticket prices and merchandise costs, plus other clever ideas to push through the recession.

Then there are things like the recent sale of the Warriors, where a team was purchased for more money than in league history. Players like Nick Collison see that as fishy business. He tweeted :
"Warriors sold 4record 450 million after being bought for119. if nba is "broken" why are teams always sold 4profit? ... Also is the appreciation of the franchises when sold (warriors, Suns, sonics etc) factored into the 400 million loss claim?? ... My point is these very smart businessmen would not continue to invest is a failing system paying record numbers team after team."
A fair point indeed. All signs point point to the league thriving. But what we keep hearing is that money is flying out by the truckload.

Owners want shorter non-guaranteed contracts. Players want longer, guaranteed contracts. The league says it's losing money. The players see how revenue is at an all-time high. We keep hearing the two sides couldn't be farther apart. And at this point, I'd say they're about as far as east is from west. Right now, there's no avoiding a lockout it seems. Unless something dramatically happens, next summer probably won't be as fun as this one.

Since: Aug 22, 2006
Posted on: July 19, 2010 3:37 pm

NBAPA filing collusion charges against league?

Great post dragon-flyer, great post.

I would like to add that the guarantee money is what kills many teams and leaves them uncapable of competing.  i hate using other sports, but look at football as an example.  By giving guarantee money to the guys who know they are breaking down in such a cap stringent league can criple a team for years.  i can remember several teams being strapped with bad or injury related contracts that kill the game or franchise for several years.  I am for a players association, but lets be realistic basketball is so strapped with every viable agency from refs to owners to players that before you know it the vendors are going to get in on it.  If the guarantee money keeps up the NBA or Stern needs to do a few things, fix the injury or insurance for ballclubs who have broken players and also not allow that cost to count against a team's cap space.  Also there needs to be arbitration boards held at least three times a year where if a guy like Kwame Brown can't play to expectations he should either take a cut in pay or lose his contract.   I think these things could help, but i agree the NBA will have a tough time recovering from a lock out and the players will ultimately suffer.  We fans will start spending more time on football and baseball we will be fine.  Good luck.

Since: Jul 11, 2010
Posted on: July 19, 2010 2:50 pm
This comment has been removed.

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Since: Feb 27, 2009
Posted on: July 19, 2010 2:38 pm

NBAPA filing collusion charges against league?

Truth in advertising... WHAT A CONCEPT !!  So you think millionaire owners are going to show the ACTUAL books to ANYONE other than their legal reps who cant afford to become known as "rats" ??  Maybe the players that want to celebrate free-agent paydays AFTER they learn they've torn a knee up or aren't sure how much longer their back will take the poundings of travel and practice and games, I mean it would be terrible to be " 31 with bad knees and no ring " even with a guaranteed contract. Ssoo... THAT leaves us with the NBA Offices as the trust worthy folks in this notion of honest businessmen. WE KNOW they have an agenda all their own. We've seen it from the refs, from the funny timing of rules changing or being enforced differently. Bean counters that can't count the beans... NICE !!  Lockout - here we come and maybe the NBA never recovers. MLB needed the aid of steroids and no drug testing policy to get off the mat from that work stoppage.

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