Blog Entry

Players unhappy with owners' proposal

Posted on: May 4, 2011 11:53 am
Edited on: May 4, 2011 12:08 pm
 
Posted by Royce Young

The owners submitted a new proposal recently to the NBA players union and the players are reportedly unhappy with it, according to ESPN.com. The new proposal is a 10-year year deal that evidently isn't much different than the original one made a more than a year ago.

"Unfortunately, the proposal is very similar to the proposal the league submitted over a year ago," union president Derek Fisher told ESPN.com. "This last proposal doesn't look close to what we were expecting."

A lot of hope had been building as of late with the NFL's lockout being overruled by a judge and because of the incredible push the NBA has made over the season that a lockout would be avoided. And while it still very well can be, evidently the players are looking for something better than what they got.

The owners are opting out of the existing collective bargaining agreement as they're looking for major rollbacks in current contracts, cutting guaranteed contracts, a hard salary cap and a larger chunk of revenue. Under the current CBA, players receive 57 percent of the league's revenue.

David Stern said last month that the league is projecting a $300 million loss for the current season. The union disputes that number.

"With the recent news that Round 1 ratings are at an all-time high, the popularity of the game globally has never been higher, we have to work to keep this going in the right direction," Fisher also said. "I will continue to urge our players to be prepared in the event of a lockout, but will remain steadfast in my efforts to drive this process forward."
Comments

Since: Jun 3, 2008
Posted on: May 4, 2011 5:56 pm
 

Players unhappy with owners' proposal

Then go bag groceries or collect the weekly garbage and see what a "real" job is like, you greedy little p*^%%#!



Since: Dec 5, 2008
Posted on: May 4, 2011 5:28 pm
 

Players unhappy with owners' proposal

Yeh bring back those Cristian Latneer scurbbs




Since: Apr 18, 2011
Posted on: May 4, 2011 5:24 pm
 

Players unhappy with owners' proposal

...let them shutdown,I won't miss them...they have everything they want and don't play hard for the amount they make now.College ball is good enough for me.



Since: Jun 25, 2009
Posted on: May 4, 2011 5:14 pm
 

Players unhappy with owners' proposal

But your comment quoted above is irrelevant, because no matter how you spin it, the Salary for players and coaches is also your cost to produce your "product." The employees in this case are your product.


I always wondered why people insist on making the point you made above.  It doesn't matter the players are the "product"... it doesn't matter one bit.   In the end what matters is the owners are running a BUSINESS.....   they are currently paying their EMPLOYEES 57 percent of their gross revenues with only 43 percent for all other expenses, taxes, money that needs to be put aside for future unexpected expenses, etc.     That doesn't cut it.... and when the owners are LOSING money, it becomes that much more of a problem.   
NBA ratings may or may not be up for one or 2 rounds but overall popularity has decreased tremendously the last 10 years.  The money the owners are losing has to come and will come directly from the players salaries, end of story.  If ratings improve and the owners make more money in the future then the players can negotiated a more favourable CBA down the road.  But for now the players are screwed.. and if the courts rule in favour of the NFL owners who are actually profiting overall and allow a lockout to stick, the NBA players are dead in the water because there isn't a court in the world that's going to force NBA owners to play under the existing CBA and lose money....



Since: Feb 15, 2008
Posted on: May 4, 2011 4:38 pm
 

Players unhappy with owners' proposal

I'm perfectly fine with watching college sports.  Guess what?  College player play with more passion and heart than overpaid wannabe thugs who tweet their every thought. 

Nobody gives a sh*t what they think or say.

Let the pros lockout and suffer over their own egos.



Since: Sep 17, 2008
Posted on: May 4, 2011 4:28 pm
 

Players unhappy with owners' proposal

Look at other industries across the country and try to find a profitable one in which salaries are 60% (including coaches and staff) of revenues. This is way out of proportion to profitable business practices.

I agree with the parody...but that isn't something you can control. You can't tell a player he can only play here or there for x amount of time. But your comment quoted above is irrelevant, because no matter how you spin it, the Salary for players and coaches is also your cost to produce your "product." The employees in this case are your product. 




Since: Nov 20, 2007
Posted on: May 4, 2011 4:14 pm
 

Players unhappy with owners' proposal

I hope they lock out the current players, and they never come back.  The owners should use replacement players.  Undrafted college  players, D league players, Europe players.    It would be just as bit entertaining in a couple years, and we wouldn't have to put up with all the overpaid underacheiving thugs currently in the NBA.



Since: Dec 5, 2006
Posted on: May 4, 2011 4:06 pm
 

It is all about spin for leverage

The NBA and the NBAPA are both aware that a very significant leverage in their negotiations is fan disapproval. They are both trying to paint the opposite side as greedy. But the present value (Forbes) of the 30 NBA teams exceeds 10 billion dollars. This same 10 billion dollars can be invested in many other industries with far less risk and return 1 to 2 billion dollars per year. Instead the loss (willing to accept the owners' number because they have documented it to the players) of 300 million is completely unacceptable over the long term.

So how do the owners turn around this underperforming investment? It is simple. The formula is profits = revenues minus costs. They either increase revenues, lower costs or both. To increase revenues the main opportunity is to increase parity among the teams. How many teams have won a championship over the league's entire 64 year history? 28 of the 30 present teams by my count. And over the past decade how many teams have won a championship? A total of four with but two teams accounting for multiple championships in that period. That, my friends, is not parity. For the other 26 teams history or nothing is their solace. The NBAs current CBA is the foundation for this disparity with no hard salary cap and numerous exceptions to encourage overspending. With little likelihood of winning the championship the other paid attendance suffers for those other teams. Besides achieving parity the owners can raise ticket prices. But except for the elite teams where demand exceeds supply the attendance goes down with increased prices usually meaning a reduction in total revenues. Corporate sponsors of teams bring in revenue. But unless the team is winning and challenging for the championship the audience these corporations wish to reach is low and the revenue from this source is reduced accordingly. Finally the broadcast revenue is very important. But the NBA does not enjoy a huge national audience for broadcasts. This again comes back to parity. When more teams are winning championships the audience is expanded and the broadcast revenue is greater. This shows that to raise revenues, parity must be more closely achieved.

This brings us to the second part of the profit equation. Costs. The owners not only have to pay players. They extend millions to build and maintain arenas and practice facilities. They expend millions to fly teams and scouts across the country millions of miles each year They pay extensive staff to manage sales. facilities, player acquisitions and coach. All these things are costs which are fairly uniform across the league. But the biggest cost by far are the player salaries. Look at other industries across the country and try to find a profitable one in which salaries are 60% (including coaches and staff) of revenues. This is way out of proportion to profitable business practices. This also must change.

The NBA can be a profitable business for both players and owners. It must be a win-win and not a win-lose. In the past the players have the win and the owners have the loss. The spin tries to tell you other than the above facts. The facts speak for themselves. So long as fans watch ESPN faun over the players (it is all about access) the spin will continue to lead the majority of fans to blame the owners. Here you read the facts.



Since: Sep 5, 2008
Posted on: May 4, 2011 3:37 pm
 

Players unhappy with owners' proposal

The fact that the players are not happywith the owners proposal isn't news, it would have been news if they acepted it as fair and reasonable.  But that will NEVER happen.  The NBA needs to shut down and start all over again.  The first thing outlawed should be the concept of a "Super Team".  That is nothing but collusion on the players part, if the owners tried it the players uunion would have them in court in a heart beat.  With LBJ, Carmello, Wade, Kobe, and the like all with their $100 mil plus contracts, they care about nothing.  It's the ones making the $3-$5mil per year, those poor slobs, that have no bargaining power.  Theyu are the ones that need to ban together against the top earners not the owners.  You'll wind up with about eight super teams and the rest gone in just a few short years.



Since: Mar 31, 2010
Posted on: May 4, 2011 3:36 pm
 

Players unhappy with owners' proposal

Guess we'll we see how it plays out!


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