Blog Entry

No NBA labor deal, next meeting 'months' away?

Posted on: October 4, 2011 5:54 pm
Edited on: October 4, 2011 6:55 pm
Posted by Ben Gollivernba-lockout

The National Basketbal Association and the National Basketball Players Association met for more than four hours in New York City on Tuesday, in what had been hailed as the most important day of negotiations to date, and emerged aroung 5:30 p.m. without an agreement.

Ken Berger of reports that NBPA president Derek Fisher announced: "Intense discussions today ... today was not the day for us to get this done."

NBA commissioner David Stern said that the league's 2011-2012 schedule will be affected by the lack of progress in the negotiations: "Today we will be announcing the cancellation of the rest of the exhibition season and by Monday we will have no choice but to cancel the first two weeks of the season."

Fisher said no further meetings have yet been scheduled. The Philadelphia Inquirer reports that NBPA executive director Billy Hunter said it could be "a month or two months" before the next round of meetings.

Fisher said that the players offered to reduce their share of Basketball-Relate Income from 57 percent to 53 percent but were still unable to negotiate a deal that was "fair and amenable" to the players, as the owners reportedly offered only to increase their offer to the players from 46 percent to 47 percent. NBPA executive director Billy Hunter said the players' concessions amounted to more than $200 million per year. 

"We are employees and the NBA are the employers," Fisher said. "And they hold the key to when the lockout will be over."

Hunter said that, given the circumstances, the NBPA would reconsider the idea of decertification: "Clearly that's something we may have to give some thought to." While the players wait, reports that Hunter says the NBPA will set up and fund workout centers in Houston, Las Vegas and Los Angeles that will remain open until a labor agreement is reached.

Los Angeles Lakers guard Kobe Bryant, Boston Celtics forwards Paul Pierce and Kevin Garnett, Detroit Pistons guard Ben Gordon, and NBPA board members Matt Bonner, Maurice Evans, Keyon Dooling, Theo Ratliff, and Roger Mason, Jr. were all in attendance at the press conference Tuesday.

This post will update with the latest on the NBA lockout.

Since: Oct 22, 2007
Posted on: October 5, 2011 10:03 am

No NBA labor deal, next meeting 'months' away?

hayshome: The owners take the risks...

I've never understood that argument. The players risk their bodies everytime they step onto the court. Owners never have to worry about 'career-ending' injuries in regards to themselves. Yes, the owners take quite a few financial risks, but can we please stop pretending those are the only risks being taken and the owners are the only ones taking risks?

Since: Jun 25, 2009
Posted on: October 5, 2011 12:59 am

No NBA labor deal, next meeting 'months' away?

A salary reduction of 20 mil to 18 mil is huge of course, but that player can still be very wealthy over the course of 50 years if he manages it well. Now 4 mil to 2.5 is a completely different scenario and the affects of the pay cut a much more severe.  

First of all a couple corrections. The most the owners ever asked for was a 20 percent paycut for the players.  So a 20 million dollar player would still make 16 million per season and the 4 million dollar guy would still gross 3.2 million dollars...... just sayin.

Were you kidding about the part that it's so much tougher to remain wealthy for a 2.5 million dollar player?  A 2.5 million dollar player with my accountant would take home 1.5 million dollars, let alone the scams they pull.  Let's put 1.5 million dollars in perspective for one second man.  The average american FAMILY grosses somewhere around 60 grand per year. They are lucky to take home 40, 45 at most. Even at 45 it takes the average family 30 years of full time work to take hom 1.5 million dollars.  And it's all expenses, there is no banking a couple hundred grand or investing it.... there is interest being paid on homes and cars and everything else as well.   That athlete you mentioned takes that cash home every single year....

Don't feel sorry for people playing a game for money......  

Since: Sep 12, 2011
Posted on: October 4, 2011 10:03 pm

No NBA labor deal, next meeting 'months' away?

The rank and file guys are actually the ones that would suffer the most if they hastily accept a deal. The superstars like Kobe will continue to get large contacts because that's who fans come to games to see. They earn their salary (whether they play up to it is another question). However, guys like Shannon Brown and Steve Blake will be the ones taking significant pay cuts. A salary reduction of 20 mil to 18 mil is huge of course, but that player can still be very wealthy over the course of 50 years if he manages it well. Now 4 mil to 2.5 is a completely different scenario and the affects of the pay cut a much more severe.  

Since: Jul 26, 2009
Posted on: October 4, 2011 9:02 pm

No NBA labor deal, next meeting 'months' away?

Well the split is getting a lot closer at least. This will probablly get donee at 52-48 or 51-49. It does seem ridicolous tha the players % is greater than the owners. Bottom line they are the employers. If they union decertifies I hope the owners have the gumption to bring the scrubs in.

Since: Jun 25, 2009
Posted on: October 4, 2011 8:34 pm

No NBA labor deal, next meeting 'months' away?

So long, NBA. I only wish the owners were smart enough to realize that they're fighting to get 53% of what will be a much smaller revenue pool when the lockout ends in 2013. No one will care. No one will watch. 

The owners will never accept 53 percent of revenue, not now and not later. The players are going to be out a LOOOOOOOOOOOOONG TIME if they are waiting for the owners to accept their latest offer.  How do I know that?  Well, simple math.  The NBA grossed about 3.8 billion dollars last season.  Based on last year's revenue of 3.8 billion dollars, the 43 percent the owners made amounted to a loss of about 300 million dollars for the league.  The 3.8 billion dollars was an increase of 5 percent from the year before, assuming fans forget about the offseason nonesense and revenue increases another 5 percent again ( which I highly doubt will happen) NBA revenue would increase to 4 billion dollars for the 2012 season.  Even at the players "concession" of 53 percent of the BRI, the owners only end up with 246 million more then they grossed in 2010.  Since they lost 300 million last season, that means the owners would lose around 50 million dollars.  Much better then losing 300 million dollars, but I've never met an owner of a business content with just losing a little bit here and there, everybody is in business to profit and never lose money, especially in a pro sports league.

The owners are asking for 54 percent of all revenue which based on last years 3.8 billion dollars the league brought in would come to about 2 billion, 107 million dollars. That's about 470 million more then the owners brought in last season.  The 300 million dollar loss becomes a 170 million dollar gain which is still only 5 or 6 million per owner or about the average NBA player's salary.  BUT, if revenue increases by 5 percent to 4 billion dollars,  their cut would be 2 billion 170 million dollars.  An extra 2 million dollars per owner.  And for ever year revenue keeps increasing by 5 percent it's 2 million more again, and so on.  Maybe 5 years of 5 percent increases and the average owner will at the very least profit what a max player profits......

The very least my math tells me the lowest the owners could ever accept is 52 percent, leaving the players 48 percent.  This would basically guarantee if revenue stays the exact same they would profit 45 million in total and not lose a penny.  And they'll have to grow the game to really make any money.... but at least that's a start....  until the union gives in, it's all over.  The NBA is dead....

Since: Aug 28, 2006
Posted on: October 4, 2011 8:29 pm

Both parties are to blame

The owners take the risks, but they also have the right not to overspend! The players need to think of the health of the league, too...both need to swallow hard and GET IT DONE!

Since: Nov 13, 2009
Posted on: October 4, 2011 8:08 pm

No NBA labor deal, next meeting 'months' away?

RIP, 2011-12 NBA season.

Since: Aug 27, 2006
Posted on: October 4, 2011 7:33 pm

No NBA labor deal, next meeting 'months' away?

To me this just reflet how poor both sides have been in negotiations. First up the owners were silly in what they agreed to in the now expired CBA, that is what has created their problems they gave up too much then. That said the players are daft if they think the league will go along as it has with some players earning mega buck whilst owners struggle financially. It is just disgusting though that all these people who earn so much more than the average person don't realise how they areturning off their supportyers and fans in droves. Without the fans, there is no TV audience, and no tv audience=no mega tv rights deal.

Since: Oct 4, 2011
Posted on: October 4, 2011 7:21 pm

No NBA labor deal, next meeting 'months' away?

A deal would get done if the "rank and file" players put pressure on to accept the deal.  Unfortuantely, that does not look like it will happen.  If the players hold out they will only end up with a worse deal later on, just like the last time they refused the owners' offer.  I am a big NBA fan, and I hate to see the rankand file guys get screwed, but if there is no season, lots of these guys will go bankrupt because they have no financial savvy.  Time for the union members to tell LeBron,  Wade and Paul Pierce, et al, to butt out, step aside and get this deal done. My .02

Since: Oct 9, 2010
Posted on: October 4, 2011 7:17 pm

No NBA labor deal, next meeting 'months' away?

Hold the line owners!!  If the players aren't willing to give anything in the negotiations, put the hard cap back on the table and tell the players to accept it or be prepared to sit the whole year.

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