Tag:Roger Mason
Posted on: October 27, 2011 10:52 pm
Edited on: October 28, 2011 12:58 am
 

Stern on labor deal: Friday's the day

NEW YORK – Setting up the next and most pivotal day in the NBA labor talks, negotiators will convene Friday with what commissioner David Stern described as “resolve” to finally close the gap and agree to the two key elements of a new collective bargaining agreement: the system and the split of revenues.

“I can’t tell you we’ve resolved anything in such a big way, but there’s an element of continuity, familiarity and I would hope trust that would enable us to look forward to (Friday), where we anticipate there will be some important and additional progress or not,” Stern said in a news conference Thursday night after a 7 1-2 hour bargaining session at a luxury Manhattan hotel.

“We’re looking forward to seeing whether something good can be made to happen,” Stern said.

After spending 22 1-2 hours over two days hammering out many of the details of a new system that the league believes will foster more competitive balance, the moment of truth has arrived – for the third time this month. Two times prior, the negotiators expressed confidence they were within striking distance of one or the other key issue – the system or the split – only to have the talks fall apart in spectacular fashion.

But according to several people involved in the negotiations or briefed on them, there has been a noticeable uptick in urgency to finally end the nearly four-month lockout, with the last realistic possibility to salvage games already canceled – and avoid canceling more – set to evaporate without a deal in the next several days.

In a moment of levity that also pointed to the importance of Friday’s bargaining session, Stern chimed in from the back of the room during union executive director Billy Hunter’s news conference when Hunter was asked when the important, difficult moves would be made to finally close the deal.

“Well, David Stern is sitting back there,” Hunter said. “I think he can probably tell you. Hopefully, sometime tomorrow.”

And right on cue, Stern shouted jovially from the back of the room, “Tomorrow!”

In another important moment from Thursday night’s separate news conferences – held only 18 hours after the 4 a.m. ET affairs earlier in the day – Stern was asked if the league was prepared to make another economic move Friday if necessary to get the deal done. The two sides are trying to agree on the framework of a new system of player contracts and team payrolls before proceeding with the final, most important, and interrelated piece of the negotiation: the split of BRI.

“We’re prepared to negotiate over everything,” Stern said. “We’re looking forward to it.”

The most recent formal proposals have the owners offering the players a 50-50 split of revenues, while the players have proposed a 52.5 percent share. The players received 57 percent under the previous six-year CBA. The split of revenues was not discussed Wednesday or Thursday, the parties said.

Deputy commissioner Adam Silver, who has maintained that the BRI split and system issues are “not necessarily related,” said Thursday night that “trades are often made when you have the final pieces of a deal that you need to put together.”

“We remain apart on both, so from that standpoint, we’re disappointed,” Silver said.

Hunter does not share Silver’s view that the split and system structure are unrelated, and those two viewpoints must collide one last time Friday with urgency to reach an agreement and preserve a full 82-game schedule at its highest point since the lockout began July 1.

“You definitely have to have some agreement on the system,” Hunter said. “Because if the system’s not right, then as we’ve indicated before, the number’s not going to work.  And so the two are interrelated.”

But while there remain significant details to be resolved over a more punitive luxury tax system and other rules governing trades and contracts, Stern’s demeanor was decidedly upbeat after a second consecutive day of trying to bridge the bargaining gap in a small-group format that clearly has gained traction and momentum.

The rosters of negotiators were essentially the same as the 15-hour session held Wednesday into the early morning hours of Thursday. Stern, Silver, deputy general counsel Dan Rube, general counsel Richard Buchanan, labor relations committee chairman Peter Holt of the Spurs, Board of Governors chairman Glen Taylor of the Timberwolves, and James Dolan of the Knicks were joined by Mavericks owner Mark Cuban, who was flying through New York on his way home from Paris. Other than the absence of union economist Kevin Murphy (who will be present Friday) and the addition of vice president Roger Mason, the players’ contingent was intact with Hunter, president Derek Fisher, vice president Mo Evans, general counsel Ron Klempner and attorney Yared Alula. 

With negative rhetoric at a minimum only a week after the negotiations collapsed last Thursday over the BRI split, team executives around the league were beginning to prepare for a deal to be consummated. Several team executives have postponed international scouting trips they'd normally take at this time of year so they can be in place if and when a deal is agreed to. If a deal is reached, it will take about 30 days before the regular season can begin: at least two weeks to write up the agreement and have it ratified by both sides, and at least a week each of free agency and training camps/preseason games.

But while Hunter said the two sides are "within striking distance of getting a deal" on the system issues and moving on to BRI, Silver cautioned that the two sides are "apart on both" the system and the split. Asked about the gap on the system issues, Stern said, "We are not close enough right now. But I expect with a good night’s sleep, we’ll both come in with resolve to get closer."

But team executives who've heard this twice before, only to see the talks blow up -- on Oct. 4 over the BRI split and Oct. 10 over the system -- remained cautiously optimistic Thursday. One executive confided that his gut tells him "this will blow up one more time." "

"There’s no guarantees we’ll get it done," Stern said. "But we’re going to give it one heck of a shot (Friday)."


 


Posted on: October 1, 2011 7:17 pm
Edited on: October 1, 2011 9:17 pm
 

Stern: 'We're closer than we were before'

NEW YORK -- After nearly eight hours of bargaining Saturday, negotiators for the NBA and its players association broke for the weekend -- still with no agreement and no regular season games lost, but "closer" to a compromise on system issues, commissioner David Stern said.

At the suggestion of National Basketball Players Association executive director Billy Hunter, the two sides "decoupled" the issues of the split of revenues and the system that would go with it, attempting to "break down the mountain into separate pieces," NBPA Derek Fisher said. The two sides exchanged proposals "back and forth," players' committee member Maurice Evans said, and agreed to meet again Monday in a small group with only the top negotiators and attorneys and Tuesday with the full bargaining committees.

"We're not near anything," Stern said. "But wherever that is, we're closer than we were before."

Hunter characterized the two sides as being "miles apart" even on the system issues that separate them as the owners and league negotiators try to incorporate system changes they feel "entitled to," Hunter said, by virtue of dropping their insistence on a hard team salary cap. Stern said no announcement regarding further preseason games being canceled would be made Monday, but warned that it's "day by day" after that.

Stern did not answer a direct question about when regular season games would have to be canceled, saying, "Stay tuned."

"I don't know whether the 11th hour is Tuesday or not," Hunter said. "... Time is moving in that direction."

The "modest movement" on system issues that one person in the negotiating room described to CBSSports.com came only after the two sides, at Hunter's suggestion, agreed to separate the division of basketball-related income (BRI) from the system issues such as the cap, contract length, nature of exceptions and luxury tax. The decision to tackle the two major sticking points in the negotiations separately came after players threatened to walk out of the bargaining session Friday upon learning that the owners have not moved off of their standing economic proposal that would give the players a 46 percent share of BRI -- down from the 57 percent they received under the agreement that expired July 1.

"We're very far apart in BRI and made no progress in that," NBPA lawyer Jeffrey Kessler said. "So we tried to see if we could make any progress in something else."

Of course, the system changes each side would be willing to tolerate in a finished agreement would be inextricably linked to the split of revenues. According to a person briefed on the negotiations, the players would be willing to accept more system restrictions if they achieved a BRI share of 53 percent, but there is no chance they would accept what the owners are proposing at their current offer of 46 percent or modestly more than that.

For example, at 53 percent there would be a willingness on the players' part to discuss modifications to the mid-level exception, eliminating base-year compensation and other restrictions such as the owners' proposed luxury-tax system, which in its current form would charge a tax of $1-$4 depending on how far over the tax a team spent. The owners have proposed reducing the starting mid-level salary at $3 million, while the players have signaled a willingness to negotiate down to $5 million from last season's level of $5.8 million.

In addition to BRI and system issues, the other key piece of the puzzle is the owners' revised revenue sharing system, which Stern has said would triple and then quadruple the existing pool of $60 million. On Saturday, Hunter called the owners' revenue-sharing plan "insignificant." Sources say it isn't just the amount of revenue sharing, but the timing of its implementation, that is holding up that part of the deal.

Under the owners' revenue-sharing proposal, the Lakers would contribute about $50 million and the Knicks $30 million toward an initial pool of $150 million, sources said. There is reluctance, according to one of the people familiar with the talks, on the part of small-market teams to increase the players' share of BRI to beyond 50 percent without a stronger commitment from the big-market teams to share more -- and to share more quickly in the first year of the deal. Some big-market owners are pushing for a more gradual phase-in of their increased sharing responsibilities and are reluctant to take the hit this coming season, one of the people with knowledge of the talks said.

Given the sheer numbers of issues and the distance between the sides, Hunter said, "It's a pretty wide gulf that we're dealing with."

But make no mistake: While the two sides remain entrenched on economics and don't see eye-to-eye on system, either, the work of building an agreement from the ground up -- piece-by-piece through a system both can agree on -- and then backing into the economic split is the only way this is going to get done in time to preserve regular season basketball.

"We weren't going to be able to make major, sweeping progress on the entire economics and the system at the same time," Fisher said. "We felt that maybe if we split them up and try to go at them one at a time ... we can at least get some momentum and some progress going."

The passion and emotion that were exhibited Friday were replaced by a "mellow" astmosphere on Saturday, according to Hunter. This was partly due to the negotiating process being focused on specific system issues as opposed to being more "rambling," as deputy commissioner Adam Silver said, and hinged on avoiding -- for the time being -- the most difficult problem facing the negotiators: how much of the league's $4 billion each side gets.

In addressing the passion that erupted early in Friday's session attended by superstars LeBron James, Dwyane Wade, Carmelo Anthony and others, Stern acknowledged a "heated exchange" with Wade. Without addressing the specifics of how Wade took exception to Stern's pointing and lecturing, Stern said, "I feel passionately about the system that we have and what it has delivered and what it should continue to deliver for the players and the owners. And he feels passionately, too. And I think that if anyone should step up on that, it’s my job, on behalf of the owners, to make the points that need to be made."

The stars were mostly absent Saturday, with LeBron, Wade and Melo heading to North Carolina to play in committee member Chris Paul's charity game. Among the players joining Fisher and committee members Evans, Roger Mason, Theo Ratliff and Matt Bonner on Saturday were Paul Pierce, Baron Davis, Arron Afflalo and Ben Gordon. The owners' committee was the same as it was Friday -- i.e. no Mark Cuban or Wyc Grousbeck -- with James Dolan leaving early to join the NHL's Rangers on an overseas trip.

Silver singled out Pierce in particular for being vocal in the bargaining sessions, and joked, "You have have heard Dwyane Wade had a few things to say in the meeting. ... The owners certainly heard the passion from the players and right back at them from the owners."

So what happens next? In a perfect world, the small groups of top negotiators are able to tailor the issues discussed the past two days into the framework of a system each side can agree to. Then, as Hunter said, it has to be "linked up again" with the split of revenues. To get all owners on the same page, the sharing of that revenue has to be addressed, too. In the absence of significant progress by Tuesday, the league will have to cancel another week or the remainder of the preseason schedule. Regular season games wouldn't be far behind.

But if a deal is going to get done to avoid all that, this is the only way to do it: divide the mountain of problems up and tackle each one separately. The stakes only get bigger, and the positions more entrenched after the next five days. The mountain gets bigger.

"The window is now to get a deal," one front office executive said. 

And if not now? Brace yourselves.


 
 
 
 
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