Tag:Adam Silver
Posted on: October 10, 2011 12:25 am
Edited on: October 10, 2011 3:10 am
 

NBA labor talks extend to Monday

NEW YORK -- Facing a deadline for the cancellation of regular season games, negotiators for the NBA and its players' association met for nearly 5 1-2 hours Sunday night and will reconvene Monday afternoon for more bargaining.

Commissioner David Stern and deputy commissioner Adam Silver emerged from the Upper East Side hotel where negotiations took place at 11:50 p.m. ET, and Stern issued a brief statement before walking away.

"We don't have any comment at all, other than we are breaking for the night and reconvening tomorrow afternoon," Stern said.

Stern has said he will cancel the first two weeks of the regular season if a new collective bargaining agreement isn't agreed to by Monday. He did not address the cancellation deadline in his statement, and a person with knowledge of the talks said both sides agreed it would not be addressed with reporters.

"We're not necessarily any closer than we were going into tonight," union president Derek Fisher said. "But we'll back at it tomorrow and we'll keep putting time in."

According to a person briefed on the talks, the primary focus Sunday night was system issues -- salary cap, luxury tax, etc. -- leaving Monday to reconcile those complicated items with the most important point of all: the split of revenues between owners and players. Fisher characterized the meeting as "intense."

"We're going to come back at it tomorrow afternoon and continue to try and put the time in and see if we can get closer to getting a deal done," Fisher said.

The last-minute meeting was called after league and union officials originally couldn't agree on the parameters of one final bargaining session to save regular season games. On Friday, officials from the National Basketball Players Association requested a meeting, but were met with a precondition from the league that they agree to a 50-50 split of revenues that was offered in Tuesday's bargaining session. The union declined, and scheduled regional meetings for Miami on Saturday and Los Angeles on Monday.

NBPA executive director Billy Hunter did not travel to Miami, and an impromptu players' meeting was held after the All-Star charity game at Florida International University featuring LeBron James, Dwyane Wade, Carmelo Anthony, Amar'e Stoudemire, Chris Paul and other stars. Fisher said the regional meeting for L.A. on Monday was postponed so union officials could concentrate on bargaining.

"Our guys would want our time to be used in meeting and trying to get closer to getting a deal done," Fisher said. "So instead of going forward with that (Los Angeles) meeting, we're going to put it off and then we'll reschedule it accordingly, depending on what happens tomorrow and into the week if we continue to meet."

Silver arrived at 5:10 p.m. ET, climbed out of a black sedan and greeted league security personnel with a smile and handshake. Union chief Hunter and general counsel Ron Klempner arrived at 5:30, followed closely by union VP Maurice Evans, who stepped out of a yellow taxi moments later. The three greeted Fisher, the union president, when he arrived in a black SUV at about 5:50, and the players' contingent stayed on the sidewalk and talked for about 25 minutes. NBPA outside counsel Jeffrey Kessler arrived, followed by Timberwolves owner Glen Taylor, the chairman of the Board of Governors, and Spurs owner Peter Holt, chairman of the labor relations committee. The meeting started around 6:30 p.m.

Heading into the weekend, the players' were entrenched in their desire for 53 percent of basketball-related income (BRI), while the owners were stuck on offering the players 50 percent. The split under the six-year agreement that expired July 1 was 57 percent for the players and 43 percent for the owners.

From the standpoint of negotiating leverage, psychology and feeling the need to follow through on their threats, both sides seem willing to sacrifice the first two weeks of the regular season -- possibly more -- to get a deal. But from the standpoint of math and what's at stake economically by failing to reach an agreement by Monday, it is clear that a deal would be more advantageous to both sides than digging in.

The last movement of Tuesday's negotiations indicated that there was room on both sides to move beyond their respective positions on BRI. The league offered a 49-51 range for the players, who countered with a 51-53 range. Both offers occurred during informal side conferences involving Stern, Silver, Holt, Fisher, Kessler, and superstars Kobe Bryant and Kevin Garnett.

If you look at it from the midpoint of each side's range in their most recent offers -- 50 percent and 52 percent, respectively -- they are only $80 million apart in the first year of a new CBA. Each side would lose about $200 million by canceling the first two weeks of games. A rational split of 51.5 percent for the players and 48.5 percent for the owners -- with most of the system issues remaining the same, as the players want --would address most of the owners' stated annual losses of $300 million and preserve the flexibility the players wanted to maintain from the existing system.

By holding out for 1.5 percent of BRI -- the owners at 50 percent and the players at 53 -- each side would be drawing a line in the sand over less than $400 million -- $393 million, to be exact -- over six years. And each side would lose half that amount by canceling the first two weeks of games. In the simpler, shorter-term horizon of the first year of a new CBA, each side failing to move 1.5 percent to the 51.5-48.5 split would cost it $200 million compared to the $60 million that would be negotiated away by making the concession.
Posted on: October 9, 2011 1:56 pm
Edited on: October 9, 2011 10:29 pm
 

Source: League, players trying to arrange meeting

NEW YORK -- Top negotiators for the NBA and its players' association are trying to arrange a last-ditch bargaining session Sunday night before a deadline hits Monday to cancel the first two weeks of the regular season, a person briefed on the developments confirmed to CBSSports.com.

The New York Times first reported efforts to hold the meeting were under way.

Update: The two sides approached the four-hour mark Sunday night on Manhattan's Upper East Side with no word of when the session might end. Representing the league were commissioner David Stern, deputy commissioner Adam Silver, Spurs owner Peter Holt, Timberwolves owner Glen Taylor and deputy general counsel Dan Rube. For the union, it was executive director Billy Hunter, president Derek Fisher, vice president Maurice Evans, general counsel Ron Klempner and outside counsel Jeffrey Kessler.

Hunter did not travel to Miami Saturday night for the All-Star exhibition at Florida International University. His plans for a regional players' meeting in Los Angeles remain in place for Monday, two people with knowledge of his plans said -- but Hunter is not scheduled to fly to L.A. until Monday morning.

On Friday, the players proposed a meeting for Monday before games were canceled. The league agreed to meet, but advised the union that it was not moving off the 50-50 split of revenues it offered in Tuesday's bargaining session. Viewing this as a precondition it could not agree to, the union declined the meeting.

UPDATE: The 50-50 prerequisite was dropped in the scheduling of the Sunday evening meeting, one of the people familiar with the discussions told CBSSports.com.

From the standpoint of negotiating leverage, psychology and feeling the need to follow through on their threats, both sides seem willing to sacrifice the first two weeks of the regular season -- possibly more -- to get a deal. But from the standpoint of math and what's at stake economically by failing to reach an agreement by Monday, it is clear that a deal would be more advantageous to both sides than digging in.

As far as bargaining rhetoric is concerned, the players are holding firm at 53 percent of basketball-related income (BRI), while the owners are holding the line at 50 percent. But in the last movement of Tuesday's negotiation, the league offered a 49-51 range for the players, who countered with a 51-53 range. Both offers occurred during informal side conferences involving Stern, Silver, Spurs owner Peter Holt, Fisher, union lawyer Jeffrey Kessler, and superstars Kobe Bryant and Kevin Garnett.

The split under the previous collective bargaining agreement that expired July 1 was 57-43 percent in favor of the players.

If you look at it from the midpoint of each side's range in their most recent offers -- 50 percent and 52 percent, respectively -- they are only $80 million apart in the first year of a new CBA. Each side would lose about $200 million by canceling the first two weeks of games.

A rational split of 51.5 percent for the players and 48.5 percent for the owners -- with most of the system issues remaining the same, as the players want -- would address most of the owners' stated annual losses of $300 million and preserve the flexibility the players wanted to maintain from the existing system. By holding out for 1.5 percent of BRI -- the owners at 50 percent and the players at 53 -- each side would be drawing a line in the sand over less than $400 million -- $393 million, to be exact -- over six years. And each side would lose half that amount by canceling the first two weeks of games.

In the simpler, shorter-term horizon of the first year of a new CBA, each side failing to move 1.5 percent to the 51.5-48.5 split would cost it $200 million compared to the $60 million that would be negotiated away by making the concession.



Posted on: October 4, 2011 8:42 pm
Edited on: October 4, 2011 11:19 pm
 

League, players about $80 million apart

NEW YORK -- There were no fireworks, no tantrums and no tirades. There was all the resignation and disappointment of doomsday, but none of the reality. 

The reality is that the NBA owners and players, after showing most of their cards Tuesday in a bargaining session that failed to save an on-time start to the regular season, are approximately $80 million-a-year apart on the economics of a new collective bargaining agreement, multiple sources with knowledge of the negotiations told CBSSports.com.

Though no additional negotiations are scheduled and the process now enters the dangerous and unpredictable phase where any slipups could jeopardize a large chunk of the regular season, the two sides are closer than they publicliy divulged in a pair of dueling news conferences in adjacent meetings rooms of a Times Square hotel.

Here is where they are, according to multiple people involved in the negotiations: After the owners offered the players a 50-50 split of revenues that effectively was a 47 percent share with about $350 million in expenses deducted first, the two sides met in small groups in the hallway while each side's larger group caucused in separate rooms. As the hour grew late, the tension was rising and becoming palpable. Both sides recognized it was time to try everything possible to make a deal. 

In the group for the league side were commissioner David Stern, deputy commissioner Adam Silver and Spurs owner Peter Holt, the chairman of the labor relations committee. For the players, it was union president Derek Fisher, outside counsel Jeffrey Kessler and two of the brightest stars who attended Tuesday's crucial bargaining session -- Kobe Bryant and Kevin Garnett, according to one of the people with knowledge of the side meeting.

In that group, the league -- sensing that the opportunity for a deal was there -- proposed essentially a 50-50 split with no additional expense reductions over a seven-year proposal, with each side having the chance to opt out after the sixth year, one of the people said. This was the offer Stern described in his news conference Tuesday evening, one that he and Silver thought would be enough to finally close the enormous gap between the two sides.

The league's offer, according to three people familiar with it, came in a range of 49-51 -- with 49 percent guaranteed and a cap of 51 percent, the sources said.

Stern told the players and Kessler that he was bringing this proposal to his owners in an attempt to sell it, making no bones about the fact that he would. In fact, Stern said in the news conference, he did sell it. The owners were prepared to sign off on this 49-51 percent band, and with many of the most polarizing system issues resolved, the framework of a deal was in sight.

While the owners were caucusing, a member of the players' group returned with a counterproposal -- approximately 52 percent of BRI for the players with no additional expenses deducted. The players' counterproposal followed the format presented by the owners -- a 51-53 percent band with 51 percent guaranteed and a cap of 53. League officials rejected the offer, the sources said.

So while Hunter and Stern remained publicly entrenched in the ecoomic positions of their most recent formal proposals -- with the players asking for 53 percent and the league offering effectively 47, the reality is this: the gap has closed to 2 percentage points of BRI, the difference between the midpoint of the two offers.

With each percentage point of BRI worth about $40 million, the two sides -- who were at one time $8 billion apart over 10 years -- are now a mere $80 million apart on an annual basis. So you can see what the two sides saw Tuesday -- the road to a deal that both sides eventually can find a way to live with that is better than the alternative of missing a substantial portion of the regular season.

UPDATE: Though there were no immediate plans for the two sides to meet Wednesday, two people close to the discussions said a Thursday meeting was possible. Several key parties to the process will be unavailable from sundown Friday to sundown Saturday for Yom Kippur, the most solemn day of the Jewish calendar.

Complications remain, of course, not the least of which is the fact that this sidebar, informal discussion of the two BRI bands would have to be worked through the formal process of getting each side's committee to sign off -- and then, it would have to be negotiated further. Also, by walking out without a deal Tuesday, the players' association is subject to the influence of agents who have made it clear they are unhappy with the course of negotiations and have openly threatened encouraging their clients to decertify the union.

Two people with direct knowledge of the strategy being invoked by a group of seven super agents who wrote a letter to their clients over the weekend said the group -- including Arn Tellem, Bill Duffy, Mark Bartelstein, Dan Fegan, Jeff Schwartz, Leon Rose and Henry Thomas -- is willing to accept no less than 52 percent. There is disageement within the ranks on that figure, with a hard-line faction pushing for the players not to retreat at all from the 57 percent of BRI they received under the previous CBA.

The more time that goes by without closing the now comparatively narrow gap between the two sides, the more opportunity there will be for players and their agents to apply pressure to the union -- and perhaps even encourage clients who are unhappy with the course of negotiations to hold a decertification vote, which would stall the talks.

One of the people with direct knowledge of the super agents' strategy said at least two strong voices in that camp have quelled their pursuit of decertification, which would remove the process from the negotiating room and throw it into federal court under anti-trust law. Such a move at this stage, the person with knowledge of the agents' approach said, would inject too much chaos with a deal within reach.

With most system issues preserved from the previous deal, one of the high-powered agents has told associates that he would accept 52 percent and "call it a wrap," a source said Tuesday.

Recognizing the uncertainty and risk that lies ahead -- the rest of the preseason was canceled after the bargaining session Tuesday and regular season games are potentially days away from being lost -- Fisher took direct aim Tuesday at the agents who have most vocally objected to the union's legal and bargaining strategies.

"The only people that really decide whether we accept and ratify a deal are the guys that are standing right here and the other 400-plus guys that aren't here right now," Fisher said, flanked by several committee members and superstars Bryant, Paul Pierce and Kevin Garnett. "And not out of disrespect, I'm just not inclined to engage in a discussion about what a group that doesn’t control any part of this process has to say."
Posted on: October 3, 2011 6:03 pm
Edited on: October 4, 2011 1:43 am
 

A moment of truth arrives in NBA talks

NEW YORK -- After more than two years of often rancorous negotiations, rifts within each side, finger-pointing and name-calling, the NBA and its players have reached a moment of truth in their quest to reach a collective bargaining agreement that would preserve an on-time start to the 2011-12 season.

After setting the table in a five-hour meeting Monday involving a small group of negotiators, the league and union will convene separately and then sit down for a crucial full bargaining session Tuesday. Though the meeting is expected to include at least 10 owners and multiple players accompanying the union's bargaining committee, neither side could say with any certainty whether the moment has arrived to make their last, best offers.

What is clear is that some significant movement will be necessary to at least begin closing the enormous gap between the two sides' positions on the two main issues -- the split of revenues and the cap system -- or the rest of the preseason schedule and some regular season games will be at risk.

"We both understand that if we don’t make our best offers in the next few days, we’re going to be at the point where we’re going to be causing damage to the game, to ourselves, and they're going to be out paychecks," deputy commissioner Adam Silver said.

But even as both sides recognized the gravity of Tuesday's meeting with the scheduled regular season opener less than a month away, the potential for trouble already was brewing.

As opposed to going into the meeting with the more productive small-group format, Tuesday's session is expected to include a potentially strong showing from players who are not on the executive committee. Though it was not clear Monday whether a similar contingent of stars who attended Friday's meeting -- LeBron James, Dwyane Wade, Carmelo Anthony, and others -- would be present Tuesday, it was that very format that nearly resulted in the talks blowing up when players became so irate with the owners' intransigence that they threatened to walk out of negotiations. According to sources, Kobe Bryant -- fresh off a promotional tour of Italy, where he is contemplating a potentially lucrative deal with Virtus Bologna -- and Amar'e Stoudemire are among the players interested in attending the bargaining session.

In addition, the Celtics' Paul Pierce -- who was among the stars present Friday and who stuck around for Saturday's and Monday's sessions -- will take on a prominent role in the negotiations again on Tuesday. Though Pierce has previously expressed interest in being involved in the union -- perhaps even as a committee member and vice president -- his presence is notable for more than his star power. Pierce's agent, Jeff Schwartz, is one of seven powerful reps who wrote a pointed letter to their clients urging them not to agree to any further reductions in their share of basketball-related income (BRI) or any further restrictions to the system beyond what the union has negotiated.

In the letter, agents Schwartz, Arn Tellem, Bill Duffy, Dan Fegan, Leon Rose, Henry Thomas and Mark Bartelstein warned their clients not to rush into a deal and encouraged them to demand to see the league's full financial statements from the previous six-year CBA -- including related-party transactions, which can make it difficult to identify profits and losses on a team-by-team basis.

This same group of agents has been pushing for the players to decertify the union in the face of the owners' demands of massive and fundamental changes to the league business model. Though the letter did not mention decertification, it potentially undercut the negotiating power of National Basketball Players Association executive director Billy Hunter and president Derek Fisher, who have offered to drop the players' share of BRI to 53 percent and signaled a willingness to go to 52 with certain conditions, sources said.

The agents' letter explains the impact to the players of accepting 52 percent -- a $200 million giveback that atones for most of the owners' $300 million in losses last season -- and warns that there are "monumental repercussions" associated with giving back any more, a high-profile agent told CBSSports.com.

"All that’s going on right there is, (the owners) have a captive audience and they just keep going for more," the agent said. "If the players just walk away from the thing right now -- 'We decertify, we're done' -- they get their deal at 53 and it’s over with. Why keep talking to them? You think the owners are going to walk away from this deal right now at 53 percent? No way." 

UPDATE: But there was disagreement among two agents familiar with the letter as to what was meant by "no further reductions" in BRI. One said the intent was to urge clients not to accept any further reductions in what the union already has offered -- believed to be 53 percent, with the possibility of going down to 52 percent under certain conditions. However, another agent with direct knowledge of the conversations that led to the drafting of the letter said it was agreed that players would be advised not to vote for any deal that includes a reduction in BRI from the 57 percent the players received under the previous agreement.

"We shouldn't give back anything," the agent said. "With record TV ratings, record revenues, and global growth, why should we?"

An agent who has long been frustrated with the path of negotiations -- and fearful of the outcome -- told CBSSports.com, "If this is the best we can do, then why the hell haven't we decertified?" 

Late Monday, Fisher responded with a letter of his own to the union membership -- his second strong rebuke of the dissatisfied agents in less than a month -- saying the agents' letter to clients "includes misinformation and unsupported theories."

According to two people familiar with the NBPA's strategy, Hunter has never closed the door on decertification. But he has no intention of calling for a decertification vote or disclaiming interest in representing the players -- either of which would send the case to the federal courts under anti-trust law -- until the National Labor Relations Board rules on the union's unfair labor practices charge against the league. If the NLRB issued a complaint, it could lead to a federal injunction lifting the lockout. The NLRB has been investigating the union's charges since May, and there is no timetable for a decision by the agency's general counsel in Washington, D.C.

In the letter, which says that negotiations have reached "a critical stage," the agents told their clients that the owners' proposal will "cripple your earning potential and the earning potential of every future NBA player." Among other things, the agents urge their players to:

* Reject any further reduction in the percentage of BRI the union has negotiated.
* Maintain the existing structure of the Bird and mid-level exceptions.
* Resist any reduction in the current maximum player salaries.
* Maintain current contract length at existing levels.
* Keep unrestricted free agency the same and improve restricted free agency.

In addition, the letter urges players to demand a full vote of the union membership on any proposal agreed to by the NBA and NBPA negotiators. The vote that ended the 1998-99 lockout was a show-of-hands vote after players had only 24 hours to review the proposal. Only 184 of the more than 400 players actually voted.

"If and when there is a proposal that we feel is in the best interests of us as players, each of you WILL have the opportunity  to vote in person," Fisher said. "It's in the union bylaws, it's not up for negotiation."

One of the agents concerned about the outcome said he would not allow what he called a "sham" vote on a proposal agreed to by the NBPA. "I'm telling you right now, I won't stand for it," the agent said. "Not on my watch."

It was this and other unpredictable elements -- such as how unified the small- and big-market owners are on missing regular season games and revenue sharing -- that made it almost impossible to predict how Tuesday's meeting would play out. 

"If it’s a very short meeting, that’s bad," commissioner David Stern said. "And if it’s a very long meeting, that’s not as bad."

Stern had said Saturday that no decisions would be made before Tuesday on canceling the remainder of the preseason schedule if no deal were reached. Once Monday ended, however, the league entered what Stern had referred to as a "day-by-day" period where decisions would have to be made. According to several team executives, agents and others with a stake in the process, there is a widely held belief that the first chunk of regular season games would be canceled in the absence of significant movement by the end of the week.

Beyond the stated goals, talking points and hidden agendas that have infiltrated each side, the moment of truth is cloaked in one obvious reality: For a deal to be consummated this week, one side or the other is going to have to reveal its true position -- in bargaining terms, the "last, best offer." 

"Neither side has been speaking in those terms," Silver said.

Beginning Tuesday, they will have to.

"Each side has preserved its right to be where it is, knowing that there’s a heart to heart that will ultimately take place," Stern said.

In other words, it's time for the B.S. to stop and for the cards to be laid on the table. When that happens, how that happens, and who throws the first card will be a product of the tone that is set Tuesday.

"There’s always a Magic card in somebody’s back pocket that they say, ‘I know this will get the deal done,'" a team executive said Monday. "And you don’t want to show that card until you absolutely have to. At some point, does somebody whip out that card?"

Though the two sides continue to hold diametrically opposed positions on what kind of system they want -- hard cap, soft cap, flex cap, guarantees and spending exceptions -- they both agree that system issues will not cause them to miss games or cancel the season. This is primarily, if not ultimately all about the bottom line: money.

"We’re apart on the split," Stern said. "But we know that the answer lies between where they were and where we are. And without defining ours, or defining theirs, I think if there’s a will, we’ll be able to deal with both the split and with the system issues."

The most recent formal proposal from the owners would've given the players a flat $2.01 billion in salary over the first eight years of a 10-year deal, though sources say league negotiators have since modified that position slightly to a model that would give the players roughly 46 percent of BRI on average over the life of the deal. The players have been holding firm to an offer in which they would accept a pay freeze in the first year of a new deal -- the same $2.17 billion they received in salary and benefits last season -- with the BRI split in the 52-54 range thereafter. 

Based on the league's current bargaining position, even if the players offered to receive 49 percent of BRI -- thus accounting for all of the owners' $300 million in stated losses -- it still would not be acceptable to the owners, who are seeking the opportunity for every team to make a profit in addition to increased parity they believe can be achieved through a combination of systemic changes and more robust revenue sharing. One prominent agent told CBSSports.com Monday that the owners' position is "out of touch with reality."

"These guys think they're entitled to have a business that’s fool proof," the agent said. 

Said another: "Why do the most powerful and successful businessmen in the world need protection from agents and players in negotiations? If they don't want to pay the money, don't pay the money."

And if the owners maintain this bargaining position on Tuesday? If their bargaining position is real, with no magic cards hiding in their back pockets?

"Then I tell them," one of the agents said, "see you in court."
 


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.


Posted on: September 30, 2011 8:56 pm
Edited on: October 1, 2011 12:31 pm
 

Star power stirs up NBA talks

NEW YORK -- Flanked by some of the biggest stars in the game, players' association president Derek Fisher stood in a ballroom at a Park Avenue hotel Friday and declared that the willingness to reach a new collective bargaining agreement is there on both sides.

Next will have to come the movement, the tipping point that pushes the negotiations to the point of compromise. And that point did not come Friday, when stars like LeBron James, Dwyane Wade, Carmelo Anthony, Paul Pierce and Ray Allen got to see for themselves what the owners are asking of them as they seek a system that gives all 30 teams an opportunity to compete and be profitable.

After some initial ugliness -- a person familiar with what happened in the negotiating room told CBSSports.com that some players were initially infuriated by how little the owners' stance has changed -- the bargaining session took on a tone of cooperation that signaled to some players that a deal was within reach.

UPDATE: But not before it appeared that Friday's bargaining session would be short-lived, and that there wouldn't be any more talking this weekend.

According to a person familiar with the negotiations, the owners and players met initially at about 2 p.m. ET and broke up to discuss the situation privately among themselves. The players, furious at seeing first hand the owners' offer of 46 percent of basketball-related income (BRI) -- down from their previous level of 57 percent -- were unanimous about what to do.

"Let's go," one of the players said, according to a source. "There's no reason to go back in there."

The players decided to return to the bargaining room with a much smaller group. Among those joining Fisher for the second session were James, Wade, Anthony, Kevin Durant, Baron Davis and committee member Chris Paul. None of the players joining Fisher sat down during this portion of the talks, a person with knowledge of the meetings said.

It was at this point that Wade took exception to commissioner David Stern's tone and gesturing -- the commissioner evidently was pointing his finger while speaking to the players -- and "stood up for himself," a person with knowledge of the meeting said. According to two people familiar with the incident, Wade warned Stern not to point his finger and made reference to not being a child.

Several versions of the quote were reported. According to a witness, Wade's tone was not threatening. But the upshot was clear: This was a potentially galvanizing moment for the players, who finally got the kind of star participation -- and leadership -- that they've lacked at key moments in these talks. In Wade, the players have found their Michael Jordan circa 1999, when the Bulls star famously told the late Wizards owner Abe Pollin to sell his team if he couldn't afford to run it.

After the confrontation, union chief Billy Hunter and Stern met privately, seeking a way to calm nerves and preserve the rest of the negotiations. Hunter, according to the person with knowledge of the talks, convinced the players to go back in -- selling them on the idea that the negotiating process had to be respected and telling them that the two sides would switch from the split of basketball-related income (BRI) to system issues.

It was after session that began at 6 p.m. and ran for about an hour that the two sides agreed to return to the bargaining table Saturday. The takeaway for the players, sources said, was the definite impression that the owners want to have a season.

"I don’t think it was a sense of now or never, but I think there was definitely a sense of, 'It’s time to stop throwing ideas around and let’s actually work towards making these ideas happen,'" said the Heat's Udonis Haslem, attending his first bargaining session. "I heard enough to really believe in my heart that both sides will work tirelessly to find a middle ground. I don’t know if that will happen."

Indeed, both sides tamped down expectations that a deal had to be achieved by the end of the weekend to prevent cancellation of some -- and perhaps all -- regular season games. Deputy commissioner Adam Silver said, "There are a lot of issues on the table," and questioned whether a deal could be consummated by Sunday strictly from the standpoint of "the number of hours in the day."

The rhetoric about the entire season being in jeopardy if a deal wasn't reached this weekend was "ludicrous," Stern said Friday -- just two days after pointing out that there would be "enormous consequences" from a lack of progress and that they "won't be a question of just starting the season on time."

The two sides will meet again Saturday morning with nearly the full committee of owners and multiple players on hand in addition to the NBPA's executive committee.

Joining the big stars with Fisher, Hunter, and several committee members in the union's post-meeting news conference were Davis, Elton Brand, Ben Gordon, Andre Iguodala, and others as Fisher challenged those who've questioned the involvement of the game's biggest names in the bargaining process.

"Some of our guys have been questioned in terms of their commitment to this process, to the players' association and to the game," Fisher said. "Their presence here today, we all know for picture’s sake says a lot. These guys have always been with us."

James, Wade and Anthony abruptly left the news conference without speaking with reporters, climbing together into an idling SUV waiting for them outside the hotel.

But their presence, without question, was felt in the bargaining room. According to two people involved in the talks, several owners who typically are the most boistrous in the meetings -- including Cavs owner Dan Gilbert and Suns owner Robert Sarver -- were noticably subdued. "Much tamer," said one of the sources. "They know it's time."

The owners were represented by nine of their 11 committee members, with Celtics owner Wyc Grousbeck and Mavericks owner Mark Cuban absent. Heat owner Micky Arison, facing the potential destruction of his Big Three (two of them being in the room), was the only owner not on the committee who attended.

The only progress described by anyone Friday (other than the fact that they'll meet again Saturday) was the state of the owners' revenue sharing plans. Stern revealed for the first time that the league is prepared to triple the current revenue sharing pool in the first two years and quadruple it starting in the third year.

But even that issue is clouded in big-market, small-market politics and the issue of when the high-revenue teams will begin to substantially increase their sharing. According to two people familiar with the owners' revenue sharing plans, the Lakers and Knicks would be called upon to pay the lion's share -- with the Lakers paying roughly $50 million and the Knicks $30 million -- into the new pool. But some big-market teams are increasingly reluctant to share their growing local TV revenues; the Lakers, for example, recently signed a 20-year, $3 billion deal with Time Warner that dwarfs some teams' total revenue.

Stern said Friday the players "know precisely" what the owners' revenue sharing plan will look like.

"They know as much as we know," Stern said. "We’ve told them about generally how it’s going to work. We haven't given them a piece of paper, but that will not be the issue that separates us."

So what happens now? After the cleansing process of stars voicing their opinions, threatening to walk out and calling out Stern in front of his owners, the time comes now for smaller groups, cooler heads and compromise. It is the only thing we know at this point about these talks: Both sides want a deal. Both sides want to play.

Both sides have room to move on the economics, too. The owners will quickly lose their appetite for certain non-negotiable system changes once they realize that addressing their losses is within reach. And the players will prove to be willing to negotiate on certain key system points -- such as a modest reduction in the mid-level exception and a more punitive tax system -- once they get the anticipated economic move from the owners.

The owners having witnessed the star players' resolve, and the players having witnessed the owners' willingness to make a deal, won't hurt. Because there will have to be a deal eventually, so why not soon? Why not now? Because, as one source offered, it would be "crazy not to."

And he might as well have been speaking for both sides.



Posted on: September 28, 2011 3:30 pm
Edited on: September 28, 2011 5:01 pm
 

Efforts to save season reach 'key moment'

NEW YORK -- Calling it a "key moment" in efforts to reach a collective bargaining agreement, commissioner David Stern said Wednesday that the full negotiating committees from both sides will meet Friday and through the weekend as they try to save the 2011-12 season.

"There are enormous consequences at play here on the basis of the weekend," Stern said after league negotiators and representatives for the National Basketball Players Association met for a second straight day at an Upper East Side hotel. "Either we’ll make very good progress, and we know what that would mean – we know how good that would be, without putting dates to it – or we won't make any progress. And then it won’t be a question of just starting the season on time. There will be a lot at risk because of the absence of progress."

In addition to the players' executive committee and the owners' full labor relations board, union president Derek Fisher said several "key players" will be attending Friday's meeting. Among them are expected to be LeBron James, Dwyane Wade and Carmelo Anthony, sources said, with other stars like Amar'e Stoudemire and Kevin Durant possibly joining the negotiations.

Deputy commissioner Adam Silver said the two sides agreed to expand their presence because "whatever decisions we are now going to be making would be so monumental" as to require the presence of those who'd be signing off on them.

You didn't have to read to closely between the lines to catch the meaning from Stern and Silver, who sought to ratchet up the pressure on getting a deal or risk not simply an on-time start to the season, but indeed the whole thing. With training camps already postponed and a first batch of preseason games canceled, Stern said the two sides are "at a period of enormous opportunity and great risk."

"I can't say that common ground is evident, but our desire to try to get there I think is there," Fisher said. "We still have a great deal of issues to work through, so there won't be any Magic that will happen this weekend to just make those things go away. But we have to put the time in. We have a responsibility to people to do so."

The incremental rise in doomsday talk from Stern signaled that the negotiations are entering a new phase, where the threat of a canceled season will become a leverage point for both sides. If no agreement is reached by the end of the weekend -- the four-week mark before the scheduled regular season opener -- it would be virtually impossible to get a subsequent deal written, hold abbreviated training camps and a preseason schedule, and pull off a shortened free-agent period.

And yet neither side evidently was prepared to move enough Wednesday to get within reach of a deal. That moment of truth, one way or another, should come in the next 96 hours.

Once the league agreed to replace its insistence on a hard cap with the more punitive luxury tax and other provisions -- a "breakthrough," as one person familar with the talks called it -- it sparked "the process of negotiation" that the two sides have arrived at now. 

"There could be some compromises reached," the person said.

According to multiple sources familiar with the talks, the owners did not enhance their economic offer Wednesday, instead focusing on using systemic changes to hit the number they are seeking to achieve -- still 46 percent for the players over the life of a new deal. The problem, sources say, is that the players are not willing to accept a deal at that percentage, and that some of the systemic adjustments the league has proposed as alternatives to a hard team cap will act like a hard cap -- such as a luxury-tax system that rises from dollar-for-dollar tax to $2 or more.

NBPA executive director Billy Hunter has called a hard team salary cap a "blood issue" for the union, and Fisher wrote in a letter to the union membership this week that he and Hunter will continue to oppose any deal that includes one "unless you, the group we represent, tell us otherwise."

In addition to what they presented as hard cap alternatives -- which also included a reduction in the Bird and mid-level exceptions -- league negotiators also have presented a concept that could drive a wedge in the players' association. In exchange for keeping certain spending exceptions in place -- albeit in a reduced form -- one idea floated by the owners was a gradual reduction in existing contracts -- the "R" word, as in rollbacks -- that would minimize the financial hit for players who will be signing deals under the new system.

Such a proposal would alleviate the problem of players such as James, Wade, Stoudemire, Anthony, Chris Bosh and Joe Johnson having outsized contracts compared to stars who'd be faced with signing lesser deals under a new system. In essence, the players who already are under contract would take a percentage cut in the early years of a new CBA -- 5 percent the first year, 7.5 the second and 10 percent in the third year, sources said -- so that players like Derrick Rose, Dwight Howard, Chris Paul and Deron Williams wouldn't bear a disproportionate share of the burden when they sign their max deals under the reduced salary structure the owners are seeking.

The provisions are not geared strictly for the star class of players; in fact, the proposed rollbacks would be across the board, "for everyone," a person with knowledge of the idea said. And while this concept may alleviate the problem of having future stars bear more of a burden, it would create other problems -- not the least of which is the players' unwillingness to accept a percentage of BRI in the mid 40s that would make such rollbacks necessary.

It is for this, and other reasons -- such as restrictions the owners would want even in a soft-cap system -- that a person familiar with the owners' ideas told CBSSports.com Tuesday night that what they were proposing was deemed "alarming" by union officials.

And it is why Stern said Wednesday, "We are not near a deal."

"I'm focused on, let’s get the two committees in and see whether they can either have a season or not have a season," Stern said. "And that’s what’s at risk this weekend."

But amid all the comments made throughout these negotiations, it was an ordinary fan who hit a home run Wednesday with the most sensible statement yet. As Hunter and other union officials spoke with reporters on the street outside the hotel hosting negotiations, a guy in a white luxury sedan stopped in the middle of the street and started pounding on his door panel.

"We want basketball!" the fan shouted. "Stop the playing and get it done!"

He then drove off, heading west, having made the most sense of anyone.

Posted on: September 27, 2011 10:11 pm
Edited on: September 27, 2011 11:10 pm
 

Sources: Owners drop insistence on hard cap

NEW YORK -- Owners have indicated a willingness to drop their insistence on a hard team salary cap in exchange for adjustments to the luxury tax system and key spending exceptions, two people with knowledge of the negotiations told CBSSports.com Tuesday night.

The offer by league negotiators came Tuesday in a brief, two-hour bargaining session that set the stage for what one source described as "an important day" on Wednesday.

"It's put up or shut up time," said the person, who is connected to the talks but spoke on condition of anonymity due to the sensitivity of the negotiations.

The flexibility in the owners' longstanding insistence on a hard team-by-team cap, first reported by Yahoo Sports, comes with significant strings attached. Among the many concepts league negotiators proposed Tuesday were a more punitive luxury tax and adjustments to two key spending exceptions that teams had under previous agreements: the Larry Bird exception and the mid-level exception. Both would have been eliminated under the owners' original proposal from two years ago, with many of those dramatic systemic changes living on in subsequent proposals until Tuesday.

There is a feeling among two people who have been briefed on the talks that the owners will come forward Wednesday with an enhanced version of the concepts proposed Tuesday. According to the sources, among the additions could be a proposed 50-50 revenue split, which to this point the league has not reached in terms of the players' average share over the life of a new CBA in its previous proposals.

As for the system changes the owners proposed Tuesday in exchange for relaxing their stance on the hard team salary cap, one of the people briefed on the talks said union officials regarded them as "alarming."

Billy Hunter, executive director of the National Basketball Players Association, has often referred to a hard team salary cap as a "blood issue." Union president Derek Fisher scoffed at the owners' June proposal of a "flex cap" with a spending midpoint and a range as being, for all intents and purposes, a hard cap. Paramount in the players' opposition to a hard team cap is that the NBA already has a spending cap in the aggregate; under the previous CBA, the players were limited to 57 percent of basketball-related income (BRI), with an escrow system in place to guarantee they'd get no more and no less.

Even if the owners improved their economic proposal to 50-50 on Wednesday -- up from the 46 percent average share sources said they offered last week -- it seems unlikely that union officials would accept that without significant pushback on the system adjustments that are tied to it. And it is even less likely that Hunter and Fisher, under pressure from powerful agents pushing to dissolve the union through decertification or a disclaimer of interest, would be able to garner support for such a deal in the face of such opposition.

"We already have a hard salary cap," one person connected to the talks told CBSSports.com Tuesday night. "That train left the station in the last collective bargaining. If you accept that as an important victory point, then we've been bamboozled."

Whether viewed as a meaningful concession or not, the revelation from the owners Tuesday set the stage for an absolutely critical day of negotiating on Wednesday. With more preseason games on the chopping block next week and with an on-time start to the regular season unlikely if there's no deal, this is the moment of truth these negotiations began inching toward last week when league negotiators made a specific proposal on the BRI split for the first time since they offered a flat $2 billion-a-year over the first eight years of a 10-year deal back in June.

Though a person with knowledge of the talks said the union deemed the owners' 46 percent offer "unacceptable," Hunter and Fisher believed it was the starting point in the real negotiations to save the season. 

In another wrinkle that could be key to the talks, the NBPA's unfair labor practices charge against the league has been transferred from the National Labor Relations Board's regional office in New York to the general counsel in Washington, D.C., a person with knowledge of the situation told CBSSports.com. The case file includes the regional director's recommendation about whether a complaint should be issued against the NBA, but the file is sealed, the person said.

After what is expected to be an exhaustive review of the case by the NLRB's Washington-based legal staff, a decision will be rendered on whether a complaint should be filed. Though Hunter is feeling pressure from agents who are pushing for the union to decertify -- a tactic that the NFLPA used, to little effect, in its bargaining talks with the NFL -- a person with knowledge of his thinking said Hunter is determined to keep the union together until the NLRB rules. A favorable ruling for the NBPA could result in a federal injunction lifting the lockout, thus shifting significant leverage to the players.

The NBA subsequently filed its own unfair labor practices charge against the NBPA, and it is possible that the NLRB may not rule on either case in time for the two sides to negotiate a settlement that would save the season.

Amid the divided opinions on decertification, Fisher sent a second letter to union members this week in which he again urged unity and tried to reassure players that he and Hunter would not sell them out just to get a deal. Fisher reiterated the union's resistance to a hard team salary cap and promised to fight for players to share fairly in the league's revenue growth -- which is expected to continue rising at a 4 percent-a-year clip, plus the possibility of massive gains in the NBA's broadcast rights deals when they expire after the 2015-16 season.

"We’ve been clear from Day 1 of this process that we cannot sign off on a deal that attempts in any way to include a hard salary cap for our teams. That has not changed,” Fisher said in the letter. “Unless you, the group we represent, tell us otherwise, we are prepared to hold the line for as long as it takes to preserve the system we’ve worked so hard to build.”

After Tuesday's meeting, Fisher emerged in a far more upbeat mood than he and commissioner David Stern had exhibited following last week's meeting. The two sides broke off talks about three hours shy of a typical session and said they needed to retreat to their own offices for private meetings before reconvening on Wednesday.

"We’ve talked extensively about ideas and concepts," Fisher said. "These are things that, if we could get into the range or get into the zone, maybe we can put a deal together."

Time, and new ideas, are running short.
 
 
 
 
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