Tag:Adam Silver
Posted on: August 24, 2011 10:53 pm
Edited on: August 25, 2011 12:56 pm
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NBPA's Evans says players 'ready to negotiate'

While the National Basketball Players Association continued a whirlwind tour of regional meetings in New York on Wednesday, there was little indication any of those meetings could bring them face-to-face with their employers anytime soon.

After union officials briefed about 10 players on the dismal state of collective bargaining talks at the NBPA headquarters in Harlem, union vice president Mo Evans said there were no immediate plans for a full bargaining session until perhaps after Labor Day.

UPDATE: There will, however, be a secretive meeting of only the highest-level negotiators for both sides next week, a person familiar with the meeting told CBSSports.com on Thursday. The session is expected to include only commissioner David Stern, deputy commissioner Adam Silver, union chief Billy Hunter and president Derek Fisher. Also present could be Spurs owner Peter Holt, the chairman of the owners' labor relations committee. But no other players or owners are expected to be included, which could create an environment conducive to productive negotiation.

"We're looking forward to the owners re-engaging us after a couple of weeks of vacation," Evans told CBSSports.com by phone after landing in Chicago, where the NBPA will hold another regional meeting Thursday. "We're ready to negotiate. We're ready and we're available."

Each side, however, is endeavoring to prove otherwise before the National Labor Relations Board. Earlier this month, the NBA filed its own charge accusing the players of failing to bargain in good faith after the union accused the owners of the same back in May. There has been only one bargaining session involving all the key players from both sides since the owners imposed the lockout July 1.

"Even in that meeting we had, they didn't engage," Evans said. "In the proposals we've given them, the players have compromised over $650 million into the owners' pockets over six years. You say you're losing money, and we've offered over $100 million a year to take out of our pockets and they say, 'That's all? That's all? Just a modest $100 million a year?' That's just not bargaining in good faith. It's hard to get anything done that way."

The players have been flustered by Stern's public characterization of the owners' position in recent media appearances, and Evans said the purpose of the regional meetings is to "inform the players" of how Stern has been untruthful and "very inaccurate" in his portrayal of what the owners have proposed.

The NBA contends that the players' $100 million-a-year concession would result in the average player salary rising from its current level of about $5 million to $7 million by the end of the NBPA's six-year proposal and says the players actually are proposing slowing the growth of salaries by $100 million a year. With every dollar sign and zero, the fans' eyes glaze over.

"We're not so much frustrated," Evans said. "We're just not being impatient. Nothing's lost, nothing's jeopardized as of now. But we are eager to get this back on track. We're coming off a lot of record highs in terms of ratings and BRI, and the game is in such a good place. The NFL gets a 10-year deal, and I've been to some NFL (preseason) games and the fans are so excited. We owe that to our fans as well."

In meeting with players throughout the country -- more than 70 in Los Angeles and about 35 in Las Vegas last week -- Evans has heard a gathering insistence among NBPA members that they are willing to lose the entire season if that's what it takes to get a "fair deal," he said.

"The guys are willing to suck it up as long as we have to in order to stand up for what's right and protect what all the great players who've come before us have fought for," Evans said. "The Bill Russells, Michael Jordans, Larry Birds and Magic Johnsons have done great things to allow us to make the salaries we have and wear these great uniforms. It'd be a shame to give up everything those guys have fought for."

Reality dictates that neither side will give up anything until forced to do so. The only forces bearing down on these labor talks that could result in a change of heart are the players' unfair labor practices charge against the owners, which could result in a federal injunction lifting the lockout if successful, and the calendar itself. Sources on both sides understand that once the calendar flips to October, the currently distant threat of games being canceled becomes harsh reality.

"In the more than two years I've been associated with this, we've been in entire sessions on ways to increase revenues and improve the game," Evans said. "We've suggested all kinds of awesome ways that will create even more competitive balance and increase profitability. But that's not what they're interested in. The only thing they're interested in is the players taking a cut and increasing the owners' profits."


Posted on: August 17, 2011 5:00 pm
Edited on: August 17, 2011 9:08 pm
 

Kobe to players: 'Stand behind the union'

During a series of meetings in which union officials are updating players on the status of collective bargaining this week, one voice stood out: that of Kobe Bryant.

Before a star-studded audience of about 75 players in Los Angeles Tuesday, Bryant was “up front” and “deliberate” in a speech in which he urged players to maintain solidarity and “stand behind the union” during the lockout, according to a person who was in attendance. Sources told CBSSports.com that another test of that solidarity could come next week, as top union officials were authorized Wednesday to contact deputy commissioner Adam Silver in the hopes of scheduling a bargaining session in New York before the end of the month.

Bryant and Paul Pierce told players Tuesday it was important for them to “remain united” in the face of a lockout that has dragged well into its second month with only one full-scale bargaining session, the person who attended the meeting said. Among the players in attendance were Blake Griffin and Eric Gordon of the Clippers, Elton Brand of the 76ers, Tyson Chandler of the Mavericks, Russell Westbrook and James Harden of the Thunder and Corey Maggette of the Bobcats.

Contacted for comment on the player meetings, union chief Billy Hunter said he also briefed a contingent of about 20 agents on the status of negotiations Tuesday before traveling to Las Vegas, where he was meeting with about 35 players Wednesday. Hunter also will meet with players next week in Houston, Chicago and New York.

“Our message is that there’ve been several proposals back and forth, and the last proposal by the NBA would be a giveback of $8 billion over 10 years,” Hunter told CBSSports.com. “The players understand and they’re supportive.”

Hunter said there was a “divergence of opinion” among the agents about the National Basketball Players Association’s decision not to disclaim interest in representing the players – and the players’ decision not to decertify. Some high-profile agents have clamored for decertification, which would send the dispute to the federal court system under antitrust law. Hunter has so far resisted, preferring to explore the possibly more expeditious path to an injunction lifting the lockout, which could result if the union is successful in getting the National Labor Relations Board to issue an unfair labor practices complaint against the NBA.

Sources said NLRB investigators are expected to wrap up the evidence-gathering phase as early as next week and would then have all the information they need to render a decision on the players’ charge.

Though NBA commissioner David Stern is expected to be away on vacation, sources also told CBSSports.com that the two sides are trying to reconvene for a high-level bargaining session next week in New York. If league and union officials can agree on the scheduling details, it would be the first full-scale bargaining session since Aug. 1 – and the first since the NBA filed a federal lawsuit and an NLRB charge accusing the players of failing to bargain in good faith. Both legal actions were filed on Aug. 2, one day after Stern said the players were not bargaining in good faith.

It remains to be seen whether the players’ desire to meet next week will result in a productive negotiating session or more mudslinging. Stern accused the players of canceling a bargaining session last week while Hunter was involved with four days of appearances before the NLRB. Sources said an offer by the union to hold a staff-level bargaining session was rejected by the league, and that Hunter was told Stern would be away on vacation this week and next.

Clearly, Stern could easily return to New York for a bargaining session regardless of his vacation plans. So it’s a matter of will on both sides – and a question of whether anything has changed since the fruitless session on Aug. 1. Answer: Probably not. Not yet.
Posted on: August 2, 2011 4:25 pm
 

NBA legal action: What does it mean?

NEW YORK – As it turns out, my question to David Stern as he walked away from a gloomy media scrum Monday night was a prelude to the next phase of the NBA lockout, which has now entered its second month and a new frontier of ugliness.

Stern, who certainly knew full well league attorneys were busy preparing a double-barrel legal assault on the players, thought carefully for a few seconds before answering the question: “Would you say the players are bargaining in good faith, or not?”

We all know what he said, and it was followed up Tuesday with a two-fisted legal maneuver that will set the tone for the next 30-60 days of bargaining – or lack thereof.

What does it mean? First, the easy part: In a charge before the National Labor Relations Board, the league accused the National Basketball Players Association of failing to bargain in good faith – just as Stern said. This was in response to a pending complaint from the players, who leveled the same accusation against the NBA before the NLRB.

You can sum it up like this:

“You’re bargaining in bad faith!”

“No, you are, meathead!” (Archie Bunker sticks out tongue and sprays, “THHZZZZTHZZPPHTH!”

The second action, a federal lawsuit in the Southern District of New York, is more complicated. As we’ve discussed previously, the NBA decided not to sit idly by and wait to see if the NBPA would, in fact, decertify and file an antitrust lawsuit. The league is asking U.S. District Judge Paul Gardephe for a declaratory judgment affirming that the lockout is legal and heading off the players’ potential decertification. The lawsuit stipulates that, even in the event the court finds that the players have the legal right to decertify, all player contracts under the previous collective bargaining agreement would be “void and unenforceable” if the union disbanded.

“These claims were filed in an effort to eliminate the use of impermissible pressure tactics by the union which are impeding the parties’ ability to negotiate a new collective bargaining agreement,” deputy commissioner Adam Silver said. “For the parties to reach agreement on a new CBA, the union must commit to the collective bargaining process fully and in good faith.”

Billy Hunter, the NBPA’s executive director, released a statement Monday calling the NBA’s actions “totally without merit.”

“The litigation tactics of the NBA today are just another example of their bad-faith bargaining and we will seek the complete dismissal of the actions,” Hunter said. “The NBA Players Association has not made any decision to disclaim its role as the collective bargaining representative of the players and has been engaged in good-faith bargaining with the NBA for over two years. We urge the NBA to engage with us at the bargaining table and to use more productively the short time we have left before the 2011-12 season is seriously jeopardized.”

Jeffrey Kessler, the NBPA attorney mentioned frquently in the league's lawsuit, told CBSSports.com the action has "no merit" because the union has made no decision to decertify and has never done so in its history.

"They're just determined to do anything they can to prolong their lockout so they can try to break the players and don't really seem to care about the damage it does to the game," Kessler said. "That’s unfortunate. The players won't be deterred." 

A couple of important points: the NLRB charges (one by each side) follow a different legal track than the federal lawsuit. One does not necessarily influence the other. So first off, nothing the NBA did Monday can stop the players from continuing to follow their most expeditious path to an injunction lifting the lockout – that being a complaint issued by the NLRB and a subsequent request to a federal judge to enjoin the lockout.

Even a ruling in the NBA’s lawsuit asserting that the lockout is legal could not prevent a judge from lifting the lockout via the NLRB case, which is governed by federal labor law – not antitrust law. The Norris-LaGuardia Act, which tripped up the NFL players in their antitrust lawsuit, does not apply to the NLRB cases.

In fact, when asked how the NBA's legal action affects the players' unfair labor practices charge pending before the NLRB, Kessler said told CBSSports.com, "We think this is going to be part of the evidence of their bad faith. This will support the complaint that’s already before the NLRB."

But what the NBA has done here is tried to disarm the players of the legal strategy of decertification, through which they would follow the NFLPA’s lead and challenge the lockout and other practices as violations of antitrust law. Unlike the NFL players, who had to decertify by a collectively bargained deadline, the NBA players were at a legal advantage while they pursued the NLRB charge while keeping decertification and an antitrust suit in their back pockets to use when they saw fit. The NBA’s federal lawsuit seeks to remove this option, purportedly as a way to force the players to soften their bargaining strategy and expedite an agreement on a new CBA.

But the very nature of legal timetables could have the opposite effect. Depending on how the NBPA responds, you could be looking at 60-75 days before the matter would even reach the point of a hearing – much less a decision by the judge. The NBA’s regular season is supposed to open three months from Tuesday, and if both sides want to go to trial, well you can pretty much forget about that.

If an eventual ruling is appealed to the 2nd U.S. Circuit Court of Appeals, it’s difficult to imagine a decision from the appeals panel before the calendar says 2012.

Kessler declined to comment on how and when the players would respond to the lawsuit. As for the NBA's charge of bad-faith bargaining by the players, Kessler said, "We know where the bargaining table is. They know where the bargaining table is. We were just there yesterday, and we came out and found this lawsuit. There's been no breakdown of bargaining except by them."

On the bright side, both sides fully understand – and the courts favor – the notion that the only way this labor dispute will be resolved is at the bargaining table between the parties. So the leverage and threat of various outcomes on every one of these legal tracks are far more important than the outcomes themselves.

The league hopes that the federal lawsuit will cause the union to abandon decertification as a possibility, and that once the antitrust option is “out the door,” as one legal expert put it, the two sides will be better positioned to reach agreement at the bargaining table.

It’s too early to tell whether the NBA will be successful on either front. From now until the district court actually rules on the NBA’s complaint, the union is free to decertify and file whatever lawsuits it wishes – as long as it does so in the 2nd Circuit, since the NBA succeeded in setting the venue by suing first. Also, with numerous players still getting paychecks from last season throughout the summer – and with the league owing the players $188 million in escrow and additional payments based on the 2010-11 BRI audit – the players are in a position to endure the missed paychecks that eventually will come with missed games.

League sources insist there was no Magic to the 2nd Circuit as a venue for its legal action; the court is in Manhattan, where both parties and most potential witnesses are based. But the fact remains that the league could’ve filed the case anywhere in the country where an NBA team exists, and it chose the 2nd Circuit.

A preliminary scouting report on Gardephe shows that he is a Republican appointee, having received his ticket to the bench by President George W. Bush in 2008, and thus could be considered a pro-management judge. Either way, the league has set home-court advantage – which is every bit as important in a basketball lawsuit as it is in a basketball game.

Basketball fans who want to see games, meanwhile, can only hope it doesn’t get to that point.
Posted on: August 1, 2011 6:54 pm
Edited on: August 1, 2011 7:17 pm
 

Stern accuses players of bad-faith bargaining

NEW YORK – The NBA labor talks took on a poisonous tone Monday, with each side lobbing rhetoric about the other not being willing to negotiate. The coup de grace came shortly before 6 p.m., from commissioner David Stern.

Standing in a midtown hotel lobby after a nearly three-hour farce of a bargaining session – the first between the two sides since owners imposed a lockout on July 1 – Stern fielded one last question in a terse and decidedly glum media session. After saying, “I don’t feel optimistic about the players’ willingness to engage in a serious way,” Stern was asked if he believes the players are bargaining in good faith, or not.

The grim-faced commissioner thought about it for several seconds and said, “I would say not. Thank you.”

And with those comments, Stern’s most direct public assault on the players during the more than two years of bargaining, the NBA lockout took its next step toward all-out legal warfare.

The National Basketball Players Association already has filed a charge with the National Labor Relations Board alleging, among other things, that the owners have failed to bargain in good faith. The players’ hope is that this charge will result in a formal complaint from the NLRB, and then, an injunction from a federal judge reinstating the terms of the previous collective bargaining agreement. Short of decertification by the union, this would be the quickest path for the players to legally pressure the owners to back down from their demands of massive salary cuts as a cure for $300 million annual losses by the league.

With Stern firing back Monday that it’s the players who are not bargaining in good faith, he set the stage for a possible counter-charge by the league with the NLRB on the subject of good-faith bargaining. Such a legal strategy, which league officials would not confirm Monday as being on the table, could blunt the impact of the players’ charge and – more importantly – drag the lockout precariously into territory where it would be impossible to save all of the 2011-12 season.

As a point of reference, the NFL owners filed a similar charge with the NLRB in February, and that sport’s lockout ended before the board even finished investigating it. NBPA attorney Larry Katz has said he is hopeful that the NLRB will rule on the union’s complaint in the next 30-60 days. Training camps are supposed to open in about 60 days.

“I think it’s fair to say that we’re in the same place as we were 30 days ago,” Stern said. “And we agreed we’d be in touch to schedule some additional meetings.”

Asked why that would be necessary, given the lack of progress, Stern said, “There’s always a reason for more meetings because that’s the only way you’ll ultimately get to a deal, at the negotiating table. You never know, but right now we haven’t seen any movement.”

Earlier, NBPA president Derek Fisher accused Stern, deputy commissioner Adam Silver and the owners present Monday – San Antonio’s Peter Holt and Minnesota’s Glen Taylor – of saying one thing in the negotiating sessions and publicly and delivering quite another message by refusing to alter their proposal.

“I think Peter and Glen Taylor, Mr. Stern, Adam Silver are articulating certain things in the room, expressing their desire to get a deal done,” Fisher said. “But where their proposal lies makes it hard to believe that.”

Informed of Fisher’s comments, which echo the NLRB charge about failing to bargain in good faith, stern said, “He’s entitled to draw his own conclusion. We have absolutely the opposite take on it.”

While Fisher expressed optimism about “restarting this process,” Stern was asked what may have occurred Monday that gave him encouragement.

“Nothing,” he said.

The two sides agree on one thing, if nothing else: They’ll attempt to schedule at least one bargaining session in the next couple of weeks, with the ultimate goal of engaging in talks for consecutive days before Sept. 1. At that point, the league will be entering what essentially is a two-week window when it must begin contemplating the postponement of training camps and the cancelation of preseason games.

“There was a lot of discussion, a lot of ideas being thrown around,” said Fisher, adding that one irrefutable fact is becoming “clearer and clearer” about the owners’ position.

“What the bottom line is, is what the bottom line is,” Fisher said.

Stern disagreed, saying the owners’ offer of $1.4 billion in revenues to the players – a more than 33 percent pay cut in their initial proposal -- has consistently increased, and most recently was at $2 billion.

“We’ve made several offers, but we don’t feel significant movement back,” Stern said. “As we pointed out to the players, their last offer, 30 days ago, was to take their (average) salaries from $5 million to $7 million over a six-year period. So there’s still a very wide gap between us.”

The players dispute Stern’s repeated portrayal of their proposal, which they say starts off with a reduction in the players’ percentage of revenues from 57 percent to 54.3 percent in the first year of a six-year deal that would slow the growth of salaries by about $100 million a year.

Stern went so far as to use concessions made by NFL players in ending that sport’s lockout as justification for the NBA’s demands.

“From where we sit, we’re looking at a league that was the most profitable in sports that became more profitable by virtue of concessions from their players with an average salary of $2 million,” Stern said. “Our average salary is $5 million, we’re not profitable, and we just can’t seem to get over the gap that separates us.”

What Stern missed – and perhaps Fisher, too – was a moment in the Omni Berkshire Hotel lobby that summed up the sad state of affairs better than either man could. As Fisher addressed the media, a young boy walked by and said excitedly to his father, “Dad, that’s Derek Fisher!”

As his father fumbled for his camera to capture a moment more inglorious than he knew, the boy said, “This must be about the NBA lockout.”

And it’s only going to get worse from here, for kids like that.
Posted on: July 19, 2011 7:29 pm
 

Full labor session not likely before August

While the basketball world was obsessed Tuesday with the release of an NBA schedule that may never happen, CBSSports.com has learned that the owners and players may not convene for another full-blown collective bargaining session until August.

It is up for interpretation, however, whether that would put the two sides behind the negotiating pace set during the 1998-99 lockout. Back then, it was 37 days between the imposition of the lockout on July 1 and the next bargaining session on Aug. 6.

But this time, the two sides have met once at the staff level -- last Friday -- and are scheduled to gather again this Friday for a second meeting. In the smaller sessions, which have not included commissioner David Stern or union chief Billy Hunter, the focus has shifted from the larger economic issues that led to the labor impasse to smaller-ticket system items such as how a new salary cap would be structured, according to sources familiar with the negotiations.

The highest-ranking figures involved in the smaller staff meetings have been deputy commissioner Adam Silver and Ron Klempner, associate general counsel for the National Basketball Players Association. NBPA attorney Jeffrey Kessler has not been involved, perhaps due to his obligations with hammering out the final details of a new NFL collective bargaining agreement. Kessler represents the players' associations in both locked-out sports.

It is possible that the two staffs could negotiate again next week, but sources said it does not appear likely that a full session -- including Stern, Hunter, Kessler, owners and players -- could occur until sometime in August. Though this technically would put the two sides behind the pace from 1998-99, when the lockout resulted in a shortened 50-game schedule, it is possible that the smaller meetings could create some much-needed momentum before the heavy hitters become involved in the process again.

When bargaining broke off June 30, hours before the owners officially imposed a lockout, both sides alluded to first making progress on less controversial topics when bargaining resumed, and then returning to the biggest philosophical divide -- the split of revenues.

"Both sides left the room still fully committed to getting a collective bargaining agreement done," NBPA president Derek Fisher said.
Posted on: June 24, 2011 6:21 pm
Edited on: June 24, 2011 8:10 pm
 

No counter from players; 'one more shot' at deal

NEW YORK – NBA owners and players ended a contentious week of negotiations and rhetoric Friday without a counter-offer from the players, leaving a slim chance that a deal can be reached by the June 30 expiration of the current collective bargaining agreement.

Despite reaching a stalemate on economic issues and the split of the league’s $4 billion in annual revenues, the two sides agreed to meet again Wednesday in Manhattan for one, or possibly two more days of bargaining before the current CBA expires at 12:01 a.m. ET Friday.

"We think we’ll have one more shot at it," National Basketball Players Association executive director Billy Hunter said. "Obviously, we’ll have some idea as to where they are in terms of owners -- whether there’s a chance to make a deal or whether there isn't."

Practically speaking, sources said it would be nearly impossible to write a new CBA in that time frame, leaving only two likely scenarios – a lockout imposed by the owners that would shut the sport down for the first time since the 1998-99 season, or an extension of the deadline to negotiate, which neither side has ruled out. But the latter option would require progress on narrowing the gap between the two sides’ bargaining positions, which remains hundreds of millions of dollars a year – and billions over the length of a new deal.

“There's still such a large gap,” said NBPA president Derek Fisher of the Lakers. “We feel that any move for us is real dollars we'd be giving back from where we currently stand, as opposed to where our owners have proposed numbers that in our estimation don’t exist right now. They're asking us to go to the place where they want us to go. We've expressed our reasons why we don't want to continue to move economically.”

In a display of unity and force that commissioner David Stern said he welcomed, more than 30 players arrived for meetings at the Omni Berkshire Hotel wearing tan NBPA T-shirts with the word, “STAND” printed on the front. The bargaining session included various player representatives who previously had only been briefed by union officials and executive committee members on the progress – or lack thereof – in negotiations.

The players streamed out onto 52nd Street around 3:30 p.m. after a four-hour bargaining session, many of them boarding a luxury touring bus and declining to comment. Several stopped to sign autographs. The scene – including a throng of media camped out on the sidewalk – caused such a spectacle that at one point, former New York Gov. Mario Cuomo cut a swath through the crowd and was noticed by only a couple of reporters.

Paul Pierce and Kevin Garnett of the Celtics, among the most vocal players in the room Friday and the players who devised the T-shirt idea, were driven away in a black SUV with executive committee member Theo Ratliff. In the meeting, Pierce accused the owners of taking a disingenuous stance by disguising their insistence on slashing salaries under the cloak of creating a new system that would allow more teams to be competitive.

“Is it more about money or being competitive?” Pierce said to the owners, according to Suns player rep Jared Dudley. “What does this have to do with? If it’s about being competitive, let’s come up with a system we can all be competitive in. If it’s about money, that’s a different story that we’re talking about.”

Hunter reiterated that he expects the owners to vote on imposing a lockout during the meeting of their full Board of Governors Tuesday in Dallas, but sources said there were no plans for such a vote – which would be procedural, anyway, and no surprise to anyone given that the threat of a lockout has loomed over the negotiations for more than two years. But with the attendance and engagement of a large group of players Friday, Hunter said owners “may find it difficult to pull the trigger” on a lockout vote.

“Even though we didn’t make an progress, I think they felt that the energy and attitude within the room was such that it might necessitate further discussion,” Hunter said.

In a softening of the rhetoric that marked the week of labor meetings -- the tone of which Stern said became "incendiary" at times -- Stern declined to discuss details of Friday's bargaining points. It was his public revelation of a $62 million "flex cap" system proposed by owners, along with a guarantee of no less than $2 billion in salary and benefits during the league's 10-year CBA proposal, that infuriated union officials who felt blindsided -- and subsequently conducted one small and one large media briefing to go on the attack.

Stern also sidestepped the possibility of a lockout vote, which typically would be taken by the Board of Governors to authorize the owners’ labor relations committee to impose one upon expiration of the current CBA.

“We can do whatever we need to do, whenever we need to do it, however we need to do it,” Stern said. “It's not about the formality of a meeting. … For us, the best time we're going to spend next week hopefully is on a meeting with the players on Wednesday that with any luck goes over to Thursday. And that’s where we are.”

The primary purpose of the owners’ meetings in Dallas Tuesday is for the labor relations committee – featuring such big-market representatives as the Knicks’ James Dolan and Lakers’ Jeanie Buss and small-market owners such as the Thunder’s Clay Bennett and Spurs’ Peter Holt, the committee chairman – to update representatives from all 30 teams about the state of negotiations. The owners’ planning committee also will brief the board on the status of a new revenue sharing plan, the lack of inclusion of which in the bargaining process has been an irritant for union officials.

Hunter told reporters this week that owners have not divulged “one iota” of their plans to enhance the sharing of revenue as a way to help small-market teams compete, and that rancor among high- and low-revenue teams continues to divide the owners. Stern disputed that notion Friday, saying, “We’ve had a full discussion with the players about everything, and we're prepared to discuss everything with them.”

The players and union officials have tried to get the owners to include their revenue-sharing plan as part of the new CBA, saying competitive balance could be improved through sharing more revenue – such as gate receipts and local broadcast revenues – without trying to solve the league’s stated annual losses of at least $300 million strictly through salary reductions.

“As we've said repeatedly, if we lose money on an aggregate basis, we can’t possibly revenue-share our way to profitability,” deputy commissioner Adam Silver said.

Stern would not divulge whether owners would reveal to the players the substance of their revenue-sharing plan that will be discussed among owners in Dallas. And sources told CBSSports.com that the union seems disinclined to use a legal tool at their disposal – asking a court to rule on whether revenue-sharing should be included as a “mandatory subject” in collective bargaining.

“We can’t make the final sort of push on revenue sharing until we know what the yield or not of the labor deal is,” Stern said. “… The revenue sharing is moving as well. We're setting things up, I would hope, on both fronts.”

Setting things up for a deal or a lockout? After two years of negotiations with no results, you be the judge.

Posted on: June 21, 2011 5:55 pm
Edited on: June 21, 2011 11:29 pm
 

NBA relaxes stance on hard cap



NEW YORK – Negotiations between NBA owners and players reached a critical juncture Tuesday when commissioner David Stern went public with the league’s offer to relax its stance on a hard salary cap and guarantee the players $2 billion a year in compensation as part of a 10-year collective bargaining proposal.

“We think this is virtually the best shot we think we have to both demonstrate to the players our good faith (and) our desire to go as far as we can to avoid a lockout,” Stern said after a 3 1-2 hour bargaining session among members of the owners’ labor relations committee and the players’ executive committee.

Stern stopped short of saying this was the owners’ final offer, but added, "The cupboard is getting barer and barer." The two sides agreed to meet again Friday in Manhattan.

“We wanted to make sure that we laid it all out there,” Stern said. “It’s all out there. The owners, to a person, feel that this is what we have to give and since we’re getting very close to June 30 – the last time I looked, it was about eight days away – that it was time.”

Billy Hunter, the executive director of the National Basketball Players Association, union president Derek Fisher of the Lakers, and executive committee member Chris Paul of the Hornets, however, minimized the owners’ gesture as simply another version of a hard cap – which Hunter reiterated was a “blood issue” for the union.

“We agreed that we would come back on Friday and present them with a response to what they presented us with,” Hunter said. “We want to go back, crunch some numbers, look at the system, and then we’ll respond on Friday. … We have an obligation to respond to what they gave us today.”

The essence of the system described by Stern was an NHL-style cap system with a targeted salary of $62 million per team and a to-be-negotiated range from a minimum to an amount above $62 million that teams could spend up to through various exceptions currently in place – such as the Larry Bird exception and mid-level exception. An escrow-like system would be used to adjust for teams coming in below and above the $62 million target. Unlike the current escrow system, through which 8 percent of players’ salaries is withheld and paid back if negotiated salaries fall short of 57 percent of revenues, Stern said owners would keep the escrow under the new system – making this, in effect, an 8 percent pay cut for the players in Year One.

In terms of the owners’ initial proposal of a $45 million hard cap, the latest offer from the league amounts to a $650 million move from their initial position. The basic structure of a 50-50 split of revenues – based on a modified formula with about $900 million in expenses deducted before sharing with the players – remains intact. The luxury tax would be eliminated under the owners' proposal.


NBA Labor
UPDATE: In another fire-and-brimstone analogy, Hunter dismissed the owners’ offer last Friday to relax their insistence on banning fully guaranteed contracts, essentially accusing them of burglary.

“We’ve had guaranteed contracts for almost 40 years,” Hunter said. “It’s almost like somebody walks into your house and they take something that belongs to you and then they want to sell it back. And you say, ‘Well, hell, it was mine from the get-go, so why the hell should I pay for it? And I didn’t authorize you to take it. And I never said it was available for you to take or use or abuse.”

A day that Stern had billed as an important moment in these labor negotiations began with the “modest” $500 million salary reduction proposal from the players. In addition to reducing their share of BRI from from 57 percent to 54.3, the players also enhanced their proposed formula for the revenue split on future revenue increases. The players previously proposed giving the owners more than 50 percent of revenues beyond the 2010-11 level of approximately $3.8 billion, and on Tuesday raised the ante and agreed to a more owner-favorable split on additional revenues.

Upon receiving that offer, the owners convened for a lengthy private meeting during which Stern said they agreed to put forth “what we think is a very significant offer to the players in order to avoid a work stoppage.” The new system, Stern said, would result in an average salary in the NBA of $5 million.

“Since we had one more move to make, we thought we would make it and let them know where we were prepared to go,” Stern said. “… I think that the players know where we are. The owners have decided to give what they possibly could.”

The committee was unanimous, Stern said, including members who were not present but gave their approval – Glen Taylor (Timberwolves), Mark Cuban (Mavericks), Clay Bennett (Thunder), and Wyc Grousbeck (Celtics). The members present were Robert Sarver (Suns), Dan Gilbert (Cavaliers), James Dolan (Knicks), Jeanie Buss (Lakers), Larry Miller (Trail Blazers), Bob Vander Weide (Magic), and committee chairman Peter Holt (Spurs).

In addition to the players’ executive committee members in attendance, also on hand were Tony Parker (Spurs), Al Horford and Zaza Pachulia (Hawks), and Sebastian Telfair (Timberwolves).

Deputy commissioner Adam Silver denied a CBSSports.com report that there were different agendas and priorities among owners based on market size and revenue. But the flex cap offer made by the owners Tuesday seemed to be a victory for high-revenue owners and the trend of forming superteams. Both would’ve been reined in by the original (and highly unrealistic) $45 million hard-cap system that owners initially proposed in January 2010.

The sliding salary band for teams, which essentially sets a league-wide cap with flexibility to deviate on a team-by-team basis above and below the $62 million target, also would put the onus on teams that have been reluctant to spend much above the current minimum payroll to spend in the hopes of enhancing their ability to compete.

“We believe as a league that there’s no question the data shows a correlation between salaries and success on the court,” Silver said. “And what we’ve said to them is we want a league in which all 30 teams can compete for championships. As another byproduct of that, it will raise more revenue, because greater competition will mean better business, for us and the players.”

But the players clearly view the owners’ latest proposal as little more than nuanced hard cap, which they adamantly oppose.

“It’s been characterized in different ways, but essentially they want to create a hard salary cap in our game, and we just don’t see it,” Fisher said.

Asked if there can be a deal with a hard cap, Fisher said, “No.”

It will be interesting to see if the players come back with a counterproposal within the flex-cap framework. Don’t bet on it. But for the sake of argument, while it may be intuitive to think the players would want a wide salary range, a smaller range actually would be better for players – because more teams would be willing to exceed the target than exceed the minimum. That’s the part of the problem that changing the cap formula won’t address without more revenue sharing, which owners have thus far refused to collectively bargain.

In order for there to be a deal by June 30, Hunter said, “Someone someone has to make a big move.”

Otherwise, the room will go dark again and the next move will be a lockout.
Posted on: June 17, 2011 8:02 pm
Edited on: June 18, 2011 12:28 am
 

Stern: Tuesday is turning point in labor talks

NEW YORK – NBA commissioner David Stern declared Friday that an unofficial drop-dead date is looming next week in the accelerating negotiations to prevent a lockout.

“Tuesday is a very important day in these negotiations,” Stern said after emerging from a 4 1-2 hour bargaining session in which progress was in the eyes of the proposer.

Stern touted what he described as a “very significant” concession that was proposed Friday in which owners backed off their insistence on eliminating fully guaranteed contracts. The players, however, did not view this as a major step forward in the negotiations, saying the owners remain entrenched in their position to slash player salaries by as much as $700 million annually – and that owners have the ability under the current system to offer contracts that are less than fully guaranteed.

“They moved to giving us back guaranteed contracts, which we already had,” said Wizards guard Maurice Evans, a member of the players’ executive committee. “That’s not a move. How can you call that a move?”

However the latest twists and turns are viewed by either side, Stern left no doubt that an expanded bargaining session scheduled for Tuesday in New York – featuring a larger contingent of owners and players, and also player agents, who will be key to signing off on any deal – would be crucial to determining whether there is enough momentum to complete a new labor deal before the current one expires on June 30.

“I really think that the time to have an optimistic or pessimistic view is at the close of the day on Tuesday,” Stern said.

At the end of a nearly 20-minute briefing with reporters Tuesday night in a conference room of the Omni Berkshire Hotel, Stern answered “yes” when asked if a breakthrough was needed Tuesday to assure there would be enough time to get a deal done. The key sticking points remain the negotiated split of revenues that would be paid to the players and the system by which the money would be delivered – a hard cap, which the owners remain insistent upon, or a soft-cap system that more closely resembles the rules already in place.

“If we made a big breakthrough on one or the other, we would have such positive momentum that we could, I think, look forward to a faster track than we’ve been dealing with,” Stern said.

In addition to Stern, deputy commissioner Adam Silver, National Basketball Players Association executive director Billy Hunter and legal staff from both sides, Friday’s bargaining session included nine members of the owners’ labor relations committee, the players’ executive committee (including Hornets star Chris Paul), as well as Knicks star Carmelo Anthony, Bucks guard John Salmons, and Timberwolves guard Sebastian Telfair.

“I would say we’re not on the same page right now, but there’s some good conversation going on,” Anthony said. “Both sides are trying to come to an agreement.”

The logistics surrounding Tuesday’s bargaining session in New York leaves little doubt that it will be a turning point in a process that formally began with the owners’ initial proposal in January 2010, just prior to All-Star weekend in Dallas. League executives will be in New York for Thursday night’s draft, and dozens of players will be in the city for the NBPA’s annual meeting. Stern hinted that if enough progress were made Tuesday, the session could be extended by several days – perhaps even into the weekend – as the clock continues to wind down toward the June 30 deadline to avoid a lockout.

“Even though the clock is ticking and the runway is shortening, we think that it’s worth our time and effort to go back to our individual offices and do a lot of crunching of numbers and ideas and to return on Tuesday,” Stern said. “… We're hoping that we will receive from them a proposal directed to the economics.”

As a matter of timing and logistics, Silver announced that the league would be canceling Las Vegas Summer League this weekend – though the move is not meant to send any signals to the players.

“It was purely a function of the calendar and drop-dead dates with hotels and the arena,” Silver said.

Stern said the owners’ decision to back off their insistence on eliminating fully guaranteed contracts as part of the 10-year deal they’ve proposed was in response to a presentation from the players and their attorney, Jeffrey Kessler, about their insistence on protecting such guarantees.

“Of all the issues, the guarantee is one that is very, very important to individual players,” Stern said, describing what was conveyed to the owners and their lead negotiators during the presentation.

This must have been music to the owners’ ears, because their priority from the beginning has been to reduce player salaries by at least one-third. The method of delivery – via a hard cap with shorter and less guaranteed contracts – would seem to be a secondary issue to the overall dollars. Based on the players’ current 57 percent share of revenues, they would go from $2.1 billion to $1.35 billion under the owners’ original proposal – the basic structure of which remains in place, according to multiple sources familiar with the negotiations. That’s a reduction of about $750 million annually, regardless of whether the money is guaranteed or not.

“It’s not as big a move as it would have been if the hard cap was not linked to it,” Kessler said of the owners’ revised stance on guarantees. “That really undermines, from the players’ standpoint, what it means. … They didn’t move on hard cap, that’s for sure.”

Said Evans: "We’re far apart. They’re still negotiating from their proposal from two years ago, and we’re negotiating from the current system we have."

But Stern disputed the notion that the owners have not moved from their original demands on salary reductions, though he declined to get into specifics. And sources said the owners expressed for the first time Friday a willingness to discuss with the players how they would be paid in the “out years” of their proposal – meaning the seven years after a three-year transition period owners have proposed to soften the blow of these drastic cuts.

“There’s been considerably more movement from our first proposal than you understand,” Stern told reporters.

In addition, Silver said the players made a move in their position Friday in terms of how much of basketball-related income (BRI) they would be paid under a new agreement. But he added, “Even they would characterize (the move) as having been very small.”

Part of the problem for the players, aside from how much of a pay cut they are willing to accept, is computing how the new structure would work out for them if revenues rise, as the NBA is predicting they will. When the two sides reconvene next week, the apparent willingness on the owners’ part to negotiate how rising revenues would affect player salaries in the final years of the deal could represent a far more significant development than their decision to back off on the idea of eliminating guarantees.

For example, owners could incentivize the players to accept a revised computation of BRI that increases the players’ share as revenues increase. But the owners’ projections of rising revenues are based on rules that have never been in place, making it difficult for the players to trust the projections.

“We can’t talk about one part in a vacuum because it impacts the entire system,” NBPA president Derek Fisher said of the owners’ reversal on banning fully guaranteed contracts. “We haven’t been, or at this point are inclined to say whether that’s a huge thing. Because without other things, it doesn’t mean much.”

How much is at stake next week? If you liken the negotiation to a million-piece jigsaw puzzle, all parties involved admitted that two or three key pieces need to be in place by the end of the day Tuesday.

“One piece controls several hundred thousand pieces,” Fisher said. “So essentially, we could put together a million-piece puzzle in a very short time if we can get two or three pieces in the right place. And that’s what we're focused on doing.”
 
 
 
 
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