Tag Archives: David Stern

NBA Collective Bargaining Update

Reports are coming out today that there was at least measurable progress made during negotiations between the league owners and players union. The players were less enthusiastic of the progress than the owners, but that is to be expected. Any concession made by either side will be played up by those who conceded and downplayed by the other side – that’s how labor negotiations work.

The owners reportedly backed off their original demands for non-guaranteed player contracts. In my extensive breakdown of the CBA negotiations a few days ago, I predicted this to be the area the owners are most likely to concede.

The owners are still adamantly demanding a hard salary cap and huge rollbacks of player salaries. Specifically, the owners have not backed off their demand of a 50-50 split of the basketball-related income (BRI).

The owners’ concession of non-guaranteed salaries is important for two reasons: 1) it shows progress in the right direction and 2) it will allow the owners to more easily prove they are negotiating in good faith – a possible legal issue if the players union decertifies. Continue reading

Advertisements

NBA Collective Bargaining Agreement – Part Two

Introduction

If you have not read NBA Collective Bargaining Agreement – Part One, I suggest you read it first. Much of the discussion in Part Two will build off the information from Part One.

Now that we understand from where the current Collective Bargaining Agreement came, we can begin to discuss the motives of both the owners and players.

A lockout is a tool used by owners in collective bargaining. By locking the players out of the facilities, the owners gain leverage in negotiations. If players are not allowed into team facilities and subsequently games are canceled, the players do not receive pay checks. This tactic theoretically will induce the players to meet the owners’ demands. However, the owners are not the only ones with leverage. By canceling games, the owners are not getting ticket revenue, which is detrimental to their bottom line. The truth is that owners are much more prepared financially to sustain an extended work stoppage than the players. This assertion can be supported simply by seeing to what extravagant lengths Dallas Maverick’s owner, Mark Cuban, is going when celebrating his recent NBA title. Owners are wealthier than players. Owners have other investments which will allow them to “scrape by” in case of a lockout. The players, however, do not have as diverse portfolios as owners. Although several NBA players have lucrative endorsement deals, many players rely simply on their NBA salaries, which in comparison to the owners’ bank accounts are minuscule. Continue reading


NBA Collective Bargaining Agreement – Part One

Billy Hunter, executive director of the National Basketball Players Association, and David Stern, NBA Commissioner, answer questions about the pending labor negotiations during the NBA Finals.

Introduction

“I heard the NBA is going to have a lockout, but I am not sure what that means or why it’s happening.”

A similar thought has probably crossed your mind throughout this season. However, if you are like me, you have tried to block out any thoughts of a lockout because of the Thunder’s amazing postseason run and overall awesomeness of the 2010-2011 NBA season. Now that the season has concluded, this will be the prevailing topic on which the media focuses this summer (certainly so after the NBA draft). The Thunder likely will not make any big splashes on draft night (although you never know with Mr. Presti running the show), so the big question hanging over the heads of Thunder fans is “will there even be a 2011-2012 season?!”

I wish I knew the answer to this question. My gut feeling is that there will be a lockout and it will last into training camp and pre-season, but a deal will get done before any regular season games are missed. However, your guess is as good as mine at this point. The purpose of this article is to give Thunder fans some context to collective bargaining negotiations, so that you can better understand the ever-evolving and complex situation. First, you must understand how we got to this point. Continue reading