Blog Entry

Stern: Will be 'challenge' to avoid lockout

Posted on: May 31, 2011 9:42 pm
Edited on: May 31, 2011 10:15 pm
MIAMI – NBA owners and players will meet Wednesday for a “full-blown bargaining session” in the hopes of gaining momentum toward a new collective bargaining agreement before a lockout is imposed July 1, commissioner David Stern said Tuesday night.

In his annual pre-Finals media address, Stern said it will be a “challenge” for both sides to move off their current positions in time to avert a work stoppage, the threat of which already has begun damaging the business.

“The question is whether the owners and the players will be bold enough to do what has to be done here to keep this sport on the tack that it is on now, which is straight up,” Stern said.

Two bargaining sessions already had been scheduled for next Tuesday and Wednesday in Dallas during the Finals, but Wednesday’s session in Miami was added after the National Basketball Players Association introduced what Stern described after his media address as a new “concept” last week. Stern described the status of negotiations as a “give and take,” and said the players haven’t submitted a formal counterproposal to the owners’ revised proposal, which was handed over in April.

"We told the players and the owners to bring their negotiating talents to South Beach," Stern said.

Stern said the players’ new proposed concept addressed one of the key issues the owners are trying to resolve in their efforts to vastly change the financial landscape of the sport in favor of the owners. Asked after his media address if the players’ new concept moved the negotiating needle, Stern said, “We have a deal that nothing moves the needle until the moved the needle is moved. We have no agreement on anything until there’s agreement on everything.”

During a Q&A with assembled media before Game 1 between the Heat and Mavericks, Stern declined to offer a percentage chance of a lengthy lockout. He also was asked to compare his feelings on that topic to how he felt during All-Star weekend in February.

“I can’t answer that,” Stern said. “I don’t even want to make guesses, because I know that both sides will make their best offers before the lockout – because if they don’t, then there’s going to be a lockout that would be destructive to our business from the owners’ perspective and the players’ perspective.”

Progress made last week in a small negotiation session in New York was “encouraging enough that we think tomorrow is time well spent and we think the two days next week will be well spent," Stern said.

Asked after his media address why he’s so confident a worse deal would be struck after July 1, Stern said, “Because the damage gets to be intense from our perspective. We know the deal can get worse.”

Asked for whom it would become worse, Stern said, “For the players. And to us, the deal will get worse for the owners. So we’ve got to decide to focus fully on how bad it will be after July 1. So June 30 is a really important date.”

Stern and deputy commissioner Adam Silver were asked several times about whether a new CBA would require a team like Miami – with three stars on the books for $46 million next season – to be broken up. The owners have proposed a $45 million hard cap to replace the current soft-cap/luxury tax system. Their revised proposal offered to phase in those changes over a two-year period, a person with knowledge of the negotiations told But the union viewed that offer as not much of an offer, since such drastic changes would have to be phased in by definition without across-the-board salary cuts, which the players will never accept.

Pressed on the issue of what happens to the Heat in a new CBA, Stern said after his address, “That hasn’t really been addressed. But I would expect (the team) to be together. I hope so.”

But at one point, Silver made a comment that is expected to rankle the Heat stars and other top-tier players in an attempt to explain the economics of why owners believe the current system is broken.

“Costs have risen much faster than revenues over the course of this deal,” Silver said. “… At the same time, non-player costs are growing at a much higher percentage, and the built-in increases of our contracts are much higher than inflation and the growth of our business. For example, the three key players on the Heat all have 10.5 percent per year increases built into their deals for next year, at a point when revenues in our business are growing somewhere around 3 percent. It’s a broken system.”

When LeBron James, Dwyane Wade and Chris Bosh get wind of that comment, they could become as emboldened about fighting the owners as they were at All-Star weekend in Dallas in 2010. At that time, 10 All-Stars – including James and Wade – attended a bargaining session and were incensed that an NBA team executive had made derisive comments about them in telling that owners had the upper hand in the negotiations.

“If they don’t like the new max contracts, LeBron can play football, where he will make less than the new max,” the team executive said at the time.“Wade can be a fashion model or whatever. They won’t make squat and no one will remember who they are in a few years.”

In decrying the collectively bargained contracts Miami’s Big Three signed, Silver was taking aim at the team – and the three players – who were most responsible for the NBA’s astronomical increases in TV ratings and worldwide fan interest that is culminating with the Finals that tipped off Tuesday night.

The countdown to a real and important deadline to keep that momentum going is very much under way.

Since: Jun 1, 2011
Posted on: June 1, 2011 4:40 pm

Stern: Will be 'challenge' to avoid lockout

I say if players wont agree to a hard cap then they should place a performance clause in their contracts.  That is if players cant live up to the contracts they are being paid for, the owners should be able to opt out of the contract.  There are a lot of players in the NBA that does not live up to the amount of money they are getting paid for. For example Biedrins of the GS Warriors is getting paid 9million per season and is not worth a single penny based on his production.  Owners should be able to opt out of that contract based on poor performance.

Since: Jan 8, 2008
Posted on: June 1, 2011 3:22 pm

Stern: Will be 'challenge' to avoid lockout

Here is one person rooting for the NBA to shoot themselves in the face.

Since: Jan 1, 2010
Posted on: June 1, 2011 11:56 am

Stern: Will be 'challenge' to avoid lockout

I don't think a $45.0MM cap is the right number, as that is an average of $3.0-$4.0MM per player, but a salary cap is needed.  I'm all in favor of the lockout and cap if it means better prices to the fans.  It seems like the NBA has priced itself out of the market, and you have to have unlimited funds, or corporate tickets to go.  A $60.0MM cap, with a 5-year max contract, and maybe only 75-80% of the money guaranteed seems like a better start.

Since: Oct 29, 2007
Posted on: June 1, 2011 11:51 am

Stern: Will be 'challenge' to avoid lockout

It would be very sad to watch the momentum the NBA has achieved lost.  As a big fan, I watch virtually every night and admire the athletic skills of the players.  You have those like Rose who are classy.  On the other hand, I won't have to watch Bosh and James screaming like banchies after each win.

Since: Sep 17, 2007
Posted on: June 1, 2011 11:11 am

Stern: Will be 'challenge' to avoid lockout

THere won't be an NBA season next year...If there is, the best will be a Jan or February start.  Both sides have dug in and I just don't see a 45 million hard cap ever happening and I also don't see the owners giving in too much on that.  20 teams lost money.  Why do it if you are going to lose money?  I guess you could say...just don't offer them that much money...but then you will get MLB...where you get 4 or 5 teams spending all the cash and the rest never smeling the playoffs.  Huge problems in teh NBA

Since: Dec 14, 2006
Posted on: June 1, 2011 8:44 am

Stern: Will be 'challenge' to avoid lockout

I'm just curious how the owners and player's union will address the collusion issue of James and Bosh joining Wade in Miami.  Both James and Bosh left money on the table, operating outside the union to play together.  

Since: Feb 16, 2007
Posted on: June 1, 2011 8:10 am

Stern: Will be 'challenge' to avoid lockout

a lockout is inevitable!  i read some comments by derrick fisher (a union rep) that made me want to label players of nba the same as players in nfl.  greedy & don't care about what's best for the game or league.  Players in every major sport are paid too much & they seem to feel like they should be paid more.     

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