Stern: Deal or despair by Tuesday
Posted on: October 13, 2011 5:49 pm
Edited on: October 13, 2011 11:18 pm
NEW YORK -- Setting another arbitrary deadline for more lost games, NBA commissioner David Stern said that without an agreement on a new collective bargaining agreement by Tuesday, he fears there will be no games on Christmas Day.
"It's time to make the deal," Stern said, speaking deliberately and threateningly Wednesday in an interview on New York's WFAN radio. "If we don't make it on Tuesday, my gut -- this is not in my official capacity of canceling games -- but my gut is that we won't be playing on Christmas Day."
Tuesday is the day the league and players' association will meet with federal mediator George Cohen in an attempt to resolve their differences before more games are canceled.
"Deal Tuesday, or we potentially spiral into situations where the worsening offers on both sides make it even harder for the parties to make a deal," Stern said.
Stern confirmed that negotiating committees for the league and National Basketball Players Association will meet separately with Cohen on Monday and then will convene for a bargaining session under Cohen's supervision Tuesday. Why the deadline? Stern's Board of Governors is scheduled to meet in New York Wednesday and Thursday -- first for the planning committee to present its revenue sharing plan and then for a full board meeting.
Asked when more games could be imperiled after he canceled the first two weeks on Monday, Stern said, "I don't have a date here sitting at my desk. But if we don't have a deal by the time the owners are in, then what's the purpose of us sitting around staring at each other on the same issues?"
Sources familiar with the mediation process told CBSSports.com that Cohen at first wanted to hold bargaining sessions at his Washington, D.C., office beginning Tuesday and continuing for the rest of the week. With owners headed to New York for the board meetings Wednesday and Thursday, that wasn't possible.
"We have owners meetings Wednesday and Thursday," Stern said later in another interview on NBA TV. "Each side’s going to meet with the mediator on Monday, and if there’s a breakthrough, it’s going to come on Tuesday. If not, I think that the season, you know, is really going to potentially escape from us because we aren’t making any progress."
Pressed by interviewer David Aldridge, Stern said, "How many times does it pay to keep meeting, and have the same things thrown back at you? We’re ready to sit down and make a deal, and I don’t think the union is. But hopefully on Tuesday, aided by the mediator, they’ll be ready to make a deal. And certainly, I’ll bring my owners ready to make a deal. Unlike Billy Hunter, you’ve never heard me say something is a 'blood issue.'"
Hunter, who appeared Wednesday on WFAN -- the nation's largest sports talk station -- was traveling Thursday to Los Angeles, where he will meet with players Friday to update them on the bargaining status.
In a work stoppage known more for catch phrases and YouTube moments than compromise, this will go down as Stern's "Grinch" moment. Placing that much importance on the first sit-down bargaining session with a mediator who has no binding authority felt like a negotiating tactic more than a realistic deadline or threat.
But in responding to assertions made a day earlier on WFAN by union chief Billy Hunter, Stern did by far his most effective, convincing job yet of laying out the owners' vision for a new system that would shrink payroll disparity and enhance competitive balance in a new CBA.
In meticulous, lawyerly fashion, Stern skewered the union's bargaining stance on the key system issues standing in the way of a deal -- the type of cap system and contract length. He also took Hunter to task for his characterization of a 50-50 split of revenues that had been discussed in informal side meetings during a key bargaining session on Oct. 4 -- calling it an idea first broached by the players and saying Hunter's characterization of it "caused my head almost to explode."
"The first time 50 percent was uttered was several weeks earlier, by the players' negotiator (Jeffrey Kessler), who said it's not an offer, it's a concept," Stern said. "He said it's a concept if everything else stays the same. And we said, 'No, no, no, no.'"
Stern said when each side was in its respective room during the Oct. 4 session, there was a knock on the door.
"It was Derek Fisher, the president of the union, and Jeff Kessler, the lead negotiator, who probably does 70 percent of the talking for the union," Stern said. "And they asked us to come out into the hall, where I went with Peter Holt, the head of the labor relations committee, and Adam Silver, who's really our lead negotiator.
"Without trying to pin it on anybody in particular, all the parties to that conversation agreed that we would go back to our respective rooms and each promised to try to sell a 50-50 split," Stern said. "We were in the process of selling it, and there was a knock on our door. Kessler and Derek Fisher asked us to come into a room where they were with three other players -- not Billy -- and they said, 'We can't do it. We can't sell it.' And we said, OK, we get it.' Now it strikes me as strange that the union and the chief negotiator are being left out there because Billy wasn't in the room? I'm sorry."
Union sources have given a different account of the side discussions, saying the league at one point offered to try to sell a band of 49-51 percent for the players, while the players countered with a band of 51-53 percent.
"It was actually a union-initiated proposal, and it didn't fly, OK?" Stern said. "But Billy's ... you may have to have both of us in tomorrow with lie detectors."
In any event, Stern now considers the two sides to be six percentage points apart on the split of BRI, with the players asking for 53 percent -- a $1 billion concession over six years from their previous guarantee of 57 percent -- and the owners offering 47 percent. Stern made it clear that he believes the economic deal to be made is 50-50.
"When one side is at 53 and the other side is at 47, you have an idea of where this is going, OK?" Stern said.
While Stern's motivation to put another threat of canceled games out there was clear -- negotiating leverage -- it's unclear why he waited this long to give a thorough, persuasive summary of the system changes owners are seeking.
"If you live in a market where you have a perception as a fan that it's only open to the rich teams to have the best players, then you're starting out in a bad place," Stern said.
On negotiations over the type of cap system, Stern said, "We proposed to the players that every team have the same amount available (to spend). That's what the NFL has. And the union said, 'No way. That's a blood issue.' So we said, 'All right, all right, you know, good ol' softees that the owners are, how about the flex cap like NHL has, where you agree upon a band between $52 million and $68 million -- because you can compress the difference? And they said, 'Blood issue. That's still a hard cap at the high end. Why don't you propose a punitive tax?' We said, 'OK, we'll propose a punitive tax.' And we did."
Stern described in detail how the owners' latest luxury tax proposal would work: It would tax teams $1.75 for every dollar of the first $5 million over the tax threshold, with 50 cents added for each additional $5 million. So a team spending $20 million over the tax would be charged $65 million, compared to the $20 million it cost under the dollar-for-dollar tax system in the previous CBA. The players on Monday rejected the owners' luxury tax plan because it was so punitive, it would effectively serve as a hard salary cap.
The league also wanted to impose even stiffer penalties for teams that failed to come out of the luxury tax after a period of time -- repeat offenders, so to speak.
"We really have been reaching for the union here," Stern said. "... If anyone thinks we wanted to miss a single game, they are wrong."
UPDATE: In the NBA TV interview, Stern asserted that near the end of Monday's bargaining session, the union's tax proposal worsened from a $12.5 million tax on $10 million to $11 million.
"It was clear that they weren't ready to make a deal," Stern said. "And we didn’t know what else to do."
Stern didn't mention the aspect of the league's proposal that would forbid tax-paying teams from using the Bird exception to retain their own free agents, but did reveal that the league proposed a so-called "Super Bird" exception whereby teams could re-sign one designated free agent for a maximum of five years. Other contract lengths would be capped at four and three years under the league's proposal. Previously contracts could be no longer than six years for free agents who stayed with their teams and five years for those who left. The union has offered to cap contract lengths at five and four years, respectively.
"I was a participant in developing the Bird exception in 1983, so it doesn't break my heart to see it continued," Stern said. "But frankly, our owners went into this thinking that it was better to eliminate it so that teams could only keep certain players and the rest would be available to other teams."
Stern's spin on the league dropping its insistence on eliminating guaranteed contracts and rolling back existing ones was that, "We were anxious to save the season and make a deal." While the provision forbidding tax-payers from retaining Bird free agents would result in many of those players leaving their teams -- which is exactly what the exception was created to prevent -- he said the Super Bird provision would be "better for the players."
"The very good players will keep getting raises and new contracts, and the others, the money that becomes available by the expiration of the four- and three-year contracts will be available to the performers," Stern said. "That's what we call pay-for-performance. The union is not in accord with our view. They want longer contracts."
The luxury tax penalties and contract lengths will be the two most divisive issues when the parties meet with the federal mediator next week, Stern said.
"We really want the union and us to explain ourselves to a federal mediator," Stern said. "It may be that in the act of explaining, we will get a better reality check -- maybe of our proposals and our willingness, I accept that -- and maybe of the union's. We'll just see how that works out. So that's why, in some measure, both sides embrace the arbitrator."
Category: NBA
Comments Add a Comment
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Common Censure |
Posted on: October 13, 2011 7:59 pm
Stern: Deal or despair by TuesdayEvery single one of my friends and I are rooting for a season long lockout. Why? Because the NBA is a JOKE! If I want to watch blacktop ball I can drive to the nearest ghetto and watch fools play one on one while everybody else on the court stands and watches. With no NBA games to watch the country would be focused on the college game where the true excitement and heart is!!!!!
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Rocktpwr |
Posted on: October 13, 2011 7:59 pm
Stern: Deal or despair by TuesdayTime to face up and pack it in, Stern. We won't have a season and in regards to not having a lame Christmas game this year...no one cares
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pendejo33 |
Posted on: October 13, 2011 7:49 pm
Stern: Deal or despair by TuesdayYes each day we get close and closer to ending this ghetto ball league
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MisterNascar |
Posted on: October 13, 2011 7:46 pm
Stern: Deal or despair by TuesdayComcast got out of the game in Philly owning the team and all the TV Rights... Whats that tell you?
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Kingratt |
Posted on: October 13, 2011 7:45 pm
Stern: Deal or despair by TuesdayRight on. Stern has ruined the NBA and the union is a joke. Why do they need one if the players negotiate individual contracts and collude in the case of James, Wade, and Bosh to play on the same team.
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ChgoBhawks |
Posted on: October 13, 2011 7:43 pm
Stern: Deal or despair by TuesdayWho cares!!! Basketball players are a bunch or overpaid babies. |
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hitnruni95 |
Posted on: October 13, 2011 7:32 pm
Stern: Deal or despair by TuesdayThe difference between the basketball and football lockout (besides that fact many more people enjoy football) is pretty simple - only the most die hard hoops fans really care about regular season basketball.
The games don't matter, as in football. There are no traditions of "opening day," "opening series," and unlikely spring hope, as in baseball. There is no gauntlet to run to get into the tournament where anyone can win, as in hockey. The teams with a chance to win in the NBA are almost always penciled by Christmas, and never really struggle until the conference championships. That being the case, why should anyone care about a shortened season? It's not going to hurt the product any. As a matter of fact, it'll probably improve it by helping older players stay healthy. |
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cliffordc051 |
Posted on: October 13, 2011 7:21 pm
Stern: Deal or despair by TuesdayIt seems obvious that a hard cap is necessary for competitive balance in a professional league. The NBA has several problems as it attempts to institute a hard cap similar to the NFL. Local cable television revenues create the greatest gap in professional sports between the rich big market teams and the remainder. This is the result of the NBA not having a solid national television package until the advent of cable and the development of local deals before a solid national television agreement was reached. Baseball has a similar problem with revenue disparity. In baseball, good management, shrewd drafting, and the occasional free agent signing allows small market teams to make up this difference to a certain degree.
Basketball has fewer players and one superstar can make a greater impact than any single player in baseball. Players in basketball are now negotiating among themselves as to where they will play. If the players do not recognize the long term harm that the loss of competitiveness does to fan interest, then they are not just short sighted but stupid. I feel both sides are being led by incompetent leaders. David Stern is a disgustingly short sighted inept commissioner. Jeff Kessler seems to think he is leading the civil rights movement all over again. Its basketball folks. Remember that it is just ahead of hockey in the American fans' choice of professional leagues. |
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mcwald20 |
Posted on: October 13, 2011 7:04 pm
Stern: Deal or despair by TuesdayAppears no one is missing this. I listen to talk radio. When NFL was on strike, people were in a panic. No real commentary on this strike.
College BB is a good game on TV and in person, no one really missing the NBA |
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VillageIdiot |
Posted on: October 13, 2011 6:57 pm
Stern: Deal or despair by TuesdayAwesome comment. So true.
Stern, no one cares, and no one wants updates. Fold it up. Call it a day. |




