NBA Labor Issue

SoonerBounce13 said:
espn said last night that 50/50 was talked about but never offered. The owners current offer is still 47%.

What happens to the current contracts? Does the lockout season count?
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Thats probably where it should be... the current contracts would be honored or something would have to be worked out... I know its just not that easy. But I dont think the players will suffer too much!
 
brimmbball said:
Another reason for the demise of the American Economy. You can't run any business that way. The owners should make more money, they are "putting up" the 100's millions of dollars for the team, building, etc...

I really dont like the argument of a new league being formed, it would take years to form a new league and the owners are smart enough to know they couldnt do that, its unreasonable.
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Actually, all it takes is cooperation from the players. Everyone agrees to play in the same city for the same amount they would make. Get a venue, enter into a television contract, hire officials and get coaches. You are done. You have a new league and could start play in one month. It is much easier than you think. Regardless the new league is never actually going to happen, you just have to push the bluff really hard and be prepared to actually do it if the owners don't cave in the negotiation. The owners simply cannot risk that a new league is formed. They will have no choice but to concede to some of the demands of the players. Once they conceded to some of the demands, the players must concede some too. Then you have a deal.
 
The owners would laugh the players out of the room if they threatened to form their own league.
 
DenverSooner said:
Actually, all it takes is cooperation from the players. Everyone agrees to play in the same city for the same amount they would make. Get a venue, enter into a television contract, hire officials and get coaches. You are done. You have a new league and could start play in one month. It is much easier than you think. Regardless the new league is never actually going to happen, you just have to push the bluff really hard and be prepared to actually do it if the owners don't cave in the negotiation. The owners simply cannot risk that a new league is formed. They will have no choice but to concede to some of the demands of the players. Once they conceded to some of the demands, the players must concede some too. Then you have a deal.
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That simple? Tv deals take months to work out, maybe years... Who is going to pay the players, esp the ones who are on a team that is LOSING money every year? Attorney's, accountants, payroll, concession workers, finding arenas, ticket people, PR people, Dr's, trainers, Coaches, Laundry folks, New uni's, shoes, announers, etc. etc... The list is endless,

If it were SO easy, why havent they proposed it? How is the AFL doing? How aout the XFL, CBA? etc.. the leagues that have started and failed is endless...

The players will crumble when those cars, houses, etc and the repo men start showing up...
 
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Neither side would like it, but it is really very simple I think: Establish an accounting method, and require it league wide. Require Teams to limit team payrolls to within 10 percent of a league established percentage of gross revenues of the team in the previous year (with gross revenue being defined by the league). In short, require all teams to operate at a profit and don't allow any to lose money, except on a one year basis.

This would require all guaranteed contracts to be subject to reduction on a pro rata basis as and if team revenues fall. Thus, if a team's revenue falls in one year, all of the players make less money -- still guaranteed, just less.

So as not to impair existing contracts, this system would have to be phased in over the next few years.

In the future, limit contracts to 4 year deals max and mandate they are subject to the league profit system.

In short, don't let some owners be stupid even if they are of a mind to be stupid or are stupid. Don't let any player have the leverage to get an unmanageable long term contract that dooms a team to lose money for years and be unable to fund a competitive team from year to year. Keep some semblance of the graduated pay scale for rookies and first contract players.

Look, every McDonalds restaurant doesn't get to do it their own way, or account or price the way they want. The league just needs to determine a fair way to make every team make a decent profit, and within that system, pay players whatever they can negotiate. The issue is flexibility in players salary from year to year and owners being prevented from both losing money and excessive profit taking on a year to year basis.
 
boksooner said:
A good accountant can make almost any company or organization look like it is losing money. It is all in how you recognize expenses and revenue.

I have heard several analysts that are suspicious of the accounting practices of many of the teams.
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I understand that... even if it 7 or 8 thats too many... No one in the NBA should lose money... If its done right!
 
boksooner said:
A good accountant can make almost any company or organization look like it is losing money. It is all in how you recognize expenses and revenue.

I have heard several analysts that are suspicious of the accounting practices of many of the teams.
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Not only this but the league won't open the books. If things are as bad as they claim let the players see the cash expenses.

In addition the owners are trying to use the past 2 years as the baseline which is bogus. Only a couple times a century does the country fall off a cliff like it did under Bush.
 
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A: It's not the players fault that they got offered 57% last time. The owners offered it.

B: With the players offer to cut to 53%, the savings from the 4% decrease would cover the owner's "losses" under the owners own accounting standards.

C: Yes, NBA players are rich, but the owners are wealthy. Huge difference.

D: If you believe that the owners are losing money, go check out Grantland.com. They did a great article about the Nets. One of the teams that is "losing" money.
 
brimmbball said:
That simple? Tv deals take months to work out, maybe years... Who is going to pay the players, esp the ones who are on a team that is LOSING money every year? Attorney's, accountants, payroll, concession workers, finding arenas, ticket people, PR people, Dr's, trainers, Coaches, Laundry folks, New uni's, shoes, announers, etc. etc... The list is endless,

If it were SO easy, why havent they proposed it? How is the AFL doing? How aout the XFL, CBA? etc.. the leagues that have started and failed is endless...

The players will crumble when those cars, houses, etc and the repo men start showing up...
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Any one of hundreds of Billionaires would finance the new league as would corporations. China would probably finance it. You miss the point. You don't actually have to form a new league, you simply have to start forming a new league. Once the owners realized it was a real possibility they have to change their position. Once the owners change their position, then the negotiators for the players have to also change their position in a way that is favorable to the owners.
 
bocabull said:
The owners would laugh the players out of the room if they threatened to form their own league.
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Perhaps publicly but behind closed doors the owners would realize that the players could find new billionaires to own the new teams. The owners are vulnerable if the players are not under contracts. If you can't see this, you are not looking.
 
DenverSooner said:
Perhaps publicly but behind closed doors the owners would realize that the players could find new billionaires to own the new teams. The owners are vulnerable if the players are not under contracts. If you can't see this, you are not looking.
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:facepalm
 
DenverSooner said:
So claim the owners. However, they continue to sell the teams at a profit. Do you think the guys in OKC purchased the Thunder to lose money? Seattle was "losing" money; however, the guy that owned the franchise made a bundle on the sale.
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Sonics were bought for a cool 350 million.
 
DenverSooner said:
So claim the owners. However, they continue to sell the teams at a profit. Do you think the guys in OKC purchased the Thunder to lose money? Seattle was "losing" money; however, the guy that owned the franchise made a bundle on the sale.
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Right. Usually when there is a discussion about the state of financial affairs, one takes equity value into consideration. Especially when we are talking about owners of a business. David Stern and the NBA want us to ignore that.
 
Tony said:
Right. Usually when there is a discussion about the state of financial affairs, one takes equity value into consideration. Especially when we are talking about owners of a business. David Stern and the NBA want us to ignore that.
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My idea is a game changer in these negotiations.
 
I don't see it that way. I see it like having a pair of jacks in holdem and a flop of A, Q, 5 with no flush draw for the JJs. When you get bet into you better seriously think about folding. You absolutely cannot call. If you call you will face another bet on the next card and your hand probably isn't getting any better. So you fold or you put the person on a bluff and raise.
 
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