Tag: NBA hard salary cap


Only hope for NBA season is rational negotiations. Which is bad.


The courts are not going to solve the NBA lockout.

That’s where the process is headed after the union started taking steps to abandon its right to negotiate for the players. Anti-trust lawsuits will follow. Along with plenty of heated rhetoric from both sides.

Yet, only one thing can save part of an NBA season at this point — rational people resuming negotiations, something we have yet to see much of from either side. Still, that is the only hope for fans who want a 2011-12 NBA season.

It could happen; there are plenty of smart people who have predicted these talks would come down to the first week in January and the drop-dead date for a season to take place — just like happened in 1999. And some kind of season would be saved, just like then. It’s just hard to be even that optimistic right now.

League commissioner David Stern is right that the players’ plan to decertify the union, followed by anti-trust lawsuits against the league, is more negotiating tactic than long-term play. It certainly is all about leverage in negotiations, unless you think the players are willing to miss not only this season but the next one (and maybe the one after that) to take its anti-trust efforts all the way through the courts to a ruling (they are not). That’s more than $4 billion in lost player salary not to mention the legal fees. No way the players will push it that far.

This is a grab by the players at temporary leverage in the negotiations. They have felt powerless, backed into a corner with offers they didn’t like and ultimatums from Stern, so they finally reached for the one big weapon they had.

What happens now? Nobody knows. Not really. The goal of the union’s moves today was to throw uncertainty into the system, and it has done that. We know there will be anti-trust lawsuits, we know the sides will sling verbal arrows at each other, but after that this is unpredictable.

Except that again, at some point, the owners and players will have to talk and negotiate a deal.

This decertification process is basically what the NFL union did — however, the narrow rulings in that case don’t give us much of a picture for how the efforts will fare in the NBA. But in the end, the NFL is playing right now because its owners and players hammered out a deal at the negotiating table.

It’s the same for the NBA— this will be a negotiated settlement when all is said and done. The difference is NFL owners and players seemed more willing to compromise to make a deal (particularly the owners who do turn a profit in the NFL).

Right now no talks are scheduled and you can bet it will be weeks (at least) before the sides talk again. If when those talks start the owners stick with Stern’s promise to use a “reset” offer that gives the players less money and to put in a hard salary cap, then those talks were going nowhere.

But if the sides can negotiate from where they left off in their latest talks, they are fully capable of making a deal. They are not that far apart. There are philosophical and systematic issues, but they are solvable.

We just need some rationality. At some point. From somewhere. Anywhere.

David Stern calls union’s move “bad negotiating tactic”

David Stern, Adam Silver

UPDATE 3:58 pm: Here is commissioner David Stern’s official statement, released by the league:

“At a bargaining session in February 2010, Jeffrey Kessler, counsel for the union, threatened that the players would abandon the collective bargaining process and start an antitrust lawsuit against our teams if they did not get a bargaining resolution that was acceptable to them.

“In anticipation of this day, the NBA filed an unfair labor practice charge before the National Labor Relations Board asserting that, by virtue of its continued threats, the union was not bargaining in good faith. We also began a litigation in federal court in anticipation of this same bargaining tactic.

“The NBA has negotiated in good faith throughout the collective bargaining process, but — because our revised bargaining proposal was not to its liking – the union has decided to make good on Mr. Kessler’s threat.

“There will ultimately be a new collective bargaining agreement, but the 2011-12 season is now in jeopardy.”

3:35 pm: Minutes after the NBA players’ union held a press conference saying they would decertify, David Stern went on ESPN to decry the move and say it was a mistake by players that would cost the season.

Stern spun it so that it was the players who pushed the button, saying his side had put forth a fair labor offer that the players rejected. Here are the key points of Stern’s comments.

• Stern says this wasn’t really a surprise, that the union and its legal counsel have threatened this from the start. The league expected this, which is why they filed a pre-emptive lawsuit to try to cut it off at the knees. (That case is early in the process, and there have been no rulings.)

• Along those lines, Stern keeps calling decertification a negotiating tactic. Which it is. But by all indications (based on the owners’ actions) it is the one they feared.

• Stern again tries to appeal directly to the players, saying they should ask the union why they did this now. That has been his pattern for weeks, to use the media to talk directly to the players. He talks about the players’ missing paychecks a lot.

• Stern said they did not give the players an ultimatum. Yes, they did. A proposal where you say, “If you don’t take it, we’re going to make a much worse offer next time” is an ultimatum. And it’s that hardline, take-it-or-leave-it phrasing that doomed this process as much as anything else. Neither side has negotiated well, acting a lot more like 5-year-olds fighting over who gets to play with the Transformer toy.

• Stern is spot on with this comment: “If they were going to do this, maybe they should have done this a long time ago so we had a chance to save the season. But they seem hell-bent on self-destruction.”

• Man, Stern really hates NBA legal council Jeffrey Kessler. It’s palpable. And by all accounts mutual.

Video: NBA players announce plans to decertify union

Derek Fish of NBA players association speaks during news conference to reject NBA's latest offer in New York
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Here is the video of union leaders Billy Hunter and Derek Fisher, backed by about 50 players, announcing they are rejecting the NBA’s latest offer and planning to decertify the union.

Watch the NBA season fade away right before your eyes. Enjoy.

Players vote to reject offer, decertify union. Season likely doomed.

NBPA Meet To Discuss Current CBA Offer

This is Armageddon. Nuclear winter is upon NBA fans.

The players got together in New York on Monday and not only voted to reject the league’s ultimatum offer, but voted to start the process to decertify the union.

“We’ve arrived at the conclusion that the collective bargaining process has completely broken down, and as a result in the last hour we have served a notice of disclaimer on (David) Stern and the NBA,” union director Billy Hunter said after the meeting. “We plan to disseminate that to all 30 teams. …

“The players are not ready to accept the ultimatum. They thought it was completely unfair on the part of the NBA ownership and management. … We have negotiated in good faith for two years, but the players have felt they have given enough.”

That step — a notice of disclaimer essentially says the union has no interest in representing the players in negotiations any longer and is abandoning that right — is the first step in anti-trust lawsuits that will be filed by players in the coming days. This is the step the NFL players’ union took and something agents have pushed the NBA union to do since July. The timing essentially blows up the negotiating process when there wasn’t a lot of time left to save the 2011-12 season.

The courts move slowly, but the union has reached its breaking point. It has gone to the one, big card it could play.

The reaction of the owners will be to hunker down, play hardball and try to force their entire wish list — such as salary rollbacks and a hard salary cap — on the players. The owners are not going to be scared by this at all.

Basically, Commissioner Stern is going to let his hardliners have the run of the place. Guys who were already willing to miss a season get to have their way.

Meanwhile, NBA fans lose. And so does the league.

“This is where it stops for us as a union,” said Derek Fisher, union president.

It might be where a lot of fans stop if a full season is lost. But the union is moving forward with these plans.

According to Adrian Wojnarowski of Yahoo, several players have hired top anti-trust attorney David Boies. If the name is familiar, he was involved in the NFL’s anti-trust cases. Boies is the guy who had the anti-trust cases against Microsoft (and had some success there) and he was they guy representing Al Gore in Gore vs. Bush.

Technically, what this legal move does is turn the union into a “trade association” that works for the players but does not represent them in negotiating a CBA. Ultimately when a deal is struck, the union will reform.

Stern did not back down in an interview on ESPN, saying the players got bad advice on negotiating tactics if this was their move.

“It’s not going to work,” Stern said. “If they were going to do this, maybe they should have done this a long time ago so we had a chance to save the season. But they seem hell-bent on self-destruction.”

The league already has filed a lawsuit trying to block decertification of the union, and there have been arguments on the players’ efforts to have that case dismissed (but no ruling yet). That situation just becomes a lot more messy.

The players’ announcement came after about a four-hour meeting where about 50 players were looking at a take-it-or-leave-it offer from the league. That deal offered the players a 50/50 share of league revenue (once the owners took a healthy cut of expenses off the top) and a much more restrictive system of player movement than had been allowed before. The offer the players had wanted would have returned about $280 million a season (in last year’s dollars) to the owners, but the players wanted a less restrictive system. The owners had long said the two were not tied. It wanted both the money and the system changes.

Stern has said that if the players rejected this offer, the owners would counter with a “reset” offer that would give the players just 47 percent of basketball related income (down from 50 in the last offer and 57 percent last season) and a hard salary cap. The players’ meeting was well-attended and featured not only team representatives but also Kobe Bryant, Carmelo Anthony, Russell Westbrook and many other star players. They all raised their hands in the press conference and said they supported this move.

Stern has warned the players against decertification and called it a “nuclear option.” The players just pushed the button.

It is a dark, dark day for the NBA.

What issues are union sticking points? Here are a few

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When leaders of the NBPA — the NBA’s player union — emerge from a Times Square area hotel on Monday afternoon, I fully expect them to say the people in the room voted to approve a modified version of the league’s latest offer. It makes sense to put the ball in the owners’ court.

The question then becomes: What areas are they going to modify? Multiple reports suggest a few things frustrate the players. Here are some possibilities.

• The mid-level exception for tax paying teams. It’s not so much this specific item (which impacts just a couple players a year) as it is a philosophical difference between the sides. The league wants to flatten out the payroll — rein in big spending teams but force lower spending teams to bring their payrolls up closer to the cap line. (The idea by the league is that this payroll balance will distribute talent more evenly and create more competitive balance. I — and those that studied the issue in depth — say that balance is a myth because of the gap between elite and role players in the league and how that plays out on the court.)

The players want teams that can afford to go into the tax not to be penalized — basically they want freedom of movement when they are free agents. They want 30 teams to be able to go after a player if they so wish. The owners want to tie the hands of the highest payroll teams. That plays itself out in a few areas that each individually do not account for a lot of players but as a group do allow player movement to the higher-payroll teams. Look for the players to loosen those rules some. This is something the owners may well balk at.

• The escrow. To make sure that the players as a whole hit a specific percentage of Basketball Related Income with their salaries (in total, as a league), part of each player’s paycheck is held back and put in an escrow fund. At the end of the season, a portion of that fund is returned to the players to bring the total spent on player contracts to the right percentage of league revenue. (Still with me?)

In the last deal, eight percent of player contracts were withheld for escrow, the league’s offer ups that to 10 percent. As Ken Berger at CBSSports.com explains, in the first couple years of this CBA the players are not likely to get that money back, so basically this is just taking more money out of their pocket. Nobody likes that, but it is really the only way to get close to the BRI percentages the first couple of years.

• The league’s proposal calls for a 12 percent reduction in future rookie contracts. Those were already real bargains for the league, but again if you can’t rollback existing contracts you have to get that money from somewhere for the owners. Also, the rookies always take it on the chin in these deals because veterans vote and the rookies are not part of the union yet.

Even if the sides can agree on a framework soon, there are a host of “b-list” issues that could prove troubling down the line, reports Adrian Wojnarowski of Yahoo.

If the players were to vote to accept the terms of the owners’ current proposal, the litany of B-list issues – including contraction, drug testing, Developmental League assignments and draft age eligibility – would still have to be agreed upon.

Those so-called lesser issues could still drive a stake in the heart of the deal because the owner can insist that contraction would force the percentage of BRI to the players to go down. The idea of dramatically reducing a player’s salary if he is sent to the D-League also drew fire from players.

Those issues are not in the deal the players are discussing Monday in New York, but they have to be sorted out before there is a final deal. Which is to say, we’ve got a long way to go yet, folks.