Tag: NBA owners

Billy Hunter David Stern

NBA owners, players reach tentative deal, games to begin Dec. 25


Finally, we are going to have NBA basketball again.

After more than 15 hours of negotiations Friday into Saturday morning (following a week of secretive talks), the NBA owners and players have reached a handshake deal on a new collective bargaining agreement the sides announced. (Ken Berger at CBSSports.com broke the story.)

“We’ve reached a tentative understanding,” said NBA commissioner David Stern at a hastily put together 3:30 a.m. press conference. “(The deal) is subject to a variety of approvals and very complex machinations. We’re optimistic that will all come to pass and the NBA season will begin Dec. 25.”

That will be a Christmas Day start with a triple-header followed by a 66-game season, providing both the owners and players ratify this deal.

There are a lot of details still to be worked out — first up are all the “B” list issues such as draft age and drug testing, things the sides do not all agree on but are not serious enough to block a deal. Then the players’ union has to be reformed (remember they dissolved to allow for antitrust lawsuits to be filed) and finally the owners and players will have to vote on a final version of the agreement.

All of that is going to take 10 days to two weeks. The lockout will not officially be over until then.

Training camps and a free agency period will begin simultaneously on Dec. 9, Stern said.

At that press conference neither Stern nor NBPA director Billy Hunter were willing to talk about a lot of details of the agreement because neither had spoken to their entire constituency yet. However, this deal is likely close to the last offer from the owners and Stern to the players. There may have been a little movement, but not a lot from the offer the players rejected less than two weeks ago.

The players got a little more than 50 percent of league revenue (BRI) but not 51 percent, according to Chris Broussard of ESPN. It is apparently going to be a band in the 49-51 percent range, but will essentially fall as 50/50. In the previous labor deal the players got 57 percent of the league revenue and that was ultimately the big issue in these talks — the owners say they were losing money and wanted a bigger cut of the more than $4 billion in annual revenue the NBA generates. With this they should about cover the $300 million the owners claim to have lost last year.

Talks Saturday took a turn towards blowing up again when players attorney Jeffrey Kessler — the real pit bull for the union — was on a conference call with the talks and said the players demanded 51 percent of the revenues. There was a feeling that might blow the whole talks up, but cooler heads prevailed.

One thing the deal will do is prevent larger-market, big-spending teams from competing in the free agent market as they had in the past, said NBA deputy commissioner Adam Silver. Again there were no details but with a stronger luxury tax and other punitive measures it will be hard for teams to spend up to and around $90 million a season. The deal also raises the salary floor — those small market teams need to spend up to 85 percent of the cap the first two years and 90 percent after that.

This would be a 10-year deal where both sides can opt out at year six.

Neither side loves this deal, which is how a good compromise should end. There are owners and players that will vote against it, but it is expected a majority of both will pass it.

In the end, Spurs owner Peter Holt summed it up best:

“We want to play basketball. Let’s go play basketball.”


NBA labor meetings rolling along with little word

Los Angeles Lakers Fisher speaks at a news conference alongside Executive Director of the NBA player's association Hunter in New York

If you’re desperately looking for good news out of the NBA labor talks, after nearly eight hours of negotiations on Friday there is almost no news out of the room.

No news may be good news, or at least a sign that the two sides have gotten serious. There have always seemed to be leaks out of the negotiations before, that is not the case on Friday. That may be good news. Or not. Kind of a “glass half full” thing.

Representatives of the NBA owners and players started meeting earlier in the week and, after a break for the Thanksgiving holiday, were back at it Friday. The goal is to have a deal in place at the start of next week so there can be NBA games on Christmas to kick off a 66-game season. The calendar is the real pressure on the two sides now.

One thing we do know about this Friday meeting is who is in the room. For the owners there is commissioner David Stern, deputy commissioner Adam Silver, Peter Holt (the Spurs owner), and attorneys Rick Buchanan and Dan Rube. For the players it is NBPA director Billy Hunter, NBPA president Derek Fisher, Maurice Evans, attorney Ron Klempner and economist Kevin Murphy.

Those are basically all the same people that have been in the room since July 1. Big gun players’ attorneys David Boies and Jeffry Kessler are not participating on Friday.

So it’s the same people arguing the same issues, essentially. The difference is one of semantics — technically this is a lawsuit settlement conference, not a collective bargaining agreement negotiations. There is no more NBA union since the Nov. 14 “disclaimer of interest.” Of course, it’s the same people arguing over the same things, just with a different name. Meet the new talks, same as the old talks.

Just with fewer leaks.

NBA labor talks resume Friday with Fisher, escrow talk

Derek Fisher

Friday talks will resume as the NBA owners and players try to reach a labor deal in time to save games on Christmas and have a 66-game season.

After talks have seemed close to a deal so many times only to blow up it’s hard to get too optimistic, but there seems to be a real urgency to get things done tis time according to sources PBT has spoken with. Both sides realize the damage to the league and the lost money — paychecks for players, revenue for owners — as this drags on. Both sides want games on Christmas Day, but that means making a deal by Monday.

Here are a few things we know about the talks Friday.

First, Derek Fisher may be back in the room. Fisher is president of the National Basketball Players Association, the organization that used to be the players union and is currently a trade association (after a disclaimer of interest that essentially decertified the union). Fisher was integral to the talks for the past couple years. Without a union, Fisher has no real seat at the table but he will be there Wednesday, reports Adrian Wojnarowski of Yahoo.

There’s a push within the league office and from Players Association executive director Billy Hunter to have Fisher in the room, league sources said. Nevertheless, Fisher hasn’t committed to attending the meeting, perhaps because of legal concerns about how a judge in the federal suit could view his participation. There’s still a sense the owners could be setting up a trap for the Players Association, perhaps leading them on in talks now only to pull the plug and make a case to the judge that Hunter’s and Fisher’s involvement in the meetings shows they’re still acting as a union – and that the disclaimer of interest and subsequent lawsuits were nothing more than negotiating tactics.”

It should be noted that while Fisher may be in Jeffrey Kessler, the union’s lead outside counsel through much of the lockout, seems to be playing a smaller role. Kessler is strong willed and clashed heavily with David Stern, not having him in the room may improve the dynamic. David Boise and Jim Quinn seem to have taken the lead.

David Stern is reportedly polling his owners to see if he can give luxury-tax paying teams more exceptions. That was something the players wanted in exchange for a 50/50 split of revenues, to allow bigger spending teams paths to spend (small market owners wanted to tie their hands).

What’s the biggest hangup in talks? Well, as always it’s money, but now we are talking directly the money in players’ paychecks. There will be an escrow system set up as their had been in the last labor deal — in that one eight percent of all player checks were withheld and went into an escrow fund. At the end of the season, the calculations were made on “basketball related income” and the players got the portion of that money back to bring total player salaries to 57 percent of BRI.

Chris Sheridan of Sheridan Hoops explains the new hang up.

A source tells SheridanHoops.com that the most significant impediment to a deal remains the owners’ insistence on an escrow withholding system that would ensure that the revenue split for each season ends up being 50-50. Players have offered to have 10 percent of salaries withheld, but a problem has continually arisen when the sides have discussed what mechanism would make up for the shortfall if the 10 percent withholding did not get the players’ share down to 50 percent.

Lest you think that is a minor thing, that impacts take home pay for players. It’s money in their pocket. People fight over that.

It isn’t something that should stand in the way of a deal, but would it shock you if it did? Exactly. That’s why for all the motivation to do a deal, keep your optimism in check.

Conflicting reports on what owners want: Deal or ultimatum?

NBA Commissioner Stern speaks to reporters in New York

Lots of rumors flying around about the NBA negotiations over the last 24 hours and what the owners exactly will push for — there has always been a divide among ownership on what exactly they want, and that gulf seems to be widening.

Whether that gulf is wide enough to kill efforts to get a deal this weekend and have NBA games on Christmas remains to be seen. The sides will resume talks Friday to resolve the lawsuit (which is akin to having a handshake deal in place).

On one hand, we have a report from Marc Stein of ESPN that some owners are pushing hard to get a deal done.

Sources identified Miami, Orlando, Phoenix, Boston and the Los Angeles Lakers as the teams pushing hardest behind the scenes for a deal in principle by the end of the weekend to ensure that a “representative” season can be staged. And at least three teams that requested anonymity, according to interviews conducted Wednesday by ESPN.com, are highly optimistic that the framework of a deal can be struck by Monday.

Phoenix is interesting — Robert Sarver was once seen as one of the real hardline owners. Boston’s Wyc Grousbeck also had been in the hardline camp before but seems to think the owners have gotten enough and need to make a deal now.

On the other end of the scale…

David Stern is going to improve the owners’ offer to players but is going to tell them “take this or I cancel the entire season,” ESPN’s Ric Bucher reported on SportsCenter Wednesday night.

Another ultimatum. Not again.

My guess is that Bucher’s source is from the camp of a hardline owner. Stern can’t really be thinking ultimatum again, that would be just the worst negotiating tactic ever — “Hey, this failed twice, but let’s do it again.” Stern is not going to do that and risk a court thinking he is not negotiating in good faith.

Plus, Stern is not about to be the bad guy who cancels the season — he has been the master in this negotiation of making the players the bad guy, he’s not about to slip up now. The season as a whole will not be canceled before Jan. 1, and I was told by one source it’s more like Jan. 20.

That said, Buchcer’s source shows that the hardline owners are not going to just roll over to have games on Christmas.

There seems to be a real momentum toward a deal right now — a handshake deal this weekend that lets us open the NBA season as a Christmas present. Let’s hope the hardline owners (and players) don’t screw that up.

NBA talks picked up where last ones left off… but progress?

NBA Labor Basketball

The first thought when I heard the NBA owners and players were talking again and had been since Tuesday? Good. They can’t reach a deal without talking. And the fact there have been fewer media leaks out of these talks than any previous is a good sign.

The second thought? What are the starting points for the two sides? Where they left off or did they pull back at all?

We don’t know how the talks went — Yahoo reports there was little progress — but we know the two sides met for two days and, after taking the Thanksgiving holiday off, will resume on Friday. If the goal is to save Christmas Day games (kicking off a 66-game season) they will have to have the framework of a deal in place by early next week.

But we do know the answer to the second question — the two sides pretty much picked up where they left off, according to Howard Beck of the New York Times.

The parties essentially picked up where they left off Nov. 10, discussing a proposal that includes a 50-50 split of revenue, shorter contracts and tougher spending restrictions. The players rejected that deal, but on the basis of a half-dozen mechanical issues which, in the grander scheme, are fairly minor. They have already conditionally agreed to the 50-50 split and most of the new payroll restrictions.

Neither side has tried to put any new issues on the table, or backed away from previously negotiated points, according to those informed on the talks. That gives the parties hope that a deal not only can be achieved, but can be consummated quickly.

“Both sides could fairly say that it’s crazy to blow the deal up over these remaining issues,” one person close to the talks said Wednesday.

Well, the sides have been fairly crazy up to now, so….

If, as reported, David Stern polled the owners to see if they would allow a full mid-level exceptions for all teams (even those over the luxury tax) it is a sign the sides are serious and trying to make a deal.

Whether they can or not remains to be seen.