Tag: NBA owners

NBA And Players Representatives Meet To Discuss Possible Settlement

Why a deal now? Pressure from the calendar, mostly


After two years of negotiations, after 149 days of NBA lockout, after so many marathon negotiating sessions that we all lost track, the NBA reached a deal about 3 a.m. Saturday morning.

That’s great news, we were all sick of taking BRI and escrow and luxury taxes.

But after all that, why now?

Because the calendar became the real pressure.

That’s not what the sides were saying afterwards.

“The reason for the settlement is the fans, the players who would like to play, we’ve got others who are dependent on us,” said NBA Commissioner David Stern. “Our goal was to reach a deal that was fair to both sides and got us playing as soon as possible.”

“Rather than pursue this in court, it was in both of our interests to compromise,” said Billy Hunter of the NBA players association.

But this was more about the pressure of the calendar making it time to get a deal done.

Both sides had said from the start that they understood the momentum the league gained last season, with television ratings the highest they had been since the Jordan era as just one sign of that. There was a real energy to build off of — and to grow revenues.

And for a lot of more casual basketball fans, Christmas is when they start following the league. Christmas is the first day of national broadcast network games — it was like a second opening day with marquee matchups on a huge stage. Missing that was going to be a real blow.

Sources on both sides told us the pressure was really mounting to get a deal done. The players did not want to lose a season of salary ($2.2 billion), the owners did not want to lose a season of revenue (at a greatly increased rate from the last labor deal). Neither side wanted to deal with the damage of a complete lost season, or even most of one. Fans were clearly getting more and more restless and turning away.

What is the point of fighting over how to divide up the revenue pie if the pie itself gets smaller?

A sign of that pressure from the calendar was the fact cooler heads finally prevailed in these talks. Saturday the talks almost blew up again when players attorney Jeffrey Kessler — David Stern’s nemisis in these talks — was on a conference call and said the players demanded 51 percent of the revenues. Stern and Spurs owner Peter Holt rejected the idea fast. In the past, that might have ended the talks, but this time they stayed in the room and pounded out a deal.

With all that pressure, and a foundation laid by those months of negotiations, they reached a deal. A deal neither side really likes, which is how a good compromise turns out.

But getting it done was more about the timing than anything else.

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

Billy Hunter David Stern

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.