NBA Players Assn. Overplays its Hand

by John M. Curtis
(310) 204-8700

Copyright October 11, 2011
All Rights Reserved.                                         

          National Basketball Assn. Commissioner David Stern put down the hammer, canceling the first two weeks of the regular season, after another failed attempt to close a deal with the NBA Players Assn.  While there’s plenty of blame to go around, Players Assn. Director Billy Hunter and players rep Los Angeles Laakers guard Derek Fisher miscalculated owners’ resolve with respect to making the league profitable for all of its 30 franchises.  Currently only eight of the 30 teams turn a profit, largely from big market TV and advertising deals.  “We remain very, very far apart on virtually all issues,” Stern told reporters in New York City.  “We just have a gulf that separates us.  We are so far apart . . . we can’t close the gap,” attesting to how both sides have dug in.  Few have sympathy for the mammoth contracts, making millionaires out of even the most talent-challenged NBA players.

            Fisher suggested the NBA hasn’t negotiated in good faith.  “This is not where we chose to be.  We’re not at a place where a fair deal can be reached with the NBA,” displaying how logic has been turned on its head.  Instead of viewing the negotiations as mediation, seeking an exact 50/50 split, the Players Assn. has to stop the paranoia that says billionaire owners should be satisfied with using franchises as money-losing tax write-offs.  Fisher talks of fairness but his Players Assn. can’t possibly believe NBA players are underpaid. How he and Hunter believe they’re negotiating in the best interest of NBA players triggering partial cancellation of the NBA season is anyone’s guess.  “With every day that goes by, I think we need to look at further reductions on what’s left of the season,” said Stern, letting Hunter and Fisher know they’ve pushed things to the brink.

            Comparisons to ordinary labor negotiations are preposterous.  There’s nothing comparable to the NBA Players Assn and the Teamsters or United Autoworkers Unions.  NBA players and their agents are the superrich, resembling ordinary unions in name only.  Whether the Players Assn. believes the owner lose money or not, owners have given the NBA the job of correcting a profit making disaster, sending the lion’s share of NBA teams in the red.  Whether or not NBA owners have more assets or cash flow form other sources of business of wealth is irrelevant.  NBA owners have a right to reverse unprofitable conditions for their businesses.  No one argues that NBA players have suffered with low salaries and benefits from the past collect bargaining agreement, giving players 57% of NBA profits.  While Stern offered 47%, the Players Assn. remained fixed at 53%.

            NBA league officials and owner are trying to solve a real dilemma for any business:  How to turn a profit.  NBA players can’t have it both ways:  Having extravagant salaries and benefits while NBA owners lose money.  Players’ reps must reconsider what they regard as a fair CBA.  Whatever the CBA offered the last time around, it’s not relevant today.  Players must realize that past deals don’t apply this time at the table.  NBA officials want to lower from $5.8 million a new mid-level salary cap of $3 million for free agents.  Stern also seeks shorter contracts to protect against players that don’t earn their keep.  But by far the biggest stumbling block from the Players Assn. has been accepting a shrunken revenue sharing agreement.  Had Hunter and Fisher offered 50%, not the current 53%, a deal could have been struck.  There’s simply no more excuses left.

            Players Assn. officials know that a 50/50 arrangement is probably the best solution to assuring NBA owners better profit margins.  Players and League officials sat down yesterday for 12 hours and still couldn’t reach an agreement.  While fingers point both ways, it’s the players that must show flexibility.  No one believes NBA players make too little money.  Most see salaries as excessively high considering the state of the U.S. economy and profits in the NBA.  “Despite extensive efforts, we have not been able to reach a new agreement with the Players Union that allows fall 30 teams to be able to compete for a championship which fairly compensates our players,” said NBA officials.  NBA Players Assn. reps must stop playing hardball and do what’s necessary to preserve the NBA season.  Stretching out the strike hurts current and future players, protects no one and damages all related businesses.

             NBA League officials and owners have every right to assure profitability and correct current excesses and imbalances.  Instead of Hunter interpreting Stern’s latest move as a manipulation, he should help fix a desperate problem.  No NBA franchise should lose money.  Nor is it at all helpful to only blame bad ownership decisions.  “I am convinced that this is al just part of the plan,” said Hunter. “Unfortunately, maybe we need to miss a few games for them to know there’s resolve among the players,” showing the extent Hunter’s recalcitrance.  Now that the Players’ Assn. has pushed things to the brink, it’s now time for them to make the sacrifices needed to assure profitability for owners.  Threatening a loss of the season hasn’t and won’t work to coerce owners into coughing up more money.  Player reps must accept reality, make concessions and complete a new CBA.

John M. Curtis writes politically neutral commentary analyzing spin in national and global news.  He's editor of OnlineColumnist.com.and author of Dodging the Bullet and Operation Charisma.

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