Although the NBA and NBPA signed a new labor deal in July,
the "two sides are still slugging it out behind closed doors over
the division of the NBA's economic pie," according to Dan
Wasserman of the Newark STAR-LEDGER. The NBPA filed notice with
arbitrator Kenneth Dam of Chicago over "a major salary cap
dispute," as the difference between the two sides have led to a
delay in final accounting and adjustment of the '96 cap. The
dispute "involves some significant dollars" including luxury box,
naming and pouring rights revenue, and whether they will be
classified as Basketball Related Income (BRI) in the new CBA
(Newark STAR-LEDGER, 11/11).
DETAILS: The luxury revenue "fight" only involves income
payable to "so-called unrelated entities where team ownership and
arena ownership are separate." The NBA claims drafts of the CBA
"specifically exclude" that type of suite revenue, while the NBPA
contends the deal reached last summer included all suite revenue.
The naming and pouring rights revenue was also not "specifically
addressed" in the new CBA. One "possible resolution has the
league including naming and pouring rights in its BRI
calculations if the players agree to give up their claim
regarding the disputed luxury box revenues." The sides also
don't agree on when the salary cap adjustment should happen, as
the league would like to see any upward adjustment take effect
immediately and count toward this year's cap, while the union
want to see a change in the cap "carried forward" toward next
year for new free agents. Wasserman concludes that "no one is
threatening strike or lockout over the issue, just lots of
litigation." If the two sides fail to reach a deal, they will go
to their arbitrator Dam in mid-December (Newark STAR-LEDGER,
11/12).
