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Leagues and Governing Bodies

SOUND BITES FROM A LOCKOUT: DO OWNERS WANT A REAL HARD CAP?

          The circumstances that led to the NBA lockout are
     examined by Mark Asher of the WASHINGTON POST under the
     header "Lockout Issues Began Long Time Ago."  WA State Univ.
     Professor Rodney Fort. co-author of "Pay Dirt: The Business
     of Professional Sports," said "there's a lot to be gained"
     for owners in the lockout.  Fort: "If the owners impose a
     hard cap that drives the total revenues of basketball closer
     to 50-50, they stand to gain 7 to 8 percent of total
     revenues in perpetuity.  The total value of that will be in
     billions of dollars, more than two, less than five. ... That
     may have to do with their assessment that the lockout will
     work" (WASHINGTON POST, 7/15).  Former FBI agent Charles
     Bennett, who is a member of the NBPA's negotiating team said
     that when NBA Commissioner David Stern uses the term "hard
     salary cap," he "really means a deal without the Bird
     provision."  Bennett: "A lot of it is more emotional than
     the hard numbers.  I don't believe David is using hard as we
     perceive it to be.  If he is, we're all in trouble.  I read
     this as 'reasonable certainty'" (WASHINGTON POST, 7/15).  
          LOSING THEIR PR ADVANTAGE? In Minneapolis, Dan Barreiro
     writes that, by insisting that season-ticket holders make
     payments despite the lockout, while at the same time filing
     a lawsuit claiming they should not have to pay players, NBA
     teams "might be ... obliterating whatever small public-
     relations advantage they enjoy."  Barreiro, on the owners'
     stance: "How's that for gall? ... As a [PR] move, it has
     boondoggle written all over it" (STAR TRIBUNE, 7/15).
          FREQUENT FLIER DEFENSE? NBA referee Steve Javie, who
     was indicted yesterday by a federal grand jury for
     "allegedly being a tax cheat," has a "defense to the
     criminal charges" that he downgraded first-class plane
     tickets and pocketed the money, according to his attorney,
     Gregory Magarity.  Magarity said that the IRS "fails to
     consider" that Javie flew first-class on his trips by using
     his personal frequent flyer points to upgrade his seats. 
     Six of the eight other NBA refs charged with tax fraud have
     pleaded guilty (Jim Smith, PHILADELPHIA DAILY NEWS, 7/15).

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