Despite "modest encouragement" over a new union
proposal, the NBA yesterday canceled the first two weeks of
its '98-99 season, the first time in the league's 51-year
history that it will lose games to a labor dispute,
according to Mike Wise in a front-page feature in the N.Y.
TIMES. The cancelation of 99 games between November 3 to 16
came after the NBPA "proposed the implementation of a tax
system instead of a hard salary cap, a proposal the owners
said they would respond to by Friday." Wise writes that
both sides "agreed" that yesterday saw the "most substantive
talks" since the owners imposed a lockout on July 1.
Seventeen players met with NBA Commissioner David Stern,
Deputy Commissioner Russ Granik and five members of the
league's ownership committee. While players "did not
discuss the elimination" of the Bird exception, they did
propose the following (Mike Wise, N.Y. TIMES, 10/14):
A 50% tax imposed on salary earned above $18M; with the
monies being put in a fund that "would most likely be
distributed to low-revenue teams;" A salary cap credit
going into effect "if the league pays out more than" 63% of
BRI in salary. Whatever figure over that 63% reduces the
salary cap the next year. Players would also "have an
assurance that the salary cap would go up at least" $2M
before the credit goes into effect. If the 63% threshold is
met, 20% annual raises would be reduced "on multi-year
contracts," as players would either get raises of 10% or the
rate of growth in league revenues; Teams would get the right
of first refusal on free agents after the fourth year for
incoming rookies and marijuana would become a banned
substance. In return, the players want an increase in the
minimum salary and creation of an average salary exception,
allowing every team over the cap to sign one free agent
(N.Y. TIMES, 10/14). Many sources quote the union's figure
of players receiving 63% of BRI as "negotiable" (THE DAILY).
REACTION: Asked if the two sides were any closer to a
deal, Stern said, "No." In N.Y., Mitch Lawrence writes that
the owners are "expected" to reject the latest proposal "out
of hand" when they get back to the union on Friday (N.Y.
DAILY NEWS, 10/14). Stern: "Under normal circumstances, a
tax proposal is not something you embrace at such a late
date. But ... we owe it to our fans to go back and look at
the notion" (Newark STAR-LEDGER, 10/14). Granik: "I
certainly have some reservations about whether it's a
breakthrough. We'll certainly look at it. It's a long way
from a breakthrough right now" (PHILA. DAILY NEWS, 10/14).
Granik added that a luxury tax is "probably not effective
enough to prevent teams with greater resources to have the
ability to pay the tax against teams with lesser resources
who do not." On CBS SportsLine, Mike Kahn adds, "In other
words, it ain't gonna work." Kahn calls yesterday's
proposal "a feeble attempt by the union to retain the soft
cap." He adds that Stern "sounds morose [in canceling
games] because he's nervous. Rightfully so" (CBS SportsLine,
10/14). NBPA's Hunter: "We're tired of rhetoric. We're
tired of game-playing. We can look our ballplayers in the
eye and say we made a valiant effort" (Ft. Lauderdale SUN-
SENTINEL, 10/14). More Hunter: "We've made three proposals
and they've made one." In Chicago, Lacy Banks writes that
it "appears both sides are waiting" for arbitrator John
Feerick's ruling on payment of guaranteed contracts during
the lockout (CHICAGO SUN-TIMES, 10/14). ESPN's David
Aldridge: "It's the first time really they've [NBPA]
expressed any significant movement on Bird." Aldridge added
that the "players have a full membership body meeting in Las
Vegas late next week" ("SportsCenter," 10/13).
