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Leagues and Governing Bodies

NBPA Attorneys Examine Possibility Of Challenging TV Deals In Event Of Lockout

Hunter says possibility of collusion case
against NBA has been mostly dismissed
Participants on both sides of NBA labor negotiations are "keeping a close eye on developments in the NFL talks," and "in view of the NFL players' success at scoring a key piece of leverage by challenging the deferral of TV revenue as illegal lockout insurance, the NBA union is taking a fresh look at whether it can make a similar claim," according to Ken Berger of CBSSPORTS.com. NBPA attorneys "previously looked into challenging the NBA's broadcast rights agreement in the event of a work stoppage," and NBPA Exec Dir Billy Hunter said the attorneys initially "did not think there was a basis for a challenge." But the lawyers are "reviewing whether the NFL case left them any openings for a similar lawsuit." While the NBA's broadcast rights agreements "call for the networks to pay the league during a lockout and recoup the money, with interest, for any games lost, there is a key difference that makes an NBA legal victory less likely." When the NFL renegotiated its TV deals, it decided to "forego potential revenues during the past two seasons in return for assurances that it would be able to keep a portion of rights payments during a work stoppage." Sources said that there is "no such provision in the NBA's broadcast contracts." Meanwhile, sources said that if the NFLPA's decertification is "struck down as a sham in court," the NBPA "would be highly unlikely to follow a similar path in its effort to combat owners' intentions to lock them out in an attempt to achieve a more owner-friendly" CBA. Berger noted "another legal challenge NBPA lawyers have considered is a collusion case based on doomsday predictions from the league two years ago that the economic recession was going to wreak havoc on revenues, possibly resulting in a dramatically lower salary cap." Hunter said that the possibility of a collusion case "has been examined and essentially dismissed as an option, though it hasn't been 100 percent ruled out" (CBSSPORTS.com, 3/29).

NEXT MEETING UNCERTAIN: With three months to go before the CBA expires, CBSSPORTS.com's Berger noted it "isn't clear when the two sides will meet next." There have been "no formal bargaining sessions since All-Star weekend." Sources said that there has been "discussion of a possible face-to-face meeting" involving Hunter, his top legal deputies, NBA Commissioner David Stern and Deputy Commissioner & COO Adam Silver "sometime around the next scheduled Board of Governors meeting in mid-April in New York." However, a league spokesperson said that "no such meeting has been scheduled" (CBSSPORTS.com, 3/29). In N.Y., Mitch Lawrence reported Stern and Hunter "have had one conversation about a new collective bargaining agreement since the All-Star break." Lawrence: "Maybe it's just me, but shouldn't the two sides be meeting a little more regularly with the current deal expiring June 30?" (N.Y. DAILY NEWS, 3/27).

LOCKOUT LOOKS LIKELY: ESPN's Chris Broussard reported "all indications are" a lockout will occur, as the owners and the players are "so much further apart ... than the NFL owners and players, it's not even close." Broussard noted the NBPA is already telling players to "prepare for a lockout." ESPN's Bruce Bowen said, "It would be a terrible situation if we did have a lockout. We just now recovered from the prior lockout that we had and the game is great right now. ... We don't want to ruin it by what's going on in the NFL and what has transpired early on in our careers in the NBA." Broussard: "That's really the only reason to feel like maybe they'll get something done. ... David Stern, I'm sure, doesn't want to crush the great popularity that they're enjoying right now but that's what a lockout would do." ESPN's Tim Legler, who served as an NBA player rep in '99, said, "It sounds like they're a lot further apart right now then they were in '99" ("NBA Coast to Coast," ESPN2, 3/28).

GLASS HALF-EMPTY: SI's Chris Mannix said he has met with people "around the league just to work on some stuff about a potential lockout and ... everyone that I've met has said this lockout is going to last close to, if not, an entire year." Mannix: "I've yet to hear one person say something positive about this lockout situation that maybe it will last just over the summer, or get into training camp and they'll find an agreement. Everyone that I've talked to says this lockout is likely to be a total year thing" ("The Dan Patrick Show," 3/29). In Charlotte, Rick Bonnell wrote, "There's a lot of stridency from NBA owners right now; it would not shock me if the entire 2011-12 season was lost. Some franchises might make out better sacrificing a season of revenue to avoid a season of player payroll." The potential work stoppage "will probably convince" some college players "to forget about the NBA next season." Others "might initially turn pro but retain the option to pull their names and return to college" (CHARLOTTE OBSERVER, 3/27).

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