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Leagues and Governing Bodies

NBA Teams Already Dealing With Fallout From Impending Lockout

The NBA CBA does not expire until the end of June, "but the lockout, in so many ways, is already in effect," according to Howard Beck of the N.Y. TIMES. There will be "no NBA summer league in July," and there will be "no overseas games in October." In addition, next week's Draft "will be missing at least 10 top prospects." Some of the "most tantalizing prospects in the country ... decided not to enter the draft this year," opting to stay in school instead. The threat of a prolonged work stoppage "was not specifically cited, but there is no doubting its influence." At the same time, scouts and team trainers "are being laid off." The Lakers in May "informed four trainers and most of their scouts that they would be dismissed after the season." While Lakers officials "have not commented, it is generally understood that the layoffs were made in preparation for the lockout." Other franchises are "taking a wait-and-see approach, but more layoffs, furloughs and pay cuts are expected if and when the lockout becomes a reality." NBA officials "report strong season-ticket sales, but they admit that other areas -- sponsorships, merchandising and advertising -- are being influenced by the uncertain labor climate." NBA Deputy Commissioner & COO Adam Silver said, "Our business partners -- both our marketing partners and our licensees who need to plan in the normal course of business -- are unable to make their usual media buys, place orders. And so the uncertainty is having a great impact on our business" (N.Y. TIMES, 6/17).

STERN WARNING: In Denver, Mark Kiszla asks, "Does NBA Commissioner David Stern have the nerve, and will franchise owners maintain the unity required to bring significant change to the sport, even if it means shutting down the league for months on end? If there is to be any real hope for the Thunder or Nuggets to win a championship, the looming labor strife must be more about improving competitive balance than dividing billions of dollars" (DENVER POST, 6/17). In N.Y., Mike Lupica wrote Stern's "problem is that he will be fighting a labor war on two fronts, with the union and within his own ranks, where at least two-thirds of his owners are losing money." Stern needs to "convince those owners that the good ratings he got in the TV ratings, ratings about which Stern is obsessed, are worth the red ink in which so many of his owners are drowning." He has to "convince cash-poor, smaller-market teams without any reasonable chance of ever winning an NBA title that it is a good thing for the NBA to have a handful of super-power teams." Lupica: "More than that, Stern has to show that he isn't running a sport where the star players are the real general managers now" (NYDAILYNEWS.com, 6/16).

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