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Leagues and Governing Bodies

NBA Lockout Watch, Day 112: Sources Say Owners Formally Propose 50-50 BRI Split

The NBA and NBPA have "made progress on the proposed revenue split between owners and players, an important element" in settling a new CBA, according to league sources cited by Adrian Wojnarowski of YAHOO SPORTS. One source said the two sides have moved closer to a "50-50 split, give or take a point with ranges based on revenue performance." Another source was "hesitant to characterize it as a 'breakthrough' moment, saying system issues could again derail talks." Wojnarowski noted the "biggest hurdle between the two sides remains the luxury tax proposals to punish big-spending teams and discourage them from overpaying players" (SPORTS.YAHOO.com, 10/19). In L.A., Lance Pugmire reports the owners and players "met for more than eight hours" yesterday with Federal Mediation & Conciliation Service Dir George Cohen, and the sides "agreed to meet for a third consecutive day" today. Collectively, the parties "have bargained for more than 24 hours in a 32-hour span." Cohen said, "The discussions have been direct and constructive." He added the sides have met with "up to 40 people present in full committees" and also in subcommittees. Cohen: "Everyone is extremely focused on the core issues -- the difficult issues that confront them." Cohen halted yesterday's meetings to allow NBA Commissioner David Stern and Celtics Managing Partner & CEO Wyc Grousbeck "to leave to attend a previously scheduled NBA Board of Governors planning committee meeting, also in New York" (L.A. TIMES, 10/20). In N.Y., Howard Beck notes today's negotiating session "will mark the first time ... that the parties have negotiated for three consecutive days." Sources said that the discussions "remain taut and frustrating, but some progress was made Wednesday on a critical issue." Sources indicated that the league "formally proposed a 50-50 split of league revenues -- a concept that until now had only been discussed informally." Under the proposal, the players "could receive as much as 51 percent if league revenues exceed projections, or as little as 49 percent if revenues fall short of projections" (N.Y. TIMES, 10/20). But in N.Y., Marc Berman cites sources as saying that the movement made "hasn't brought them close to a deal." One source said that the movement is "contingent on other issues being resolved or it is meaningless" (N.Y. POST, 10/20).

CREDIT FOR COHEN: In Boston, Steve Bulpett cites sources as indicating that the sides are "inching closer to labor peace." Bulpett notes there "seems to be a growing, if cautious, optimism among the participants." One source said, "We’re closing some gaps, but there are still some major problems that could get in the way." Bulpett notes all "seem to credit Cohen, who has managed to keep the more powerful personalities in check, preventing the talks from becoming inflamed" (BOSTON HERALD, 10/20). On Long Island, Alan Hahn cites a source as saying Cohen "has made an impact." The source also "dismissed criticism that there was still no deal after 24 hours at the bargaining table by saying, 'It's not that we're doing nothing, it's just a wide gap'" (NEWSDAY, 10/20). The N.Y. TIMES' Beck cites a source who "described the 24 1/2 hours as a mixture of momentum and volatility." Beck notes the talks have been "characterized as intense, with as many as 40 people in the room, including up to a dozen owners, eight players and top officials and lawyers on both sides." Participants have "credited Cohen for keeping everyone focused and on point" (N.Y. TIMES, 10/20). Also in N.Y., Steven Greenhouse profiles Cohen, noting "notwithstanding Cohen’s pro-union background, management lawyers say he is a down-the-middle mediator who is adept at nudging two sometimes unmovable groups, as he must do in this instance." NFL lead outside counsel Robert Batterman said Cohen "has total credibility on both sides." Batterman: "He knows how to move the process, and he understands the politics on each side of the table." Cohen has said that sports "confrontations are especially hard to resolve." He said, "Among the important differences between sports negotiations and others, is you have the two parties, the union and team owners, then you have the commissioner representing the league as a third party. And then, behind the scenes, you have a fourth party, the agents who are representing individual players, and they have a voice that is being heard in the process. And then there are the interests of the fans" (N.Y. TIMES, 10/20).

OWNERS' PROPOSAL
: SI.com's Ian Thomsen wrote anything "close to a 50-50 share ensures the union will have surrendered a large amount of money." Thomsen wrote it "looks very much as if the cobbling together of the normal financial mechanisms -- an enhancement of luxury taxes and downsizing of exceptions -- is not going to help the owners and players find middle ground." The parties may "have to arrive at some entirely new approach that will enable the owners to limit payrolls while providing guaranteed deals to the players, and the options currently on the table appear to ensure an extension of this lockout" (SI.com, 10/19). CBSSPORTS.com's Ken Berger noted the owners "want to rein in the top-spending teams through various system restrictions and boost the low-spending teams with a revamped revenue sharing plan." Berger: "What is clear to me, and must have become clear to Cohen after more than 24 hours of hearing this stuff, is that the owners simply cannot achieve their goals of a 50-50 split and dramatically flattened payroll disparity right away. One or the other, and perhaps both, will have to be phased in over several years" (CBSSPORTS.com, 10/19).

MEDIA REAX: In Charlotte, Tom Sorensen writes under the header, "Players Fight Salary Cap To Overall Detriment Of NBA." Sorensen: "NBA players aren't greedy. They're wrong. Without a salary cap, small-market teams will continue to lose games, money and the opportunity to compete for a championship. And yet the players fight it" (CHARLOTTE OBSERVER, 10/20). In Portland, John Canzano wrote, "Nevermind what the players and owners and commissioner David Stern attempt to tell you this labor negotiation is about for them." Canzano: "Really, it's about changing the rules mid-game. I have a difficult time siding with owners who can't be authentic about the reasons they own NBA teams in the first place. And Stern's claims that, 'it can't go on like this,' fall flat when you realize it's gone on like this for as long as most of us have been alive." The NBA owners "bought teams only after they were rich and looking for a thrill." Canzano: "Owning a team is not about profit. Never was. It's more like driving a sports car" (OREGONLIVE.com, 10/19).

Wall feels players have done a good job of
not reacting to commish's comments

PLAYERS' PERSPECTIVE
: Wizards G John Wall said of Stern, "I think he's trying to take advantage of us. I think we're doing a great job not biting (and doing) what he wants us to do" (ESPNNY.com, 10/19). Mavericks G and player rep Jason Terry said, "We're as strong as ever. It's only because [NBPA Exec Dir] Billy Hunter and [Lakers G and NBPA President] Derek Fisher have done a great job preparing us for this lockout. We've seen this coming for two or three years." But Terry acknowledged that there is "a personal side that's difficult to deal with since the league prohibits team-player interaction during the lockout." Terry said of Mavericks coach Rick Carlisle, "Our kids play together on a daily basis. I see Carlisle at a soccer game and I get emotional. I can't really do much but give him a hug, shake his hand and move on. It's probably the toughest thing for us" (FT. WORTH STAR-TELEGRAM, 10/20). Former NHLer Bill Guerin said of the lockout, "It's not worth it. Get a deal done." In Ft. Worth, Mac Engel writes during the '04-05 NHL lockout, "no one believed in the cause more than Guerin, and to hear him admit this is a bit stunning." Guerin said, "It is not worth it to any of them to burn games or to burn an entire year. Burning a year was ridiculous. It wasn't worth me giving up $9 million a year, or 82 games plus the playoffs, then having a crappy year and being bought out. ... Guys in the NBA making $15 million or however much better think long and hard about this." He added, "The only thing you can die in the battlefield for in something like this is guaranteed contracts; everything else is nickel-and-dime stuff and it's not worth it" (FT. WORTH STAR-TELEGRAM, 10/20).

LEGALLY SPEAKING: The union's attorneys yesterday "asked a judge to throw out an NBA lawsuit filed in August claiming that its lockout does not violate antitrust laws." The union "still has the option to decertify, opening the way for individual players to sue the league for antitrust practices" (L.A. TIMES, 10/20). Meanwhile, the NBA and union "filed a raft of documents in Manhattan federal court yesterday in the league's lawsuit the union has not bargained in good faith." The union's memorandum in support of its motion to dismiss stated that the court "has no jurisdiction" over the matter (N.Y. POST, 10/20).

WORTH NOTING: In New Orleans, Nakia Hogan notes canceling the preseason and the first two weeks of the regular season "will not negatively impact the Louisiana Stadium and Exposition District financially." SMG Senior VP/Stadiums & Arenas Doug Thornton, whose company manages the Mercedes-Benz Superdome and New Orleans Arena, told LSED commissioners yesterday that because the Hornets "receive all the revenue generated from their games at the Arena, the LSED would see a savings if games continued to be lost." Thornton said, "There is some savings as a result of us not playing because there are some expenses that we are not reimbursed for, like the day-of-game staffing." Hogan notes SMG currently has "180 full-time employees," and at the moment, they "aren't in danger of losing their jobs." But Thornton said that there "remains the possibility of layoffs." He said, "If we were to lose a season, then we would have to take a hard look at the reduction of our overhead" (New Orleans TIMES-PICAYUNE, 10/20). Meanwhile, in S.F., Susan Slusser writes under the header, "What Will NBA Fans Turn To During Lockout?" (S.F. CHRONICLE, 10/20).

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