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Leagues and Governing Bodies

LOCKOUT, PART II: DECERTIFICATION TALK; WHO HAS PR EDGE?

          A move to decertify the NBPA is "under way," according
     to "insiders" cited by Eddie Sefko of the HOUSTON CHRONICLE.
     Such a move "would be the first step toward playing
     basketball again because it will remove the players from any
     antitrust infractions."  But one player agent who attended a
     recent union meeting said, "I personally think that the
     union's plan of attack is completely flawed.  I think Billy
     Hunter is a general in this war who has no desire for peace"
     (HOUSTON CHRONICLE, 7/1).  NEWSDAY's Greg Logan reports that
     a source close to the NBPA said that all of management's
     proposals in negotiations "involved cutting the players'
     share of basketball-related income below the current" 57%
     level.  While the dollar amount the players receive "would
     increase under the management proposal because of a dramatic
     rise in television revenue," the percentage paid to the
     players would drop back to 48%.   The source: "They would
     negotiate up to 50 percent.  In addition, they wanted to cap
     individual player salaries at no more than 30 percent of a
     team's cap.  Their proposals are about limiting."  The
     players have offered a "new salary-cap exception" equal to
     the average salary, currently $2.6M, so teams could sign a
     "mid-level free agent."  Minimum salary could also increase
     from $272,500 to $500,000; $750,000 for players with five
     years experience and "at least" $1M for players with nine
     years (NEWSDAY, 7/1).  In Philadelphia, Phil Jasner reports
     that Isiah Thomas has volunteered to be a mediator in the
     dispute.  Thomas: "I've talked to [Commissioner] David Stern
     and Russ Granik.  I've extended my help to the union, but I
     haven't gotten a response" (PHILADELPHIA DAILY NEWS, 7/1). 
          PR EDGE TO NBA? In Toronto, Craig Daniels wonders why
     the NBPA is "so bad at getting its message out?"  Daniels:
     "The NBA is beyond reproach when it comes to getting its
     main people access to the media when it matters to it.  The
     players do not yet understand how important it is to match
     the league, and how disadvantaged they are as a result"
     (TORONTO SUN, 7/1).  In Denver, Mike Monroe notes that while
     Stern and Granik conducted a teleconference call on Monday,
     Hunter released only a three-paragraph release for "general
     media consumption," saving "specific comment" for the AP,
     N.Y. Times and Washington Post.  Hunter did not return calls
     placed by the Denver Post on Monday or Tuesday (DENVER POST,
     7/1).  In Toronto, Dave Perkins writes that with a lockout,
     "We likely are about to find out how smart Stern is."  Of
     the PR challenge, Perkins writes, "The NBA -- meaning Stern
     -- is smart enough to know it cannot whip its product,
     cannot bad-mouth the me-me-me superstars who make the game
     what it is" (TORONTO STAR, 7/1).  
          REAX: In Charlotte, Tom Sorensen, under the header,
     "NBA Players Shouldn't Lose This Labor War, But They Will," 
     writes that players "aren't getting" a fair shake from the
     public.  He adds, "When the checks stop, panic begins.  A
     settlement will be reached.  And the Bird exemption will be
     ended or amended" (CHARLOTTE OBSERVER, 7/1).  NEWSDAY's
     Steve Jacobson writes of NBA owners' claim of losing money:
     "Some owners should lose money.  Where is it written that
     every business is guaranteed a profit?" (NEWSDAY, 7/1). 
     ESPN's David Aldridge: "How long will it take before one
     side blinks? ... Somebody is going to have to feel economic
     pain before they come to the bargaining table" ("NBA Today,"
     6/30).  In Oakland, Carl Steward told fans that the lockout
     "needs to happen ... for you.  The NBA needs to get its
     economic act together for the long term, and if it falls the
     right way -- toward the owners -- the end result can't help
     but benefit the game and the fans" (OAKLAND TRIBUNE, 6/30). 
     In Atlanta, Tim Tucker calls for a hard cap "because a soft
     cap is no cap at all" (ATLANTA CONSTITUTION, 7/1).  In S.F.,
     Gwen Knapp wrote the NBA "hopes to win the sympathy of the
     public, which is weary of off-court misconduct and overpaid
     underperformers.  The strategy just might work."  But she
     added, "If fans appreciate the NBA's hard line, they should
     ask themselves why it became necessary.  They need to wonder
     why they would favor one group of out-of-control
     millionaires over another" (S.F. EXAMINER, 6/30).  In Akron,
     Terry Pluto: "If the NBA locks out its players for one
     minute, you should never buy a ticket again. ... Why can't
     the fans make their own stand?" (AKRON BEACON JOURNAL, 7/1).
          EDITORIALS: An editorial in the MIAMI HERALD states
     that the lockout comes at a "dicey time" as the NBA "could
     find itself back in the kind of down cycle that it endured"
     before Larry Bird and Magic Johnson (MIAMI HERALD, 7/1). 
     From the SAN ANTONIO EXPRESS-NEWS: "As the owners and
     players fight to see who can kill the goose first, the fans
     whose dollars fatten it will turn away in disgust from these
     silly, bickering multimillionaires" (EXPRESS-NEWS, 7/1).  
          POINT, COUNTERPOINT: NBPA President Patrick Ewing: "The
     owners talk about how they want cost certainty.  Well, they
     have cost certainty.  They're the ones with the checkbook"
     (George Willis, N.Y. POST, 7/1).  Granik: "If the players
     really want the vast majority of salaries to go to a handful
     of players that's not the owners' battle.  But we do think
     that it doesn't make sense, and that it's a team sport"
     (N.Y. TIMES, 7/1).  Nets F Jayson Williams, who is a free
     agent: "I can't be selfish.  I've got to look at the other
     400 players in the league and decide what's best for
     everybody."  More Williams: "I really don't understand
     what's the problem here.  We just sold a $3 billion TV deal
     and we make $1 billion in merchandise every year. ...
     Michael Jordan will be back.  So what's the problem?  We're
     making all this money. ... I think the owners want us to
     protect them from themselves" (Fred Kerber, N.Y. POST, 7/1). 
     Stern: "I don't consider it to be the players being asked to
     protect the owners from themselves. ... [But] why don't we
     find a way to make sure that this system is intelligent,
     that it maintains competitive balance and that it reduces
     the pressure on teams to continually raise ticket prices in
     a double-digit way" (David Moore, DALLAS MORNING NEWS, 7/1). 
     In Sacramento, Ailene Voisin wrote, "Any system that charges
     an average ticket price of $34 is broken, and in some
     respects is worse than that. ... While building an NBA that
     is equal parts entertainment/competition, Stern feared
     creating a monster -- a league too big and unwieldy, and
     disconnected from its fans" (SACRAMENTO BEE, 6/30).  
          LOCKOUT'S LOST REVENUE: USA TODAY's Bruce Horovitz
     reports that NBA sponsors, who spend a combined $340M in
     league and team sponsorship fees, normally finalize retail
     marketing plans for the upcoming season in late July and now
     "find themselves with little time to string together
     alternative marketing plans in the event the next season is
     shortened or canceled."  Coca-Cola spokesperson Scott
     Jacobson: "When you're in it for the long haul, a labor
     issue is a blip."  But a "washed-out" season could increase
     college game advertising; cut into the WNBA's sponsorship;
     and give some NBA sponsors, such as AT&T, which is in its
     final year, "new negotiating powers" (USA TODAY, 7/1)....In
     Portland, Steve Brandon reported that the Blazers would lose
     "more than" $1M per game in revenue if a lockout canceled
     games.  Each team would deal differently with handling
     refunds for ticket-holders (Portland OREGONIAN, 6/30).
     

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