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David Stern Provides Latest Update On NBA's Labor Negotiations

Stern Says Possible NBPA Decertification
Involves Risk For Both Sides

NBA Commissioner David Stern had an impromptu press conference with reporters in N.Y. last week, where he talked about labor negotiations. Below is an edited transcript of the session.

Q: Can you give us an update on the labor situation?

Stern: There's nothing to update you on. We'll be meeting with the players after the holiday. We're continuing to have dialogues in large groups and small groups, and hopefully we'll make some progress.

Q: What do you make of the NBPA's decertification authorization drive?

Stern: I get all my information from the New York Times. I don't know if [the proposed move is] wise or not. The New York Times says it is. But there's a playbook that is normally observed [in these types of negotiations]. It's playing out as expected.

Q: Do you expect the NBPA to decertify?

Stern: We'll see. It has its risks to both sides.

Q: The NBPA's proposal reached the light of day in the past two weeks. Is there anything about their proposal you can speak to now that we have an idea of what they're putting forth?

Stern: The problem is that their spokesperson calls you off the record, and I have to talk to you on the record. So I'm at something of a loss, other than to say that at bottom it would probably be more expensive than the current way we do things. So it's a continuation of the current economic system but with additional exceptions that would probably allow us to spend more than we currently do.

Q: Part of the proposal was that they'll come off the guarantee of 57% of league revenues.

Stern: I would have to explain it in more detail than we have today. But that's not really much of a concession.

Q: Is there anything in the NBPA proposal that strikes any cord with the owners?

Stern: It's interesting. In a language of diplomacy, you have to examine the proposal to see whether there's something in it that isn't stated. We're continuing to examine to see what's unstated that might be good. I haven't reviewed it as carefully as others, but as reported, it allows trade exceptions, so players can be traded to increase payroll of teams. It suggests another exception for veteran players. In its totality, without regards to whether there's a guarantee or not, it could reasonably be expected to raise the amount that the players get under the system.

Q: Billy Hunter mentioned last month that he thought there was a 99% chance of a lockout. Are you expecting basketball next year?

Stern: All I would say is that I am working hard to see whether there can be basketball next year. And until there isn't, I remain optimistic that there will be.

Q: One of the merits of the current system for owners was cost certainty, with the luxury tax and escrowing. That was why you agreed to the deal, because it was going to have some predictability of costs.

Stern: Yeah. But even there, the escrow was limited, initially to 10%, but now it's down to 8%. So it has its own limitations built into it in terms of that cost. What we're talking about now is a system that is better able to allow teams to compete across the board. We'd like to have 30 teams that have the opportunity to be profitable and in conjunction with more robust revenue sharing, which we're working on separately, to have a league that's going to be more exciting and uplifting for fans in all markets rather than a more limited number.

Q: Is it really as far apart as we think? Or is this just the rhetoric that comes as you negotiate a deal.

Stern: I would say that the formal proposals are very far apart. But if you ask me whether there have been deals made without undue damage with proposals that started far apart, I'd say there's plenty of precedent for that. It depends on how hard people are going to work and, really, if there's going to be any compromise or not.

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