The NBA and the NBPA ended labor negotiations Friday without a deal for a new CBA, and after the meeting, NBA Commissioner David Stern "wiped out the November slate of games," according to Jeff Zillgitt of USA TODAY. No further meetings are "scheduled but the pattern suggests the sides will reconvene at some point this week." The sides "are scheduled to meet in U.S. District Court to argue the merits of the NBA's complaint" against the NBPA, which wants the case dismissed (USA TODAY, 10/31).
HOW TALKS BROKE DOWN: In N.Y., Howard Beck noted after Friday’s talks, "frustrations simmered anew," and Stern declared that an 82-game season "was now irretrievably out of reach." During Friday's session, the league "restated its offer of a 50-50" BRI split, while the union "restated its request” for 52.5%. Beck noted, "Neither side budged. The meeting ended." Despite the "nearly 87 hours spent at the bargaining table this month," the parties remain "hopelessly divided and at odds." Stern accused NBPA Exec Dir Billy Hunter of "walking away -- a reversal from previous breakdowns when the union blamed the owners." Stern: "Billy Hunter said that he was not willing to go a penny below 52, that he had been getting many calls from agents. And he closed up his book and walked out of the room" (N.Y. TIMES, 10/29). By contrast, Hunter said that the owners "are pushing too far." He said, "We made a lot of concessions, and unfortunately at this time it’s not enough. And we’re not prepared at this time to move any further." Hunter added, "We think we gave more than enough. We constantly said to them, ‘What you said you needed, we did it.’ Then every time we do it, it’s like their eyes got bigger and they wanted more and more and more. So finally we just had to shut it down and say, ‘It can’t be'" (BOSTON HERALD, 10/29). The AP's Brian Mahoney noted talks have "broken down each of the last two weeks with little movement and the same type of answer: 'We're here, they're there, and that's that.'" NBA Deputy Commissioner & COO Adam Silver: "Billy said, `My phone is ringing off the hook from agents and players telling me I cannot go under 52 percent' and he said unless you're willing to go there, we have nothing to talk about." Mahoney noted the difference between 50 and 52.5% is about $100M annually, “based on last season's revenues,” or $1B over the course of a 10-year deal. Stern said, "We expect there to be a $2 billion loss for us for the loss of the season, which we will then begin to dig out from under and try to get back, if there were a season's loss. And the players would lose $2 billion. Period" (AP, 10/30).
OWNERS THOUGHT PLAYERS WOULD TAKE DEAL: YAHOO SPORTS' Adrian Wojnarowski noted the owners "believed the players were prepared to take a 50-50 split on BRI if the system issues were agreed upon." But league sources said that "most of the luxury tax and exception issues were resolved” and the players were still seeking 52% of revenue (SPORTS.YAHOO.com, 10/28). In DC, Michael Lee reported after the meeting, Hunter "charged Stern with 'snookering' him into believing that league was prepared to make a deal." Hunter said, "He was prepared to make a move because they went back to 47, then they went up to 50, so, yeah, they made a move. It’s like when you’re playing checkers, you know, jump backwards and then you come forward." He added, "They got to the place again that was 50-50, take it or leave it. And we’ll leave it again like we left it last week." Hunter contended that by going down to 52.5%, the union "would transfer $1.5 billion to the owners over six years" (WASHINGTON POST, 10/29). Silver said Friday, "Billy said he would not go below 52 percent when he left. He didn't say, 'Do you want to split the difference?' He said, 'I will not go below 52'" (CBSSPORTS.com, 10/28).
ONLY GETS WORSE FROM HERE: In L.A., Mike Bresnahan wrote, "So much for optimism. And momentum." If Friday was "make-or-break time, things remained badly broken" (L.A. TIMES, 10/29). In N.Y., Marc Berman wrote Stern's optimism Thursday "was a masquerade," and Friday "felt exactly like the crash of the federal mediation" nine days earlier. Stern also "gave his harshest threat yet that owners will become more prickly, claiming the losses of the preseason and November will mean their offers will only get worse." Stern said, "We lost $200 million from preseason and we're going to lose several hundred million dollars more. So the NBA's next offer will reflect the extraordinary losses that are starting to pile up. You can assume our offer will change to reflect the change of economic circumstances" (N.Y. POST, 10/29). On Long Island, Alan Hahn noted Stern's cancellation of all November games was "somewhat stunning, considering the positive rhetoric that had been promoted only an evening before." The parties spent "more than 22 hours in two days of talks Wednesday and Thursday and appeared to be closing in on a deal" (NEWSDAY, 10/29). YAHOO SPORTS' Dan Devine noted the "likelihood, of course, is that this all gets worse before it gets any better" (SPORTS.YAHOO.com, 10/28).  |
Stern feels labor impasse has left both
NBA and NBPA "badly damaged" |
MISSING PAYDAY: In Cleveland, Tom Reed noted a "grim-faced Stern ... said the impasse has left both parties 'badly damaged,' at a time when many Americans are coping with the realities of an economic downturn." Reed noted Stern at times "appeared to use the news conference to speak directly to the players." He said, "I know for a fact in the short run players will not be able to make (lost money) back, and probably will never be able to make it back" (
CLEVELAND.com, 10/29). An NBPA source said that the owners "were committed to having the players miss two pay checks." In N.Y., Frank Isola noted that is "what they will now lose with November games removed from the schedule" (
N.Y. DAILY NEWS, 10/29). The players will miss a paycheck scheduled for Nov. 15, but Hunter said that each player "would have received a minimum of $100,000 from the escrow money that was returned to them to make up the difference after salaries fell short of the guaranteed 57% of revenues last season" (
DETROIT FREE PRESS, 10/29). In Boston, Gary Washburn notes the question for players now is "whether 2.5 percent of basketball-related income is worth missing the season for" (
BOSTON GLOBE, 10/31).
TOO LATE FOR 78? The N.Y. POST's Berman cited sources as saying that a 78-game slate “will be staged if the sides compromise on the revenue split by next weekend." Sources added that the "final schedule has to be an even number." The "82-game theory was the carrot Stern dangled to the Players Association to compromise on the revenue-split stalemate Friday." Stern "could continue to dangle that carrot by offering up a healthy 78-game season in further talks," but sources said that "none have been scheduled" (N.Y. POST, 10/30). Berman notes Stern "has considered pushing the regular season back to late April and staging the NBA Finals in late June, ending it just a couple of days before the NBA Draft." The league "never announced the date for the NBA Draft or its location," but last June switched the location from Madison Square Garden to Newark’s Prudential Center "due to the Garden’s renovation" (N.Y. POST, 10/31). N.Y. Daily News columnist Bob Raissman said, "The only way people are going to get upset about this is, and it will be the hardcore NBA fans, is when they really start losing games. I think now this is what you expect in a negotiation.” N.Y. Daily News’ Andy Martino: “Unlike say in baseball, the early weeks of the regular season in the NBA are not as significant. ... If you lose those, I don’t think there’s going to be a lot of outrage.” But WFAN-AM's Joe Benigno said, “As we get into the winter months, then you’re going to start feeling the NBA not being around. Right now, nobody except the real hardcore NBA guy, nobody is really missing the NBA” (“Daily News Live,” SportsNet N.Y., 10/28).
RADIO SILENCE: In Atlanta, Steve Hummer wrote, "The question at this stage: How many out there really care?" The only thing "worse than an NBA lockout would be a largely ignored NBA lockout." Hummer wrote, "What a distressing sign for any business: discovering just how dispensable its product is." Hummer noted "virtually none of the talk" on WCNN-AM "has been about the lockout." Radio host Matt Chernoff said, "And the saddest part is we're the (Hawks') flagship station. We've spent maybe two minutes on it" (ATLANTA CONSTITUTION, 10/30). Meanwhile, the GLOBE & MAIL's Bruce Dowbiggin asks, "Can the NHL take advantage of having the stage to themselves?" If the NBA "regains its mind and resumes by the new year, the NHL will see minimal gains." But if the lockout "stretches past the holidays, allowing the HBO '24/7' series and the Winter Classic to run unopposed, there could be real opportunity for the NHL in the U.S." (GLOBE & MAIL, 10/31). ESPN’s J.A. Adande said he was “concerned” about the NBA’s “ability to maintain the trust of its fans." Adande: "Every time they’ve had an opportunity to get this done in time and save things, they haven’t been able to. So why should fans invest money and emotion in people that can’t get it right?” ESPN's Michael Wilbon: "We’re talking about two cents on the dollar. Now granted, it’s a lot of dollars. ... If two sides can’t get together and they’re going to lose stuff over two cents, they will face a wrath with both sides very much deserved” (“PTI,” ESPN, 10/28).
LOCKOUT CASUALTIES: AD AGE's Jason Del Ray wrote under the header, "NBA Lockout: Who Are the Winners And Losers In Media And Marketing?" As the "losers," Del Ray listed the regional sports nets; Turner Sports; ESPN and ABC; league and team sponsors and partners; arenas and naming rights holders; the city of Orlando, which is slated to host the '12 All-Star game; the NBA brand; and the "marketability of every NBA player who's not a superstar." Del Ray listed NCAA basketball and the NHL as his "winners" (ADAGE.com, 10/30).
