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This Weeks Issue

Salary cap, NBDL on the table as NBA, players head for contract negotiations

The end of this year’s NBA Finals marks a starting point for the league and the National Basketball Players Association, as both sides begin in earnest to negotiate a new collective-bargaining agreement that would take effect after the 2004-05 season.

Union chief Billy Hunter said in Detroit last week that if no deal is reached by the start of next season, negotiations likely will be put off until the following summer.

“I hope that things get serious between now and October,” Hunter said before the start of Game 4 of the Finals. “And in the event that they don’t, then in all probability there will be a hiatus if we don’t get an agreement by the commencement of the 2004-05 season. Once the players get back to playing, it’s difficult to get things together, and then we are looking for a new deal next summer.”

The key issue separating the league and the union, Hunter said, is the structure of the NBA’s salary cap, with Hunter and the union pushing for more flexible restrictions on team payrolls.

Hunter wants a deal before season begins.
Hunter did not say when the next negotiating session will take place but said it is up to the union to schedule the next round of talks.

NBA Deputy Commissioner Russ Granik, speaking later in the week, said that from the league’s perspective, talks could continue into the coming season. There were discussions between the two sides during the 1997-98 season in advance of the lockout that shortened the 1998-99 season.

“We all accept that it’s hard to negotiate [during the season], but if you want to, you can find a way to do it,” he said.

Along with the league’s salary cap, the NBDL is expected to be a point of discussion during the talks. Hunter batted down the NBA’s earlier suggestion of making the developmental league a true NBA minor league by directly affiliating NBA teams with NBDL clubs. Granik said the affiliation issue is still a “subject of discussion.”

CAR TALK: This year’s Finals carried some significant sponsorship implications. The NBA is looking to add an automobile partner next season, and what better chance for the league to market itself to the nation’s automakers than having the Finals in Detroit.

Jonathan Press, vice president of marketing partnerships for the NBA, declined to name any specific automakers being targeted. “We are also looking to add [in the] consumer electronics category,” Press said.

The two potential deals would give the NBA 24 partners, if AT&T and Nike renew their deals. Any leaguewide automotive deal is not expected to prevent individual teams from securing their own auto sponsorships — similar to how the NBA counts Southwest Airlines as a partner but the Chicago Bulls deal with United and Utah partners with Delta.

This year’s Finals also capped the season-long promotional strategy the league debuted this year and already has said it plans to bring back next year. The NBA touted the start of the season with a “Premiere Week” campaign, followed with promotion around the All-Star Game and ending with the prevalent “Destination Finals” effort around the postseason.

“It allows us to give sponsors the opportunity to do a lot more,” Press said. “It gives us a consistent strategy we can offer our partners.”

ONLINE ACTIVATION: The number of unique visitors to nba.com during the Finals was

Spoonemore
up 59 percent compared with last year heading into the series’ final games, running about 2 million per day. This year, 95 percent of the NBA’s 22 partners turned to nba.com for activation compared with about 80 percent last year, said Brenda Spoonemore, vice president of interactive services for NBA Entertainment. Having the marquee Los Angeles Lakers in the Finals helped drive traffic, but Spoonemore also cited as reasons for the increase more interactive features, including video clips and downloads.

John Lombardo can be reached at jlombardo@sportsbusinessjournal.com.

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