
It’s called a lockout. It means the NBA will not allow any players to work until they agree to certain labor terms.
To make things simpler, let’s picture a simple company with employees. There’s a labor agreement set up that dictates that employees get certain benefits like medical, car and house loans, 13th month pays and bonuses. Now let’s say that the labor agreement has expired and the company must work with the employee union to come up with a new labor agreement – what benefits to keep, what benefits to remove and what benefits to add. Until a new agreement has been ratified, no one can work – employees won’t earn salary and the company sits still.
The company tells the employees that the company did not earn much and proposes to slash some of the benefits and lower the salaries of the employees to break even. The employees counter by saying that their salaries and benefits should not be reduced just because the company made bad decisions in running the business. The company comes back and tells the employees that it is not negotiable and that they must agree to less benefits and a lower salary. The employees say they will agree to only a very small salary decrease but things should pretty much the same on the employees’ end. Company says that’s not going to happen, let’s just not work. Employees agreed. Both parties walk away.
So here we are, the NBA locked out the players and all employees so essentially, there’s no NBA. That means no games until they ratify an agreement and right now, they are so far apart and too stubborn to budge.
So what are they arguing about?
#1 Money – Of course they’ll argue about money. Remember, the National Football League also had a lockout this year but it was resolved on time. The difference: the NFL is making lots of money, they just need to agree how much each side gets. The NBA says they lost money last season and most of the teams are in the negative. The players are saying that the NBA did make money last season (the NBA experienced an increase in revenues compared to last year) and that the NBA is just using accounting magic to tweak the numbers their way. Hey, I did daily reporting before… numbers can and will be tweaked.
#2 Salary Cap – Each team is given a max amount of money to pay to its players. Teams are allowed to go beyond the salary cap but will have to pay extra to the league. The owners now want a “hard cap” which means you can’t go beyond the salary cap even if you’re willing to pay extra. This means rich teams (LA, NY, Chicago) cannot stock up on talent and overpay players. Remember, some teams cannot afford to pay extra and with everyone else overpaying players, you end up with a bad roster and at the bottom of the standings. With a hard cap, teams are not encouraged to overpay players anymore and that’s why the players don’t want it.
#3 Salaries – Meet Carlos Boozer, starting power forward for the Bulls, virtually plays no defense, aging, often injured, decent scorer and rebounder and the Bulls will pay him 80 million dollars for 5 years. The 5 years is the max length of contract anyone can give and in order for the Bulls to outbid others, they had to offer their maximum available. If he gets hurt (and he will), the Bulls are essentially tied to the contract and will still need to pay him. The league wants to get rid of this scenario by having shorter max lengths in contracts and opt out clauses if players could no longer hold their end of the deal. To no surprise, the players don’t want these either.
#4 Revenue Sharing – It’s basically pooling the income of all teams then giving each a fair share. It’s the players’ answer to the claims that some teams are losing money.
#5 Bragging Rights – For the past labor negotiations, the players have always been the winners. That’s why you have such favorable benefits for players and the players don’t want to lose any of it. The NBA commissioner has made it clear that he doesn’t want to lose to the union yet again.
#6 Age Limit in the NBA Draft – Remember when you were a kid and you wanted a toy so you grab the one you want and grab an extra toy and ask mom to buy both. Mom would tell you to buy only one and so you put down the extra toy (and do a good “sad” acting job) and just “settle” with the one you want. This is the extra thing that the players union is fighting for but don’t really care about. The problem is, the owners are wise to the players’ tactics and this will probably go down the drain.
As of Oct 12, the first 2 weeks of the NBA schedule have been cancelled and we don’t know when a deal will be finalized.
Oh well.





































































