Blog Entry

Report: Owners are back off 50/50 precondition

Posted on: October 26, 2011 11:19 am
Edited on: October 26, 2011 11:40 am
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By Matt Moore

When NBA talks broke down last Thursday, the sticking point was the owners' refusal to even hear proposals from the union without a precondition that the union accept a 50/50 Basketball Related Income split. It's like trying to negotiate for a car when the dealer says "we can negotiate anything you want as long as you accept full price first." If that doesn't sound much like a negotiation, then I'd like to welcome you to the 2011 NBA lockout circus. Please check your hats at the door, and be careful, someone will probably steal it by the night's end. 

But with talks resuming Wednesday in New York around noon eastern, it looks like, and I'm going to bold this for its importance, for the moment, the league has backed off the 50/50 precondition. Chris Sheridan of SheridanHoops.com reports:
A source close to the talks tells SheridanHoops.com that the owners have dropped their insistance that players agree to a 50/50 split of revenues.

That precondition is what brought about last Thursday’s contentious breakup after the sides had met for more than 30 hours over three days.
via NBA TALKS TO RESUME WITHOUT PRECONDITIONS.

This opens the way for "outside-the-box" solutions to be offered. The players want to get concessions on either revenue or system. The owner want wins on both. If they can find a middle ground that manages to let both sides believe that, that is to say the league feels like the changes are enough to justify the split they gave up, or the union believes the changes are minimal enough to justify their BRI sacrifice, something could get done today. 

It won't, but it's a nice thought. Sorry, we're all out of hope here. Try the corner store down the street.

It should also be noted that the league could also be dancing with the conditions set about in the union's complaint to the NLRB concerning "good faith bargaining." (For more on the elements in play for the union and league in the NLRB process, check out our podcast this week with an expert in the matter.) By backing off the 50/50 precondition, then returning to it sporadically, the league can delay the process, forcing the players to miss checks, while keeping the appearance of good faith negotiations. But with the strength of the legal precedent on their side, there's no real need for that. Both sides have expressed a willingness to get a deal done. 

Now we'll just see if the moderates can keep everyone else out long enough for progress to be made. 

That sound you hear is us not holding our breath.
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Comments

Since: Feb 7, 2011
Posted on: October 27, 2011 7:51 pm
 

Report: Owners are back off 50/50 precondition

Come on guys, get a deal done!



Since: Aug 10, 2010
Posted on: October 27, 2011 5:38 pm
 

Report: Owners are back off 50/50 precondition

LOL in hockey they beat the crap out of each other every day and u wanna talk about thugs? Dude get a life.




Since: May 23, 2009
Posted on: October 27, 2011 12:54 am
 

Report: Owners are back off 50/50 precondition

Not able to get paid???  I don't understand...sure they can.  They can work as teachers, as police officers....what about sell cars??  AHHHH, i understand now...your saying they should earn enough in 10 years...or 5 years... to never work again!!
So what's wrong with haggling for the best possible deal that you can get?  Why not try to earn enoguh in 5 or 10 years to never have to work again?  Isn't that what CEOs do?  They aren't owners, they are employees (though some do have stock options), but they make insane amounts of money that the avergae worker will never see.  What about doctors?  Even the quacks make a nice buck for doing a lot less work than your average blue collar worker.  Heck, if I could afford to go back to school, I would change careers and become a doctor myself.  I'm sure I could do as good a job as some of the physicians that I have had.

Anyway, I have no problem with the players and owners going at it.  To be honest, that is simply part of what takes place in the free market.  It's more irritating to see so many non-NBA sports fans criticizing the players when typically, Americans are pro-union and anti-management.  I hope a deal gets done soon.  My team was actually one of the teams that made money last year (Da Bulls) and they were pretty exciting to watch because they play defense, and have players who work hard and don't mind filling a role.  The only ego problem on the Bulls may be Joakim Noah, but you have to have at least one guy who adds a little swagger to your team.




Since: Jun 25, 2009
Posted on: October 26, 2011 11:57 pm
 

Report: Owners are back off 50/50 precondition

The owners backing off is the dumbest thing ever.  Who has ever heard of a business where the employees make way more than the owner of the company if it is losing money? 

The owners aren't backing off at all, not a chance.  It's really simple, easy math. The owners lost 300 million dollars last season with 43 percent of the gross that came to about 1.64 billion dollars.   At 50-50 with a 4 billion dollar BRI the owners gross 2 billion dollars and wouldn't lose money, they'd actually profit around 60 million dollars.  The players were stuck at 53 and wouldn't give up a penny more... then it was 52,,, and now it's supposedly 51.5 they are willing take which leaves the owners 48.5.  Assuming the owners get their way in a couple other areas, they might agree to the 48.5 because it brings them to 1.94 billion and completely covers the 300 million they lost last season, it means with a 4 billion dollar BRI the owners break even.  Of course that still sucks, but with every year after that the league improves by 5 percent,  the owners will benefit and profit close to 200 million dollars.   If 3 years from now the NBA's BRI becomes 4.5 billion dollars which experts say is very possible, the owners will profit approximately 300 million dollars per season, even if that number never increases again which is unlikely.  

The players certainly caved... they said they won't let the owners make back all of their losses from last year in year 1 of the new CBA, but missed games with more coming scared the hell out of them. 



Since: Jun 25, 2009
Posted on: October 26, 2011 11:47 pm
 

Report: Owners are back off 50/50 precondition

No player makes more than any owner in the NBA Your talking about a pool of 32 people vs a pool of 300 people. Now 50 million can make 30 people really happy but 50 million split between 320 people is nothing what world do u live in

What are you talking about man?  23 teams lost money in the NBA last year and the league lost 300 million dollars overall. The players? They profited around 2.2 billion dollars.  Not even the union is arguing those numbers.  Show me a link where Hunter, the leader of the NBPA says the NBA profited as a league last year.... go ahead and try to find one, you won't succeed.



Since: Jun 25, 2009
Posted on: October 26, 2011 11:35 pm
 

Report: Owners are back off 50/50 precondition

the owners are getting desperate and will give in soon--they don't want to lose all that revenue from more games canceled.  The players hold all the cards!!!

WHAT?  LMAO  Thanks for the laugh, I actually laughed out loud at that one, very rare for me.  The players don't hold ANY cards, so holding all of them is impossible.  Cancelled games ( if there are any) hurt the players, not owners that lost money the last few years. And don't forget every one of these owners is filthy rich outside of the NBA.... the players depend on the NBA or they are nothing. 

Maybe they do settle, I don't know.  What I know for sure is the players are the ones taking the paycut, not the owners....



Since: Oct 26, 2010
Posted on: October 26, 2011 11:25 pm
 

pay up

the owners are getting desperate and will give in soon--they don't want to lose all that revenue from more games canceled.  The players hold all the cards!!!



Since: Nov 24, 2008
Posted on: October 26, 2011 10:08 pm
 

Report: Owners are back off 50/50 precondition

We all are doing fine without the NBA crybabies!  Keep holding out guys so I can watch more  NFL,College Football and Hockey. It is really nice to see and soon will be NCAA Basketball where the game still means something and a heck of alot more exciting than watching you guys showboat your overpaid talents.

You guys should wake up..people are tired of hearing you and the owners!!



Since: Jul 18, 2011
Posted on: October 26, 2011 9:47 pm
 

Report: Owners are back off 50/50 precondition

No matter when they settle, we all know that ticket prices will increase.  And, with that said, no one should spend their hard eanred money on seeing these spoiled little boys play ball.  College basketball is much more exciting and the players are more passionate about the game!  Go U of A!!!!! 



Since: Mar 6, 2009
Posted on: October 26, 2011 9:12 pm
 

Report: Owners are back off 50/50 precondition

No player makes more than any owner in the NBA Your talking about a pool of 32 people vs a pool of 300 people. Now 50 million can make 30 people really happy but 50 million split between 320 people is nothing what world do u live in. As a business owner the goverment came to your town and said you are the only business of its kind to operate here. We wont let no other business open. But you have to pay your employees a fair share. That is why the nba players have power like you said you would just fire all of them. But can you replace lebron james with a gary pinkly good luck trying to run your business cause i aint paying you nothing to watch gary pinkly play basketball.


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