The National Basketball Association will lock out players when its labor contract expires tonight, union Executive Director Billy Hunter said. The third work stoppage in NBA history will shut down the league after a season of record television ratings and near-capacity attendance.
With the National Football League locking out its players in March, it’s the second time two major U.S. sports have endured work stoppages simultaneously.
“They’re going to lock us out, and I said to them, ‘Maybe we can now really begin to negotiate,’” Hunter told reporters after a final three hours of talks ended in deadlock. “We’ve been waiting for the lockout, now there’s a lockout. Let’s get down to business.”
The work stoppage will begin at one minute after midnight New York time, the union leader said.
The NBA and its players disagree over how to split money from a league that generated about $4.3 billion revenue last season. The league says it is losing $300 million a year and wants to tighten payrolls. The players say they shouldn’t have to give up income because of management’s mistakes.
“We can’t seem to bridge the economic gap,” Hunter said.
Hunter spoke after the owners and the players union met at a Midtown Manhattan hotel this afternoon without reaching a resolution. He said they would meet again within two weeks.
“We’re going to continue to negotiate, we’ve already agreed,” Hunter said. “That was the closing agreement up there, that we would not let the imposition of a lockout stop us from meeting.”
The NBA’s 1998-99 season was shortened to 50 games from 82 following a lockout, the only time games were missed because of a labor dispute. An off-season lockout in 1995 lasted from July 1 to mid-September. Training camps generally open in September and the season starts in late October.
The length of this lockout may rival that of 1998-99, according to Paul Haagen, who teaches contracts and sports law at Duke University in Durham, North Carolina.
“I think this could be quite lengthy,” Haagen said in a June 27 telephone interview. “If we’re talking into November or December, I don’t know, but that’s a distinct possibility.”
Following the owners’ 10-year proposal disclosed by league Commissioner David Stern on June 21, Hunter said those terms placed the two sides more than $7 billion apart.
The players argue they shouldn’t have to pay handsomely just because some of the owners mismanaged their teams, paid too much for them, are in too much debt or have unprofitable arenas, Haagen said.
“Their position is basically, ‘Look, we’re putting out a good product, people are interested, if you manage your affairs properly you’ll make money, and our job is not to be a welfare agency for the teams,’” Haagen said. “The other side of it is, ‘You can blame us all you want but if the teams aren’t making money, you guys are going to lose jobs.’”
Arena capacity was at 90.3 percent during the regular season with 21.3 million fans in attendance, the seventh straight season of least 90 percent capacity and the fifth- highest attendance in NBA history.
Two major U.S. sports leagues have had work stoppages at the same time just once before. Major League Baseball endured a 232-day strike from August 1994 until March 1995 that caused the cancellation of its postseason. The National Hockey League locked out its players in October 1994 and settled in January 1995, shortening that season to 48 games.
Stern, 68, who led the NBA during both its previous work stoppages, is six weeks older than Hunter, who became the union’s executive director in 1996. The fact that this may be the final negotiations for both men could influence how things play out, Haagen said.
“Generally, psychologically in negotiations, it tends to make people bolder,” he said. “Then the question (for Stern) is, is the bold that you recognize you’re going to do a deal and you’re working together, or is the bold, ‘This is the time that we’ve got to do the restructuring.’”
With the National Football League locking out its players in March, it’s the second time two major U.S. sports have endured work stoppages simultaneously.
“They’re going to lock us out, and I said to them, ‘Maybe we can now really begin to negotiate,’” Hunter told reporters after a final three hours of talks ended in deadlock. “We’ve been waiting for the lockout, now there’s a lockout. Let’s get down to business.”
The work stoppage will begin at one minute after midnight New York time, the union leader said.
The NBA and its players disagree over how to split money from a league that generated about $4.3 billion revenue last season. The league says it is losing $300 million a year and wants to tighten payrolls. The players say they shouldn’t have to give up income because of management’s mistakes.
“We can’t seem to bridge the economic gap,” Hunter said.
Hunter spoke after the owners and the players union met at a Midtown Manhattan hotel this afternoon without reaching a resolution. He said they would meet again within two weeks.
“We’re going to continue to negotiate, we’ve already agreed,” Hunter said. “That was the closing agreement up there, that we would not let the imposition of a lockout stop us from meeting.”
Lockout Effects
A lockout cuts off players from team facilities, paid health care, coaching help and summer leagues. It can save teams money by allowing them to shut down or scale back administrative operations.The NBA’s 1998-99 season was shortened to 50 games from 82 following a lockout, the only time games were missed because of a labor dispute. An off-season lockout in 1995 lasted from July 1 to mid-September. Training camps generally open in September and the season starts in late October.
The length of this lockout may rival that of 1998-99, according to Paul Haagen, who teaches contracts and sports law at Duke University in Durham, North Carolina.
“I think this could be quite lengthy,” Haagen said in a June 27 telephone interview. “If we’re talking into November or December, I don’t know, but that’s a distinct possibility.”
$300 Million Loss
The NBA said in April that it expected to lose $300 million this season, with 22 of the league’s 30 franchises losing money. The union agreed that owners lost money, labeling the estimates somewhat inflated.Following the owners’ 10-year proposal disclosed by league Commissioner David Stern on June 21, Hunter said those terms placed the two sides more than $7 billion apart.
The players argue they shouldn’t have to pay handsomely just because some of the owners mismanaged their teams, paid too much for them, are in too much debt or have unprofitable arenas, Haagen said.
“Their position is basically, ‘Look, we’re putting out a good product, people are interested, if you manage your affairs properly you’ll make money, and our job is not to be a welfare agency for the teams,’” Haagen said. “The other side of it is, ‘You can blame us all you want but if the teams aren’t making money, you guys are going to lose jobs.’”
Most-Viewed
The 2010-11 season was the most-viewed in history for Walt Disney Co. (DIS)’s ABC and ESPN as well as Time Warner Inc. (TWX)’s TNT, the league’s national television networks, according to the NBA. It also produced the most-viewed playoff games on ABC and ESPN, while ABC’s broadcasts of the six-game finals between the Dallas Mavericks and Miami Heat trailed only last year’s, when the Los Angeles Lakers topped the Boston Celtics in seven games.Arena capacity was at 90.3 percent during the regular season with 21.3 million fans in attendance, the seventh straight season of least 90 percent capacity and the fifth- highest attendance in NBA history.
Two major U.S. sports leagues have had work stoppages at the same time just once before. Major League Baseball endured a 232-day strike from August 1994 until March 1995 that caused the cancellation of its postseason. The National Hockey League locked out its players in October 1994 and settled in January 1995, shortening that season to 48 games.
NFL Lockout
The NFL, the richest and most-popular U.S. sport with annual revenue projected at $9.3 billion next season, locked out its players on March 12. The players then sued in federal court claiming antitrust violations and wage-fixing. That dispute has continued for more than three months, endangering training camps that normally begin in late July. The NFL season starts in September.Stern, 68, who led the NBA during both its previous work stoppages, is six weeks older than Hunter, who became the union’s executive director in 1996. The fact that this may be the final negotiations for both men could influence how things play out, Haagen said.
“Generally, psychologically in negotiations, it tends to make people bolder,” he said. “Then the question (for Stern) is, is the bold that you recognize you’re going to do a deal and you’re working together, or is the bold, ‘This is the time that we’ve got to do the restructuring.’”
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