By far the biggest issue facing this labor situation is the division of overall revenues. In the NBA, revenues are referred to as Basketball-Related Income. Under the current system, the players take home 57% while the owners are left with 43%.
Over the last year or so, the owners have raised a number of reasons they feel their share should be bigger: costs associated with stadiums, additional expenses incurred through long-term debts, the rising costs of travel and so on. The NBA has claimed that 22 of its 30 franchises lost money this past season.
The easiest way to fix that problem, of course, is to drastically reduce costs associated with players. In other words, by cutting their salaries significantly. Options on the table: rolling back future salaries of previously agreed to contracts, reducing the length of contracts (less years = less money) and reducing the amount of guarantees in a contract (allowing an owner to get out of a bad contract more easily or more quickly). It goes without saying that the players are opposed to all of those ideas on principle, given that they represent major concessions to what they have previously negotiated for themselves.
2. The Type of Salary Cap
Over the last year or so, the owners have raised a number of reasons they feel their share should be bigger: costs associated with stadiums, additional expenses incurred through long-term debts, the rising costs of travel and so on. The NBA has claimed that 22 of its 30 franchises lost money this past season.
The easiest way to fix that problem, of course, is to drastically reduce costs associated with players. In other words, by cutting their salaries significantly. Options on the table: rolling back future salaries of previously agreed to contracts, reducing the length of contracts (less years = less money) and reducing the amount of guarantees in a contract (allowing an owner to get out of a bad contract more easily or more quickly). It goes without saying that the players are opposed to all of those ideas on principle, given that they represent major concessions to what they have previously negotiated for themselves.
2. The Type of Salary Cap
no nba season this year :)
ReplyDeleteSo this means there won't be any game this year? My friend is right! I was felt like checking up because I recall you had this basketball blog. Is there still a possibility of a game? I was planning on buying Heat tickets, thats why.
ReplyDeletebased on the issue, does it mean that there will be no NBA season for this quarter?
ReplyDelete