Sunday, November 27, 2011

NBA Lockout: Back to Business



I have followed the events surrounding the NBA lockout for quite some time.  At times, I was unsure when or if the two sides would reach an agreement.  I wanted to believe cooler heads would prevail and the two sides could agree.  However, based on the articles and interviews I reviewed, it seemed that egos’ were impeding the process.  It seemed Derek Fisher and Billy Hunter did not want to appear weakened by the idle threats issued by David Stern.  After all, their jobs were to broker and secure the best deal for the Players’ Association.  The manner in which they couched their argument for the public-at-large was not effective.  Had I not familiarized myself with the specifics of the arguments, I could have been fooled into believing the deal was strictly about money.  David Stern used his excellent lawyering and oratorical skills in a way Billy Hunter and Derek Fisher failed to do.  He spoke in specific terms and said specifically that the owners were making concessions and even described what some of the concessions were.  He masterfully discussed that they were prepared to offer the players 50% of basketball-related income.  Although this was only the tip of the iceberg, not too many things appear to be fairer than splitting profits equally.  Fisher and Hunter spoke in vague terms.  I think by proceeding in that manner, they allowed the public to form an opinion that the lockout was really about billionaires and millionaires bickering over money.  Not too many people can respect that position and particularly during the current tough economic climate. 

Selfishly, I and many other NBA fans viewed the lockout in terms of what we were being deprived of.  Fundamentally, I believe this is wrong for a number of reasons.   The lockout really symbolizes another portion of the population dealing with unemployment.  As we sometimes forget, behind every NBA franchise, there are marketing and advertising departments, lawyers, physical therapists, doctors, surgeons, business executives, vendors, sanitation workers and the list goes on and on.  The NBA players are an atypical portion of the population because they earn millions of dollars each year.  It makes sense to not sympathize with a rich athlete because he should not lose his home or be reduced to relying on public assistance in the absence of an NBA season.  Conversely, compare an NBA player with a sanitation worker, who may only make minimum wage or may barely be able to afford necessaries of life.  If the various NBA arenas are not open for business, these people do not have work.  If they do not have work, it naturally follows they do not get paid.  It is that simple and those are the people we tend to forget about because we want to see NBA basketball.  I am thankful NBA basketball will return on Christmas day for my own selfish reasons, and I am also happy the non-millionaires can resume their lives.

I reviewed the new proposed Collective Bargaining Agreement (“CBA”) and it does not seem to propose many drastic changes.  One of the players’ biggest concerns was whether guaranteed contracts would be eliminated. If you watch SportsCenter, you have undoubtedly heard commentators discussing and dissecting terms of contracts.  For instance, in the National Football League (“NFL”), contract terms may read as follows:”John Player signed a five year contract worth fifty (50) million dollars with twenty (20) million dollars guaranteed.”  In the NBA, however, the majority of contracts are guaranteed deals.  A guaranteed contract provides a great deal of stability for the player.  On the flip side, it can serve as a liability to ownership because they have to honor the contract regardless of whether the player plays another game.  Grant Hill signed a major contract to play for the Orlando Magic and almost immediately suffered serious injuries, which prevented him from playing basketball for long periods of time.  The Orlando Magic, to my knowledge, still paid his salary, even though he was unable to perform his obligations pursuant to the contract because it was “guaranteed.”  Any person with a basic understanding of business knows this model can burden a team for years if the player is unable to perform.  It leaves the teams with little recourse.  The specific language in the proposed CBA is as follows: “Salary guarantees remain the same under the 2005 CBA; i.e., there will be no limitations on a player’s ability to receive 100% guaranteed salary in all seasons of a contract.”

Once the season begins, there are many interesting story lines that will unfold before our eyes. I am interested in seeing where Chris Paul will end up. He is easily the best point guard in the league and I hope he ends up on a team where he will have a legitimate chance to compete for a NBA championship.  Also, to all the Boston Celtics fans, this is most likely their last chance to compete and be considered an elite team.  Soon, Kevin Garnett, Ray Allen and Paul Pierce will be physically incapable of carrying the franchise and it will need to rebuild.  I am a big Lebron James and Dwyane Wade fan and I am interested in seeing how they regroup this year.  They both receive a great deal of hate, but like Jay-Z said “N***as hate ballers these days, ain’t that like Lebron James, ain’t that just like D-Wade.”  Whether you love or hate these guys, there collaboration on the court forced non-NBA fans and NBA fans alike to tune in and watch and for that, their presence is good for the NBA.  The Dallas Mavericks were somewhat of a surprise last year.  This year, they bring back basically the same team that won the NBA Championship last year and they will presumably have a healthy Caron Butler to add into the mix.  The Oklahoma City Thunder is an interesting group as well with Kevin Durant and Russell Westbrook and they will be exciting to watch.  I would be remiss if I failed to mention Kobe Bryant and his L.A. Lakers. He had off-season knee surgery and there are reports that his knee is in the best condition it has been in years.  The reigning MVP, Derrick Rose, and the Chicago Bulls are a formidable team as well.  I am very interested in seeing how these story lines will unfold.

Lastly, I am not sure how the lockout has affected the public-at-large’s view of the NBA brand.  I categorize the public-at-large into three broad categories.  The die-hards fans will not be affected by the lockout and will be happy the NBA is back.  They will still buy tickets and watch games as if the lockout never happened. Next, you have the people who like to watch basketball and also understand the business side of the league.  I believe they will be largely unaffected as well.  Finally, the casual NBA watcher may be turned off by the months and months of bickering and may decide that their money and time could be spent doing something other than watching NBA basketball.  The last lockout occurred in 1999-2000 and the league played an abbreviated season.  This was a bad move for the NBA then and it was not a good move now.  However, the difference in the time periods is that the present NBA is wrought with NBA stars and it recently enjoyed one of the most exciting years it has ever produced. Regardless of the economic impact the lockout may have, I am excited and glad I will be able to enjoy NBA basketball on Christmas day.

Peace    

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