Fans were warned, and now it has finally happened: the NBA lockout. Still, some people are asking about more details regarding the lockout, and here at TheSportsJury, we’re here to help clarify.NBA
First understand that there are two sides at play here: the Players union, and the owners. The players union represents your favorite players, and the top priority for them is to make sure they get paid. The owners on the other hand represent the teams, and business side of the sport.
The two sides are currently re-negotiating a collective bargaining agreement (CBA) which would dictate all business in the NBA. Currently they CBA expired on June 30th, and no new agreement has been signed, thus the lockout situation we’re in.
The key issue at play here is money. The owners state that under the old CBA that they have lost over $1 billion. They say the major culprit is the high salaries of the players in the league. The players on the other hand believe that there are some strange accounting measures, and that the league is coming off of a very successful season, one where record revenues were made. These revenues, the players argue, should result in a higher payroll for the players.
There are a few things that are under argument in regards to a new CBA. First involves a Salary Cap. The last CBA had what was called a Soft Salary Cap of $58.044 million. This meant that the only way that a team can go over the combined salary of $58.044 million was with some exceptions. These exceptions were wide, and as a result, the salary of teams could easily surpass the cap. If a team’s salary gets past $70.307 million, the team would have to pay a tax. This is called the Luxury Tax.
In the negotiations for the new CBA, the owners are pushing for a Hard Cap. This means that by no means can a team exceed the salary cap. This would result in lower salaries, and a more manageable cost of operating a team. The players on the other hand are insistent that they do not want a hard salary cap.
The next issue is about the Basketball Related Income. The issue of RBI is about the percentage split between the players and the owners. The last season, the players gathered 57% of the RBI. Owners are looking for a more balanced split of the income, and are adamant on a 50-50 split.
Another topic that is being discussed is guaranteed contracts. Owners would like the opportunity to rectify poor contracts on underperforming players. They’d go for shorter and cheaper contracts in general. The union, however has had guaranteed contracts forever. They are unlikely to give up this luxury for nothing. They argue that ‘bad contracts’ are just bad team management, and that players should not be penalized.
Lastly, a topic that was discussed earlier in the year: contraction. Reportedly, the league is looking to cut some teams out of the league. As a result, there would be less money lost, and they hope that there would be a better balance of talent on each remaining team. The union sees that his can result in players losing their jobs, and will fight against contraction.
Currently, the CBA negotiations have resulted in very little. Neither party is seeing eye-to-eye. This can change, but major sacrifices will have to be made. It is possible that the lockout can affect the pre-season and regular season games. If the lockout extends into October, expect a shortened season, if the CBA is ever agreed upon at that point.
Although the lockout has happened due to the lack of understanding from both the union and the owners, the certainly do not want this lockout to linger much longer.