NBA owners, players disagree on major issues
Unable to agree on a new collective bargaining agreement, the
NBA will lock out its players beginning at 12:01 a.m. EDT Friday.
The owners and players remained far apart on just about every major
issue, from salaries to the salary cap, revenues to revenue
Where they differed:
– Salaries: In their initial proposal in 2010, owners wanted to
reduce player salary costs by about $750 million annually. In their
most recent proposal, the league offered a 10-year deal in which
total player compensation would never dip below $2 billion annually
over the life of the deal, but players said that would be a pay cut
because they were paid more than $2.1 billion this season in
salaries and benefits.
Players had proposed reducing their salaries by $500 million
over five years, which Commissioner David Stern called a ”modest”
– Salary cap: In their initial proposal in 2010, the owners
called for a hard salary cap system. They switched to a ”flex”
cap, where each team would be targeted to spend $62 million, but
could exceed that through the use of various exceptions. But
players considered that a hard cap because there is an eventual
unspecified ceiling that can’t be exceeded.
– Division of revenues: Owners wanted a reduction in the
players’ guarantee of 57 percent of basketball revenues. Players
proposed 54.3 percent but said the league’s offer would have them
down to around 40 percent.
– Revenue sharing: Players said the league can address their
losses by enhanced revenue sharing among teams and argued that
should be part of a new CBA. Owners said there will be a more
robust revenue-sharing package but not until a new deal as they
would only be sharing losses under the current system.