NBA Lockout Update

November 10, 2011 by staff 

NBA Lockout Update, With each passing day, the fears grow – will the NBA lockout ever end? Later today, we will have some more clarity. At 5 p.m. another deadline will come upon the lockout.

 The players have rejected the latest offer from the owners, but there will be one more bargaining session today before the lockout drags out further. This deadline looms large, as David Stern has held that the amount the owners are willing to share will drop up to four percent if a deal cannot be reached.

The players are adamant they will not be strong-armed by the owners. The split under the previous CBA was 57-43 in favor of the players; the split currently on the table is a sliding scale between 49 and 51 for each side, depending on the profits. Forecasters for the players say that the maximum they could expect under the new proposal is 50.2% of the profits, an incredibly significant drop from last year.

The union was actually given permission to go as low as 50% this past week, a large concession on the part of the players. So, done deal, right? Unfortunately, no. There are multiple other points the players will not concede, as they already believe they are giving up too much.

The other issues mainly revolve around the salary cap. The owners want to increase the luxury tax significantly and have penalties for repeat violators of the luxury tax. The owners believe this would increase parity in the league and lower the competitive advantages of being able to create super teams in bigger markets. What should they do Lebron? Should they admit that they’ve made mistakes? Should they admit that they’ve been there before? What should they do? (And, end Lebron rant).

The players, however, want to have the choice of where they go and create super teams if that’s what they want. They do not believe it is fair to have a harder salary cap that restricts where they can move during free agency and what players can be brought in to join their teams.

Similarly, the owners want to help the disparity between the haves and the have-nots shrink even further by making more barriers to acquiring a player by use of the mid-level exception (MLE) by teams already violating the luxury tax. The MLE allows teams to add a player at one time during the year for a specific mandated salary number without the player’s salary counting against your salary cap. The owners want this number to be smaller and for a shorter term of years for teams above the luxury tax than for those not in violation, thus making teams over the tax less attractive than non-violators to potential MLE candidates.

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