Franchise owners have a cohesive stance in high stake decisions: NBA Labour Dispute Update
Just three days are left in current Collective Bargaining Agreement’s expiry and both players union and owners of the franchises are still far apart. This situation is now clearly pointing towards a potential National Basketball
Association lockout.
The owners are looking to create a balance by providing all teams similar chances to earn good money through a new CBA contract. Besides players and owners conflict, it was known that there are also differences among the wealthy
and deprived franchisees when it comes to high stake decisions.
When NBA Commissioner David Stern was inquired about the matter, he replied, “ Yes, our owners are thoroughly united in the need for a change and also completely behind our various proposals as we seek the compromise with the players.”
The owners have a lot to discuss in order to sort the new CBA matter and for this purpose they will gather in Dallas on Monday for the board of governors meeting, as they are aiming to get $700 million return from the players in
form of hard salary cap.
Deputy commissioner Adam Silver said, “We’re very focused on our ability to make a profit under a new system.”
However, the idea seems vague and goes against the franchises like Los Angeles Lakers, Miami Heat, Chicago Bulls etc, which are making a lot more in comparison to the others and if all the franchisees starts earning more wealth
than they will also use extra amount to get the big names in the league, which will affect the course of the wealthy owners.
Tulane law professor Gabe Feldman explains the idea behind getting a new balance contract, “The idea is that the Los Angeles Lakers cannot exist in the NBA by themselves. They need competition. They need to play other teams. The
quality of the NBA product is reliant not only a few successful teams but on all of the teams being relatively equal. It all comes down to competitive balance.”
According to Stern only eight of the franchises are making good money, remaining 22 are bearing heavy losses. Another reason behind this strong move are the new team owners, who came within the span of 10-12 years.
These new owners are on the labour relations committee and the committee also includes the one who are not in profit, which were the real force behind this drastic move. The current members of the labour committee are Cleveland
Cavaliers owner Dan Gilbert, Oklahoma City Thunder owner Clay Bennett, Phoenix Suns owner Robert Sarver, Boston Celtics owner Wyc Grousbeck, and Dallas Mavericks owner Mark Cuban.
The players believe that the losses can be covered through revenue sharing, but the owners haven’t shared an iota of the income distribution plan, while Stern said in reply to that the plan will can’t be shared until they will
determine the yield on it.
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