NBA owners get financial concessions they wanted
Wednesday, November 30th, 2011Six weary figures rose from their chairs early Saturday morning, their expressions telegraphing the conclusion to the NBAs five-month labor crisis: Basketball is back in business, with a new labor deal that heavily favors the owners, despite some last-minute concessions.
The league wanted an overhaul of its $4 billion-a-year enterprise, and it got it, with a nearly $300 million annual reduction in player salaries and a matrix of new restrictions on contracts and team payrolls. The changes mean a $3 billion gain for the owners over the life of the 10-year deal.
Before finally agreeing to those sacrifices, the players negotiators won a handful of concessions that will allow the richest teams to keep spending on players, ensuring a more competitive free-agent market.
A truncated 66-game schedule (from the original 82) will begin on Christmas Day with three nationally televised games. For that, officials on both sides were grateful as they announced a resolution at 3:40 am EST, on the 149th day of the lockout, after a final 15-hour bargaining session at law offices in Midtown Manhattan.
We look forward to opening on Christmas Day, Adam Silver, the NBAs deputy commissioner, said during the brief news conference. Were excited to bring NBA basketball back. Thats most important.
A little more than two weeks ago, the talks appeared dead. A federal mediator had intervened twice, failing both times to bridge the divide. Commissioner David Stern had tried threats and ultimatums before declaring negotiations over on Nov. 10.
Four days later, the players dissolved their union and filed a federal antitrust lawsuit. Stern promptly predicted a nuclear winter for the league, amid widespread predictions that the 2011-12 season would be canceled.
The new agreement calls for a 50-50 split of basketball-related revenue between the owners and the players, about $2 billion for each side in current terms. The players had been earning 57 percent.
The loss of 16 regular-season games and the preseason cost the owners and players about $400 million each. The parties had already resolved the biggest issues, including the $300 million salary reduction, weeks ago, but were hung up on fairly minor details – mostly rules restricting the top-spending teams from adding players.
For myself, its great to be a part of this particular moment, in terms of giving our fans what it is that they so badly wanted and want to see, said Derek Fisher, the president of the players union.
Billy Hunter, the longtime executive director of the players union, sat stoically next to him. No one on the players side praised the agreement.
League officials achieved their two broadest goals: reduced costs and a system that evens the playing field between the richest and poorest teams. The reduction in player salaries should offset the NBAs reported $300 million in annual losses, and provide total savings of about $3 billion over the 10-year agreement. Each side has an option to terminate the deal after six years. It addition to the significant pay cut for players, the deal includes shorter contracts, smaller raises and a more punitive tax system to rein in the top-spending teams.
I think it will largely prevent the high-spending teams from competing in the free agency market in a way that they have been able to in the past, Silver said, adding, We feel ultimately it will give fans in every community hope that their team can compete for championships.
Training camps will open on Dec. 9. The schedule will be reconstructed and released in the coming days. The regular season will be extended into late April, pushing back the playoffs by a week.
Negotiators must still settle myriad so-called B-list issues, including drug testing, the age limit and use of the Development League.
This article appeared on page B – 2 of the San#xA0;Francisco#xA0;Chronicle

