Sunday, July 3, 2011

LOCKED OUT The Sequel

After a long absence I am back to share a few thoughts with all of you about the latest news in the NBA. The league just locked out its players on July 1 and this is going to be an interesting summer to say the least. I recently heard a reporter say that the lockout is not really an issue unless it affects game played. I beg to differ sir. This lockout will affect the league now and later. I was on the negotiating committee back in 1998 when we had the last lockout. It affected us from day 1 and beyond. Players that have year round payments wont get paid and they will start complaining like Kenny Anderson did after losing $5.8 million dollars once the lockout took effect or when Patrick Ewing famously said "we make a lot of money, but we spend a lot of money too". The union should have a gag order this time around just in case. Remember we didn't have Twitter, YouTube and Facebook or the other social media accesses we have now. I honestly don't know if it is a good or bad thing. Teams are not allowed to contact players at any time during lockout so all summer activities are cancelled during lockout. The lockout is about more than money my friends. Everyone always focuses on the money aspect but this is not about money. If it was just about money there would not be a lockout because the league makes enough money. This is about EGOS. This is about Commissioner David Stern imposing his will and the owners imposing their will, Billy Hunter imposing his will, the Agents imposing their will and the Players hopefully imposing theirs. Remember, the NBA was the last major sport to not have a work stoppage until the 1998 debacle. Commissioner Stern took pride in not having a work stoppage under his watch. (Food for thought #1: Stern makes between $20-$30 million dollars a year in salary, with or without a lockout). The owners want what they couldn't get the last time, a salary cap, cost certainty and more control over the players. Whether hard or flex, a cap is still a cap. No other business in the world has cost certainty which is knowing how much you are spending and profiting in advance. After what LeBron James and Chris Bosh did last summer along with other free agents , the owners are upset. How dare you leave my team after your contract expires and I no longer own you? (Food for thought #2: Most, if not all the owners are billionaires, and were before they got into the NBA. Finances unaffected by lockout). Billy Hunter is the head of the players union and has been since he replaced Charles Grantham in 1998. He too has some demons to exorcise since the last lockout. He has done a decent job in my opinion as far as going toe to toe with Stern and not being afraid, similar to Grantham. (Food for thought #3: Hunter was and is still an attorney. he is still getting paid during lockout. Although that has been a question raised by several players). The Agents have a lot at stake, actually about 7 of them represent majority of players. Most people believe they are behind all of this madness. I know i believe it. In 1998 it was a group led by then super agent David Falk that almost destroyed the players union. (Food for thought #4: the agents don't suffer because they have other clients in other sports plus most usually get payment in advance). The players are at fault too. In 1998 we couldn't get guys to show up for meetings because they honestly did not care until it affected their money so I at least applaud the players today for being more involved and unified. The lockout is only going to affect the middle and lower tiered players. The stars will get their money and have enough to last them during the lockout. I remember Michael Jordan at a meeting saying " Do what is best for the lower tiered guys because I will get my money, no matter what we do". He was so right. Ironic how he is an owner now going against some of the guys he was aligned with 13 years ago. (Food for thought #5: The players are really the only group that are solely dependent on the NBA and doesn't receive payment during lockout). So while everyone is imposing their will the NBA is losing out on capitalizing on one of the best seasons ever. The owners are claiming that they are losing money but that's not really true. I have always asked the question "if an owner is paying someone $100 million dollars in salary, how much is the owner making"? The last time I checked people were lining up to buy teams in the NBA. They are not lining up to lose money. Some teams are struggling financially but it's only because they have bad management and make bad business decisions. Now these owners want a nearly $1 billion dollar refund from the players. So if they do get a refund, how will this money be divided. I am never going to criticize any player for getting paid. You are usually worth what the market will bear, but I will criticize a team for negotiating against itself and giving a player a large contract they didn't have to give and then complaining about it. You have to remember also that many general managers were players and have past working relationships with agents so a lot of favors are being done. For example, Warren LeGarie was a player agent on record but now he represents general managers and coaches as well as run the Vegas Summer League. How in the world is that possible. Again, this is not about money. It has never been about money. Remember this is not a player strike but an owner imposed lockout. I know sports is about winning but there are no winners during a lockout.