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Thursday, September 30, 2010


NBA Lockout a Possibility

I came across an article on nba.com concerning a meeting between the National Basketball Association and the National Basketball Players Association or NBPA. The NBPA is the labor union of the players in the NBA. This players union was constructed in 1954 at a time when the NBA offered no minimum salary, health benefits or pension plan. The average player’s salary was approximately $8,000 per season. Back then, the league was much smaller and perhaps these selective incentives were much harder to obtain without collective bargaining.

The NBA has grown immensely since that time and today it is a huge money making business to say the least, but the NBPA still remains. The last collective bargaining agreement that was reached expired with the 2009-2010 season which ended this summer. This means that another deal must be made but there has been some friction between the union and the NBA. The major issue at hand is the player’s percentage of league revenues which is currently set at 57 percent. NBA owners would like to see that percentage lowered but the union would not. If the union and NBA cannot come to an agreement then the upcoming NBA season could be halted. This would result in a loss of a great amount of money for both the NBA owners and players. It is in both parties best interest for the season to be played as usual but the union’s use of force might not allow this.

In the case of the lockout of a season no one wins. This is time in which the NBA wants remain in business and players would like to play. Substantial revenue is made for both the NBA and its players through advertisements, memorabilia, ticket sales, and endorsements. Neither side wants to lose out on time in which money can be made. This article states that the most recent meeting between the two sides went smoothly so hopefully an agreement will be made before the season is set to start. If the union refuses to accept a deal then the NBA owners and players will not be the only ones hurt but also the millions of fans who are anticipating another exciting NBA season.

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