Stern details specifics of ultimatum in letter

By Howard Beck, New York Times

NEW YORK — The ultimatum issued by the NBA to its players over the weekend not only threatens them with a worse labor deal but also a massive pay cut if they do not make a deal by Wednesday afternoon.

A letter sent by David Stern, the commissioner of the NBA, to the players union Sunday contrasts the proposal on the table — highlighted by a 50-50 split of revenues — with a “reset” proposal that would cut the players’ share to 47 percent, roll back current contracts, impose a hard salary cap and reduce contract lengths.

The salary rollback, which was part of the NBA’s first controversial proposal in 2010, had not been included in any league proposal for many months, and it was not publicly mentioned by Stern when he announced the ultimatum Saturday.

But the rollback was included in the letter Stern sent to Billy Hunter, the union’s executive director. A copy of the letter was obtained by the New York Times.

The union has until 5 p.m. Wednesday to accept the NBA’s last proposal or have it replaced by the reset proposal, Stern wrote.

The NBA’s current proposal to the players includes a soft salary cap, a 50 percent share of revenues for players and these features:

• Salary-cap and luxury-tax levels in Years 1 and 2 of the new agreement will be no less than they were in 2010-11. By Year 3, they will be adjusted downward to conform to the new system.

• Sign-and-trade deals and the biannual exception will be available only to nontaxpaying teams.

• Extend-and-trade deals, like the one signed by Carmelo Anthony last season, won’t be allowed.

• The midlevel exception will be set at $5 million for nontaxpaying teams, with a maximum length between three and four years (alternating annually). The value of the exception will grow by 3 percent annually, starting in Year 3.

• The midlevel exception will be set at $2.5 million for taxpaying teams, with a maximum length of two years, and cannot be used in consecutive years.

• A 10 percent escrow tax will be withheld from player salaries, to ensure that player earnings do not exceed 50 percent of league revenues.

• Maximum contract lengths will be five years for “Bird” free agents and four years for others.

• Players will be paid a prorated share of their 2011-12 salaries, based on games played once the season starts.

• Team and player contract options will be prohibited in new contracts, other than rookie deals. But a player can opt out of the final year of a contract if he agrees to zero salary protection (i.e., if it is nonguaranteed).

The “reset” proposal features a flex-cap system that contains an absolute salary ceiling — to be set $5 million above the average team salary. In addition, the NBA would roll back existing contracts “in proportion to system changes in order to ensure sufficient market for free agents.”

Some of the other major differences in the “reset” proposal:

• The midlevel exception would be set at $3 million in Year 1, with a maximum length of three years, and would grow at 3 percent annually.

• Maximum salaries would be reduced.

• Contracts would be limited to four years for “Bird” free agents and three years for others, but each team could give a five-year deal to one designated player.

Both proposals include an “amnesty” provision that will allow every team to waive one player and have 100 percent of his salary removed from the cap.

More games likely to be lost

By BRIAN MAHONEY
Associated Press

NEW YORK — Three days and 30 hours’ worth of talks ended on a nasty note Thursday in NBA labor negotiations. And only one thing seemed fairly certain: more games were likely to be cut. Possibly even the season.

Players insist that’s the outcome owners wanted all along — “preordained,” as union executive director Billy Hunter said.

“We’ve always felt there was still a place where they would just not go and they would lock us out as long as it would take in order to get us beyond that place. There was never really a willingness to negotiate beyond certain points,” union president Derek Fisher of the Lakers said. “There was just a line drawn, and regardless of what’s going on, how many times we meet, ‘we’re not going past that.’”

After 30 hours of negotiations before a federal mediator, the sides remained divided over two main issues — the division of revenues and the structure of the salary cap system.

“We understand the ramifications of where we are,” Deputy Commissioner Adam Silver said. “We’re saddened on behalf of the game.”

Without a deal, NBA Commissioner David Stern, who missed Thursday’s session with the flu, almost certainly will decide more games must be dropped.

The season was supposed to begin Nov. 1, but all games through Nov. 14 — 100 in total — already have been scrapped, costing players about $170 million in salaries.

Stern said previously that games through Christmas were in jeopardy without a deal this week. Silver said the labor committee would speak with Stern on Friday about the future schedule, though no further cancellations are expected yet.

Silver said he was a little more optimistic than usual going into the talks, but the union later accused him of lying, with Hunter saying: “They knew when they presented what they were presenting to us that it wasn’t going to fly.”

The union said owners essentially gave it an ultimatum to accept a 50-50 split of revenues. Attorney Jeffrey Kessler said the meeting was “hijacked.”

“We were shocked,” he said. “We went in there trying to negotiate and they came in and they said you either accept 50-50 or we’re done and we won’t discuss anything else.”

Both sides praised federal mediator George Cohen and said they felt there was some progress on minor issues at the start of the talks. But it was clear by the time talks broke down that there were bad feelings.

“We’ve spent the last few days making our best effort to try and find a resolution here. Not one that was necessarily a win-win. It wouldn’t be a win for us. It wouldn’t be a win for them. But one that we felt like would get our game back … and get our guys back on the court, get our vendors back to work, get the arenas open, get these communities revitalized,” Fisher said.

“And in our opinion, that’s not what the NBA and the league is interested in at this point. They’re interested in telling you one side of the stories that are not true and this is very serious to us. This is not in any way about ego. There are a lot of people’s livelihoods at stake separate from us.”

Hunter said the union made “concession after concession after concession … and it’s just not enough.”

“We’re not prepared to let them impose a system on us that eliminates guarantees, reduces contract lengths, diminishes all our increases,” he said. “We’re saying no way. We fought too long and made too many sacrifices to get where we are.”

Previously each side had proposed receiving 53 percent of basketball-related income after players were guaranteed 57 percent under the previous collective bargaining agreement.

Silver said the league formally proposed a 50-50 revenue split Wednesday. The union said its proposal would have been a band that would have allowed it to collect as much as 53 percent but no less than 50, based on the league’s revenues.

“Hopefully, we can get back to the table, but certainly a tough day, a very tough day,” said Peter Holt, the labor relations committee chair and owner of the San Antonio Spurs.

Asked whether the players would drop to 50 percent, Holt said he didn’t think it was that big of a jump but that the union did.

He said the league would not go above 50 percent “as of today. But never say never on anything.”

Hunter said Cleveland owner Dan Gilbert told players to trust that if they took the 50-50 split, the salary cap issues could be worked out.

Hunter’s response?

“I can’t trust your gut. I got to trust my own gut,” he said. “There’s no way in the world I’m going to trust your gut on whether or not you’re going to be open and amenable to making the changes in the system that we think are necessary and appropriate.”

Owners and players met with Cohen for 16 hours Tuesday, ending around 2 a.m. Wednesday, then returned just eight hours later and spent another 8½ hours in discussions. The sides then met for about five hours Thursday, before calling it quits.

“Am I worried about the season, per se? Yeah. But I’m more so worried about us standing up for what we believe in,” New Orleans Hornets guard Jarrett Jack said. “I think that’s the bigger issue at hand.”

Cohen didn’t recommend that the two sides continue the mediation process as they weren’t able to resolve the “strongly held, competing positions that separated them on core issues.”

Though the sides have said they believe bargaining is the only route to a deal, the process could end up in the courts. Each brought an unfair labor practice charge against the other with the National Labor Relations Board, and the league also filed a federal lawsuit against the union attempting to block it from decertifying.

Union officials, so far, have been opposed to decertification, a route the NFL players initially chose during their lockout.

However, Hunter said Thursday that “all of our options are on the table. Everything.”

___

Follow Brian Mahoney on Twitter: http://www.twitter.com/Briancmahoney

Could 82-game NBA season be salvaged?

Reports from the marathon NBA bargaining session that stretched well into Thursday morning sound as substantive as we’ve heard during the nearly four months of negotiating between the two sides.

The best news that came from both the players and owners after the 15-hour session ended was that an 82-game season still could  be salvagable if a settlement could  be reached by Sunday or Monday.

“We initially wanted to miss none,” NBA commissioner David Stern“It’s sad that we’ve missed two weeks. We’re trying to apply a tourniquet and go forward. That’s always been our goal.”

Both Stern and Billy Hunter sounded upbeat when they emerged to give their spin to the media.

Maybe it’s the late hour. But how come this seems to be a completely different attitude emerging than after cataclysmic gloom and doom that marked the end of last week’s abrupt conclusion? 

Despite the happy spin both sides have, huge work needs to be made when they meet again beginnning at 2 p.m. Thursday.

One source told CBS Sports.com that “small moves” have been made. But the same gap exists with the split of the basketball-related income remains and appears to still be the same impediment to a deal as before.

It will be up to Hunter and Stern to bridge that gap.

They’ve been here before and haven’t been able to settle the deal.

Will they be any more successful on Thursday?

Basketball fans can only hope.