NBA cancels more games after negotiations break down

By BRIAN MAHONEY
Associated Press

NEW YORK — As NBA players and owners wait to see who will blink first, fans are stuck staring at a blank calendar.

NBA Commissioner David Stern canceled the rest of the November games Friday, saying there will not be a full NBA season “under any circumstances.”

The move came about after labor negotiations broke down again when both sides refused to budge on how to split the league’s revenues, the same issue that derailed talks last week.

Now, a full month of NBA games have been canceled, and Stern said there’s no way of getting them back.

“We held out that joint hope together, but in light of the breakdown of talks, there will not be a full NBA season under any circumstances,” he said.

“It’s not practical, possible or prudent to have a full season now,” added Stern, who previously canceled the first two weeks of the season.

And he repeated his warnings that the proposals might now get even harsher as the league tries to make up the hundreds of millions of dollars that will be lost as the lockout drags on.

“We’re going to have to recalculate how bad the damage is,” Stern said. “The next offer will reflect the extraordinary losses that are piling up now.”

Just a day earlier, Stern had said he would consider it a failure if the sides didn’t reach a deal in the next few days and vowed they would take “one heck of a shot” to get it done.

Instead, negotiations broke off again over the division of basketball-related income, just as they did last Thursday. Union executive director Billy Hunter said the league again insisted it had to be split 50-50, while Stern said Hunter just walked out and left rather than discuss going below 52 percent.

Owners are insistent on a 50-50 split, while players last formally proposed they get 52.5 percent, leaving them about $100 million apart annually. Players were guaranteed 57 percent in the previous collective bargaining agreement.

“Derek (Fisher) and I made it clear that we could not take the 50-50 deal to our membership. Not with all the concessions that we granted,” Hunter said. “We said we got to have some dollars.”

Instead, they’ll now be out roughly $350 million, the losses Hunter previously projected for each month the players were locked out. He believed a full season could be played if a deal were made this weekend, but Stern emphatically ruled out any hope of that now.

“These are not punitive announcements; these are calendar generated announcements,” Stern said.

No further talks have been scheduled.

There was a sense of optimism entering the day after progress was made on salary cap issues during about 24 hours of talks over the previous two days. Then the sides brought the revenue split back into the discussion Friday and promptly got stuck on both issues.

Stern said the NBA owners were “willing” to go to 50 percent. But he said Hunter was unwilling to “go a penny below 52,” that he had been getting many calls from agents and then closed up his book and walked out of the room.

Hunter said the league initially moved its target down to 47 percent during Friday’s six-hour session, then returned to its previous proposal of 50 percent of revenues.

“We made a lot of concessions, but unfortunately at this time it’s not enough, and we’re not prepared or unable at this time to move any further,” Hunter said.

Union president Fisher said it was difficult to say why talks broke down, or when they would start up again.

“We’re here, we’ve always been here, but today just wasn’t the day to try and finish this out,” he said.

There was some good news.

Deputy Commissioner Adam Silver said there was essentially a “tentative agreement” on most system issues, with Stern rattling off some of them: Owners agreed to keep the midlevel exception starting at $5 million a year; and contract lengths would be five years for players staying with their teams and four when leaving for another.

“And then we hit a wall,” Stern said.

The small groups that were meeting the previous two days grew a bit Friday. Union vice presidents Chris Paul — wearing a Yankees cap for his trip to New York — and Theo Ratliff joined the talks, and economist Kevin Murphy returned after he was unavailable Thursday. Mavericks owner Mark Cuban stayed for the session after taking part Thursday.

Fisher said there were still too many restrictions in the owners’ proposal. Players want to keep a system similar to the old one, and fear owners’ ideas would limit player movement and the choices available to them in free agency.

And though they might be inclined to give up one if they received more concessions on the other, players make it sound as if they are the ones doing all the giving back.

The old cap system allowed teams to exceed it through the use of a number of exceptions, many of which the league wants to tweak or even eliminate. Hunter has called a hard cap a “blood issue” to players, and though the league has backed off its initial proposal calling for one, players think the changes owners want would work like one.

“We’ve told them that we don’t want a hard cap. We don’t want a hard cap any kind of way, either an obvious hard cap or a hard cap that may not be as obvious to most people but we know it works like a hard cap,” Hunter said. “And so you get there, and then all of a sudden they say, ‘Well, we also have to have our number.’ And you say, ‘Well wait a minute, you’re not negotiating in good faith.’”

But if players think what’s being proposed is a hard cap, here’s another warning: Silver won’t rule out the league seeking one again.

“Our response is then let’s have a hard cap, which is what we wanted,” he said.

“We don’t think it’s a hard cap. … We’ve all been wasting our time if they believe this is a hard cap. We’ve been spending literally hundreds of hours negotiating the specifics of a system, where they’re now saying is the equivalent of a hard cap. We’ve been clear from the beginning from a league standpoint we would prefer a hard cap.”

When players offered to reduce their guarantee from 57 percent to 53 percent, Hunter said that would have transferred about $1.1 billion to owners over six years. Now, at 52.5, he said that would grow to more than $1.5 billion.

But even a 50-50 split would be too high for some hardline owners, because it would reduce only $280 million of the $300 million they said they lost last season. Owners initially proposed a BRI split that players said would have had them around 40 percent.

Though they will miss a paycheck on Nov. 15, Hunter said each player would have received a minimum of $100,000 from the escrow money that was returned to them to make up the difference after salaries fell short of the guaranteed 57 percent of revenues last season.

The real losses, though, could be felt by arena staff and other people who work in fields connected to the game. Stern apologized to them in making the announcement.

But Jeff Lee, a 37-year-old cafe owner and Warriors season-ticketholder in the East Bay, said he isn’t discouraged about Friday’s setback.

“I’m pretty certain that the season’s going to start sooner or later,” Lee said. “I know when the season starts it’s going to be well worth the wait.”
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AP Sports Writer Janie McCauley in Oakland, Calif. contributed to this report.

Follow Brian Mahoney on Twitter: twitter.com/Briancmahoney

NBA sides eager to get deal in next few days

By BRIAN MAHONEY
Associated Press

NEW YORK — NBA owners and players called it an early night Thursday, with both pointing toward Friday as a decisive day for big moves to end the 119-day lockout.

Or not.

After two days of talks about the salary cap system, they will turn their attention back to the division of revenues, which derailed the talks last week.

This time, Commissioner David Stern said the talks had produced enough familiarity and trust “that will enable us to look forward to tomorrow, where we anticipate there will be some important and additional progress — or not.”

“But I think (union executive director Billy Hunter) and I share that view, and we’re looking forward to seeing whether something good can be made to happen.”

The sides again said there was some minor progress on the system issues after about 7½ hours of talks. They decided to wrap it up and get some rest following a marathon 15-hour session Wednesday, and with union economist Kevin Murphy unavailable Thursday to discuss finances.

Hunter said he thought the sides were “within striking distance of a getting a deal” on the system, but there’s still no indication either side is ready to make the big move necessary to settling the BRI split.

Owners have insisted they’re not going beyond 50-50, which means the sides are still about $100 million apart annually, based on last season’s revenues. Players have proposed reducing their guarantee from 57 percent down to 52.5, but they’re unlikely to go much further without some concessions on the system issues.

Asked when the significant move would happen, Hunter noticed Stern sitting in the back of his press conference and said to ask the commissioner.

“Tomorrow!” Stern yelled out.

“There are no guarantees that we’ll get it done, but we’re going to give it one heck of a shot tomorrow,” Stern said a few minutes later in his press conference. “I think that Billy and the union’s negotiators feel the same way. I know that ours do.”

If they don’t, Stern will have to decide whether to add more cancellations to the two weeks that have already been lost.

A full season might be difficult even with a deal this week. It takes roughly 30 days from agreement to games being played, so it’s uncertain if there’s still time for any basketball in November even before examining arena availability. But 82 games would be a boost for the players, meaning they wouldn’t miss the paycheck that seemed lost when the first two weeks were scrapped.

It was widely expected Stern would announce further cancellations this week after talks broke down a week ago. Instead, the sides were in communication the next day, staffs met Monday, and they were back at the bargaining table Wednesday, acting on Hunter’s recommendation to “park” the revenue split and focus first on the system issues.

Players want a system that looks a lot like the old one, where teams have the ability to exceed the salary cap and where contracts and their raises are guaranteed. Owners are seeking changes that they believe would create more competitive balance by removing the big market teams’ ability to spend freely beyond the cap.

They have attempted to do that by increasing the taxes teams would have to pay for exceeding the tax level. Players argue the taxes are too punitive and would scare teams from spending, thereby creating a hard cap.

“Our position hasn’t changed much,” union president Derek Fisher of the Lakers said. “We’re just trying to make sure that players have an opportunity to have a market for themselves and for their services, the same way we’re trying to meet the league and our teams on all 30 teams being competitive.”

Players have said the issues of the system and split are largely tied together, though Stern and Deputy Commissioner Adam Silver have said they believe they are separate.

The big question is whether owners will insist on having both.

“I think we’re within reach and within striking distance of getting a deal,” Hunter said. “It’s just a question of how receptive the NBA is and whether or not they want to do a deal.”

The sides have seemed close before, only for the talks to break down. It was the system issues earlier this month, followed by the split last week after three days of mediation.

They are hoping a deal can be completed by early next week, with the union believing if so there would still be enough time to reschedule the canceled games. But they’ve now arrived at what might be the toughest part, because it always seemed these talks would come back to money.

“We’re working at it,” Fisher said. “It’s a tough process and as we move through and try to close the gap in as many places as we can, it gets tougher towards the end.”

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Follow Brian Mahoney on Twitter: twitter.com/Briancmahoney

Sides in NBA lockout keep ball spinning

By Brian Mahoney
Associated Press

NEW YORK — After another long day of negotiations, NBA players and owners hammered out plans for another meeting.

That’s not the deal commissioner David Stern wanted, but it’s better than the cancellations that could come if talks fall through.

Both sides seemed to have plenty to talk about. After an eight-hour meeting Wednesday brought their time together to more than 24 hours over two days, federal mediator George Cohen said they would resume bargaining this afternoon.

“Everyone is extremely focused on the core issues, the difficult issues that confront them,” Cohen said.

Talks broke for the night so owners could attend meetings at another hotel. Stern left after seven hours for a presentation on revenue sharing by the owners’ planning committee.

The sides have been divided over two main issues: the division of revenues and the structure of the salary cap system.

League officials originally said they wouldn’t be available for negotiating Wednesday or today because of their board meetings. Stern wanted to bring a deal to them, saying even the Christmas games could be in jeopardy of cancellation without an agreement Tuesday.

Instead, owners will meet with players again today after their board meeting, the first time during the 111-day lockout they have bargained on three consecutive days.

“The discussions have been direct and constructive, and as far as we are concerned, we are here to continue to help assist the parties to endeavor to reach an agreement,” Cohen said.

Cohen said players and owners met in a variety of settings during mediation. Neither side commented, honoring Cohen’s request to keep the negotiations private.

Without a deal this week, Stern might have to decide when a next round of cancellations would be necessary. The season was supposed to begin Nov. 1, but all games through Nov. 14 — 100 in total — have been scrapped, costing players about $170 million in salaries.

Talks resumed Wednesday morning, just eight hours after a marathon 16-hour session. The owners’ planning committee meeting was scheduled for 2 p.m., but that was pushed back until the evening so they could keep talking with players.

After Stern left, deputy commissioner Adam Silver, the league’s lead negotiator, and Spurs owner Peter Holt, who heads the labor relations committee, led the talks with players.

Stern has said owners will have an expanded revenue sharing package among teams once the collective bargaining agreement with the players has been completed.

The union has pushed for it to be part of the CBA discussions, believing better sharing among teams would help owners address what they said was $300 million in losses last season, but Stern said recently he is confident players would approve the owners’ new system.

Players believe owners’ attempts to make the luxury tax more punitive and limit the use of spending exceptions will effectively create a hard salary cap, which they say they will refuse to accept.

Also, each side has formally proposed receiving 53 percent of basketball-related income after players were guaranteed 57 percent under the previous collective bargaining agreement.

They talked about a 50-50 split, but the players rejected that, and the league has said it won’t go beyond that number.

Unable to make any real headway in recent weeks on either item, Cohen’s presence was welcomed. He helped try to resolve the NFL’s labor dispute earlier this year.