I’m Going To Make Them An Offer They Can’t Refuse
Perhaps it’s me but unless NBA Commissioner David Stern is trying to pull the wool over our eyes. We’re to believe that NBA and its teams are said to be losing tens of millions of dollars. For the fiscal year of 2010, Stern states …’ that the combined losses of the league will exceed $400 million dollars‘. Now when I last looked the NBA’s revenues exceeded $7 billion a year from all of its global operations. Somehow either there’s ‘financial mismanagement’ on the NBA’s behalf, courtesy of the owners. Or in fact there are indeed some serious inherent problems within the NBA that was overlooked by the game’s hierarchy from the very outset. Which is it to be ?
Now unless the ‘ executive board’ of the NBA that currently exists mirrors that of the board members of both GM and Chrysler combined . And as we know the board members there, essentially ran both businesses to the brink of bankruptcy . Now we’re meant to believe that the NBA and its owners are actually that financially irresponsible , wherein, they’re now trying to stave off their own financial meltdown and irresponsibility ? If we’re to believe and take David Stern at his word , then each of the teams within the league are on average losing $13.34 million each. Somehow, I for one find that inconceivable but then again unless the NBA is willing to open up their books for financial and public scrutiny. I can only surmise, that the sole reason for Stern and the NBA’s hierarchy to pose this to the NBPA (Players Union) is to merely indicate that they’re in an acute financial dilemma .
Courtesy of New York Daily News
NBA Commissioner David Stern: Teams are in $400M hole
By Mitch Lawrence , Daily News Sports Writer
Dallas – NBA players need to face the harsh economic facts and prepare to take major pay cuts in the next collective bargaining agreement, commissioner David Stern said Saturday night.
During his annual state of the NBA speech at All-Star Weekend, Stern said the league will lose $400 million this season – roughly double its annual losses over the last four years – and has to come up with a new “sustainable” economic model.
“We’ve shown the players the facts,” Stern said. “Our current level of revenue devoted to player salary is too high. I can run from that, but I can’t hide from that. And I don’t think the players can hide, either. We need to make significant changes to deal with the very substantial losses that are in the hundred of millions of dollars.”
Owners presented a proposal Friday to the players that called for massive cutbacks in guaranteed salaries, and cutting the percentage given to players from basketball-related income, from its current level of 56%, to around 43%. In terms of salaries for superstar players, the days of those making in excess of $20 million in a season would be over, with those players likely making no more than $13 million. Maximum contracts would plummet from an average of $18 million per season to around $11 million per season.
The players’ executive director, Billy Hunter, rejected the owners’ proposal out of hand.
“You can denounce it, you can tear it up, you can burn it, you can jump up and down on it, as long as you understand that it reflects the financial realities of where we are,” Stern said, while refusing to detail the specifics of the proposal.
Although the two sides have plenty of time to reach a deal – the CBA runs through next season – Stern gave no indication that the owners’ demands will change over the next 18 months. League sources told the Daily News recently that about half the 30 teams are losing “tons of money.”
Despite the glum outlook for labor peace, Stern tried to leave on an upbeat note.
“There’s always a deal,” he said, forgetting to mention that in 1998-99, his owners shut down the league, for the first time, and reduced the season to 50 games. “We plan to make a deal this time, too.”
Billy Hunter the Executive Director of the NBPA, his executive committee members and the NBA , are in the midst of a very contentious union deliberations as to their collective bargaining agreement . Stern for his part, wants there to be even more financial constraints placed upon the union as to their share of the league’s revenues and how its shared amongst the teams and its players. The present NBA salary cap is $71.2 million and the league and Stern are said to be looking for a 20 % cut across the board amongst the players in terms of the salaries to override the losses of the league. Now one can surmise that neither Hunter or his members would find this at all amenable . Nor are they prepared to cave in to the request of Stern at this juncture.
For all the guile that David Stern seems to possess , I do believe that he’s now trying to play the ‘capo de tutti capi’ in terms of his demands. In 2009 Stern made the asinine statement that the …. ‘ $250 million that was doled out to 16 franchises within the league was to be viewed not as a bailout but merely a way of helping them all financially to remain stable. The question I for one would like to pose to David Stern is how is it that the teams and the ownership aren’t able to show financial constraint but yet they are prepared to impose increases on the fans ? Somehow if even he and the owners aren’t prepared to be held accountable for their actions then how are we now to believe him when he states the financial problems that the league is now said to be facing ?
If the NBPA is acquiesce and overcome this impasse , then they may well have to climb down from off their lofty perch and at least meet David Stern and the owners at least half way. And by all accounts, Billy Hunter hasn’t ever been that trustful of anything emanating from the mouth of the commissioner. And who can blame him ? It’s not as if Stern has ever been known to be upfront and open as to the transparency of the league and its inner workings to begin with. The league’s hierarchy has been so secretive that they now make the conclave of Cardinals who oversee the papal order and its choice of the Pope seem open. But that would be to surmise that the Roman Catholic order was ever open to begin with. The NBA for its part has proven to be nothing more than a business that now has been mismanaged and through the greed of its hierarchy and that of the commissioner’s office has become a microcosm corporate America , and how much of a mess that it has now become. Instead of actually being to produce profits through the natural order of producing a brand and product that appeals to its customers. We now find the NBA conducting itself, like a business that’s now said to be completely devoid of ideas and innovation and seemingly having to massage the numbers through financial creativity in terms of its accounting practices . What more else that can be said can be best done after we are allowed to view the evidence that the NBA is willing to allow us to see.
Make them an offer they can’t refuse David Stern because in all probability the union will be unwilling to acquiesce to your demands. For far too long you and the owners have ran the NBA as if it were a slot machine wherein yourself and the hierarchy have been the sole profiteers of the business template and its rewards therein. C’mon make them an offer they can’t refuse .
Alan Parkins aka tophatal
The classic line as quoted by Vito Corleone in the movie ‘The Godfather’ ……’I’m going to make him an offer he can’t refuse’ . If Stern and league somehow uses that approach , I seriously doubt that he’ll get what he wants from the union. They’re no longer intimidated by him the league’s hierarchy or the owners, themselves.
This could well be how Hunter and Stern will actually carry out their negotiations during the collective bargaining agreement deliberations. That bolt of lightning will definitely be striking someone within either side of the NBA hierarchies. Will it be the NBPA or the upper echelons of the NBA itself ?