Current NBA Lockout Shows That the League Is a Business First

With the current lockout underway for 97 days and counting, despite meetings taking place between the NBA Players Union (NBAP) and the Owners, the bottom line is that everything right now is about finances.

There are multiple areas that need to be agreed upon, meaning that it make take a very long time for the final collective bargaining agreement to be written up. It has now gotten to the point where both sides are looking to hold their own ground, and in the process delay or even cancel the 2011-12 NBA season.

Finances are usually one of the biggest areas that businesses and business owners depend on to run their operations. A majority of the owners are claiming that they are losing money and are trying to find a way to control that aspect.

The players are asking to see official paperwork concerning losses and do not feel that the owners are being completely upfront with them. Also, agents who represent many of the NBA players are also looking to get into the picture in order to protect their clients and their revenue.

One area of disagreement is with the sharing of Basketball Revenue Income (BRI) where both sides agree to share the total gross revenue.

The players received 51 percent of BRI while the owners received the remaining 49 percent. However, the owners may lose out on potential BRI if gross revenue takes a hit.

This is something that the players do not go through at all, and that is one of the main reasons why the owners are pushing for the players to accept less BRI, even though the players have refused to go down past 53 percent according to a report on RealGM earlier this evening.

The report also stated that the owners proposed an offer that would have the players accepting 47 percent, leaving the remaining 53 percent for the owners, which the players have refused.

What is also important to note is the effectiveness of the tactics being used in the negotiations. It may take a small meeting with Billy Hunter and Derek Fisher staring across at David Stern and Adam Silver to come to a solution.

Having NBA players show up at the negotiations is a good move in the “PR” fashion, but after the Dwayne Wade-David Stern dispute, it may hurt more than help.

Hopefully, a solution (new collective bargaining agreement) can be had out of all of these meetings that present advantages both in the short-term and the long-term for both sides. That should be the most important thing.

The two sides should not make hurried decisions, as these may come back to hurt more than help, especially in the long-term. It appears that finances are going to really put a huge damper on the NBA and change the way things are approached from here on out.

Whether or not there is a resolution to this current lockout, things will never be the same in the NBA again. It has become a business of finances, and both sides are looking to stand firm.