Summary: The Recent National Basketball Association Lockout

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Running head: THE BUSINESS OF BASKETBALL 1 THE BUSINESS OF BASKETBALL 2 The Business of Basketball The recent National Basketball Association lockout captured nationwide attention. NBA ownership and its players fought for what each thought was best. The players were fighting to protect what they already had, while the owners tried to protect their investments in each franchise. If you own a television chances are high that you probably were aware of the recent lockout of players in the National Basketball Association (N.B.A.). There were many complex issues surrounding both sides regarding this situation which I will get into during the course of this paper. The main goal of both the owners and the players was to come to agreement…show more content…
One in particular was the continuation of the salary system that was previously in place. As I mentioned above, the owners were fighting for a “hard cap” which would limit the amount of money teams could spend. As a result of the new deal, teams can continue to spend large sums of money on available, big name players and not be limited to how much they can spend. Another piece of the deal that went in the players favor was the concept known as the “mid level exception”. This means that teams can sign a free agent player to a salary that is equal to the average salary of a league player. For instance; if a superstar player comes along that would typically demand a high salary, a team can sign that player as their “mid level exception” and pay them a high salary, but not as much. This allows teams to build championship caliber…show more content…
This means that during the decade long agreement, players would be paid a guaranteed 2 billion dollars league wide. This was a slight decline from the old collective bargaining agreement which paid the players 2.17 billion over that same time frame. The decline seems modest but over a ten year period, the owners felt that they could benefit from the extra income. The second step the owners asked for was to reduce the length of the players contracts. Owners want the players to only be able to sign for 3 years if they are signing with new teams. The current system allows the players to sign for 5 years. The reason for this is certainly understandable. If a player signs for 5 years and blows his knee out and misses 2 years out of the 5, the owners are still stuck paying that salary to the player and are getting nothing in return. These kind of things happen and can cripple a team for years leaving the owners unable to sign new players because they have millions tied up in an injured player. Owners also asked for a lowering of all rookie contracts. Owners feel that they are at a disadvantage when they have to pay a first year player a ridiculous amount of money without actually knowing what type of the performance the player will give on the N.B.A level. Millions of dollars are also tied up in

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