In the past few weeks, I have posted a lot of material pertaining to the NBA labor negotiations that have been going on. The NBA owners have locked the players out and the consequences have been dire for both parties involved. Many sports retailers have also been affected by this lockout situation in the past five months. Sports retailers giants like Nike, Adidas, Under Armour and Reebok have undoubtedly changed their marketing strategies with their basketball apparel. There have been casualties in many spheres (fans, business owners or NBA arena employees alike) and everyone is looking to point the finger and blame one another.
Three different perspectives:
1) An NBA fan
”Since when do employees get a percentage of revenues? My employees earn salaries which are renegotiated every year. They get paid the same amount whether my company makes money or not and whether our profit is 80% or .08%. Why do athletes feel that they are entitled to a piece of the action? Incentive clauses? Absolutely! A share in the profits? Let them BUY shares in the teams, then they can get a piece of the action. I just don’t get it…..”
2) Howard Beck, New York Times (October 29th, 2011)
“The difficulty in closing the gap is psychological and financial.
The players, who last season earned 57 percent, have already made a $180 million concession. They have agreed to a harsher luxury tax, shorter contracts and smaller raises. They have made concessions on nearly every major item in the collective bargaining agreement — a tacit admission that the league’s economic woes are real and substantial and had to be addressed.
The final deal will, by any objective measure, heavily favor the owners when compared with the last two C.B.A.’s. Union leaders contend they have moved far enough.
The owners make the same claim. They initially demanded an absolute, hard salary cap, an $800 million rollback in salaries, elimination of guaranteed contracts and a 37 percent share for players. They have dropped all of those demands and are making the 50 percent offer over the objections of several small-market owners.”
3) [VIDEO] David Aldridge of NBA Game Time
Who are you siding with?