Friday, October 21, 2011

NBA Lockout: Killing the Golden Goose

Just read a few of the articles on the breakdown in talks over the NBA lockout. The players seem to be offering a sliding system where they take a 50% cut while revenues are down. However, once revenue starts to go up again, their cut increases a few percentage points. This seems like a pretty reasonable proposal.

The owners, however, are not interested. Basically, they offered a 50/50 split, take it or leave it. Pretty hard line.

Both sides need to realize they are in the entertainment business and we are facing some very serious economic hard times. They have a very expensive product in a very competitive market. I know there are a number of college basketball fans in the Denver area that would be more than happy to pick up a few fans and season ticket holders. The NBA, more than the NFL and MLB, faces the risk of a much greater loss in reputation and long term revenue by prolonged labor strife.

My advice to the players... Take the deal for the shortest amount of time you can get. If the owners profits soar, you can get your pound of flesh in a few years time. If profits aren't up, then maybe the owners had a point. The league is run by hard liners this time around and I don't think they are gonna change their position.

My fear is we are gonna lose at least this season. Maybe more. The talk of the players starting their own league has been thrown around as well. Maybe that would be a good thing. Somehow I think Billy Hunter would not be so disdainful of "profits" after trying to run his own league.

Whatever the case, it looks like both sides are gonna be losing a lot of money.  And they will have no one to blame but themselves.