Subject: Daily Blurb - November 15, 2011|
Posted by: Guru
-  Tue, Nov 15, 2011, 10:58
Quote of the day
"This is a negotiating tactic: You donít get exactly the deal that you want, you disclaim interest, and you sue. But itís not going to work. If they were going to do it, they should have done it a long time ago Ė then maybe we would have had a chance to save the season. But [the Players Union] seems hellbent on self-distruction, and I think itís very sad. Ö Weíre about to go into the nuclear winter of the NBA." -- NBA Commissioner David Stern, after the Players Union rejected the latest offer and began the process of union disclaiming
Even though the favorite won handily last night, this was a tough weekend for Football Pickoff, as only 37% of slates produced positive scores. That didnít seem to apply to YTD front-runner blondiescookies2 though, with 13 correct picks and a weekly top score of +621.
The NBA situation sounds pretty bleak. Without being a fly on the wall of the negotiations, itís impossible to assess ďblameĒ from the rhetoric being spouted from each side. But itís hard to imagine that any of the current players will eventually benefit from a protracted stalemate. They would seem to have the much greater financial stake (and loss) from this, as they are forfeiting their entire 50%-ish share of the basketball related revenues. If this season does get washed out, itís hard for me to imagine any current player will look back on this and think it was worth it.
|1||Perm Dude |
Tue, Nov 15, 2011, 11:15
It is a lot of money on the table. I guess that's why the owners locked them out in the first place!
Tue, Nov 15, 2011, 16:20
They would seem to have the much greater financial stake (and loss) from this, as they are forfeiting their entire 50%-ish share of the basketball related revenues.|
The original lowball offer from the owners was $890 million "giveback" over 10 years.
The total revenue for the NBA is 4.5 billion.
50% of that is 2.25 billion.
If the season is cancelled the players will be out 1.36 billion that they will never be able to recover.
The money players make is pure profit.
On the other hand the owner's lost revenue is partially offset by expenses they wont have to pay if the season is cancelled.
In addition, most owners have income from other sources.
When you look at the latest negotiation the owners offered 50% and the players demanded 52%.
So the player/owner split would be 2.25/2.25 vs 2.34/2.16 a $90 million per year difference.
The unfortunate truth is there will be no winners only losers and bigger losers.
The biggest losers would be the fans who could send a message to both parties by not going to as many games once the two sides come to an agreement.
If revenue drops to a very conceivable $4.0 billion and the players get their 52/48 split they would be left with 2.08/1.92.
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