NBA Bargaining & Negotiations

NBA Bargaining & Negotiations

CHARLES BAILEY

Collective Bargaining in the NBADictates the rules of player contractsTrades Revenue DistributionThe NBA Draft Salary Cap of PlayersRoster Size of team players

What is the N.B.AThe NBA stands for the National Basketball AssociationThe Association was started in June 6, 1946 in New York CityHeadquarters are located in New York City, NYThe current Commissioner is Adam Silver

NBA CommissionerAdam is the 5th Commissioner appointed by the NBA Board of Governors in 2015

Who are the official N.B.A teams?The National Basketball Association which bargains with 30 team owners which include:

Boston CelticsBrooklyn NetsAtlanta HawksCharlotte HornetsMiami HeatOrlando MagicWashington WizardsNew York KnicksPhiladelphia 76ersToronto Raptors Chicago BullsCleveland CavaliersDetroit PistonsIndiana PacersMilwaukee Bucks

Dallas Mavericks Houston RocketsMemphis GrizzliesNew Orleans PelicansSan Antonio SpursDenver NuggetsMinnesota TimberwolvesOklahoma City ThunderPortland Trail Blazers Utah JazzGolden State WarriorsLos Angeles ClippersLos Angeles LakersPhoenix SunsSacramento Kings

NBA BREAKDOWN by Conference Eastern ConferenceWestern ConferenceAtlanticCentral SoutheastSouthwestNorthwestPacific

Trouble in the NBAMany NBA teams are consistently loosing money due to:Expenses exceed revenue generatedExorbitant salaries of playersFans arent buying ticketsBad economy

Top paid N.B.A. players in the league1Kobe Bryant, SFLos Angeles Lakers$25,000,0002Joe Johnson, SFBrooklyn Nets$24,894,8633LeBron James, SFCleveland Cavaliers$22,970,5004Carmelo Anthony, SFNew York Knicks$22,875,0005Dwight Howard, CHouston Rockets$22,359,3646Chris Bosh, PFMiami Heat$22,192,7307Chris Paul, PGLos Angeles Clippers$21,468,6958Kevin Durant, SFOklahoma City Thunder$20,158,6229Derrick Rose, PGChicago Bulls$20,093,06410Dwayne Wade, SGMiami Heat$20,000,000

Show me the moneyNot only do these guys collect big checks but they also bring in millions in food, entertainment, and clothing endorsementsThis directly impacts owners who do not share in those huge profits but pay big salaries to keep their star players who may lead their teams to the coveted N.B.A. Championship victory

What is a ConcessionAccording to the dictionary there are two variances of concessionsOne being an authorization and the other being a compromise

Concessions made in the N.B.A.Players moved from a 57-43 revenue split to about 50-50. The length of max contracts shrunkIncrease in ticket prices and concession item, such as food and souvenirs

Collective Bargaining Agreement of the N.B.A.Consist of :SALARY CAP AND RELATED RULES Escrow and Tax ArrangementFree AgencyAnti Drug AgreementNBA DEVELOPMENT LEAGUE MiscellaneousEXHIBIT A (Rookie Salary Scales) EXHIBIT B (Minimum Annual Salary Scale)

Impasse in Contract NegotiationsA bargaining impasse occurs when the two sides negotiating an agreement are unable to reach an agreement and become hopelessly deadlocked. Typically an impasse is almost invariably mutually harmful to both sides either as a result of direct action which may be taken such as a strike or in the NBA would result in a lockout, as seen in 2011. Negative recourse/action in occurs resulting in delay in the negotiating of a mutually beneficial agreement

2011 Lockout in the N.B.A.Method to split revenue: Owners are demanding the institution of a first-ever hard salary cap, set at $62 million, to roll back salaries by around 33%, or $800 million annually. Players want to continue the soft-cap system that lets teams exceed the cap when they re-sign their own players, but have offered to take $100 million in annual cuts. The cap now is $58 million.- Dividing the loot: Owners want at least a 50-50 split of revenue, although players contend that the owners proposal calls for them to get a 61-39 advantage at the end of a 10-year deal. Players get a 57-43 split now and want it to continue in a five-year deal.- What the players get: Owners say their proposal would give players the same $2 billion they make now in salaries and benefits. Owners contend players last proposal would give them in excess of $3 billion, while players dispute that but refuse to divulge their demands.- Guaranteed contracts: Owners have come off their demand to eliminate guaranteed deals entirely. Theyre looking to reduce the 6- and 5-year deals to 5- and 3-year deals. Players want to continue getting 6-year deals for re-signing with their own teams and 5-year deals for joining a new team.- Guaranteed annual raises: Players presently get 10.5% if they re-sign with their own teams or 8% if they go to new teams. Although they havent announced their demands, owners want to slash those to 5% and 3%.

What is Contract RatificationIn contract law, the need for ratification can arise in two ways:Where the agent attempts to bind the principal despite lacking the authority to do soWhere the principal authorizes the agent to make an agreement, but reserves the right to approve it.

Contract Ratification processIDENTIFYING & UNDERSTAND RESPONSIBILITIES OF PARTIES INVOLVED IN RATIFICATION PROCESSDetermine if ratification process is requiredBegin drafting and finalizing supporting Contracting Officer information for the Ratification PackageStaff the packageProvide Written Notice of Ratifying Officials DecisionFinalize any issuance of corrective contracting actionDistribution to all parties

NBAs contract is ratified for 10 years to includeThe agreement includes a 50-50 split of basketball-related income, a higher luxury tax with progressive tax rates and the retention of a soft salary cap system. The maximum length of player contracts will be five years (previously six) and maximum annual increases in salaries will be 7.5% for teams re-signing their own players and 4.5% for teams signing other teams' free agents.On non-economic issues, the league has bolstered its drug program to include offseason testing, increased penalties for violations involving performance-enhancing drugs, and blood testing for human growth hormone (HGH) once the test is validated by a neutral panel of scientific experts.

AGREEMENT MADE

QUESTIONSWHEN BARGAINING NEGOTIATIONS, WHY DO FREE AGENTS COUNT AGAINST SALARY?IN BARGAINING NEGOTIONS, ARE INJURED PLAYERS APPLY TO A TEAM SALARY?IS THERE A MINIUM AMOUNT EACH TEAM MUST PLAY ITS PLAYERS IN BARGAING NEGOTIATIONS?HOW DOES PLAYERS AVOID BEING HELD HOSTAGE BY CRISIS NEGOTIATION?

REFERENCEShttp://www.si.com/nba/2015/06/10/nba-nbpa-collective-bargaining-agreement-negotiations-august https://en.wikipedia.org/wiki/NBA_collective_bargaining_agreementhttp://www.nba.com/news/labor-primer/