Tuesday, August 2nd, 2011 at 11:04 am  |  88 responses

Breaking: NBA Files Lawsuit Against NBPA


Yesterday, the NBA lockout took a turn for the worse, with David Stern accusing the players of  “bad-faith bargaining,” Today, the situation hit an even lower point, as the NBA announced it is filing a lawsuit against the NBPA for “unfair labor practices” with the National Labor Relations Board, a move that could potentially set back negotiations for weeks, if not months. Below is the full press release:

The NBA filed two claims today against the National Basketball Players Association: an unfair labor practice charge before the National Labor Relations Board, and a lawsuit in federal district court in New York. The unfair labor practice charge asserts that the Players Association has failed to bargain in good faith by virtue of its unlawful threats to commence a sham “decertification” and an antitrust lawsuit challenging the NBA’s lockout. The federal lawsuit seeks to establish, among other things, that the NBA’s lockout does not violate federal antitrust laws and that if the Players Association’s “decertification” were found to be lawful, all existing player contracts would become void and unenforceable.

“These claims were filed in an effort to eliminate the use of impermissible pressure tactics by the union which are impeding the parties’ ability to negotiate a new collective bargaining agreement,” said NBA Deputy Commissioner and Chief Operating Officer Adam Silver. “For the parties to reach agreement on a new CBA, the union must commit to the collective bargaining process fully and in good faith.”

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  • http://slamonline.com Bryan Crawford

    JTaylor, you’re complaining about Stern’s credentials as an attorney? Uhm, how about you do some research on Billy Hunter and then holla back.

  • LA Huey

    @JTaylor, just because you know how to play hoops doesn’t mean you know how to operate a basketball-related business. His Airness could show you that.

  • http://slamonline.com Allenp

    This move is designed to prevent the players from getting to the courts for a few months if they decided to decertify. Delay is the best move for the owners, and they know that. They also want to keep this argument away from a judge, not because they would lose in court because they probably wouldn’t, but because lots of info would come out about how the League handles things.
    On another note, taking money overseas as a short term way to gain leverage while you attempt to get a better deal from your current employer is not hypocritical. It’s not more hypocritical than NBA owners renting out their arenas to various events when they would normally be hosting basketball games. Or running their other businesses to support themselves. Players have to pursue other revenue options, or they will be force to capitulate completely. But, Bryan is right, and I’ve said it before, the players will turn on each long before they owners do the same.

  • http://philosopher.view@blogspot.com The Philosopher

    T-Money:
    Basically my point is that, isn’t it questionable whether or not a restructured deal in the States would be considerably larger than an over seas deal? As you mentioned that it would be. I was just questioning that because, I don’t know.

  • T-Money

    bryan: i agree with one caveat – the owners are not looking for a willingness to negotiate from the players (they already have that), what they want is for the players to cave in and take their proposal as is. that’s a big difference. and i do agree that the “middle class” in the nba is an issue. if we’re being real, as david falk was pointing out, kobe and lebron are severly underpaid. these two guys generate so much revenue for the league, they should be making 40 million a year at the very least. on the other hand, guys like chris bosh and pau gasol are severly overpaid when looking at what they bring in. in a completely free market, half of one team’s salary cap would go to its superstar. it’s funny to think about the nba has a pseudo-socialist system.

  • http://philosopher.view@blogspot.com The Philosopher

    Allen:
    But wouldn’t the players still make more money in the States, Even with the smaller contracts? There is too much money in the States. Too much opportunity for their brand. More than abroad, no?

  • http://slamonline.com Allenp

    It would be much larger and impact far more players.
    In order to meet Deron Williams’ salary demands that Turkish team had to get a special sponsor. And Williams’ salary was what Mike Miller might get over here.
    Even with a $45 million hard cap, which is what the owners originally proposed, you would still have players at the top of the pyramid making big bucks. The people who would suffer the most are your mid-level guys like Varejo, Miller and Perkins. Now way do you spend $8 million on Kendrick Perkins if that represents nearly 20 percent of your total cap space.

  • http://slamonline.com Allenp

    Philosopher
    They would be locked into a less favorable deal for the foreseeable future and likely forever. With their overseas deals it’s a short term sacrifice in pursuit of a long term benefit. If they accept similar terms in the NBA, its a total loss.
    More importantly, why should players bear the brunt of the responsibility for insuring that NBA owners turn a profit? Teams basically want a new deal that guarantees that whatever they do each year they will be profitable, but without having to share any money between themselves. That’s ludicrous. Total revenue in the NBA increases last year. They had to pay players an escrow check because of it. That means that overall, there is more money for everybody. The real problem is how they are dividing up the existing pie. I think players should agree to roll back their percentage of league revenues to 50-52 percent. I think they should agree to a maximum contract length of four years. And I think they should mandate a new revenue sharing model be implemented immediately. And that’s it. Those are all the changes I support.

  • T-Money

    the philosopher: deron’s current contract would pay him 16 mil this year, i think it’s safe to say that, under a new cba, he would still make more than one third of that.

  • bull22

    HAHAHHAHAHAHAHAHHAHAHAHHAHHAHAHHAHAHHA to all you bozos taking sides because they dont care about our opinion… i give props to all the players that are not trying to destroy the nba product by saying “we are going to europe”.

  • T-Money

    i do agree that 7-year contracts are too long. you never know when you’ll sign a JO that will lose his legs midway through the contract. what i would like his 4 guaranteed years and then 3 optional years (options for both the team and the players – if one pary wants to opt out then the deal is off).

  • LA Huey

    The problem to me (for the NBA’s bottom line), is the contracts of the middle class players of the NBA. If you look at it as a business, they’re paid beyond their values. NBA games are like movies, the general public are interested in watching movies/games featuring superstar actors/players. People pay to see Steve Carrell star in “Dinner for Schmucks” and Derrick Rose play for the Chicago Bulls. As important a role as Paul Rudd/Luol Deng might play in the final product, paying them even half of Carrell/Rose’s cut is too much. The team’s that want to turn a profit need to weigh the impact of each signing on the standings and the bottom line.

  • bull22

    i feel only for the players that are against this lockout and want to play nba ball. but no sympathy for those jackarse players who don’t earn their keep, nor do i have any sympathy for those who want to play overseas…

  • http://cnbc.com JTaylor21

    BC/LA Huey, I understand where y’all are coming from but I think it would be better for the L and fans in general having a cat who’s played pro ball running things. Basically we have a commish who only cares about pleasing the owners and the bottim line. He doesn’t care about improving the level of play or the well being of the product aka the players.

  • http://philosopher.view@blogspot.com The Philosopher

    Allen:
    I can respect that perspective.
    T-Money:
    Okay. Say he gets half. Is that still considerably bigger?
    I guess it would be, depending on one’s outlook or perspective.

  • http://slamonline.com Allenp

    LA Huey
    The problem is that you can’t build a team without those quality middle class guys because there are only so many true superstars. Teams typically have issues when they compete for middle class guys, or marginal stars because some owner is ALWAYS willing to overpay to get a certain player they think will put them over the top. Typically it’s your big market teams, who have the revenue to recover from those mistakes, but too often small market teams market teams make the same mistake trying to keep up with the Joneses. To be honest, OKC overpaid Perkins to keep Durant happy. Cleveland overpaid Varejo to keep LeBron happy.
    David Lee is overpaid because people were convinced he was a budding star. it’s a tough business, and I understand that. But owners need to learn to have the balls to stand up to fans and say “We can’t make that move.”

  • http://slamonline.com Allenp

    However, fans and their proxies in the media put a lot of pressure on teams to make splashy moves, which leads to problems.

  • http://slamonline.com Allenp

    JTaylor
    The Commish is the employee of the owners. No matter who had the job, that would be his role.
    The NBA is both a grouping of independent businesses and a single entity. It all depends on who they are talking to.
    Either way, the Commish is paid by the owners. There is no way he cannot be beholden to them no matter who “he” is.

  • LA Huey

    Allenp, I agree with you. Teams do keep overpaying the Rob Schneiders so that Adam Sandlers stay happy. The owners seem to want to reap successful business profits without operating like one would. I do agree with your proposed changes though. Seems “fair” to all involved. Shorter contracts mean we get to see “contract year” effort more often and BRI split the players get right now is pretty lopsided.

  • LA Huey

    The union is about to get owned though (no pun intended). They’re going to get a raw deal because the owners have all the leverage.

  • http://cnbc.com JTaylor21

    AllenP, I see your point but how is that formula good for a sports league?
    Having a commissioner that only cares about keeping the owners happy aka “fattening their pockets” is not good for any business let alone a league that needs to put out good products on the court for the fans to come. Most owners are satisfied with losing as long as they are making money, teams like the clippers have traded away good player after good player just so they don’t have to pay them in the name of saving a buck.
    If that’s the case, the NBA should have two different entities running the show. One side that strictly represents the owner’s interests and another that looks out for the players. No, I’m not talking about the current system we have today, where one side (the commissioner) controls everything and has the say so on player conduct, rules on the court and control of revenue streams aka jersey sales and tv contracts. Both sides should have equal control over everything that goes on in the League.

  • T-Money

    the philosopher: half is actually extreme. what’s more likely is a 20% roll back. but what is your point exactly?

  • CubicleWorker

    Let’s take some of the wildest assumptions by readers on this site and explore them from an economics point of view.

    “The NBA didn’t lose money”
    “Owners are greedy”

    Even so, the owners have put their own money (or taken highly leveraged positions) to purchase a franchise. If they don’t feel the business is earning them an acceptable ROI then it’s their perogative to try to make their business more profitable.

    At the same time the players have the right to try to secure themselves the best possible employment arrangement. The players won the last CBA and the economics have proven that that arrangement was not mutually beneficial. Even though it sucks to take a pay cut, it’s either that or play in Turkey, Europe, China, Australia etc for even less pay and worse living conditions.

    My prediction is that a significant amount (or all) of the NBA season is lost and players play internationally which will in turn force the owners to concede some of their demands. In the end, the owners will be clear cut winners of this CBA.

    THE ONLY WAY the players win this CBA is if the owners are bluffing about the losses, in which case we’ll see a last minute deal. But if 22/30 teams are losing money, they won’t hesitate to wait for a CBA that provides them with a more profitable economic landscape.

    Put it this way, the players need the NBA more than the owners do…

  • http://www.slamonline.com spit hot fiyah

    Allenp = mvp of this thread

  • http://slamonline.com Allenp

    1. It is revisionist history to say that players won the last CBA. Nobody believed that at the time, and the perception was that the players caved because they had managed their finances so poorly they couldn’t survive without their bloated paychecks. Check the record.
    2. Business owners have the right to attempt to maximize their profits. When they do that at the expense of their employees, it’s called greed. The owners could all turn a profit if they agreed to a better revenue sharing model similar to what MLB does. They have refused because the larger owners don’t want to subsidize the smaller ones. So, they’d rather end basketball to break the player’s union so they can all make even more money. As of right now, the only people to offer to give up anything have been the players who have already agreed to rollback their share of the BRI to 54 percent from 57 percent.

  • http://slamonline.com Allenp

    JTaylor
    Unless the players want to chip in on Stern’s salary the current model for the commissioner will persist. But, as a larger issue, the NBA, MLB and NFL are organizations created by rich men to scratch an itch or make money. The players are their employees, not equals. The commissioner is the representative who handles the daily operations of the business, and keeps the employees in line. I would imagine that the owners want somebody disconnected from a basketball lineage because his loyalties would be divided. This is their League and they want somebody to represent their interests.

  • http://cnbc.com JTaylor21

    AllenP, all fair points but how are the players not equals to the owners when the only reason fans come to a game or watch it on TV is because of the players. In my opinion that makes them superior to the owners because without the services of the Kobes, Durants, and Howards, no one, I repeat, no one would watch or come to games.
    Look at what KD did at Rucker Park, everyone’s talking about it including every major sports channel. I don’t ever remember anyone reporting on the restaurant Mark Cuban visited last week or the 9 holes of golf Mikhail Prokhorov played. The owners should be grateful that guys like Wilt, Russell, Kareem, Magic, Bird, MJ, and others put in the dedication and time in the gym to become the sole reason why so many people around the world love NBA basketball today.

  • MikeC.

    The main flaw in the current system, as I see it, is the exceptions. Mid-level exception, bi-annual exception, veteran’s exception. Too many loopholes in the cap. Paying a star $15-20mil/year isn’t hurting teams. Paying Jerome James and Al Harrington $6mil/yr is killing teams. Sure, the owners gave out those contracts and they should be bound to the terms of existing contracts. Changes are needed. Rolling back existing salaries shouldn’t be on the table. They should be grandfathered in. I’d like to see the Allan Houston rule brought back again. Cut one player, pay out the contract, but it’s off the cap. The player gets the money, so it’s fair, and the team gets to eliminate their biggest mistake. Removing all the exceptions to the cap could solve a lot of issues. Another suggestion would be a limitation on the Bird rules(this might not work at all, I’m just spitballing). Teams can only exceed the cap to re-sign a player if that signing keeps the total salary below a certain threshold. It would keep teams from overspending on players they’re not absolutely sure of. Fans also need to relax a bit. Don’t call for a GM’s head if they let a player walk. Sometimes they make the wrong move out of fear of fan and media backlash. Would any Hawks fan be pissed if Joe Johnson walked? No Jazz fans are throwing firebombs over Boozer being let go. This lockout isn’t so much about limiting the big money to legit stars. It’s about not being held off a balcony for not signing a 3rd tier star to a huge contract. I can’t argue that KD, Lebron, etc aren’t worth $20mil/yr. Joe Johnson? Not so much. As a longtime Knick fan, I’ve seen what the power of spending can do. On both sides of the coin. I’m rambling and I forget my original point.

  • LA Huey

    MikeC, I’d like limitations on Bird rights too. I’d like to cap the number of players a team can retain via Bird rights. That way teams will only use them for something like 2-4 players they consider to be their core. Guys that don’t even crack the starting 5 should not get Bird rights.

  • http://thetroyblog.com Teddy-the-Bear

    What professional sports needs is a Communist revolution.

  • http://jkasflf.com Jukai

    You know… it just keeps getting more hatable… I was hating the way the players were simply refusing to negotiate anything, thinking what they have is what they should remain to have. And I read this and I thought the owners were suing over the lack of negotiations by the players. Now I learn they’re suing to take away every tool that the players have during the lockout. I mean, really. This is driving me away as a basketball fan.

  • http://www.facebook.com/joe.l.brewer3 BlackPhantom

    I usually don’t take much part in these threads, because I don’t wanna make myself look stupid.

  • http://www.facebook.com/joe.l.brewer3 BlackPhantom

    I mean don’t get me wrong, I’m very interested, but I’m not experienced in business…..at all to this point I’m sure there are some things I don’t know about the lockout.

  • O

    Co-sign MikeC. As a lifelong Knicks fan, i’ve seen our team hand out some of theeee worst contracts in sports history for a single franchise. Allen Houston, Jerome James, Lenny Wilkins, Eddy Curry, Stephon Marbury, Larry Brown, Jared Jefferies and MAYBE Amare Stoudemire (depending on how his knees, eye and now back holds up for the next 4 years). There definitely needs to be something in the new CBA where we drop one bad contract. I’d drop Ronaldo Balkman with the swiftness. How many years do we have that burgerduck for??? Sidenote: Watching The Exorcist 2: The Heritic. Linda Blair was type smashable in this flick. Just sayin’…

  • vince

    weirdest thing about this is Stern who is trying to take money away from players reportidly is making 23 million a year which ahh is way more than every player except like kobe and a couple others

  • http://dodgers.com Joey E.

    kcuF the NBA man. this isnt fair to us fans. these guys are all millionaires and billionaires. dont make us normal folk miss out.

  • HH

    this is a public announcement

    who will be sorry for guys who make 6 or 7 or even 8 figures a year putting a ball in a basket when the average american make $40000????

    stop kidding!!

  • CubicleWorker

    O I actually like your idea, drop 1 bad contract per season

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