NBA Lockout

How did the NBA get here?
The NBA is expecting to lose around  $300 million this upcoming season. In addition, they have already lost more than $300 million last season. The losses are not focused on specific teams; they are spread out through out the league. Commissioner David Stern said, more than half of the NBA’s 30 teams will lose money this season. Team owners now pay their players around 57% of their team profits. If they reduce the percentage any closer to 50%, they might be in trouble. This is what this fight “lockout” is about. The solution to this dispute is trying to come up with creating a system that allows teams to offer players luxury salaries without bankrupting smaller market teams.

What do the NBA owners want, and why?
Basically the owners want more money rather than losing money. Firstly, they ask for a reduction in player salaries. Currently, the owners are forced to spend nearly 60% of their profits on players. They want to make it closer to 40%. Secondly, they are trying to get a hard cap. Finally, they want “non-guaranteed contracts.” This will let them remove, or renegotiate with, a player who doesn’t perform as expected.

What do the players want, and why?
The NBA players also want more money. They want to keep guaranteed contracts. They’re against the whole hard cap proposal, because that restricts their salaries. And these hard caps will reduce the aggressiveness from wealthier teams to be able to sign more luxurious contracts for their players.