What Caused The NBA Lockout?

I’ve touched on this topic a couple times in the past but only as a side note to another story. Many NBA basketball betting fans are asking what caused the NBA lockout in 2011. There are a number of reasons for the basketball lockout. If you have read this blog in the past you may have noted that I chiefly blame the NBA players union’s greed for causing the lockout. I have also pin-pointed certain players like Kobe Bryant. It has come to light that a nefarious plot between Lebron James, Chris Bosh and Dwanye Wade to basically hi-jack the NBA is at the root of the 2011 – 2012 NBA lockout.

I will go into that story later in this post.  I am somewhat biased on this issue. You are probably just looking for the hard facts about the causes of the NBA basketball lock out and that is what I intend to give you. I will provide you with a basic history of the 2011 NBA lockout and you can come to your own conclusions.  I will not include any rumors or opinions. Once I am done outlining the causes of the basketball lockout I will get in to the Lebron James story but that will just be a “Food for thought” piece to end this story with.

NBA Lockout Causes – History & Timeline

In order to give you a good picture of what caused the lock out I need to start this story in 1998-1999, the year of the last NBA lockout. This lockout effectively caused the cancelation of 32 NBA games. A deal was eventually reached and a 6 year contact was accepted. That takes us to 2005. A lockout for that season was narrowly avoided. Here is the main clause from 6 year contract agreed upon in 2005 that has an impact on the 2011 lockout:

  • Players receive 57% of all NBA related income.

This contract expired in June of 2011. The players union and owners started negotiations for a new contract in January of 2011. There are some smaller issues but the main cause of the NBA lockout is money. Here are the two sides of the story:

  • NBA Team Owners: The NBA as a whole lost $300 million dollars per year over the past several years. Around70% of the teams in the NBA lost money during the 2009-2010 season. This is the reason that the owners want to reduce the players’ share of revenue and place a cap on how much each team can pay players.
  • NBA Players Union: They disputed the claims listed above. They did agree on reducing their earnings from 57% to 54.3% and they firmly opposed the team-based salary cap.

Here are the specifics for the Pre-lockout initial negotiations held from January – May, 2011:

NBA Player Salary:

  • 2005-2011: Players received 57% of NBA revenues.
  • Team owners initial offer: A 40% reduction in player salaries.
  • NBA Players counter-offer: A 2.7% reduction, from 57% to 54.3%

Team-based Salary Cap:

  • 2005-2011: Unlimited but there was a tax (100%) on anything over $70 million. For example, if a team paid $80 million they would have to pay a $10 million dollar fee as well.
  • Team owners initial offer: $45 million per team.
  • NBA Players counter-offer: They rejected the cap and they insisted on the status quo.

The team-based salary cap is very important for the future of the NBA. If a team spends $150 million and virtually buys up every highly skilled player they would likely win the championship every season. The Lakers are a good example of this. LA had great results but the rest of the teams suffered.

It’s hard to be interested in basketball when your team sucks and has no chance of winning. A team-based salary cap would basically even the playing field. Each time could have an all-star or two. This would increase interest and revenue for many NBA teams. Teams like the Cleveland Cavaliers would be able to better compete with teams like the Lakers and Spurs. More Cleveland residents watch the games and buy NBA merchandise if their team could compete with the super-power teams.

 

The Start Of The 2011 NBA Lockout

On July 1st, 2011, the NBA lockout officially began. The issues outlined above were not even close to being resolved. On August 31st and September 13th the owners and NBA players union for together again for another round of negotiations but they could not agree on anything.

The most important issue for the owners is the team-based salary cap and the most important issue for the players is their percentage of the NBA revenue, although they refuse to budget on the salary cap.

The owners have since offered a 50:50 split in profits with the players and changed the conditions of the team based salary cap. The players union has said that they will not take anything less than 50% and still refuse to budge on the salary cap. The remaining NBA pre-season games were canceled on October 4th and on October 10th the first two weeks of regular season games were canceled.

So, what do you think? Who is to blame for the NBA lockout? Is it player greed or owner greed? Please comment below and share your opinion. As promised here is a special Lebron James story and how many claim that he is one of the core reasons for the NBA lock out.

Lebron James – Did He Cause The Basketball Lockout?

Lebron James is essentially poaching the best players from other NBA teams. This is why the owners are so adamant on a team based salary cap. If Lebron James had his way every skilled player would play on his team and interest in the vast majority of other teams would dry up. Lebron carries a lot of weight in the NBA lockout negotiations and many claim that he is purposely sabotaging the negotiations. Lebron is filthy rich so this lockout doesn’t affect him the way it does many of the other players, hundreds of thousands of U.S. workers and businesses that directly and indirectly rely on the NBA (Janitors through waiters at restaurants close to NBA stadiums). Lebron is essentially the bad apple that is ruining the game of basketball. He should be ostracized by players and fans alike.

That concludes this article on the causes of the NBA lockout for the 2011 and 2012 season. Now that you know the reasons for the lock out you can make your own opinion. Please comment below and share your thoughts.

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About Joshua

Contact: Joshua@bettingbasketball.org ------------------------------------------------------------------------------------------------------ I am 29 years old and I'm from Illinois, United States. I own a variety of poker, casino and sports betting web sites. I enjoy fishing, poker, skill games, sports and reading. I have three children: a 12 year old boy, a 4 year old daughter and my fiance is currently seven months pregnant with a precious baby boy.
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