When Power Corrupts: The NBPA

I was always taught to never bite the hand that feeds you and it's a life lesson that's ingrained into my being.  When leagues are battling against unions in sports, the league usually wins but if the union isn't strong then the league can impose its will with much more force and that's what the NBA's Players union experienced during the summer of 2011.  During the last NBA lockout, The Hardwood Nation broke away from the media glossed lockout coverage and delivered the following truths to fans of the NBA all around the world:

1. The NBA Lockout was owner imposed
2. NBA Players never asked for more money
3. The owners wanted to crush the will of the NBA's Superstars
4. Union Director Billy Hunter and President Derek Fisher were at odds 

The tension between Union Director Billy Hunter and Union President Derek Fisher could be seen for miles.  Once strong allies, the pressure of delivering the best deal to their players grew on both but it was Fisher who caved first.  After months of tense negotiating sessions, it was Derek Fisher, who according to reports, was ready to deliver an owner friendly side deal to end the lockout and make himself out as the hero while Hunter fought for the principle in the matter and wanted to hold the owners to the agreement that they fought so hard to secure in 1998.  Mainstream media (ESPN) delivered to its fans NBA friendly lockout coverage due to the two entities being business partners.  During 2007 the NBA signed a contract with both ESPN and TNT that would pay the league $930 million a year through the 2015/16 season.  At the time of the signing, NBA Commissioner stated the following:

"I consider this to be a wonderful vote of confidence by our very sophisticated network partners who are making such a substantial and long-term commitment," NBA commissioner David Stern said.

The truth was never going to properly be told, there was too much money involved to keep it under wraps.  The NBA owners wanted the infighting in the union to continue because they knew that they could easily defeat a fracture union and it continues.  

After denying reports of tension, Union President Derek Fisher finally displayed his true colors by accusing Union Director of wrong doing and hired an independent firm to investigate Hunter.  Fisher also went as far as to threaten legal action against anyone in the media who spoke out against him i.e. Jason Whitlock of Foxsports.com.  So wait, you accuse someone of wrong doing but when your motives are called out you threaten legal action.......ok?

It was April 15th when Fisher hired the services of Paul, Weiss, Rifkind, Wharton & Garrison to investigate the Union's business practices in hope that he would find illegal wrong doing on the part of Hunter so that he could be ousted.  Nine long months later Paul, Weiss, Rifkind, Wharton & Garrison, released their finding to the world.  

Our first objective was to identify potential criminal wrongdoing.  After an 
exhaustive review of tens of thousands of pages of  documents, including years of Union 
financial records and emails, and after evaluating statements made by more than three dozen 
witnesses, we conclude that the evidence does not show that Mr. Hunter embezzled or stole 
money from the NBPA.  

But our inquiry was not confined to criminal misconduct.  We have 
concluded that, at times, Mr. Hunter took actions that were inconsistent with his fiduciary 
obligations to the NBPA, displayed poor judgment, paid little attention to the appearance of  
impropriety that his conduct could foreseeably create and did not properly manage conflicts of 
interest.  We cannot say that he alone was responsible in all instances for these missteps, for we 
believe that the NBPA lacked important systemic controls involving basic principles of corporate 
governance, including the management of self-dealing transactions, and that other Union 
representatives did not always satisfy their own responsibilities.  Yet as the chief executive 
officer of the Union, Mr. Hunter stands responsible for ensuring that such controls be put in 
place.  In this important task he failed.



Never told the Union’s Executive Committee or Player Representatives 
that his current employment contract, which was executed in 2010, was 

not properly approved under the Union’s By-Laws, even though by at least 

November 2011 outside counsel to the Union had told Mr. Hunter that the 

necessary approval had not occurred and remained necessary; 

Obtained the Union’s agreement to pay him $1.3 million for accrued but 

allegedly unused vacation time (146 days) without adequate independent 

review of underlying records and without securing independent advice for 

the Union on its obligation to make the payment; 

Involved family and friends in Union business as employees or vendors 

without full disclosure and the disinterested approval of the Union’s 

officers and directors; and 

Created an atmosphere at the NBPA that discouraged  challenges to his 

authority, including by allowing the Union’s former General Counsel, 

Gary Hall, to stop former Secretary-Treasurer Pat Garrity from speaking 

freely about conflicts of interest to the Executive Committee.

Considered what would have been a risky investment  of millions of 

dollars in ISN Bank, a failing financial institution, without disclosure to 

the Executive Committee that his son Todd was then  a director of the 

bank, and spent more than $80,000 in due diligence  expenses before 

abandoning the transaction; 

Approved a payment by the Union of approximately $28,000 to cover 

personal legal fees incurred by Charles Smith, the  former Executive 

Director of the National Basketball Retired Players Association 

(“NBRPA”); 

Made questionable choices when charging travel expenses to the Union, 

which at a minimum create the appearance that he has taken undue 

advantage of the discretion he possesses to travel  to destinations of his 

choosing; 

Pursued speculative and, for the Union, atypical business ventures as 

potential investments; 

Spent Union funds on luxury gifts for Executive Committee members, 

including nearly $22,000 for a watch he gave to Derek Fisher in 

June 2010; 

Failed to observe principles of proper governance at the Union, including 

by neglecting to ensure that the NBPA’s By-Laws were followed and 

appropriate systems were put in place to safeguard against possible misuse 

of Union funds, conflicts and similar risks; and 

Ran the NBPA Foundation (the “Foundation”), a separate entity through 
which the Union supports various charitable organizations, without regard 

for its by-laws or governance standards applicable to non-profit entities. 

It took 9 long months and $4 million spent by the NBPA for the conclusion that Billy Hunter didn't commit anything criminal, hired his son's law firm to receive  the "family discount" on the Union's end and used $22,000 to buy former partner and one time friend Derek Fisher a luxury watch.  This seems to be much to do about nothing and it's ridiculous in its core.  Make no mistake about this was an unnecessary power struggle, one that didn't have to happen.  

If anyone has done anything shady here it's Derek Fisher.  Does one remember when Fisher played for the Dallas Mavericks for a grand total of 9 games earlier this season before abruptly walking away?  Any player on the Players Union must be an active player in the league for any given season....translation....Fisher used the Mavericks to maintain his position of power on the NBPA Executive Committee for another season to finish his unwarranted his on Billy Hunter.

Maurice Evans, 34, was the Executive Vice President of the NBPA and third on the totem pole behind Hunter and Fisher.  He was perhaps Hunter's greatest supporter on the executive committee and he recently spoke with Jason Whitlock about the apparent power struggle and the desire of Derek Fisher to see Hunter relieved.  Evans also touched on why he thinks he's not currently employed in the league after 9 years of being a reliable role player.  

“I give (Derek) a round of applause for being able to pull off this stunt and pull the wool over everyone’s eyes,” Evans said. “If he wants the union that bad — let him and Ron Klempner and Jamie Wior — they can have it....Without a doubt, I know me not being in the league has something to do with my support of Billy Hunter.....I’m fully comfortable not playing in the NBA ever again....They excommunicated your boy,” Evans said. “They took my tickets, took my little status as executive vice president.”

Evans didn't hold back the punches and even went for the jugular of Derek Fisher and how he used the Mavericks as I mentioned earlier.  

“They were able to circumvent (the system) by putting him on a team for a day and a half so he could be reinstated as president,” Evans claimed. “I don’t know who (are) the powers that be to put that in place, but D. Fish was only on the Mavericks this year so they could pull this stunt off, so they could get Billy Hunter out of office.”

Once the NBA Lockout of 2011 had ended, The NBPA executive committee voted 8-0 to have Derek Fisher removed from his position of power as many worried about his relationship with David Stern.  If Fisher was voted out, how was he able to maintain his position, shouldn't that be investigated as well?

“Of course (the players) have questions about Derek,” Evans said. “But Derek has done a great job of being on the offensive and only pointing the finger at Mr. Hunter. (Derek) has been busy throwing darts and throwing dirt at (Hunter) that nobody has ever taken the time to stop and ask what is Derek’s motive. What really went on in Dallas that he left to go and say now all of sudden he has family issues, he misses his family?  Now all of sudden what really happened? We voted him out 8-0 as president and yet he still stayed on, didn’t blink twice and came back with Paul-Weiss, and now they’re running the union.”

The members of the NBPA will meet Saturday afternoon and determine the fate of Hunter without Hunter being there to defend himself.  Last week Hunter wasn't allowed to enter his office in New York and was escorted away.  This is a mess and there's wrong doing on both sides.  Derek Fisher should not be allowed to have the final say in the fate of Hunter and Fisher himself should be held accountable to attempting to throw the NBPA under the bus during the Lockout of 2011 and also for this witch hunt. Using treacherous tactics and wasting $4 million of the NBPA's money to find no illegal wrong doing is absurd and a complete misuse of time and resources.  If Hunter is indeed removed later today, Fisher must be removed as well and the entire NBPA must be reformed as a more stable and united core because if not the owners will run rough shot over the NBPA again and the results could prove disastrous for the game that we love.  

Presentation to NBPA Mid Winter Meeting 2013

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Were you all had? The NBA Lockout of 2011

If I told you that you could be reincarnated and earn $50 million but and all you had to do was kill yourself today, would you do it?  What if you told me that you couldn't swim but I told you that if you tried to swim across the Atlantic Ocean, you wouldn't drown, would you believe me?  I'm having a hard time figuring out why so many "fans" are disappointed by today's news that the Lakers have made an agreement with the Hornets to acquire All-Star guard Chris Paul.  The Miami Heat upgraded their bench by adding Shane Battier and a reborn Eddy Curry and the Knicks are close to acquiring NBA Champion center Tyson Chandler.  These are examples of big market teams making a splash 24 hours before training camp is to begin.  Surprised?

If you were surprised by the agreements today and/or disappointed by the fact that the big market teams are still able to sign whomever they would like then you were a victim of the owners lies plain and simple.  The NBA Lockout of 2011 was promoted by the owners as a chance
for there to be competitive balance across the league, the Pacers would be able to compete with the Knicks for talent as an example.  It was all fabricated to cover up the truth, the real reason the owners locked out the players, the owners wanted more money and in the end they received a giveback from the players of over 1 billion dollars.  You've been had!  You've been took!  Hoodwinked! Bamboozled! Led Astray!  Run amok!  Simply put you were lied to.

The big market teams will continue to grow stronger as long as the NBA is in existence because the NBA needs the Lakers, Knicks, Celtics, and Heat more than the Spurs, Pacers, Hawks or Bucks.  It's the reason only 9 different franchises have won the NBA championship since 1979.  The facts were all over the Internet throughout the summer, The Closer, Jason Whitlock, and myself tried to educated as many "fans" as we could about the real reason the owners had locked the players out, but we could only do so much as Commissioner Stern could jump on his mouth piece known as ESPN and spins "fans" at his leisure.  If the Lakers acquire Paul it will no doubt signal the final days for Dwight Howard in Orlando as he desires to be paired with an All-Star caliber point guard not named Jameer Nelson, but would the owners really allow their reputations to be tarnished in the eyes of the fans if the big market teams continue to grow stronger?

As I began this post 15 minutes ago, Adrian Wojnarwski of Yahoo sports reported via twitter that the owners were irate in a Board of Governors meeting with Stern that the Hornets who are currently league owned would be allowed to trade Chris Paul away and now the news has just broke that the NBA has killed the trade agreement between the Lakers and Hornets.....can someone tell us why?  It seems as if the owners grew wise to the fact that this proposed trade if culminated would have exposed them as liars and David Stern has now not allowed the trade to take place.

All of this is breaking as I typed and I just finished a phone call with The Closer and I must say that I am in a state of shock that this has happened.  What else do the owners want from the players at this point in time?  This is an absolute abuse of power and these words that are being typed are coming from a place of raw emotion, reports are that Chris Paul is devastated by the recent developments of tonight and this is perhaps the worst thing that I've ever witnessed in my almost 20 years of following the NBA.  Reports are also stating that due to a conflict of interest is why the Hornets were order to rescind the trade, but keep in mind that a conflict of interest works both ways because it is a conflict of interest to block the trade as well.  I leave you with one question, if the Hornets were going to trade Chris Paul to the Pacers, Timberwolves or Hawks, do you think the league would have imposed its will the way it did this evening?

Chris Broussard of ESPN has just reported that Chris Paul will explore legal action against the league with NBPA Director Billy Hunter to fight the blocked trade.

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Summary of tentative NBA Deal

Tentative deal details

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Billy Hunter addresses the tentative NBA agreement via email to players

From: "G. William Hunter"
To: undisclosed-recipients:;
Subject: SETTLEMENT

TO: NBPA BOARD OF DIRECTORS

FROM: G. WILLIAM HUNTER

RE: SETTLEMENT

As you have no doubt heard, early this morning, we reached a tentative agreement to settle the Anthony lawsuit. My best wishes and congratulations to all the players and everyone involved in this action.

The settlement will be conditioned on reforming a union and executing a CBA by December 9. Training camps are tentatively scheduled to open and free agent signings are tentatively scheduled to begin on December 9, with the season opening on Christmas day.

We will be sending out formal correspondence in the coming days describing the terms of the agreement and the upcoming processes, but for now, you should have a quick understanding of why we reached this agreement. I have prepared a quick list that sets forth all the changes that the owners agreed to as part of the settlement since a week ago Monday, the day the player reps voted to disclaim the NBPA's status as the players' collective bargaining representative.

We will follow later with an overview of the general gains players achieved in this settlement.

The parties settled the litigation because the owners either gave in or sufficiently compromised on all of the open issues:

1. BRI Split - Players receive a 49-51 band of BRI, with the expectation that players will receive 51% of BRI by year 6. The split is set on a base case of 50%, with the players receiving 60.5% of every incremental dollar beyond the targeted amount, which is based on the mid-point of the agreed upon projections, or a symmetrical reduction in our share if revenues fall short of the targeted amount. The players' share this first season (2011-12) will be 51.2% of BRI.

2. System

a. Mid-Level Exception for Non-Taxpayers: The Mid-Level Exception's contract length is 4 years, every year.

b. Player Options: Player options are allowed for all players, as per the prior CBA. Owners dropped their demand to eliminate player options for high-paid players.

c. Escrow: 10% max withholding, 1% New Benefits Pool, system adjustments as necessary to avoid forecasted overage. Owners dropped their demand for unlimited escrow, carry over, true up, or banking.

d. Qualifying Offers: Beginning in 2012-13, players defined as "starters" - 41 games started or 2000 minutes, average over prior 2 seasons - will receive substantially higher qualifying offers. A first-round pick will receive the greater of his existing qualifying offer or the qualifying offer amount made to the 9th pick of the draft ($4.67 million for the 2010-11 draft class). A second-round pick or undrafted player will receive the qualifying offer amount made to the 21st pick. A first-round pick drafted 1-14 who is not a "starter" receives the amount offered to the 15th pick.

e. Max Salary: A player finishing his rookie scale contract will be eligible to receive a maximum salary equal to 30% of the Cap (up from 25%) if he signs with his prior team and is either: 1st, 2nd or 3rd team All-NBA 2 times; an All-Star starter 2 times; or 1-time MVP.

f. Minimum Salary: The owners dropped their demand to reduce the minimum salary scale by 12%. The current amounts will not be reduced.

g. Rookie Scale: The owners dropped their demand to cut the rookie wage scale. The current amounts will not be reduced.

h. Extend-and-Trade: The owners dropped their demand to eliminate extend-and-trades. As with sign-and-trades, players moving pursuant to an extend-and-trade may not receive Bird annual increases or one year longer maximum contract length.

i. Annual Increases: Annual increases will be set at 7.5% for Bird players and 4.5% for non-Bird players.

j. Taxpayers' Use of Mid-Level Exception & Sign-and-Trade: The owners agreed to a $4 million "apron" above the tax threshold. Teams may go above the tax threshold by $4 million to use the entire $5 million mid-level exception, or acquire a player via sign-and-trade. Teams above the $4 million apron may use a $3 million/3-year mid-level exception every year.

k. Cliff: No change to prior proposal to reduce the cliff by 50%.

The above points will be incorporated into a litigation settlement agreement early this week. The NBPA will then re-form as a union, and negotiations may take place on various other CBA issues. The players will then vote to ratify a new CBA.

I will update you on further logistics over the next few days. Thank you everyone for your support and best regards.

G.W.H. 

 

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The End has Come: The NBA Lockout of 2011

   Well over 140 days of agony has come to an end, the seconds turned into hours, hours into days, days into weeks, and weeks into months and now today, we are finally at the end.  The new NBA season will begin on December 25th, Christmas Day and will support a 66 game season with the All Star game still intact for the city of Orlando in February.  Training camp and the beginning of Free Agency will begin on December 9th.  At the end of the last lockout where games were lost in 1999, the slogan changed from "We love this game" to "We still love this game" but the message this time has to be more clear, more precise, "We still love our fans".  That's the message that has to be sent out from the league and its player due to the damage that the lockout caused.  Recent history has shown us that the majority of fans will always blame the players for being "greedy" and causing lockouts due to misinformation and other sinister reasons but again the message needs to be heard loud and clear, battered into the minds of the many, "We still love our fans!"  

Perception will show that David Stern and the owners won the negotiations but reality will prove that there were no winners.  I challenge anyone who proclaims themselves
as a winner of this debacle to look in the eyes of the fans and claim victory or the arena workers.  Look into the eyes of the many front office staffers who were laid off and claim victory.  Do you have the fortitude to do so?  Once again, there were no winners but there were casualties on both sides and the millions of dollars that were lost during the lockout of 2011 will never be earned back.  Make no mistake about it, this was a power play by the owners of the NBA and even though some such as Micky Arison of the Miami Heat and James Dolan of the Knicks sided with the players, they were outnumbered.

Soon after we hear the balls bouncing, sneakers squeaking, and whistles blowing, the anger will disappear and the fans will return once more; David Stern will continue to be booed at every NBA function and Cleveland will still hate Lebron James.  We have our NBA again and what a season it will be, will Derrick Rose continue to play like an MVP?  Can Kevin Durant and Russell Westbrook take the next step and lead the OKC Thunder to the NBA Finals?  There's no doubt that the biggest story of the new season will be Dwight Howard and where will he decide to take his talents in the off season.  So many questions, too many answers, and so little time.

While you enjoy the current season just take a moment and realize the sacrifices that had to be made in order for the season to take place.  Ask yourselves, would you take close to a 40% pay cut without a fight?  Would you be upset if your boss gave you a raise only to retract it years later and if you were a member of a union wouldn't you have them fight for your rights?  Please take all of those situations into account before you call the players greedy or undeserving.  Sacrifices were made for all of us to enjoy the game that we love and that should be focused on, not the perceived negative feelings.  Enjoy the season but don't judge because after all the smoke has cleared, you'd do the same as the players of the NBA did if you were faced with their situation.  NBA basketball has returned and we all should rejoice for today is a great day for the fans!

Tentative NBA Agreement Press Conference

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The Closer has returned

The Closer has returned and he is angry, check out his latest piece about the current state of the NBA Lockout of 2011.

Out of Hibernation: The Closer returns!

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A Nuclear Winter: The NBA Lockout of 2011

      "We are about to go into the nuclear winter of the NBA."   David Stern

After the news surfaced yesterday afternoon that the players had rejected the latest proposal from the NBA and was headed towards a dissolution of the Players Union, NBA Commissioner David Stern took to the airwaves with an 11 minute interview on ESPN, the worldwide leader in sports.  Quite frankly, Stern can take to the air whenever he desires based on the fact that ESPN, Turner Sports, and ABC Sports are all partners of the NBA, not the players, but the NBA entity.  During the "winter" months, a significant chunk of their programming is dedicated to the coverage of the NBA, use NBATV as an example which is owned by Turner Sports, the majority of their NBA coverage now is based on the greatest playoff games which can't feature any current player in the NBA due to the lockout, can you say plan b.  Knowing that the media outlets mentioned above are partners, wouldn't one come to the conclusion that since Stern
is the head of the snake, then they are all promoting his message and not the message of the soon to be defunct Players Union?  

David Stern

The NBA ran a massive media public relations fest in the days leading up to yesterday, spreading the owners side of the story and forcing the will of David Stern onto mindless viewers.  Headlines showered the Internet in bold lettering stating that the players had rejected the latest proposal but I implore you to take a moment and think of this.  During negotiations there's the two entities and they are supported by their lawyers, a proposal is created and brought to the table by both sides, both sides can accept or reject said proposal, both sides can modify said proposal until an agreement between both sides is reached.  I question why it is that the media always broadcasts when the players have rejected a deal but never when the owners have rejected a deal.....take a second and let that soak in.  Have you ever once heard about the owners rejecting a NBPA proposal?  A fair and balanced message is not being sent out and it's swaying the public opinion in a negative manner thus the truth is out there, you just have to actually do a little work to find it.  Foxsports columnist Jason Whitlock has spoken the truth about this current lockout since its inception and not just the players point of view, he has covered all angles.  Myself and The Closer have shed light on some of the injustices of the lockout and The Real NBA has seen record growth over the off-season due to our complete coverage of the lockout......the truth is out there.

What does a "Disclaimer of Interest" mean for the future of league?

Fisher and Hunter

By filing a disclaimer of interest, the Players Union is dissolved and it allows the players of the NBA to file an antitrust lawsuit against the league with the federal court and the players have stated that they will file the suit within the next 48 hours.  Billy Hunter and Derek Fisher addressed the players last night with a letter explaining the legalities of the current process.  The court proceedings could be lengthy and that has brought many to the conclusion that the entire season will be lost but even with that said there's still a small window of opportunity for the two sides to come together, make a deal and allow us, the fans to at least enjoy a 50 game season.  There is a faction of players who are willing to take the route of decertification which would give Billy Hunter and David Stern 45 days to continue to negotiating a deal until the future of the union comes to a vote.  Instead of one antitrust lawsuit, decertifying the union would allow for all 450 players to bring lawsuits against the league individually which would put an incredible amount of pressure on the owners and David Stern.  

At this point in time no one knows what the future holds for the NBA so I am not going to pretend as I do.  I will only say that I believe in what's right and if the players had gone on strike for more money I would have been on the side of the owners without hesitating but what we have here is highway robbery plain and simple.  I stand by the players 100% and if the season has to be canceled in order for this injustice to be fixed then so be it.  All the players have asked is to just play under a system that's fair, not a system that only has the interest of the owners in mind.  The league was built off of the productivity of the players past and present, Wilt-Russell, Magic-Larry, MJ against the greats of the 90's and today the game is driven by future Hall of Famers like Kobe, Wade, James, Howard, and Paul.  They are fighting the good fight and not just for themselves but for players past and present.  They won't cripple the future for the current rookies and players to come nor will they spit on the players of the past who'd sacrificed and battled the NBA in past labor negotiations.  The current NBA players are the caretakers of the game and are shouldered with the responsibility of protecting their contemporaries past, present, and future.  This too shall pass for the NBA and its players shall have life once again.

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Billy Hunter addresses players

Hunter's letter to the NBA Players

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NBA Players reject deal

ESPN NBA NBA players reject owners' offer

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David Stern sends letter to NBA Players

Letter to NBA Players

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Read the latest NBA Proposal to the players

Latest NBA Proposal

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Billy Hunter addresses NBA Players

TO: ALL PLAYERS

FROM: G. WILLIAM HUNTER

DATE: November 01, 2011

RE: COLLECTIVE BARGAINING UPDATE (NOVEMBER 1, 2011)

As you have undoubtedly heard, negotiations with the owners aimed at ending their 4-month lockout collapsed on Friday, October 28. After three days of productive talks, which followed a week of negotiations aided by the Federal Mediation & Conciliation Service, the owners held firm to their ultimatum that we take a 50/50 split in BRI. It was at this moment that the Negotiating Committee and I decided that it no longer made sense for the union to continue the negotiations, and I led our group out of the room. Derek sent out a thoughtful letter last night summarizing his thoughts, and I want to follow up to reinforce his message of solidarity and reflect on where we may go from here.

Let me begin with some positive news. During the marathon session last Wednesday and the two days that followed on Thursday and Friday, we made great progress in working through many of the system issues that must be resolved before a deal can be reached. While the soft cap/luxury tax system we are negotiating is far from perfect and contains positives and negatives for both sides, I believe that if the last few system issues are resolved in our favor, it will be one that we can recommend to you. Without question, we have given more than the owners, but at bottom, we are determined to defend the principles we have fought for throughout -- guaranteed contracts, healthy minimums, fair maximums, a strong middle class, and a true market for free agency.

Unfortunately,

there is still work to do before we can declare these victories, and several important system issues must be resolved. So far, we have agreed to raise the team salary floor and implement a more punitive tax system that will diminish the gap between high and low spending teams. However, we still must fight to keep all teams in the market for player services, and as a result many key issues remain, including limiting additional penalties for repeat taxpayers, insuring that the luxury tax is not overly oppressive, and the continued availability of the midlevel exception and sign and trade transactions for taxpaying teams. While these issues may sit outside the spotlight, they have a major effect on player working conditions and the ability to create a robust and fair market for player services. Further, we must have additional discussions on revenue sharing. Based on the limited review we were finally granted last Friday, the revenue sharing system proposed by the NBA addresses the profitability issues of small market teams. However, it reduces the incentive for small market teams to grow revenues and improve.

Our meeting on Friday, however, did not collapse because of system issues. Our Negotiating Committee reached the unanimous conclusion that the NBA's 50% ultimatum, combined with the league's hard line position on the remaining system issues, was unacceptable for the players.

As you know, NBA players have received 57% of BRI for many years. In an effort to make a deal and save the season, in past meetings we have offered to reduce our share to as low as 52.5% with certain system issues in our favor. On Friday, considering the many system points we had already conceded, I hoped and expected the owners would move towards our proposed BRI number. Instead, Commissioner Stern insisted that the NBA would move no further than 50%, and I ended the meeting.

In my view, a 50/50 split of BRI does not adequately compensate the players for our services to the NBA. Remember that BRI does not reflect the total revenues generated by the NBA. The NBA is allowed to take hundreds of millions in "expense credits" before sharing any revenue with the players ($543m in 2010-11). Given this, under the NBA's proposal, the players would receive only 44% of total revenue generated by the league. By comparison, we received 50% of total revenue under the previous CBA, and our 53/47 proposal would reduce the player share to 46.4% of total revenues. In addition, compared to our former 57/43 split, the owner's proposed 50/50 shifts more than $300 million per year to the owners, which equates to more than $3 billion over a 10-year deal. A move of this magnitude guarantees operating profits for all owners irrespective of quality of management and does not allow players to adequately share in the growth of the league.

It is important that you know that our Negotiating Committee has made every possible effort to resolve this conflict. We have proposed a diverse array of ideas and concepts to address the NBA's concerns about competitive balance and salary disparities. Regarding the BRI split, we have made significant compromises in an effort to bridge the financial gap that separates us. In fact, our offer of 53% amounts to an average of $185 million per year in financial givebacks, which, even under the most pessimistic interpretation of the league's financial statements, covers the league's entire purported operating loss.

The NBA, however, seems resigned to testing the resolve of our players through intimidation and hard bargaining tactics. They have given us "take it or leave it" ultimatums, threatened to end the season prematurely, reached out to players in an attempt to divide us, misled the press, and pre-conditioned further talks on our acceptance of significant concessions. This is an unacceptable form of negotiation, especially where the respective fates of the players and the owners are inextricably related. Moreover, it does nothing but damage the relationship between the league and union.

Furthermore, in recent weeks you have no doubt seen, heard or read Commissioner Stern in the media as he embarked on a media blitz intended to scare players and inflame the public. Do not buy into this. This public saber rattling is common in high profile and high stakes negotiations, and we anticipate that it will continue and intensify as the lockout continues. We will not be intimidated by public threats, ultimatums and manufactured drop dead dates. We will stand firm in our resolve to negotiate a fair deal for our current membership and those who will join our ranks in the future.

Your role is an important one. The owners need to know that we will stand strong until they are ready to finish negotiating a fair deal -- not one reached with preconditions, and not one forced down our throat with the threat of missed paychecks. We have prepared for this moment for over two years and now we are here. We are proud of the actions of our Committee and take great comfort in knowing that we have your support.

One final note before I conclude. Contrary to what is being said in the media, Derek, myself and the Negotiating Committee are of one accord. Derek is a fearless defender of player rights both at the bargaining table and behind the scenes, and he carries out his duties as President with the same degree of courage, focus and tenacity that he has exhibited on the court as a five-time champion. We are all well served to have Derek in a leadership capacity during these negotiations.

We will communicate more details on short-term and long-term logistical plans in dealing with this lockout and updates on the negotiations. Thank you again, and please feel free to contact me or the staff with any questions or concerns.

G. WILLIAM HUNTER
G.W.H.

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Derek Fisher's Letter to NBA Players in response to Jason Whitlock's Claim

All,

Interesting times right now. The clock is ticking and we are aware that games are being lost, our jobs are on the line as are those of all the arena workers and business owners impacted by the lockout.

We have been prepared for this and need to make sure we are getting the best deal possible. As this sets the precedent for the next 6, 7, 10 even 20 years. My goal, the Executive Committee's ONLY goal is to present you with the most fair deal possible. A deal that is both fair on system and BRI. One isn't more important than the other. They are both extremely impactful to our business, our sport and our day to day life in the league.

Our Executive Committee, NBPA staff and I are navigating the negotiations very carefully. We need to continue to work hard on your behalf and get the season going if possible. I've been speaking with many of you and we are working with your opinions, suggestions, and requests front and center. This is your union, and we work with and for you.

Many of you have asked about the timing of the cancellation of games. We know as players and interacting
with our fans and the people that work in these arenas on a daily basis this is having an impact. If nothing more, the league and owners should understand people's livelihoods are at stake. They should be able to take the over 1 Billion dollars we've offered them and open the doors of their arenas and let us, along with the ushers, parking attendants, everyone impacted to get back to work.

Usually I wouldn't even dignify absurd media reports with a comment. But before these reports go any further, let me say on the record to each of you, my loyalty has and always will be with the players. Anyone that questions that or doubts that does not know me, my history, and what I stand for. And quite frankly, how dare anyone call that into question. The Players Association is united and any reports to the contrary are false. There have been no side agreements, no side negotiations or anything close. We are united in serving you and presenting the best options and getting everyone back to work.

The attempt by "sources" to divide us will be unsuccessful. We will continue to work every day to do right by you, the businesses that depend on our league and our fans.

The NBA and the owners have not allowed us to go back to work. So they have essentially turned their backs on not only the players, but the fans that have made them billions. I hope they decide to change that. It's the only way everyone wins. I urge each of you to stay involved. Call me and your fellow players on the Executive Committee and the NBPA staff with anything you need or questions you may have.

I will be in touch later this week with updates on the details of the negotiations. Stand United.

With much respect,
Derek

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Divide and Conquer: NBA Lockout 2011

Divide and Conquer also known as divide and rule refers to a strategy that breaks up existing power structures and prevents smaller groups from linking up.

David Stern 

Lets not shroud this in something that it is not, this is about winning, always was but winning is in part perception.  Take a look at NBA Commissioner Stern's press conference last evening after talks between the owners and the player union broke down again.  During said press conference, Stern took the misinformed on a magical tour through his world of spin where the owners supposedly "moved" yesterday from 47% to allowing the players to have 50% of Basketball Related Income "BRI".  That may have been news to the misinformed casual fan who wants the players to take a deal at all costs due to that type of fan being thirty for NBA basketball, but the reality is that everyone in the know has known that a 50/50 split has been what the owners have wanted all along.  There was no new revelations last evening from Stern other than the cancellation of NBA games through November 30th, but even with that news, it was expected to be announced once the week began anyway, so again many of you got spun yesterday
by Stern to put the players and their leadership at fault here.  The major players in the lockout are Commissioner David Stern and deputy commissioner Adam Silver who represents the owners versus Executive Director of the NBPA Billy Hunter and President of the NBPA Derek Fisher represents the players.   At its core it seems to be a fair fight, power matching power, equal sides but what if the sides aren't equal, what if the odds are in the favor of the NBA, what if in all reality the ratio is 3 against 1 with Hunter being the odd man out.

Michael Curry 

Last evening Jason Whitlock of Foxsports.com suggested that there may be a rift in the ranks of the NBPA.  In his piece Is Fisher in Stern's back pocket?  Whitlock detailed the sudden rise of power within the NBA Michael Curry, the previous NBPA president.  During his NBA career which started in the 93/94 season, Curry played for six franchises before retiring after the 2004/05 season.  Playing 11 years in the NBA is an accomplishment due to the fact that the average career spans about 4 seasons but Curry was known as a great defensive presence and a leader which is evident by Curry scoring only 2,986 points in his career.  To put that point total in perspective, during the 05/06 NBA season, Kobe Bryant scored 2832 for an average of 35.4 point per game while playing in 80 of 82 games.  Curry's career point total could be matched in a season by a player averaging 36.4 points per game as it has been surpassed in the past.

Curry's ascension throughout the NBA after serving as the NBPA was well chronicled by Whitlock.  June 21st of 2005, the NBPA agreed to the deal that just expired and a week later Curry stepped down as President.  A short time later, commissioner Stern named Curry the Vice President of Player Development for the NBDL.  As his ascension continued Curry would be named the NBA Vice President of Basketball Operations, and a year later assistant coach of the Detroit Piston and a year after that Head Coach of the Pistons despite little experience.  Curry is now the Associate Head Coach of the 76ers and perhaps positioned again to become a head coach.

This is relevant because Curry's ascension can be linked to an apparent link between Curry and David Stern.  If it's indeed true that Curry and Stern were linked when at a time they were supposed to be adversaries, could Derek Fisher be headed down the same road?  Is Derek Fisher selling out the players union for his own personal gain?  When negotiations broke last week, it was stated by Stern that there would be no more negotiations until the NBPA agreed to the 50/50 split of BRI but suddenly we had three days of meetings this past week.  According to Whitlock, there was a confrontation Friday morning between  Fisher, Billy Hunter, and another member of the executive committee based on the fact that Fisher has been "co-opted" by David Stern to deliver a deal of 50/50 to the owners.  Simply put there are major concerns about the relationship between David Stern and Derek Fisher with Billy Hunter being caught in the middle.

If Derek Fsher is truly working with Stern to deliver a 50/50 split behind the backs of the NBPA's executive committee then he has to be ousted a union President based on the fact that he is undercutting the union that pays him $2.6 million a year to be their president.  The NBPA's stance at this time is not to go below 52.5%  of BRI having already come down from 57%.  Each percentage point is worth $40 million and the owners are pushing for a ten year deal while the union would like to have a six year deal.  With that said the players have already agreed to give up $180 million per year for the duration of the potential deal, whether it be six or ten years, which equates to a substantial cut in pay because keep in mind that 90% of the players are making on average $5 million per year.  Fisher, a role player himself is throwing all of the other role players under the bus with his secret deal with Stern, again he needs to be ousted if the claims are true.

Derek Fisher & Billy Hunter

As David Stern spun the misinformed yesterday, he mentioned that upon hearing that the league's stance at a 50/50 split that Hunter ended the negotiations.  If Stern was counting on his improper relationship with Fisher to be his trump card, Hunter proved him wrong ending negotiations abruptly.  After yesterday's negotiations ended, no new negotiations are scheduled to take place, but we've heard this story before.  The owners want a BRI split of 50/50 and the NBPA wants a split of 52.5/47.5; this is where we are and before negotiations can start again Derek Fisher and Billy Hunter must bring their ideologies together and not just stand together at pressers.  The time is now to get this deal done but it has to be the right deal for both parties, no selling out, no me first mentality, this deal has to be done on good faith and not on undisclosed preconditions.  The players union must stay strong, must stay united because a union divided will usher in being conquered by David Stern and his minions.

Update:  Fisher responds to Whitlock's Claim

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50/50: The NBA Lockout of 2011

Film 50/50

   What does one think of when they hear the phrase 50/50?  Do they think of the percentage that 50/50 represents, yes or no, right or wrong, or even life or death?  Do they think of the film that opened on September 30th that featured the likes of Joseph Gordan-Levitt and Seth Rogen which was based on the life of the film's screen writer Will Reiser who had a bout with cancer?  At this point in time neither of those things come to mind if someone were to ask me what 50/50 represented and yes I do acknowledge that this month we are celebrating Nation Breast Cancer Awareness Month as both of my parents have had their own bouts with that terrible disease.  What comes to mind when I hear 50/50 is the owners of the NBA forcing the players of the league to accept a 50/50 split when it comes to Basketball Related Income "BRI" in exchange for allowing the players to resume their careers in the NBA.

One thing that I would like the casual NBA fan to understand is that this isn't a player strike.  The players of the NBA would rather
be out playing basketball as evident by the number of exhibition games that have taken place throughout the summer.  A few months back when I wrote Perception or Reality I had every reason to believe that the owners, the caretakers of the game, would come to an agreement with the Nation Basketball Players Association "NBPA" without any form of significant blood loss but I just found out how wrong I was.  The majority of owners are driven by the urge to turn a profit rather than supply the fans with the game we love.  The reality is that this lockout is about Greed as the Closer so eloquently stated with his piece The Lockout is Called Greed, but it is the greed of the owners and not the players.  Instead of the owners taking personal responsibility for their own actions by just showing restraint, they have painted this picture of the greedy player who'd rather sit out a season than take a 50/50 split.  At this point in time where 22 of 30 NBA franchises allegedly incurred financial loses, the players earn 57% of BRI and they have offered to lower that percentage to 53% during recent discussions between the Owners and the Players union with each 1% representing about $40 million dollars.  With that said, the players have already given up about $160 million dollars.

Adam Silver

Just a mere hour ago, word broke on twitter via Ken Berger of CBS that the NBA has refused to meet with the Players Union before Monday's deadline of having regular season games lost if the players don't agree to a 50/50 split of BRI beforehand.  In many facades of life, a 50/50 split may sound fair but consider this for a moment, how fair is a 50/50 split when it is being divided between 30 owners and 450 players?  The Players  Union is trying to set a meeting up at this very moment but the owners are being extremely closed mind at this time, again they are the supposed to be the caretakers of the game we love but there's more.  The average career of a player in the NBA is 4.5 years and to that player, the non superstar, the lockout means even more;  a 50/50 split would represent about $280 million in loses for the players over the course of their playing career.  As of now, the first two weeks of the regular season are scheduled to be canceled Monday when the league office in New York reopens and NBA Deputy Commissioner Adam Silver recently commented on today's news:


“What we told the union was that we were not prepared to negotiate over the B.R.I. split beyond the 50-50 concept that had already been discussed.......the league was prepared to continue negotiating over the many other issues that remain open”

The issues that remain open are the salary cap system, the length of future contracts, and the luxury tax.  

Perhaps the saddest thing of all in this situation is that the owners of the NBA are taking advantage of the public interest, most of the casual fans could care less about the NBA and there's more sinister causes behind that at play but in a time where America is facing it's largest economic crisis in decades, public interest in the plight of the players is vacant.  The sentiment is that players should sell their collective souls to the wants and desries of the owners and gravel at their feet, begging for their jobs back.......I think not!  Just a week ago during a negotiating session it was widely reported that Dwyane Wade of the Miami Heat had a heated exchange with NBA Commissioner David Stern and asked him not to speak to the players as if they were his children.  

Derek Fisher & Dwyane Wade

As insignificant as it was to some, it was a power statement for the players.  In all my years of following the NBA, I've never seen nor heard of someone firing back at Stern, especially to his face as Wade had done.  After news of the exchange broke, Media Personality Bomani Jones tweeted that D-Wade is a G because he knows as do I that no one has stood up to Stern during his tenure as NBA Commissioner.  What made Wade's stance so powerful is that he represents the selfless NBA player who'd sacrifice for the benefit of winning.  Wade could have earned the "Joe Johnson" contract of $119 million over six years but instead he made the sacrifice of around $19 million to allow the Miami Heat to sign Lebron James as well as Chris Bosh in an effort to win another NBA title, a title that Joe Johnson is still searching for.  Wade is arguably the third greatest shooting guard in the history, only behind Kobe Bryant and of course Michael Jordan and there he was standing up to perhaps the most powerful commissioner in sports.....David Stern.  In a room with players Lebron James, Carmelo Anthony, and Paul Pierce, it was Wade's voice that resonated the loudest, coincidence, I think not.  Wade was not only protecting himself, a franchise player but he was also protecting the role players of the NBA, the little guys, the hard workers such as teammate Udonis Haslem.  His voice needed to be heard, his passion needed to be felt.  

In various life situations I often ask myself, What's the endgame?  As of now we know, the first two weeks of the regular season will be canceled come Monday if some miracle doesn't happen between now and then and it's widely believed that the players are willing to sit out the season rather than take a deal that they are being strong armed into accepting.  So how will this all end?  At this point in time I only have one answer; as Al Michaels once famously asked "Do you believe in miracles?", my answer would be a resounding yes I do!   

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