Negotiating with the NBA
November 28, 2011 13 Comments
You can get a slam dunk for Christmas, thanks to some behind-the-scenes dealmaking that brought players and owners of the National Basketball Association to an agreement.
Who won? Both sides appear to be a little unhappy–a good sign of compromise–but it appears the related revenue sharing went down 6% for players, signaling some lost ground for them, or as the WSJ observes, “NBA Owners Win Big.”
After agreeing to the initial drop in revenue, players had long been frustrated when they said owners would not budge on “system issues.” They finally received some movement from owners in the final talks, according to a report by cbssports.com’s Ken Berger.
A source familiar with the agreement told Berger that the biggest budge from owners came on restricted free agency and middle class issues. The league also moved on sign-and-trade deals and mid-level exceptions for luxury tax-paying teams. Sign-and-trades for tax-paying teams will be allowed, though certain restrictions will apply, according to multiple reports.
The full mid-level exception will now be five years with a max of $5 million, according to NBA.com. The players were also able to convince the owners to allow non-taxpaying teams to use the exception, and pushed them up from their position of alternating on three- and four-year caps, the report said.
I think the reason for the NBA lockout was the unwillingness to negotiate on both sides. Though they discussed the issues, it was obvious that the owners were unwilling to budge and the players were not going to budge either. There’s an important lesson to be learned here. As I saw with negotiations at the BYUMUN conference, countries had to be willing to give up somethings to gain support of others. As great as it would be to get everything we want and also get enough votes to pass the working paper, it probably won’t happen. So as stated above “Both sides appear to be a little unhappy–a good sign of compromise…” As diplomats, we need to understand that to gain something, we have to expect to give up something in return as well.
In addition, though both sides may not be happy but was ending the lockout worth it? yes for both the players and the owners. Instead of watching money disappear because they couldn’t find a solution, both sides is going to get something. It might not be exactly what they wanted, but it’s better than nothing. So in the end, I think it’s a win-win situation. And what do NBA fans get? Instead of watching them argue and bicker non-stop, we get to actually watch them play December 25th. So I guess it’s a win-win-win situation.
http://espn.go.com/espn/commentary/story/_/id/7290389/did-learn-anything-nba-lockout
Hallelujah! As an avid NBA fan, this was one of the best Christmas gifts I could have asked for. I’ve been following the tedious back and forth between the two parties with frustration for the last few months and it’s incredibly relieving that they finally sorted it out- especially because negotiations got so bitter recently. NBA commissioner David Stern warned that the league was heading towards a “nuclear winter.” I, along with many others, believed the 2011-2012 season was lost.
The lockout negotiations exposed some of the uglier skeletons in the NBA’s closet. This article by big time sportswriter Bill Simmons (formerly of espn.com) is an illuminating read- (http://www.grantland.com/story/_/id/7250994/business-vs-personal). The lockout in a sense became a way for NBA players to stand up to a league that has become increasingly controlling, with stricter rules on everything from what they can wear and how much time they have to spend with the press. Many players saw the attitude of the owners as condescending, and racial implications were hard to avoid with older white owners (28 of the 29) on one side of the table, and a majority of black players on the other. Some went as far as to say that the players were being treated like plantation workers (see http://www.washingtonpost.com/sports/wizards/nba-lockout-negotiations-could-be-hijacked-by-racial-perceptions/2011/10/21/gIQAXWyc3L_story.html). Now, not many plantation workers make millions of dollars a year, so the comparison can only go so far, but the players’ sense of being taken advantage of and treated as inferior is clear. In the end, the owners got much of what they wanted in the new contract; this is not too unexpected as they held all the leverage (see Simmons). But it will be interesting to see if the huge amounts of trust lost with the players will ultimately taint their victory.
I agree with what is written above we can learn from this debate the importance of compromise. We can also see the importance of building relations with those around us. In the case of the NBA both sides felt like the other side was out to get them which lead to neither side being willing to compromise.
http://pippenainteasy.com/2011/11/15/nba-lockout-players-file-anti-trust-lawsuit/
We can see the lack of distrust because as you can read above the player’s filled and anti-trust lawsuit. A few weeks ago we did an exercise in class where we had the option to go for our own gains or help out those around us and ourselves. In the activity there was a lack of honesty by many of the delegates as they found themselves in a mock session that was similar to the case of the NBA players. The NBA players and owners reacted as many of the students did when faced with a chance to gain more by screwing those around you many delegates resorted to dishonesty. In this case it was only a game and in the end the loss of points would not affect them in real life. We can see from that exercise why it was so hard for the NBA to come to an agreement. What I take away from this is the importance of being trustworthy and doing what I say I will do. I think it is better to not make promises I cannot keep. At MUN in New York we will have time to get to know those around us and it will affect the way we work with them. At some point we have to believe that those we make deals with will honor their part of the deal. I know that even from the mock session there are those that when the final mock session comes around I will be inclined to not trust what they say and therefore be more inclined to not work them.
I think something that we can learn from the negotiations and lockout of the NBA is how those negotiating are not the only ones in the world, and they need to think about those they are representing. There has been lots of talk about how both the players and the owners are just being greedy, which I agree with some, but the people that were hurt by this the most are neither the owners or the players; it everyone else that works within the NBA system. The announcers, the ticket takers, the custodians of the arenas. These people have been out of work, while those who have millions fight over their personal interests, forgetting all the other people that make the NBA run. I think this can be difficult for those negotiating, whether in the NBA offices, or on the UN floor is to keep your personal opinions bridled, and focuses more on those you have been chosen to represent, what your country as a whole would want. It’s easy while on the negotiating table to let your personal prides or desires alter what’s most important or prevent you from coming to a good compromise that benefits your country, those that work under you, or your fans.
Forgot to post the links to my comment.
http://www.cnbc.com/id/45386959 Affects of Lockout outside of owners and players
http://www.grantland.com/story/_/id/7250994/business-vs-personal
It was interesting to try and determine what was going on with this negotiation process from the point of view of the mediator (While I studied in BYUH I did some mediation training). While I am by no means an expert in mediation, a tactic the many mediators use is uncovering the underlying issue in the conflict between the two parties. While it is probably much more difficult to uncover the issue in this sort of negotiation process than perhaps a negotiation between a husband and wife. But if you are able to do so many times you can find a solution that doesn’t have to be a compromise between the two parties. The same can be said with MUN negotiations. People have many layers to their argument or position, if you can determine the motivation for that position or argument you might be able to find a resolution that might be able to benefit both parties. Obviously this negotiation was too complex or the parties were too unwilling to work with each other that the compromise had to be made.
I agree with a lot of what has been stated above, but I think that another major cause of the lockout was the fact that both the players and owners took the negotiations personally. A key point of negotiation is being able to take ones emotions out of it. Both sides failed to do so, especially the players, as evidenced by some of the recent outbursts of the superstars. Once both sides took their personal pride out of it, and realized that the range of BMI of 49-51% for players was the best compromise, things started to happen. The owners were then willing to compromise on the system issues, and an agreement was reached. I think we can apply the same concept to the United Nations, and to our own lives as well. If we let our pride and emotions keep us from seeing the best solution, and we end up losing a lot more than we could possibly gain. It is better to keep an even head and just look at the issues at hand, and that way a lot of pain and struggle can be avoided.
http://www.grantland.com/story/_/id/7250994/business-vs-personal
I don’t mean to be the one to rain on everybody’s parade, but all of this could have been taken care of much sooner if Dallas TV station WFAA 8 had simply agreed to air Stephen Colbert’s Super PAC advertisement to end the NBA lockout, as shown here http://www.colbertnation.com/the-colbert-report-videos/399874/october-17-2011/sport-report—nba-lockout—colbert-super-pac-s-ad. It really is unfortunate that such clearly biased and unnecessary censorship still exists in the media today. Personally I suspect the NBA players were behind the stifling of the release of such an important and timely public service announcement.
Like many of the comments above have stated, it’s important to know what the issues are and keep a level head. You can be passionate about what you are trying to achieve, put passion does not mean that you have to be hard-headed. http://www.youtube.com/watch?v=JppU9ba-oO8 In this video Charles Barkley states what one of the major problems of the lockout is. We need to be informed that yeah, while both sides are arguing about the millions they are making and want to keep making, the issue is making sure the NBA doesn’t become like the MLB in the sense that small clubs don’t have a fighting chance. I can see both sides of the argument however, I see how David Stern has a vision for what the NBA should be and remain as.
One of the main things that I learned about this negotiation was the far reaching effects of the deal and who was affected by it. In a general view, it seems that the two parties involved in the argument are the NBA and its players as they have been debating for countless days on their salary change. Both sides were unwilling to change so they decided to wait the other side out and see who would budge first. This seems like a good tactic for negotiation in any situation.
As I was watching Sportscenter on evening, they brought on NBA hall of famer Magic Johnson on to the show to ask his opinion regarding the lockout. He raised an excellent argument that both sides were wrong for waiting it out because it was the mom and pop’s business that were suffering by their indecision. There is so much industry centered around the NBA like sports bars, stadium staff, jersey making companies, travel related industries, and many other people who depend on the NBA for their livelihood. All of these people were suffering from the effects of this deal and not the players or the owners.
This led me to understand a little bit more about negotiations from country to country. While on TV it may appear that there are two prominent politicians debating about a specific topic, the real people that are affected by the debate are the people of the countries and not just the two leaders. This is an important key in diplomacy that we all remember that our decisions can effect so many people on so many different levels.
This article is about how the jersey industry was hurt:
http://articles.businessinsider.com/2011-11-28/sports/30449361_1_dwight-howard-adidas-nba
In the world of professional sports I think it’s safe to say that greed plays a major role in the decisions that are made. I can think of any other job in the country where employees are paid so much money and complain as much as these players do. It’s probably just the territory of all people who are famous.
Now I must admit that I love sports. I’m a fan of the NBA, NFL, MLB and the list continues, but the last time I checked the people that are changing the world aren’t athletes. Even with Tim Tebow’s new hospital, athletes still fall short in the impact they make in the important categories in the world’s problems. It’s backward that we live in a country where teachers get paid enough to barely survive each year and a man who can dribble a ball makes millions. Forget the problems with negotiation, we need to learn some gratitude!
This is a great article on Spoiled Athlete Syndrome
http://www.thedailybeast.com/newsweek/2010/03/10/they-re-not-role-models.html
I know it can be easy to look at the gluttonous lifestyle of people who make millions for playing a game- people who’s biggest concern at the when they lay their heads down at night is chasing a ball around the next morning. However, professional sports may be one of the best examples of the beauty of capitalistic supply and demand at work. People love entertainment, and will actually pay lots money to watch people run around a court or field at the end of the day.
I make this point because I believe that it is at the root of the problem in these negotiations. The players, for some odd reason (might have something to do with the fact that most of them barely made it through high-school), seem to think that the laws of supply and demand are reversed.
To simplify the example I wish to make, lets assume that the players are the suppliers and the owners are our representatives as the “consumers” (which isn’t a stretch of the truth seeing as most owners lose money each year). The players, as the suppliers, believe that they dictate the demand for their product. That’s not how the system works. However, in recent years, the owners have misrepresented the consumers and have given the players the right to control both supply and demand- demanding significant pay increases, sponsorship deals, and trades. The owners have allowed this to happen, and we as fans have let this happen as well. We complain about hiked ticket prices and overpriced jerseys, and yet we still fork over the money.
Negotiation is about leverage, and it was clear that the players had almost none.
It appears that some bit of balance was restored in these negotiations.
http://www.groupmesp.com/articles/pdfs/MarketWatch10%2011%2011.pdf
I couldn’t agree more with what’s been said. It’s an interesting contrast between the very private negotiations of the very wealthy (both the NBA players and the owners) and the public negotiations which have been dragging on for months in the form of the occupy movement. Both negotiations appear to drawing to a close, but not without leaving their mark, and heaps of lessons learned. I think if I were out there picketing, and if I were clever enough to think of neat slogans to put on picket signs, it wouldn’t be too tough to lampoon the NBA. I’m not just refering to the exasperatingly long, almost peevish talks between millionaire players and billionaire owners. I refer to the astronomically wealthy demanding a “piece of the pie” when they already have most it neatly stashed away. I don’t know what I should think of the occupy movement: a bunch of jobless, whiny bums, or frustrated people that have a legitimate point to make about inequality in America, but I’m sure they need look no further than the NBA to find their villains.
A light-hearted take on the NBA Lockout:
http://www.npr.org/2011/11/07/142096362/double-take-toons-hoop-nightmares