How the Players Can Win the NBA Lockout

The NBA lockout has forced cancellation of the preseason and now the first two weeks of the regular season. The buzzword for the start of the season is now Christmas. Each side of the lockout is digging in for the long haul and waiting to call each other's bluff.

There is no outcry by fans like there was in football about the possible loss of a season. Losing regular season games for some fans is a step in a positive direction. Many fans want to fast-forward to the playoffs every year and the lockout only helps that situation.

This sporting labor impasse doesn't have the clear villain and hero component of other labor disputes. It is tough to side with the players because the salary structure of the NBA is out of control, but it isn't their fault the owners can't help themselves when it comes to paying players and finding loopholes in the system to do so. It is tough to blame the players for taking advantage of the system and getting paid and tough to blame the owners for wanting to change the system. Both parties are at fault and from all news accounts, both sides seem to acknowledge the system is broken.

The players have tried to get public opinion on their side by jokingly talking about working retail or playing football or trying to organize a Twitter campaign and even threatening to play overseas. None of this has mattered to fans or given the players leverage during negotiations. It is tough to imagine players making $10 an hour when their NBA salary is millions. The Twitter campaign fell flat as people complained the players' tweets were bothersome. Finally, many overseas leagues are not worth playing in because of low salary and the leagues are demanding players play a full season regardless if the lockout is ended (China).

The NBA players have one thing that the owners don't have and that is their talent. It is their talent that needs to be leveraged to win the lockout. Their current barnstorming games are a good start, but the real answer lies in what Amar'e Stoudemire has hinted at and that is a players league.

There are many reasons that a lockout league will work, but there are a few hurdles to starting the league. The bottom line is simple, basketball is the one major sport that can leverage its talent in a way no other league can.

A players league should not be considered a long-term solution to the NBA lockout nor an alternative the NBA. The point in a players league is to get the game back in front of the fans and show the owners that they are needed, but the game lies with the players and the game of basketball can go on without owners. Also, if pressed, a players league can sustain the players in the short-term and could be a viable business for the long-term. It would also give the fans a reason to support the players and put pressure on the owners to resolve the lockout.

The players league would need teams, places to play, a TV contract, and insurance. As each one of those issues is addressed, the most difficult issue of insurance would eventually come to the new league.

Teams

Teams would be owned by players and any partners players would want to bring in their business. Each team would need to have as the majority owner a current player or group of players. Any player who would want to play is eligible for a draft that would be held. The number of teams is limited by the number of interested players and owners. If rosters are 10 players and 100 players are interested, then it is 10 teams. If more than 11 groups are interested, but there are only players for 10 teams, a bidding war is started for the 10 spots.

The most likely scenario is that there will be 15 to 20 teams in the new league with a mix of stars and role players. Many players would sit out, but judging by the participation and success of the barnstorming games, many may want to play.

Salaries would be based on revenue of the league. All revenue would be put into one pot and then would be divided 50% to the players and 50% to the owners. It is by no means a perfect system and one where there would not necessarily be a lot of money generated. Trying to compete with the NBA is not the point in the league. It is meant to be a temporary home for the players and to provide leverage for the players in their negotiations to end the lockout. This league is about leverage.

The Stadium Issue

Basketball can be played almost anywhere with a minimum investment. All that is needed is a court, a ball, a net, and some bleachers. Technically, all of the major sports can be played with a minimum investment, but basketball's cost of entry is not a helmet, bat, ball, gloves, or a manicured field. The game of basketball can be played indoors and outdoors on a wood court or pavement and soon on an aircraft carrier.

Games are already being played in alternative venues as part of the players' barnstorming tour. There are a lot of smaller minor league hockey stadiums that will not host 20,000 people, but sell-out crowds of 10,000 wouldn't be as it appears because average NBA attendance was around 17,000 last season. NBA owners would see stadiums filled, people who want basketball, and realize none of that is happening under their watch.

Additionally, it would allow the players to take the game of basketball to new venues. The outdoor game for the NHL has been a huge success and college basketball will have a game on an aircraft carrier, so why can't NBA players have games on the beach or at casinos or in rotating cities? Instead of teams beholden to cities, what if teams scheduled games in cities that were hungry for NBA quality games? What if this league scheduled games in Las Vegas, Seattle, Tampa, Mexico City, and London?

Instead of league organized by city, the league would be organized by owners and would play around the world in a structured format. Promoters would book exotic venues for teams to play in for a limited engagement. Finally, the NBA would have NFL-like scarcity of games. Cities would be exposed to multiple teams and fans could root for multiple teams. Fans would be rooting for the game of basketball and the players. The current NBA model has owners holding fans hostage for their loyalty. What if there were no home cities only players and teams to root for?

Television Contract

The most likely home for these games is the soon to be rebranded Versus Network, FOX, and CBS Sports Network. TBS, TNT, ABC, and ESPN are beholden to the NBA and probably wouldn't want to air the games. Versus is about to become NBC Sports in January and like CBS Sports Network, it is looking for content. The first deal Versus had with the NHL benefited both the league and Versus with little to no risk to either group and would be a good model for the new league. The deal was no rights fees and shared ad revenue.

Insurance

It is hard to believe that with all of the above in place, the new league would be unable to secure insurance. There are many fledgling professional leagues (minor league hockey and baseball) in operation that are able to secure insurance coverage.

The most important part of this league is to understand the purpose is to provide leverage for the players. Owners are waiting for the season to start and the players to start missing checks and that is a large part of the leverage they hold. If players can prove to owners that they can replace some of that money with a league of their own and that they can hold out as long as it takes to get the deal they want, then the players will take back some of the power the owners have.

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