who will cave first? owners or players

[thirstyboots18]

I don't understand why the tv stations will have to pay if there is no season.  Can't they sue the teams for not delivering product?

[StartOrien]

Guys, can't say enough about how awesome this thread is. Just a great discussion with people who are clearly very knowledgeable on the topic, and quite respectful of each others differing opinions.

[LooseCannon]

I don't understand why the tv stations will have to pay if there is no season.  Can't they sue the teams for not delivering product?

The TV contract has a lockout clause.  The networks have to pay even if there is a work stoppage, but the league does have to give back the money with interest.  However, as I understand it, they don't have to pay until games resume and paying it may take the form of some sort of rebate on rights fees, so it is basically a loan advance on future income.

[LooseCannon]

Bottom line, if those stadium seats are empty, the 30 franchises of the NBA will lose value. TV deals will run out. (And not all franchises have cushy TV deals).

The NBA has a horrible national TV deal.  Some analysts claim that the difference between what the league receives and what the networks get for the ads they sell is in the neighborhood of the total losses the league claims to have incurred.  That's why there is a lot of anticipation that the next TV deal will be a huge windfall for the league and a belief by some that the whole purpose of this lockout is to try to keep the players from seeing any of that predicted increase in revenue.

[Moranis]

I think they look at it as an investment for the future. maybe theyll lose money this season. but theyll make money in ensuing seasons.

How will owners recoup their lost income when the season(s) is canceled?

Since the majority of owners say they're losing money by playing the games (and thus, paying the players), most owners will be doing better by not playing.  From what I've read, they'll get their television money anyway, without having to pay a ton of costs and player expenses.

In other words, the lockout is potentially better for the owners than a season would be.

I read somewhere the TV money is actually only a loan that must be paid back with interest if there is no season.  That was contrary to other reports I've seen, so I am very curious about that.  

If it is just a loan, then the owners will likely lose a fair amount of money because they still have to pay their coaches, scouts, etc. and many will still have loan repayments or leases on arenas, regardless of whether or not there is a season.

[nickagneta]

I read this article that blames the owners losses on the commissioner, David Stern as he locked the league into a very bad $930 million a year television contract in 2007 that will last until 2016.

Television networks sell advertising on the NBA to the tune of $1.2 billion which amounts to a $300 million profit for the networks. In comparison the NFL is paid $4 billion a year so that the networks can sell $3 billion of advertising.

Baseball, America's other major sport generates most of their money from local television revenue not national so it is not a likely comparison.

Stern for years only had 2-4 year national telecasting rights contracts but in 2007 with the league floundering in popularity and rating he gave away an 8 year deal. Now he is locked into that deal and the league is claiming massive losses while the networks that have their television rights are making massive profits off that contract which will remain horrible until 2016.

Is it any wonder the owners are looking for a CBA that extends years and years beyond the national television contracts because they know with Wade and Lebron and Durant and Wall and Rose and others they are entering into a new marketing potential and television ratings boom and will want to reap the benefits off the national television contract that THEIR COMMISSIONER GAVE AWAY 4 YEARS AGO!!!

Strange that the owners are claiming 4300 million in losses and yet the networks made $300 million on the contract they signed with the NBA years ago and will continue to make gigantic profits off it unless the owners lock the players out.

http://hoopspeak.com/2011/07/lockout-the-tv-problem/

[LB3533]

There's a reason why the ratings are as high as "ever" or since the Jordan era....and it's not due to the owners.