Intro: The Duck Nuts next topic is the current labor dispute between NBA owners and the players. Recently, players like Deron Williams have opted to "take their talents" overseas in order to assure a paycheck. This work stoppage appears as if it will last a long time. In this debate, Alex will take the side of the owners with Chris representing the players. Enjoy…
Alex: It is perfectly clear to me that the owners have the upper hand in this lockout, and for good reason. Recently 22 teams reported losses of over $300 million in net profit, and many others barely gaining any money. Even with the increased viewership and popularity for the league this past season, teams and owners are losing massive amounts of money. Why Chris do you believe that the players have any right to be demanding more money when teams are losing this much?
Chris: Alex as a matter of fact the players aren't demanding more money. They are willing to make concessions including a $500 million pay cut over the next five years, which would result in the players basketball related income being reduced from 57 percent to 54.7 percent. Also, the owners are the greedy ones here, not the players. The max salary the players can make starts out at about 17 million while the owners can make an unlimited sum and can come out way more nicely than the players.
Alex: Only $17 million? I think I just shed a tear. One of the biggest issues and one of the main reasons for this lockout is the ridiculous max salary. Too many players earn max salary or near max salary contracts. You can put that blame on the owners or players, but either way it's hurting the league.
The problem is teams are losing money, a lot of money. Over the past few decades’ player salaries have sky rocketed, while owners are losing millions and millions more each season. Asking simply to break even isn't a huge request. Until the players realize they have no authority in handling where the money goes, this lockout will not end.
Chris: 17 million seems like a large amount of money but is overshadowed by the billions of dollars the NBA makes overall. Who exactly is giving players these large contracts? That’s right, the owners who dig themselves into a hole.
The owners aren't even giving the players close to a fair deal with their proposed offer of 2 billion dollars. At a glance, this seems fair, but as the NBA's revenue rises and grows over the next five years the player’s deal will be outdated and unfair.
The players should propose an elastic cap to quell the owners concerns of losing money. This would mean when the owners make money, so do the players. However when the owners make less money, so do the players. Potentially this is a risky situation for the players, but if it works out, it would be fair for both the players and the owners. Alex, what do you think of this plan?
Alex: I agree with you completely. Having some sort of a loose, non-binding cap is the only solution. A hard cap would not work. Period.
A lot of experts are suggesting a cap at $45 million. But look at the Miami Heat. The "Big 3" alone will make close to $48 million next season, with that number rising for the remainder of their contracts. A hard cap will not work.
Both sides will need to be flexible, but the players have a lot more to lose with the loss of games. I feel like a broken record, but the majority of owners are losing hundreds of millions of dollars. They have little reason to budge. The players are doing just fine and don't need anymore.
Chris: The players are in the right when it comes to the lockout for multiple reasons. Basically, the players are willing to give up 500 million. While the owners may be losing money, the players are the only ones that seem to be making concessions for the good of the league.
Alex: We agree to disagree. But one thing I think we both can agree that a deal needs to get done ASAP. Join us again for another debate. Feel free to leave a comment below.
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