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Mark Heisler: NBA Owners Strengthened






                                                             Tuesday, October 20, 1998

                                                              Decisions, Decisions
                                                              Pro basketball: Arbitrator strengthens NBA owners' position by

                                                                ruling they don't pay guaranteed contracts during lockout.
                                                                By MARK HEISLER, Times Staff Writer


                                                                   [T]he question of who has the
                                                                      leverage has been settled.
                                                                  Arbitrator John Feerick's
                                                                  long-awaited decision came
                                                                  down Monday, ruling that NBA
                                                                  players with guaranteed
                                                                  contracts will not be paid
                                                                  during the lockout,
                                                                  strengthening the owners'
                                                                  hand. .
                                                                  In what amounted to a
                                                                  daring end run around
                                                                  management's dug-in defense,
                                                                  the National Basketball
                                                                  Players Assn. had asserted
                                                                  that 226 players, with
                                                                  contracts worth more than $700
                                                                  million, must be paid.
                                                                       In what amounted to
                                                                  getting stood up at the line
                                                                  of scrimmage, the union's
                                                                  argument was rejected by
                                                                  Feerick. The players, who will
                                                                  not be paid, must now bargain
                                                                  with owners.
                                                                       Nevertheless, the players
                                                                  are conceding nothing. NBPA
                                                                  executive director Billy
                                                                  Hunter turned down a league
                                                                  invitation to reconvene,
                                                                  citing this week's union
                                                                  meeting in Las Vegas that even
                                                                  Michael Jordan, who has never
                                                                  been much of a trade unionist
                                                                  but is an avid golfer and
                                                                  gambler, has said he'll
                                                                  attend.
                                                                       Hunter demanded the
                                                                  owners lift the lockout and,
                                                                  ominously, refused comment on
                                                                  calls by hard-line player
                                                                  agents that the union
                                                                  decertify, file an antitrust
                                                                  suit and abandon the season.
                                                                       "The owners have locked
                                                                  us out," said Hunter in a
                                                                  telephone news conference.
                                                                  "They're not paying salaries,
                                                                  they're forcing us to fight to
                                                                  get a fair deal. The players
                                                                  will not back down. The sooner
                                                                  the owners realize this and
                                                                  end this lockout, the better
                                                                  chance we will have of
                                                                  avoiding enormous damage to
                                                                  the sport of professional
                                                                  basketball."
                                                                       "What the owners are not
                                                                  realizing is that if they
                                                                  continue to antagonize the
                                                                  fans in the way they're doing,
                                                                  the fact that the players may
                                                                  be forced to miss a few
                                                                  paychecks may be the least of
                                                                  our worries."
                                                                       Commissioner David Stern,
                                                                  who has called off the first
                                                                  two weeks of the season, all
                                                                  but announced in his telephone
                                                                  news conference he'll cancel
                                                                  the rest of the November games
                                                                  at an owners' meeting next
                                                                  week, calling the decision
                                                                  "inevitable."
                                                                       If the players won't
                                                                  admit they're anxious, the
                                                                  league will. Stern said before
                                                                  Feerick's decision was
                                                                  announced, he sent the union a
                                                                  letter offering three
                                                                  proposals, including an
                                                                  NFL-style hard cap, along with
                                                                  a guarantee that salaries
                                                                  would increase at least 20%
                                                                  over the term of the contract.

                                                                       Hunter replied that
                                                                  negotiations could resume
                                                                  after the union meeting, which
                                                                  ends Thursday.
                                                                       Stern is upset the union
                                                                  won't discuss an actual
                                                                  percentage split, that it's
                                                                  taking a cavalier approach
                                                                  toward negotiations.
                                                                       "I can tell you this
                                                                  union leadership stymies us,"
                                                                  said Stern, renewing charges
                                                                  against Hunter and NBPA
                                                                  counsel Jeff Kessler. "Russ
                                                                  [Granik, deputy commissioner]
                                                                  and I, for something over 50
                                                                  years combined, we've been
                                                                  able to negotiate with every
                                                                  other combination of executive
                                                                  directors and presidents in
                                                                  the history of this union. And
                                                                  lawyers. And somehow, we are
                                                                  unable to have a conversation
                                                                  that gets us any negotiation.
                                                                  And frankly, today is
                                                                  indicative of the situation .
                                                                  . .
                                                                       "This [decision] should
                                                                  have been a signal to both
                                                                  sides to return to the table
                                                                  today, which is Monday. We
                                                                  reached out prior to the
                                                                  decision to make sure, no
                                                                  matter what happened, it was
                                                                  clear we wanted to negotiate .
                                                                  . .
                                                                       "The players don't seem
                                                                  to realize they can't get that
                                                                  money back. It's gone, gone
                                                                  forever, and they seem to
                                                                  think that's not the case."
                                                                       Feerick's decision, at
                                                                  least, lets everyone know
                                                                  where they stand. The
                                                                  arbitrator noted in his
                                                                  82-page ruling that in the
                                                                  past, the union never
                                                                  contended that players with
                                                                  guaranteed contracts were
                                                                  entitled to be paid during a
                                                                  lockout.
                                                                       Had Feerick--who reduced
                                                                  Latrell Sprewell's
                                                                  league-imposed suspension
                                                                  after the guard attacked
                                                                  Golden State Warrior Coach
                                                                  P.J. Carlesimo--ruled for the
                                                                  players, things would have
                                                                  changed. The owners would have
                                                                  been looking at steep
                                                                  obligations and no gate money
                                                                  coming in. Laker owner Jerry
                                                                  Buss, for example, has a $38
                                                                  million payroll, owed to 11
                                                                  players on guaranteed
                                                                  contracts. Of that, $6 million
                                                                  would have been due in
                                                                  November.
                                                                       Union leaders told
                                                                  players they had nothing to
                                                                  lose, since rejection would
                                                                  only put them back where they
                                                                  started, but that turned out
                                                                  only to be true to a point.
                                                                       The case ran longer, and
                                                                  Feerick took more time to
                                                                  write his decision, than
                                                                  anyone expected, paralyzing
                                                                  negotiations and running both
                                                                  sides out of room to save
                                                                  opening night.
                                                                       To date, the league and
                                                                  the union have held only four
                                                                  sessions and done precious
                                                                  little negotiating. The
                                                                  players are already out 8.5%
                                                                  of their
                                                                  not-guaranteed-after-all
                                                                  contracts and are about to
                                                                  lose another 8.5% when more
                                                                  games are canceled.

                                                                  Copyright 1998 Los Angeles
                                                                  Times. All Rights Reserved