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Phil Jasner: League Backs Off Cap




                                       October 27, 1998
   
                                     League backs off cap
     
                                        by Phil Jasner
                                   Daily News Sports Writer
    
                       Talk in the NBA is anything but cheap. Not with
                       $2 billion in revenue anticipated this season.
                       Not with the players already having lost an
                       estimated $100 million in salaries for games
                       canceled because of the ongoing lockout.
    
                       But a glimmer of hope emerged late last night in
                       New York, after 12 representatives of the league
                       and 20 people from the National Basketball
                       Players Association met in a marathon session,
                       attempting to hammer out a new collective
                       bargaining agreement.

                       The meeting lasted about nine hours.

                       "The best thing is, we have some sort of an
                       agreement on basic principles," said Danny
                       Schayes, a member of the union's executive
                       committee.

                       "Right now, we're talking about a hybrid system.
                       The first couple of years, it would work one
                       way, for another couple of years it would work
                       another way if the first way didn't work. At
                       least we're finding some common ground."

                       That would seem to translate to a real attempt
                       at compromise. Schayes said a system growing out
                       of yesterday's negotiations would offer the
                       owners a good idea of the range of their costs,
                       rather than absolute cost certainty.

                       "The good news is, at least we're talking about
                       the same thing," Schayes said. "We're not close
                       on the specifics, so it depends what you call
                       progress. There's nothing that would signal any
                       imminent announcements, but we've agreed to talk
                       more."

                       "We need a system that eventually gets to where
                       there's a set percentage for the players and a
                       set percentage for the owners," deputy NBA
                       commissioner Russ Granik said. "I don't think it
                       has to be a hard cap, and in fact some of the
                       things we're talking about now are not hard
                       caps."

                       Schayes said the league had asked to operate
                       under a luxury-tax system for the next three
                       years, with a fallback to a harder salary cap
                       for the next three years if the costs were
                       outside the deal's limits. The union, he said,
                       countered with a tax system for two years and
                       the fallback system lasting another two.

                       The sides agreed to talk today about noneconomic
                       issues, then resume bargaining tomorrow. Union
                       president Patrick Ewing, Herb Williams, Juwan
                       Howard, Mitch Richmond, Dikembe Mutombo and Jim
                       McIlvaine were among the players present
                       yesterday.

                       "My gut today was that there would be a deal
                       this week or we'd be in danger of putting the
                       whole season in jeopardy," agent Keith Glass
                       said. "I think the league believes that what
                       went on in Las Vegas last week was real. The
                       players said they would not accept a hard salary
                       cap, so if that's what was being offered, there
                       would be no reason to meet again."

                       After the players affirmed their unity Thursday
                       in Las Vegas, a small group of negotiators from
                       each side met for more than three hours
                       Saturday. They reported no progress, but the
                       talks escalated yesterday.

                       With the league's board of governors scheduled
                       to meet today and tomorrow in New York, the
                       Phoenix Suns' Jerry Colangelo and the Houston
                       Rockets' Les Alexander were in town and joined
                       the talks.

                       Commissioner David Stern and Granik are
                       scheduled to meet with reporters at the
                       conclusion of tomorrow's board meetings. They
                       are expected to cancel at least two more weeks
                       of games, following the earlier decision to
                       cancel the first two weeks of the season.

                       Indications have been that the league would not
                       agree to play less than a 50-game schedule.

                       Billy Hunter, the executive director of the
                       union, had said he would attempt to bring the
                       entire player population of about 400 to New
                       York tomorrow. But it was unclear last night
                       whether that plan would be implemented. More
                       than 240 players attended Thursday's meeting.

                       "I believe a lot of people felt the union would
                       crumble," agent Marc Fleisher said. "I think now
                       they're concerned -- not panicked -- that it was
                       beginning to look like it could be a very long
                       lockout."

                       The union initially suggested a luxury tax on
                       any contract worth more than $18 million a year;
                       the owners countered with a tax on Larry Bird
                       exception contracts worth more than the league
                       average, which was about $2.6 million last
                       season. The Bird exception has been the
                       mechanism that allows a team to re-sign its free
                       agent at any price regardless of the team's
                       relation to the salary cap.

                       "Billy won't give up the ship, not after what
                       happened with the players in Las Vegas,"
                       Fleisher said.

                       Hunter said the players who attended the Las
                       Vegas session voted unanimously to never accept
                       a hard cap. Both sides have introduced widely
                       differing forms of a luxury tax as a possible
                       solution to the dispute that has cost the league
                       games for the first time in its history.

                       The longer the dispute lasts, the greater chance
                       that the All-Star Game -- scheduled for Feb. 14
                       at the First Union Center -- also could be lost.
                       The city has not hosted an All-Star Game since
                       1976.

                       The owners want to impose a ceiling on what a
                       team can spend on salaries, plus a ceiling on
                       the percentage that can go to any one player.
                       The union is fearful that such an agreement
                       would eliminate the middle class of players and
                       eventually eliminate guaranteed contracts.

                       The owners have proposed giving the players a
                       phased-in 48 percent of revenue in a four-year
                       deal, and have guaranteed the players $1 billion
                       plus at least 5 percent raises in each year. The
                       players received more than 57 percent of revenue
                       last season.
 
                              ©1998 Philadelphia Newspapers Inc.