NBA Lockout: Biggest Economic Questions Facing David Stern and the League

July 1st, 2011 by Chris Finocchio Leave a reply »
Is the Revenue Split the Only Issue?

Russ Granik, former Stern No. 2, Larry Coon and a host of others have said that the 57 percent revenue split is the only real issue and everything else is secondary. The total amount of pay to players will be decided before anything like contract length and mid-level exemptions.

What type of revenue they concede will be argued over but only in the way it affects the total cost of labor. Deadspin Senior Editor Tommy Craggs and others have done a great job showing how owners can lose money on paper alone by amortizing financing and depreciating players.

But to believe that the raw percentage is the only real issue seems to discount the importance of divergent interests at play. The average federal tax rate is not what matters in American politics. Everyone wants what seems best for them.

 

How Will the Varying Interests of Players Be a Factor?

Dwight Howard, like most NBA owners, can go without pay for six months if it means more long-term income. This may not be the case for Reggie Williams or Reggie Evans.

However, all players have one un ...

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