I did some reading this morning on the NBA labor dispute and found this article very interesting. I'd like to hear other's thoughts on it:
The basic premise is, as players salaries are a fixed cost (57% or BRI) and teams were profitable in the past (i.e. 2005) the reason for the NBA teams losing money (if that is even true) has been fixed costs or team spending that has risen at an exponential rate (again this would be the only explanation IF the NBA's claims of losing money were true).
Here's a summary:
"•Player’s salaries have stayed even with inflation. Essentially this means their pay has not been going up.
•Owners have been increasing their spending. Management’s operating costs (per their own numbers) have been going up at five times the level of inflation (that’s a lot).
•Even in the ideal case for the owners with the new CBA these problems will repeat themselves in 2020.
•The Owners are asking the players to take a pay hit to make up for bad management practices."
Here are some other interesting Links:
http://wagesofwins.net/2011/09/17/wages-of-wins-podcast-the-owners-are-still-lying/ info seems pretty damning to me in regards to the NBA's position on this lockout. However, I'm interested to hear what other's think...