NBA lockout makes no sense

NBA fans, are you ready to party like it’s 1998-99?

With last week’s expiration of the league’s Collective Bargaining Agreement, the owners have locked out their players and cemented 2011 as the summer of labor strife.

The NBA’s work stoppage, however, won’t be like the walk in the park we’ve witnessed with the NFL lockout; this will be a prolonged struggle. Unlike the NFL, there are some fundamental issues that need to be resolved.

The NBA, unlike the NFL and NHL, uses a “soft” salary cap. This allows teams, with the use of designated exceptions, to exceed the cap.

Because of their fiscal recklessness, owners want to shift towards a hard cap. During the league’s proposed 10-year deal, the salary cap would be raised to $62 million, assuring more financial certainty.

Essentially they’re conceding they need to be kept in check to promote a more balanced, competitive league.

Sounds pretty good, right?

Not to the players. They’ve clearly benefited from the “soft” cap system that’s been in place since the 1984-85 season. All of the exceptions — like the mid-level and Larry Bird — have allowed owners to line player’s pockets.

When the league was amending its last CBA modification in 2005, it introduced what came to be known as the “Allan Houston rule.” This allowed owners to wipe one contract off the books so they didn’t have to pay the luxury tax penalty for exceeding the cap.

In the same vain, NBA owners are looking to get rid of guaranteed contracts like the NFL’s current system.

Both proposals are laughable. They’re like giving an owner a “Get Out of Jail Free Card” and discouraging financial responsibility.

During initial negotiations with its player’s association, the NBA has stated that 22 of 30 teams are losing money.

Where does that money go when it comes in?

Currently, the players enjoy a 57 percent cut of basketball related income. While they’ve offered to take a significant cut, the union is going to need to settle around 50-50. It puts more money back in the owners’ hands.

Here’s the tricky part. The league’s current TV deal expires in 2016, and players won’t want to commit to a new CBA that overlaps. With so many issues swirling around, things are about to get real.