Sunday, November 27, 2011

Prediction comes true, NBA owners win

The owners came away with most of what they wanted.

David Stern and the owners came into these NBA labor talks saying they lost more than $300 million last season and $400 million the year before that. By getting the players to agree to what is in practice a 50/50 split of basketball related income (although the deal allows the players to get to 51 percent if revenue increases enough) the owners got the players to essentially accept a 12 percent salary cut that will cover those losses.

We predicted this outcome in an earlier post.

Remember, the alternatives to agreement determine the terms of agreement.

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