It has been over three months and the owners aren’t close to making a deal with the players. Deals have now reached near a 50-50 split of revenues, but issues concerning attempts to balance teams such as the luxury tax are delaying a final agreement. An agreement anytime soon is unlikely even with the numbers getting closer.
The most recent offer given by the owners is 50% of basketball related income for both sides. This offer also includes a luxury tax of $1.75-1 to start coming into effect after $70 million has been surpassed. and increased to $2.25-1 after $75 million.
Owners have decided to stay put on the basketball related income split, but negotiations over things like a salary cap are still open for discussion. The players union has refused a 50-50 split on basketball related income. They feel the players deserve more than 50%.
The longer the lockout lasts, the better the deal will be for the owners. This would benefit owners of less valued teams like the Cleveland Cavaliers, but owners of teams like Miami Heat and the L.A Lakers would prefer to settle as soon as possible. To make matters worse for a resolution, the majority of the owners are thinking it’s better to fix the system and get more money than to actually try to contest the big teams and gain money through that path even if it takes a season.
Egos are a big part in negotiations between rich people. Despite a deal that is almost balanced for both sides, neither wants be the loser. Whether it will take a week or a season, the deal has to be one that makes both owners and players alike feel like the victor.
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