The NBA…where missed regular season games happens.

NBA Commissioner David Stern officially canceled the first two weeks of the 2011-2012 NBA season on Monday night, officially confirming what many considered to be the inevitable.

With opening night initially scheduled for November 1st, the cancellation takes into account all games that were to be played through November 14th.  The NBA.com website already reflects the change, and all ticket holders will receive refunds for games that would take place during those first two weeks.

But, far more important than the refunds, or even the cancellation of the first two weeks, is the fact that there is little optimism going forward,

“The gap is so significant that we just can’t bridge it at this time,” said Stern, who added it’s doubtful a full 82-game season can be played. (via ESPN)

After today’s seven hour bargaining session, which followed up a fourteen hour session on Sunday, both sides, while choosing to remain in contact, have not scheduled any formal bargaining sessions beyond their meeting today.

“Despite extensive efforts, we have not been able to reach a new agreement with the players’ union that allows all 30 teams to be able to compete for a championship while fairly compensating our players,” NBA Deputy Commissioner Adam Silver said. (via press release)

Money is still at the heart of the NBA’s dispute with both sides being unable to figure out a proper revenue split, and small market teams worried about retaining superstars, and profitability.  All of these issues have come to a head at a time where the league saw unprecedented television ratings and league revenue during the 2010-2011 season.

But, much like the NFL labor dispute, NBA owners are looking towards the future, and at a time where Stern is claiming that the league is losing upwards of $400M a year, rising league revenues are not enough to fix the problem (especially when the players receive 57% of league revenues under the old CBA).

The fact that there has been little headway by the two sides in negotiation talks leaves the league, the players association, and the fans in essentially the same situation as 100+ days ago, but now with a shortened NBA season, and the very real possibility that NBA fans will be without basketball in the 2011-2012 season.

On the other hand, for fans of 1-hour dramas on TNT, you may be seeing a lot more reruns of The Closer during the upcoming months.

[format] Five years ago Marbury launched Starbury, his affordable footwear and apparel line, in cooperation with Steve and Barry’s.  But three years into the partnership Steve and Barry’s filed for bankruptcy and the Starbury brand came to a screeching halt.  With his signature brand stuck in the mud, next to his reputation in the NBA, and another candle on his birthday cake he looked East. [/format]

Many former NBA talents have already come and gone in the CBA (Chinese Basketball Association) this season.  Steve Francis, Ricky Davis, Fred Jones and James Singleton, to name a few, lasted less than a month in the CBA before their teams cut them for various reasons.  But Marbury says he plans to be in China for the “long haul” and see his Starbury business plan turn into a reality.

[format] Read more about Stephon Marbury’s isolated, lonely, and determined life in China in New York Magazine online. [/format]

Chinese Basketall Association

Basketball in China is riding the momentum of the nation’s Men and Women team’s gold medal performances in Asian Games right into the opening games of the China Basketball Association.  The league began its 15^th season last Friday.  This year league officials are as optimistic as ever about the performance (financial and athletic) of the league.  Some of this success may be due to the influence and popularity of the NBA.

The league missed a big opportunity when Allen Iverson, still extremely popular in China, skipped the league offer for a season in Turkey.  But the CBA still fills it’s rosters with former NBA talent.  Stephon Marbury, former NBA All-Star Steve Francis, one-time NBA slam dunk champion Fred Jones and shooting guards Ricky Davis and Mike Harris has all signed on to deals with Chinese clubs this season.  The signings come after the leagued waived a $60,000 monthly salary limit on foreign players.  Also amended from team rules this season is the

“Bringing more experienced foreign players, especially former NBA players, is definitely beneficial for our league.  It is an effect way to enhance the CBA’s level and profile.  It’s also a powerful catalyst to draw fans back and attract sponsorship support,” said Bai Xilin, head of the competition department.  According to Bai, 32 foreign athletes including nine former NBA players are on the rosters of 17 clubs in the league.

The NBA influence does not end there.  Apart from the increase in former NBA players, the league will be incorporating new rules this year.  After a trial run during last season’s playoffs, the CBA’s three-point line will be extended to 6.75 meters, or about 50 centimeters farther than before.  Also, the three-second area will be expanded and an offensive foul protection area will be added under the basket.

The new salary and game rules reflect a league that is continuing on an upward path and is starting to become a commercial success.  “Last season income at several clubs approached or surpassed 10 million yuan (1.5 million dollars),” top league official Liu Xiaonong told reporters last week.  “According to the final accounts for last season, league income was up 80 percent while expenditures increased by 19 percent and losses were reduced by 66 percent over the 2008-09 season.”

According to Liu, over 400 million people watched CBA games last season at one time or another, while the just completed 2010 Asian Games gold medal game between China and South Korea attracted 120 million viewers.

The regular season, which comprises 309 games, will be played on a round-robin, home-and-away basis with a three-games-per-week schedule from Dec 10, 2010, to March 11, 2011.

Chinese Basketball Association

It seems China’s CBA is watching Allen Iverson slip through its fingers.  According to Yahoo Sports Iverson has turned down a one-year contract from Fujian SBS Xunxin because he wanted a higher salary.  As I discussed in a recent post, the CBA teams have their hands tied when it comes to player contracts and salary.  Teams need to find creative ways to bring high dollar talent like Iverson more guaranteed money.

A good model for teams and foreign players to follow would be the deal Stephon Marbury landed last year with Shanxi Zhongyu.  Marbury’s three year contract includes forming a joint venture to manufacture, promote and distribute Starburys throughout China.  The team is funding the setup of manufacturing operations and the first three stores.  Marbury has a vision and is following through with it in the Middle Kingdom.

With a little vision and a plan for the future, Iverson could turn China into a good investment.  He remains one of the most popular NBA players in China; with his jersey sales ranked eighth in China two years ago and street sellers till hawk Iverson posters outside middle schools during lunch.

If Iverson wants to make more money per game, playing ball in Europe is a top choice.  But if he realizes the arthritic knees and his age is beginning to draw the curtain on a great career he may want to take a serious look at making a long-term investment in China.  He might be able to squeeze out a season or two bouncing around Europe or he might be able to roll his popularity into something more sustainable in China.

Mr. Iverson… take one more look at China.  Think about how nice it would feel to only play two or three games a week (the average for CBA teams).  Then take a look at what it would take to start up apparel / shoe business in this country that still is looking for The Answer.

Chinese Basketball Association

Everyone one seems to think “The Answer” will find his answer in China.  Sure, he still has the skills and speed to dominate in the Middle Kingdoms highest basketball league.  Absolutely, fans will embrace their new star.  And yes Iverson jersey will pop up on playground all across China.  But there are a few hurdles to overcome… most of them financial.

Falling to the pressure to foster a league which develops Chinese basketball athletes and to try to stop some of the financial bleeding of some teams, last season the Chinese Basketball Association (CBA) found “their answer”… a salary cap.  While domestic talent takes center stage, foreign players tend to dominate the game and the ball (19 of the league’s top 20 scores were foreigners).  The new cap limits foreign players to $30K per month, while a single team can only spend $60K per month on foreign talent.  Iverson will need to establish more revenue streams in a country where getting new ideas off the ground is easier said than done.

Maybe Iverson is trying to follow the footsteps of another no. 3, Stephon Marbury, by using his popularity and brand to build his own shoe or apparel line.  The Starbury brand was already created for the late Steve and Barry chain and Marbury has always been a savvy promoter (yeah that’s his brand tattooed on the side of his head).  When he entered China Marbury wished to build his Starbury brand with Peak (who endorses Ron Artest and Jason Kidd).  Because they were unsure about Marbury’s commitment to play and build a brand in China they declined.  With one season in China under his belt, the Starbury brand has only seen moderate, if any, success in China.  Building a new athletic brand in China will take time and a little patience.

How much of that does Iverson have left?

Last week Special Master Stephen Burbank ruled that league owners wouldn’t be allowed to dismantle the supplemental revenue sharing pool (SRS) in 2010.  The pool will be valued at roughly $220 million dollars in 2010.  The NFLPA viewed the ruling as a victory,

“The Special Master basically rejected every single argument that management made and regardless of how the league characterizes the decision, this is a victory for players, for low-revenue clubs and the fans,” said Jeffrey Kessler, the lead counsel for the union in the case.

Kessler said that the ruling, if upheld, should motivate low-revenue clubs to participate in spending on their own players and potential free agents, regardless of whether those free agents are restricted by any means allowed in an uncapped year. (via ESPN)

While the NFL is looking to appeal the decision,

NFL spokesman Greg Aiello said, “Today’s decision involves a small sliver of the NFL’s overall commitment to revenue sharing. The NFL for decades has shared more than 80 percent of league and club revenues. In the 2006 collective bargaining agreement that expires in 2011, the NFL clubs also agreed to a small percentage of additional revenue sharing because of the new CBA’s significantly increased salary cap. The agreement calls for no salary cap in 2010 and that additional piece of revenue sharing to which the clubs had agreed in 2006 is therefore no longer required in our view. Although the Special Master disagreed with our interpretation on that issue, we are hopeful that Judge Doty, who will look at the issue anew, will see it differently.”

It’s a victory for the NFLPA, right?  Eh, not quite.  Since 2010 is going to be an uncapped year, the NFL basically ends up with a situation akin to MLB; namely no salary floor.  If you own the Jacksonville Jaguars (Wayne Weaver) and you are losing money on a yearly basis, are you going to take your SRS money and spend it on more players or just pocket the money to make your bottom line look better?

Is there really any incentive for the owners to spend their money on the players in an uncapped year?  Maybe MLB’s Pittsburgh Pirates can answer that question for you (…for the last 17 years.)

In this case, it looks very likely that the players may lose…even if they win on appeal.

Sometimes, its easy to forget that we are in danger of having football change forever in just a short time.  Here we are, in week 3 of what has so far been an incredible NFL season, wondering what is going to happen to our favorite teams.  The NFL and its clubs on the other hand, does have its eyes on the larger picture, and it realizes that a 2011 work stoppage is a very real possibility.

That’s why they’ve started to ask upper level executives to consider taking a pay cut.  (via Sports Business Daily)

Some NFL clubs are asking top-level employees to take pay cuts as steep as 50 percent or agree to be terminated with little notice if there is a work stoppage in 2011.

Clauses to that effect began appearing in coaches’ contracts about six months ago, and have been included in contracts of other high-level NFL club employees as well, sources said, including contracts for scouts and high-level business-side executives.

The NFL collective-bargaining agreement with players expires in March 2011, and owners are expected to lock players out if there is no deal. That would mean little or no work for thousands of other NFL club employees.

The vast majority of non-player employees at NFL clubs can quit or be fired “at will,” and do not have employment agreements. But many top executives on the business side have contracts, as do all general managers and coaches.

Many of the work-stoppage clauses differ from club to club but some of the same language appears in multiple contracts, said Larry Kennan, staff director of the NFL Coaches Association, a trade association that represents the about 600 NFL coaches, from head coaches to the lowest-level assistant coaches.

“There are multiple contracts with the same terms. For instance, a lot of them have that the club can impose a 25 percent salary reduction in the event of the lockout,” he said.

Of course, that only handles the club executives.  What about NFL coaches?

Kennan said many coaches are not aware of the new contract language because they haven’t negotiated their contracts for the potential lockout year. He did say that some of the language in the contracts ties coaches down. “In most cases the club is saying we can renew this thing when the lockout ends,” he said. On the other hand, there are some clauses which allow coaches to work in college football, he said.

Some coaches are refusing to sign contracts that contain the work-stoppage language, according to Kennan and agents who represent coaches.

Agents, who spoke on condition of anonymity because they feared reprisals against their clients, say some coaches have fought successfully to get the lockout clauses stricken. “Like anyone else, it depends on how much leverage you have and if a team wants a coach badly enough,” one agent said.

Unlike NFL players, NFL coaches are not part of a collective-bargaining unit and have no union to fight against the changes in their contracts. (The NFL Coaches Association is funded by dues, which about two-thirds of the 600 coaches pay voluntarily. The association is not funded by the NFL Players Association, but the players union provides office space and services, including administrative and legal services, to the coaches group.)

Just another unfortunate look at what the future of the NFL might be if the NFLPA and owners can’t come to an agreement.  I wonder how much trickle-down we could see in the UFL if the NFL does have any sort of prolonged lock-out?  Those UFL guys may end up being the smartest people the world has ever seen.

In order to be eligible for Certification as an NFLPA Contract Advisor here under, a person must file a verified Application for Certification as a Contract Advisor (in the form attached as Appendix A) and a completed and signed Authority and Consent to Release Information (in the form attached as Appendix B) with the NFLPA, and pay the required application fee as established by the NFLPA Board of Player Representatives. Certification will be granted hereunder only to individuals and not any firm, corporation, partnership or other business entity. There is no limit on the number of individuals in any one firm, corporation, partnership or other business entity who are eligible for certification.

Okay, pretty basic stuff here. If you want to be an agent, you’ll have to file an application and a consent form. The current fee is $1,200 dollars to take the exam (this was the fee for 2007. I’m not sure if/how things will change for 2008).

To be eligible for certification, the applicant must have received an undergraduate degree from an accredited four year college/university and a post-graduate degree from an accredited college/university. However, the NFLPA shall have the authority to grant exceptions to this requirement in cases where the applicant has sufficient negotiating experience. A new applicant shall not be granted Certification (Section 2(F)) without first attending the NFLPA seminar for new Contract Advisors to be held on an annual basis and passing a written examination. In the instance that a new applicant fails the written examination on two successive occasions, the applicant shall be barred from applying for Certification and taking the written examination again for no less that five (5) years.

Pretty self-explanatory here as well. NFL agents are required, barring special circumstances, to have an undergraduate degree and a graduate degree (there has been some discussion as to whether or not, in the future, you will have to have a law degree to become an agent. As it stands now, that’s not the case, but it may be in the near future). As I mentioned in the last section, you have to attend an NFL Agency Seminar that ends with an agency exam. The important thing to note here is that the exam is open book/open note, so if you’re planning on taking it, take detailed notes on everything. Why? because if you fail the test two times in a row…well, you’ll be waiting 5 years to take it again. Ouch.

Applications for Certification as a Contract Advisor must be submitted to the NFLPA during a specified application period to be set by the Board of Player Representatives. Upon receipt of an Application for Certification, the NFLPA may, in the context of reviewing the application, request further written materials from the applicant and/or conduct whatever furtherinvestigation it deems appropriate, including an informal conference with the applicant and a background check.

As far as the specified application period, I’m not sure what it will be for 2008, as its not listed on the NFLPA site yet. The point though, is that there are deadlines to be met, and depending on the information you’ve sent in to the NFLPA, they may request further materials from you, contact references, and do a background check.

That’s it for this week. The Collective Bargaining Agreement can be found here and the Agent Regulations can be found here.

Section 1. Endorsements: No Club may unreasonably refuse to permit a player to endorse a product.  Notwithstanding the foregoing, and without affecting interpretation of the preceding sentence, no player will be permitted to be a party to any endorsement arrangement of any kind with a company whose brand name is prominently associated with the production, manufacture, or distribution of a substance that has been banned by the Policy and Procedure with respect to Anabolic Steroids and Related Substances. The Management Council and the NFLPA will agree each year on a list of such companies.

So, future sports agents, your client’s endorsement deals are basically limitless, except for any tie-ins to drugs that are banned in the NFL.  So, that great idea you had about your client endorsing Hemorrhoid cream?  Or your dreams of having your client corner the sunglasses market? Well, there’s still hope for you yet.

The rest of the NFL Collective Bargaining Agreement, as always, can be found here.