NBA cancels Summer League amid impending labor uncertainty

Watch out NFL, you’re not the only major sports league whose players may be looking to “follow their dreams” and pursue a life-long quest, new avenues and, sometimes, strange employment amidst the forthcoming labor uncertainty.

The NBA, whose anticipated labor dispute could be even uglier than the NFL’s, is looking into a number of different ways to increase league and team profitability. With the lockout looming, and the league likely shutting down July 1 (due to the expiration of the current Collective Bargaining Agreement on June 30), the NBA has decided to scrap plans for its Summer League and summer internships.

Currently, David Stern, the league’s commissioner, is looking to slash about $750 million dollars off the top of the revenue that is shared between players and owners – that cut would lower the portion of basketball-related revenue that goes to the players from 57 percent to around 40 percent.

Teams are feeling the pinch of the lingering recession as well. While National Basketball Player’s Association Executive Director Billy Hunter argues that only “a small number of teams are suffering, and their problems can be addressed by revenue sharing.” The latest Forbes NBA valuations shows 17 of the 30 NBA teams in the red, according to their 2010 operating expenses.

“The NBA has shared with the players’ union audited financial reports for all 30 teams which unequivocally demonstrate why Mr. Hunter favors the expiring agreement and why it does not work for us,” NBA spokesman Tim Frank said.

Midwestern markets like Cleveland (-26 percent), Detroit (-25 percent) and Indiana (-6 percent) all experienced major drops in their franchise’s values, although Cleveland’s can probably best be explained by their transcendent, homegrown star deciding to “take (his) talents to South Beach.” The aforementioned Detroit Pistons, as well as the Charlotte/Oklahoma City/New Orleans Hornets are both currently for sale, but neither can find a buyer at a reasonable price. There’s been discussion that Oracle CEO Larry Ellison may purchase the Hornets and move them yet again, this time to sunny San Jose, California.

Bottom line, this is going to get worse before it gets better. While contraction may seem unlikely, the NBA has conceded it has discussed it.

At least Major League Baseball seems to have learned  from its prior mistakes.

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