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Sports Illustrated’s Sam Amick on the NBA labor dispute and the potential impact to the basketball season.
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-- Shares of Madison Square Garden traded lower today analysts at Albert fried -- rather.
Cutting the stock's rating to with cell from a -- Now that's after news broke late last night that the NBA is canceling.
The first two weeks of the season.
-- and ongoing labor dispute Sam Amex is as columnist at Sports Illustrated he's been following the story very closely Sam thanks for coming in.
What's the chance at the whole season's lost.
It's not looking good guys I mean at the very real possibility right now and -- -- probably some I wouldn't have said.
About a week ago it seemed like a deal was getting very close it seem like the two sides -- gonna you know cooler heads will prevail and then they'll get this thing done the right now that's that's very real.
Well wait a minute they gave us a two week at number -- -- -- that's the time before we start to see any kind of movement on this why do you say.
And feel more confident you're a Sports Illustrated -- why do you say now that it's a possibility that the whole season could be a White House.
Well you kept the first two weeks at that point you're talking about a couple hundred million dollars in lost revenue for the for the league.
-- said the entire time and the once they got to this point.
-- they didn't get a deal done the offers were only gonna get worse than to be -- that the -- They have been true to form in terms of what they said and what they've done.
Falling in line for the most part.
And if you believe me take -- -- -- word of and that's what's gonna happen here the operative words the players dig in the owners dig in even more and that's -- the whole season could be on the table right now.
Right -- it always comes down to money in the case of this is since the players.
I'm told the players are making about 57% of all the profits in the owners are making 43% they wanna they wanna narrow that gap.
How big is the gap right now.
While a -- but He going back to last week again the -- look like maybe was only 5050 there is an informal.
Discussion about a 5050 split that's when it seem like a deal might get done and we stand here today guys.
You're talking about 47%.
As what the owners.
Want the players to have in their latest formal proposal the players have not gone out -- the 53 so technically 6%.
About forty million dollars annually per percentage point.
You know so it's a it's a pretty decent GAAP once again and and -- the key point is they're going in opposite directions now after you know spending.
The last couple weeks in coming together.
Boy you look at the money that is thrown around in this week and you look at what the players are making but -- -- sometimes make court frankly how much they lose -- -- this a business model that cannot be sustained -- -- us what the owners certainly one you know -- -- -- believe they're claiming 300 million dollars in losses last season they're claiming that the structure of the system.
It's is not advantageous it something where there's not enough Perry there's -- enough.
Should they saw a single -- so much money is it going to come to that -- Don't think -- -- the opposite is they have no problem paying their stars now granted -- What they pay the stars will probably go down in the deal that they want but it's not about the stars it's it's really about the rank and file guys that.
The guys that you know are LeBron not -- not Chris Paul guys like that.
They want to pay the rank and file guys -- they want there to be less guaranteed contracts.
Less certainty for the athletes themselves you know and really going the way of the NFL at least in terms of you know the less less stability and that's what the players are funny -- right now.
Let's be specific the average pay for a player in the NBA is five million that they come back the players come back it's a hate -- but the median.
Is only 22 million but you say only two million to a lot of folks it's Schwarzenegger say that's still a lot of money.
They do they do I mean nobody is ever gonna feel bad for either side in this thing that's just reality -- millionaires vs billionaires.
But the fact of the matter is I -- the owners.
-- I think asking for a lot they're asking you know for cost certainty and really the ability to have you know and simplifying it but there's truth in an aide and a full proof system.
You know where those revenues are gonna come through no matter how bad decisions are they make you know no matter you know how bad the running -- organization.
-- a lack of Sports Illustrated great to have you on -- perspective.
Thank you guests appreciate it.
