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Go Home The NBA Is Destroying its Brand. How Did it Come to This?

BOOKS AND ARTS NOVEMBER 21, 2011

The NBA Is Destroying its Brand. How Did it Come to This?

Professional basketball’s labor negotiations have so far moved through three stages: Very public grandstanding, mean-spirited negotiations, and a series of far-flung ultimatums. We are now in the post-negotiations phase—a phase that David Stern, Comissioner of the NBA, has referred to as “nuclear”—in which each of the three parties involved has gone its own way. The NBA—for labor purposes, the team owners and Stern—have yanked their best worst offer and replaced it with one that would undo decades of uneasy cooperation. The NBPA (the union) filed for a disclaimer of interest, allowing the players to take their case to court and argue that the other side never played fair. And that leaves the fans, who are forced to come to grips with the possibility that the 2011-12 NBA season may never happen.

Stern, who takes great care with his words, has warned that the league is “headed for self-destruction.” In its extravagance, that assessment gets it exactly right. All along, the tough talk seemed bound to resolve into compromise. Instead, things got continually worse. This is a league in utter disarray: its owners hell-bent on making great gains for themselves, the players feeling outright insulted, and the fans left behind to pick up the pieces.

NBA journalists and the league’s average fans have gone from optimism, to frustration, to something altogether uncharted. It’s part fatigue, part denial, and in some cases resembles a crisis of faith. The CBA negotiations were supposed to be a mere workplace formality, albeit a particularly nasty one. It wasn’t that fans were unaware that sports is a business. It’s that they presumed the NBA would act like a rational enterprise. They just never imagined that the league would respond to its extraordinarily successful 2010-2011 campaign, which shattered all sorts of ratings records and shaped some of the most exciting basketball narratives of a generation, by throwing it all away.

The fact is, the NBA brand hasn’t been this strong since Michael Jordan ruled the roost. LeBron James, Dwyane Wade and the rest of the reviled Miami Heat were supposed to get a chance to prove themselves—or reinforce the moralized belief that they represent the worst kind of mercenary assemblage. In the West, Kobe Bryant and his aging Lakers were going to look to add one more title before the sun sets on their current squad (and Bryant’s career). In the East, Kevin Garnett and the Celtics would look to do the same. Kevin Durant’s youthful Thunder, who made the Western Conference Finals in 2011, would continue chasing their first championship. So would explosive Bulls guard Derrick Rose and his defense-oriented team, a year removed from an Eastern Conference Finals run. No one knows what the Knicks, who boast flamboyant scorers Melo and Amar’e Stoudemire, would have been able to do with a full training camp under eccentric coach Mike D’Antoni. Depending on who you ask, superstars Chris Paul and Dwight Howard are on the cusp of defecting to a major market, or ready to contend with the Hornets and Magic, respectively. And don’t forget the Dallas Mavericks, the 2011 NBA champs, looking to repeat with Dirk Nowitzki as the hub and a rotating cast of vets situationally carrying the day. This is a league so flush with talent that one of its most dynamic young stars, John Wall, is stashed away on a piteous Washington Wizards team.

The players know they have no real leverage in their negotiations, other than the once-removed belief that fans care about them, not the largely faceless owners. And so, since the lockout got its start, they have done a tremendous job of tantalizing fans, and taunting ownership, by playing basketball as much as possible. Stars like LeBron and Carmelo have taken part in benefit games and exhibitions, often with plenty of other pros joining them. Durant undertook a barnstorming tour that went far beyond any possible marketing recommendations. Thanks to YouTube, and even a few hastily arranged video streams, the product is close enough for the fans to taste it. The players are trying to communicate that they’re ready, and eager, to get back to work. All they need is a fair offer.

Yet this strategy may have backfired. NBA players are not naturally identified as working stiffs. Most of them are wealthy, and in the case of the league’s superstars, like LeBron, they are corporate megaliths. What's more, while visibility and notoriety can build up demand, it also provides an easy target for resentment. Owners have the advantage of their invisibility, their ability to hide behind the impenetrable technicalities of the negotiations, from BRI (Basketball-Related Income) to salaries in escrow. This stuff makes the eyes of fans, and reporters not trained in hard economics, glaze over. It’s much easier for fans to focus their frustrations on the players:  if they are out there performing regularly, why are they unwilling to suit up for their proper employers?

It’s not the only structural advantage that the owners enjoy. The players’ greatest asset, after all, is their physical prowess—but that’s an asset that loses its value over time. A player can stay in shape and keep his conditioning up during the lockout, but the simple process of aging continues to take its toll. This, no doubt, is part of the owners’ calculations. Their own greatest asset, namely the financial capital that keeps the league running, isn’t as susceptible to the ravages of time.

Ultimately, the lockout has revealed that the NBA isn’t a collective entity with clearly identifiable collective interests, but rather a collection of independent businessmen jealously guarding their own individual interests. We may think of Stern as someone empowered to shape the league’s future. But during these negotiations we’ve been reminded that Stern is a mere employee of the owners, not their leader. The owners have the money; their votes have the final say on any labor agreement. David Stern can attempt to influence them, but in the end, the NBA is run by people mostly worried about their bottom lines and personal portfolios. Some like basketball more than others; certainly, all are feeling the effects of the recession, whether through their sports franchises or in their other companies, and they have no legal obligation to worry about the league as a whole. The calculus does not favor the sentimentalists among us: There are more small-market franchises—the teams most desperate for reduced salaries, under the guise of financial relief and competitive balance—than big, venerable institutions like the Lakers that understand the value of tradition, continuity and, well, basketball.

David Stern can try to be the voice of reason, but he can’t assert any kind of prerogative, moral or otherwise. When he worries about “self-destruction,” he is no doubt thinking of the decades of work he invested in making the NBA a global brand. Stern’s is not necessarily the fan’s perspective—he is, after all, a media-savvy tycoon with a union-busting background—but he at least has a conception of the sport’s best interests. We see how much it pains him to watch what should be a banner season—in terms of excitement and revenue—squandered because, in the most myopic sense, owners can afford to do so.

Stern sees a wasted opportunity, much like the fans, who stare in disbelief at a full slate of intrigue sure to generate plenty of revenue. But in the end, circumstances will be the same a year from now, and the people with the power to disappear this season are fine with that sacrifice. That’s the dirty little secret about the owners—they are indifferent to the players, fans and sport as a whole. It’s a type of corruption, however, to which any of us is potentially susceptible. After all, Michael Jordan was once Stern’s ally in his long-term efforts to unify, and expand, interest in the NBA. Now that he’s the owner of the Charlotte Bobcats, Jordan’s got other, more parochial, concerns.

Bethlehem Shoals is the co-author of FreeDarko Presents: The Undisputed Guide to Pro Basketball History, and an editor at The Classical

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13 comments

The NBA has been in trouble since FreeDarko extincted itself. I miss your old blog, Bethlehem!

- Konstantin

November 21, 2011 at 2:37am

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The only upside to this mess is that, once this lockout nonsense is over, Bobcats tickets should be a little cheaper, and the good tickets should be easier to obtain. The tragedy for me, a huge Corey Maggette fan, is that he's finally with my hometown team and I can't bloody watch him play. This is a nightmare. Bethlehem, fix this. Quit writing your little words, go find Michael Jordan, and slap him in the mustache. Tell him I sent you.

- Konstantin

November 21, 2011 at 2:47am

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Being an NFL fan and not an NBA fan, I view the prospect of a lost NBA season with equanimity at worst. But it's interesting to me that what seems on the surface to be a very similar dispute between labor and management in the National Football League managed to get settled earlier this year with the loss of only one meaningless preseason game, whereas the NBA's dispute is throwing the whole season into jeopardy, with no resolution in sight. I'd be interested to read a knowledgeable comparison between the two situations.

- austinexpat

November 21, 2011 at 7:40am

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Would it be too much to hope that the fans might get the message that neither players nor owners care a wit about them other than as wallets to be raided, that professional sports is not about sport, but about big entertainment business, and maybe even be moved to ask themselves "why am I such a sucker for these corrupt, grandstanding idiots?" Of course it is, but one can dream.

- IowaBeauty

November 21, 2011 at 10:19am

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The NBA is thinking too small. They're too worried about whether the Bucks and Bobcats can compete with the Lakers. The Lakers should be competing with Man United. A big global brand.

- DP1024

November 21, 2011 at 11:25am

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meh...it's hard to feel sympathy when it's millionaires fighting billionaires over revenue streams. It's not they're harder working than those lazy schmoes of yesteryear when the average player was making a measly $575K a year 20 years ago. Now the average salary is $5mil/year. A modest increase of 904% for players to play the game with less finesse, style and grace. I pretty much stopped watching the NBA when players like Alex English, Clyde Drexler, Magic Johnson, Larry Bird, Julius Erving, Worthy, and Barkeley retired. Which is to say, I haven't watched much NBA in a long time except when my hometown Nuggets are doing well.

- singlspeed

November 21, 2011 at 12:56pm

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Since the players are being locked out I wish they would just create a Professional Basketball Player league 100% owned by the players themselves. They could rent out the stadiums or find other venues and do a deal with one of the hundreds of cable companies out there. It would be fun to watch the owners fold, and if they didn't watch them be destroyed. Look, the players are the ones who generate the revenues, is there any other industry where all of the money is wrapped up in the players themselves. Hell even Hollywood has to have good scripts, cameramen, directors, etc. before the finished product is up there. So I can say I am pretty much 100% behind the players and I don't care if they get obscenely wealthy in the process.

- blackton

November 21, 2011 at 2:07pm

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As a long-suffering Atlanta Hawks fan, I have mixed emotions about this. On the one hand, the Hawks are a pretty good team with some excellent players (Alan Henderson being the most underrated nationally). On the other hand, being a "pretty good team" means (a) making the playoffs (b) winning the first round, and (c) getting beat pretty badly in the second round. A year without a season might give the Hawks ownership-by-committee time to find a buyer (who doesn't flunk the NBA's liquidity test, as the last candidate did). And maybe in summer 2012 they'll pull off that smart trade/free agent deal they didn't manage in 2011. Yeah, and maybe Rick Perry has a future as an NBA announcer: "um, and that was Kobe Bryant getting the pass from....... you know, the tall black guy......" DP, the Lakers do indeed have a global brand, based on my experience in a Beijing antique shop in 2009 - the owner had the finals on TV, and kept using his entire supply of English words: "Go Kobe! Go Lakers!".

- bjones

November 21, 2011 at 3:53pm

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What is the purpose of sports? Exercise is good; it keeps us healthy. Competition can be good; humans are social animals; we like to play together in packs. An argument can be made that competitive sports serve a useful purpose (a la William James' "Moral Equivalent of War") in diverting our aggressive and violent impulses into something less destructive than all out killing. Something went terribly wrong somewhere along the path. We prate about the Olympics; the original Olympics in Greece were nasty and violent. I know. Let's turn sports into a religion! Than everything will be fine. Just imagine, on Sunday you could go to the football stadium instead of to church! Wasn't there an article here on TNR about Tom Tebo and how religious he is not long ago?

- skahn

November 21, 2011 at 6:44pm

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The Chicago sports fan is truly cursed. No Bulls and Jay Cutler is out for the regular season? Shoulda been nicer to that goat.

- Sophia

November 21, 2011 at 6:57pm

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I don't think many people care about Basketball right now. With the college basketball machine starting up, and March Madness coming on the heels of the Super Bowl, the Oscars and just before Baseball Opening Day, we'll be fine. Professional Basketball is a youger and more urban demographic than my station. I expect sometime about February the NBA will start to fire up and get their half season and playoffs up & running. Maybe the economy will be improving, maybe fans will turn the games on. Come June they will have a championship game. Because I am more worried about how much it costs to see a game, my rooting is for the owners here. I think they understand the game is out of reach to the average customer. One of my recent guilty pleasures has been 'Basketball Wives' reality TV Show on VH1. Those gals are completely disconnected from reality. Funny how the women are making money off the NBA while the players are sitting at home.

- CRS9TNR

November 21, 2011 at 7:42pm

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I lost interest in the NBA after David Stern, Howard Schultz, and Bozo Bennett conspired to hustle the Sonics out of Seattle. The league is cheese-fluff, peopled by hot dogs on the court and in the front office. The City of Seattle is supposed to collect a compensation of $50 million soon from Bennett in Oklahoma. I hope they use it for something more substantial than than promoting pro basketball. I tried to get interested in the Blazers after the Sonics left, but I failed. No passion there anymore.

- magboy47.

November 21, 2011 at 9:14pm

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The only leverage on the owners to make a reasonable offer is the disaffection of season-ticket holders. It takes years to solidify that income stream. If a substantial fraction of season-ticket holders committed to get their money back if there is no resolution by December 15th-- and then did it--the owners might not want to have to pay what it would cost to re-engineer their primary cash flow.

- jdraskin

November 22, 2011 at 12:40pm

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