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Nba Lockout

In: Business and Management

Submitted By h4rrison
Words 1735
Pages 7
Harrison Nguyen
December 1, 2011
Business Law 320 2-3:15
Cardinale
NBA Lockout Every major sports league in the United States of America is a billion dollar revenue business. In a poll by Gallup, they surveyed that around roughly 65% of American citizens are sport fans. Basketball is a very complicated business with many different entities involved in its establishment. There are over 360 athletes playing in the NBA and each and every one of them must have a contract to be able to play. Owners and players must have contract terms to be breeched. With so much revenue coming in, the NBA must create contracts and agreements to establish how much of this money gets split up between the owners and players of the NBA. The NBA has a union for its players that helps its player’s band together and create better working conditions for its players such as better salary and contract terms, as well as other beneficial terms and agreements for its players. A union bargains with the employer, in this case the owners, on behalf of union members (player athletes), and negotiates labor contracts (collective bargaining agreement) with employers (owners). This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. In the NBA owners and players must agree on terms of the league’s revenue sharing, salary caps, luxury penalties, guaranteed contract lengths, and player exceptions. These terms are discussed and agreed on a contract called a collective bargaining agreement (CBA). In the case of the NBA, a contract last roughly around ten or so years and then is expired. Players and owners must negotiate a new collective bargaining agreement that may need new changes different from the old collective bargaining agreement that is more beneficial to either…...

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