Mike submits the following:
This past Monday, NBA Commisoner David Stern announced the cancellation of the first two weeks of the 2011 NBA regular season. This move comes as negotiations between NBA team owners and players have failed to make positive ground on signing a new Collective Bargaining Agreement (CBA). The CBA is used to define the characteristics of the relationship between players and owners such as salary restrictions and how NBA income is split up. At the heart of the disagreement is the claim by owners that 20 of 30 NBA teams fail to turn a profit in our current economy and the owners demand to make the new CBA more favorable for them. Players have come out and disputed the claims of economic hardship and pointed to certain accounting “tricks” that NBA owners use to help make their teams seem less profitable than they truly are. This article, released a few months ago when the lockout first began, shows how accounting is playing a huge role in these labor negotiations.
Do you think that owners are being dishonest about how profitable their teams are?