The NBA, its players, and their Lockout!!!

           In a perfect world, professional organizations like the NBA, NHL, and NFL never have labor issues. However, reality has proven that these billion dollar industries have more issues than their fans can fathom. Recently, the fans and sponsors of these billion dollars industries watched their beloved sport bicker about money. Unfortunately, most of us that work a nine-to-five don’t understand how millionaires, fuss with other millionaires about millions. However, we should! Why you ask? Because we hundred and thousandaires, fuss with other hundred and thousandairesaires, about hundreds and thousands regularly.

            As an employee I understand how the players feel, they want their pay to match their work. As a business owner I also understand how the owners feel, they want their employees effort to match their pay.  As a sponsor I understand their desire to have their needs met, and I also know that if no games are being played no money is being made. Sponsors want to see a return on their investment as quickly as possible, be it monetary or exposure. Unfortunately, for those entities that sponsor NBA teams, or the league in general are quickly awaiting the end of the lockout.

 

            Currently the NBA lockout is affecting the game like never before. David Stern and the NBA owners never had to worry about competing with the foreign leagues for players, especially American players. Today, Stern, and team owners find themselves competing with foreign leagues for their players on a daily basis. Players are entertaining offers to play across seas, because of the uncertainty of the NBA season.  Granted majority of the players will still get paid during the lockout because of their contract structure, but they want be playing the game they love. In fact, those players that join foreign leagues will be earning a game check from their new team, as well as their NBA check. This works well for the player, but its awful for the sponsor.

            Some teams like the New Orleans Hornets, and the Charlotte Bobcats are have been reassured by their sponsors that they are not going anywhere. According to Joe Gerrity; Entergy and Chevron have both recently raised their sponsorship level to become Crescent City Champions, which is widely recognized (although never officially confirmed) as reserved for companies which contribute 1,000,000 or more annually. The commitment from Entergy and Chevron are both an increase of more than 50 percent of their previous levels. Sponsors are patiently awaiting the end of the lockout so they can get back to life as normal. The Hornets are fortunate to have such loyal sponsors, I only hope other NBA teams are as fortunate.

Reference:

Gerrity, Joe (2011) New Orleans Hornets Scoring Big on Sponsorship Deals Despite Lockout. Retreieved: 2011 from http://www.hornets247.com/blog/2011/08/24/hornets-scoring-big-on-sponsorship-deals-despite-lockout/