NBA Lockout

A detailed Summary of NBA Lockout

The National Basketball Players Association lockout greatly affected the United States economy. Greedy team owners and greedy players fighting over large amounts of money caused the lockout. In March of 1998, team owners felt that they were paying players too much money, causing clubs to lose money, so they voted to reopen discussions on the collective bargaining agreement. The players on the other hand felt that any team financial problems were the owners doing, not how much money players were being paid. When the two sides could not settle their differences and the collective bargaining agreement expired, the owners decided to lockout the players until they reached an equal agreement.

Lasting six months and into the NBA season, the lockout had a huge effect on those businesses or people associated with the games. First of all, since the games were not taking place this meant that employees were not able to work in the stadiums. Those employees who are usually hired to work the concession stands or sell food, drinks, and souvenirs around the stadium were out of work while the lockout persisted. Lack of work meant less income for the old stadium employees, thus lowering the demand for

other goods that these people would normally buy. Lower incomes make people purchase fewer amounts of goods from stores, restaurants, and other recreational activities.

Owners and players suffered from a lower income because of the lockout. Owners of teams have rent contracts with stadium owners that are paid in advance. The owners rent the stadiums the teams play in and even if there are no players, the rent is still paid by the owners. Paying the rent and making no profit from the games causes owners to not make a profit, have a lower income, and decrease demand for other goods in the market.

The baseball strike of 1995 caused baseball fans to lose interest in the sport because fans felt like players did not care about them. Fans became angry because they felt like players were too greedy and selfish. The same results happened with the NBA lockout. Fans did not approve of the fighting between owners and players over money so they decided not to help support the NBA. Whether sports teams have a lockout or strike, the ending result greatly affects the sport's ability to attract fans and make money, thus affecting the whole economy.

Restaurants near the basketball stadiums lost money because of the NBA lockout. Basketball fans eat or drink at restaurants and bars before and/or after games, but these fans were absent from the restaurants and bars because there were not any games to go watch. In an article entitled "Check, Please," John Donovan writes that when the Suns are playing at their home arena in Phoenix, people crowd the city. He says that on game nights an owner of a bar or restaurant, A.J. Sulka, can expect to serve at least 1000 people when on non-game nights, Sulka would serve 200 people. The NBA lockout would cause Sulka, and other restaurants and bars in town, to lose seve

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Approximate Word count = 1228
Approximate Pages = 5 (250 words per page double spaced)

Category: Miscellaneous