1998–99 NBA lockout
David Stern opened the league's collective bargaining agreement for review in March 1998. The NBA owners voted to reopen the contract on March 23, passing by a 27, 2 margin. They sought changes to the salary cap system and a ceiling on individual player salaries. By the 1997, 98 season, 57% of basketball-related income went to pay players. The previous deal had called for a 48% split between owners and athletes. The league claimed that 15 of its 29 teams posted losses during that year. The National Basketball Players Association disputed this figure and stated only four teams lost money. A six-year CBA had been in place since September 1995. It included a clause allowing owners to reopen the contract if more than 51.8% of income went to player salaries. Owners wanted to remove the Larry Bird exception which allowed unlimited spending to re-sign their own players. This loophole caused a substantial increase in upper-end contract values. Kevin Garnett recently signed a $126 million six-year deal with the Minnesota Timberwolves. Owners sought to prevent similar large contracts for young players.
Negotiations broke off on June 22, leading to a lockout nine days later. Teams were barred from making transactions or holding workouts during the work stoppage. NBA commissioner David Stern and several owners left talks after an NBPA offer included increased revenue sharing. By the 25th of September 24 exhibition games were canceled and training camps postponed indefinitely. The season's first two weeks officially canceled on October 13. Ninety-nine games scheduled for November were lost as a result. It marked the first time in NBA history that games were canceled due to labor disputes. Arbitrator John Feerick ruled on October 20 that owners did not have to pay guaranteed contracts during the lockout. Further cancellations continued through December including Christmas games played annually since 1947. The 1999 All-Star Game scheduled for February 14 at Philadelphia's First Union Center was also canceled. Discussions featured frequent hostility between parties. An early December session saw Stern and Billy Hunter engage in what CBS News called an extremely heated screaming match. Both men walked away from the table indicating the entire season might be canceled. Sixteen players participated in a December 19 exhibition game in Atlantic City.
Stern announced on December 23 he would recommend canceling the season if no deal existed by January 7. A final deal proposed by owners met with rejection from the NBPA on January 4. Negotiations resumed on January 6 when Stern and Hunter reached an agreement before his deadline. The deal was ratified by the NBPA later that day and by the Board of Governors on January 7. Both parties signed the agreement on January 20 officially ending the lockout after 204 days. Players' salaries were capped between $9 million and $14 million depending on tenure. The league became the first major sports organization to limit player salaries. A rookie pay scale tied increases to draft selection order. Maximum annual pay raises were capped while retaining the Larry Bird exception. New average and median salary cap exemptions allowed teams to sign one player per category over limits. Teams exceeding the cap faced a luxury tax paid dollar-for-dollar. The minimum salary increased to $287,500 representing a $15,000 raise. Players received promises their salaries would equal 55% of revenues over the final three seasons. Any higher percentage would lead to decreased salaries. The drug policy expanded to cover performance-enhancing drugs and marijuana.
A CBS News, New York Times poll in October 1998 showed 29% of fans viewed professional basketball more negatively due to the stoppage. Fans backed the NBPA in the dispute by a 36, 29 margin while general public supported owners 24% to 22%. One-quarter of basketball fans stated they did not know enough about the lockout to give an opinion. Sportswriter Tony Kornheiser described the labor dispute as one between tall millionaires and short millionaires. An article in Newsweek termed it an incomprehensible and unconscionable dispute between rival gangs of millionaires. Time Bill Saporito believed each side was damaged financially and through negative publicity. Stern claimed he made concessions while Hunter said both parties blinked. Hayden commented that the lockout was rather pedestrian and made no noteworthy contributions to legal doctrine. He considered the NBPA to be a union with greater power than most other organizations. A contrast existed between work activities of regular workers and NBA players. Many felt unions were out of touch with their lives and offered little value. Indifference among American sports fans suggested greed was shown by both sides similar to sentiments during the 1994, 95 Major League Baseball strike.
The shortened season began on the 5th of February 1999 with only 50 games per team instead of 82. Four hundred sixty-four regular-season games were lost due to the 204-day lockout. Average attendance dropped to 16,738 fans per game down 2.2% from the previous year. Ticket sales fell nearly 2% further in early 1999 and remained under 17,000 for three seasons. Television ratings dropped for three consecutive years following the stoppage. Players struggled to condition themselves for the season on short notice leading to subpar play. Scoring declined by about four points per game per team averaging to the lowest total in 20 years. Turnovers increased while field goal percentages decreased across the league. Teams typically played at a reduced pace throughout the campaign. Michael Jordan's second retirement had largely been responsible for prior fan interest increases. The combination of labor issues and star departures affected overall popularity significantly. Subsequent seasons saw ticket numbers stay below pre-lockout levels consistently.
A higher percentage of players signed contracts worth the maximum amount possible under the new cap. Young players like LeBron James began signing shorter contracts allowing more flexibility in team choice. The agreement expired in 2005 when both sides feared another work stoppage. The National Hockey League lost its 2004, 05 season to similar labor issues. A six-year CBA was reached in June 2005 preventing an immediate lockout. Another lockout occurred in 2011 after that contract expired lasting about five months. It marked the fourth lockout in league history before sides came to agreement. Each team's schedule in the 2011, 12 NBA season was cut by 16 games. Television ratings and ticket sales remained below pre-lockout levels in subsequent seasons. The dispute set precedents for future negotiations regarding salary caps and revenue sharing. Owners gained significant leverage through the new restrictions on player earnings. Players accepted lower minimums and stricter drug policies to secure their positions. The cycle of conflict continued into the next decade with recurring tensions over financial terms.
Common questions
When did the 1998-99 NBA lockout officially end?
The 1998-99 NBA lockout ended on January 20 after lasting 204 days. Both parties signed the agreement on that date following ratification by the NBPA and Board of Governors earlier in the week.
How many games were lost during the 1998-99 NBA lockout?
Four hundred sixty-four regular-season games were lost due to the 204-day lockout. Ninety-nine games scheduled for November were canceled along with Christmas games played annually since 1947.
What percentage of basketball-related income went to players before the 1998-99 NBA lockout?
By the 1997, 98 season 57% of basketball-related income went to pay players. The previous deal had called for a 48% split between owners and athletes.
Who negotiated the final agreement ending the 1998-99 NBA lockout?
NBA commissioner David Stern and Billy Hunter reached an agreement on January 6 when negotiations resumed. The deal was ratified by the NBPA later that day and by the Board of Governors on January 7.
When did the shortened 1998-99 NBA season begin after the lockout?
The shortened season began on the 5th of February 1999 with only 50 games per team instead of 82. Average attendance dropped to 16,738 fans per game down 2.2% from the previous year.