Basketball fans are having a hard year. The NBA lockout is now in its fourth month, forcing basketball aficionados to make due with hockey. The Association cancelled the season at least through December 15. Still, there are more effects of NBA cancelled games than just depriving sports fans. The lockout has tangible effects for the national economy and the local ones of cities with teams.
The NBA Lockout and Lost Wages
Of course, the NBA cancelled games mean lost wages for players. The Los Angeles Lakers alone stand to lose $91.31 million in wages for the entire season, the highest level in basketball.
Multi-millionaire basketball players aren’t the only ones feeling the pinch, however. NBC LA reported on the lost wages of service workers due to the NBA lockout. Ushers, janitors and ticket takers are also losing out. While NBA players often have extravagant lifestyles difficult to maintain without their high salaries, they have endorsement deals to fall back on. The same cannot be said of service workers helping maintain stadiums and doing logistics during games.
The Consumerist estimated a loss of 400 jobs within the NBA’s operations alone. Whether they’re laid off entirely or just having their hours cut, the cancelled games are taking a toll on service workers who support the NBA.
NBA Cancelled Games and Local Economies
While the toll taken on service workers has an air of tragedy, there are broader implications to the NBA lockout. Entire local economies are suffering because of the lockout and the effect is by no means minor.
Each Oklahoma City Thunder game pumps $1.3 million dollars in the local economy. At 41 local games per season, that’s not peanuts.
Between 1970 and 2004, the Portland Trailblazers brought $2 billion to the City of Roses. Now that revenue is gone and it couldn’t have come at a worse time for this fiscally ailing city.
The Memphis Chamber of Commerce estimates an annual local revenue related to Memphis Grizzly games in the neighborhood of $223 million.
Los Angeles is potentially hit the hardest. With two teams, the economic impact cannot be overestimated. Even the Lakers getting knocked out of the playoffs early in 2011 cost the local economy $70 million. As the American economy desperately tries to get back on its feet, the lockout isn’t making all the difference in the world, but it certainly isn’t helping matters.
NBA Players File Antitrust Suits
The NBA lockout has moved beyond NBA cancelled games and into the courts. The National Basketball Players Association (NBPA) has disbanded.
The issue is no longer being treated as a collective bargaining issue. Rather, the players are now alleging illegal restraint of trade in the courts. The players seek $2 billion in damages and the lawsuit will take months to move to full litigation.
The kicker? Because it’s an antitrust lawsuit, the damages are tripled. This could, quite conceivably, destroy the NBA as we know it. That will be some massive, long-term economic impact for sure.
Resolving the NBA Lockout
The NBA lockout has no easy resolution on the horizon. So far, neither side seems willing to budge, resulting in NBA cancelled games. Whether you’re a service worker at the local stadium or just a big fan of the full-court press, don’t look for any relief in the near future.
Sources: View the sources for data used in this article
