Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 19, 1994 TAG: 9407200063
SECTION: SPORTS PAGE: C1 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
The decision by U.S. District Judge Kevin Duffy fell in line with previous rulings giving pro sports wide latitude to work out labor agreements outside some laws limiting other businesses.
Duffy downplayed the legal significance, noting the issue had been in federal court at least three times before and saying he was ``convinced ... neither party cares about this litigation or the result.''
``Both are simply using the court as a bargaining chip in the collective bargaining process,'' he said.
The ruling freed teams to immediately resume signing players to contracts, a practice that had been stopped by the court pending resolution of the dispute.
Duffy rejected the NBA Players' Association argument the salary cap violated antitrust law, saying the NBA was not subject to the law as long as it has a collective bargaining relationship with the union.
Duffy criticized the NBA's lawyers for ``sharp and shady practices of the type that most ethical lawyers shun'' for filing its lawsuit as a pre-emptive strike because the union had threatened to sue. The union countersued.
Promising everything was now open to negotiation, NBA deputy commissioner Russ Granik said he hoped ``now the players will come back to the bargaining table so we can move forward.''
``We think we have to find a system that enables us and the players to have a proper and fair division of the revenues,'' he said. ``If there's another system, we're prepared to talk about that.''
Buck Williams of the Portland Trail Blazers, president of the NBA Players' Association, said: ``The most important point that Judge Duffy wanted to make is he wants us to settle this thing at the collective bargaining table. It may take a good while, but eventually that's what's going to happen.''
The players plan to appeal.
``... Very quickly,'' said Frederick Schwartz Jr., a lawyer for the players. ``It seems to us that it is a rather strange result that if you agreed to something you are stuck with it as long as the union exists.''
Duffy urged both sides to bargain.
``No court, no matter how highly situated, can replace this time-honored manner of labor-dispute resolution,'' he said. ``Rather than clogging the courts with unnecessary litigation, the parties should pursue this course.''
Since the salary cap was put in place in 1982 as several teams faced financial problems, player salaries and benefits have soared from $79.6 million to $535 million as league revenues leaped from $135.2 million to $945 million. The formula distributes 53 percent of the NBA's gross revenue equally among the teams.
The right of first refusal allows a team to prevent a free-agent player with fewer than four seasons from going elsewhere if it matches the salary terms offered by another team.
Duffy's ruling followed a one-day trial last week that featured testimony from Williams, Dominique Wilkins and Danny Manning. The players testified restrictions on the players prevented them from full enjoyment despite multimillion-dollar salaries. Last season, Williams made $4.7 million, Wilkins $3.5 million and Manning $3.2 million.
Duffy said there was no antitrust violation ``as long as the collective bargaining relationship exists'' and both sides are governed by federal labor law.
``This does not mean that the players are `stuck' with these provisions forever,'' Duffy said.
The judge suggested the players bargain, possibly by using a strike, or decertify the union as the collective bargaining agent.
Keywords:
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by CNB