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HOT TOPIC
July, 1998
The NBA Lockout: Who Cares?
We'll Find Out.
The latest installment of Millionaires vs. Millionaires pits the NBA Players' Association against team owners. Each side is crying poor mouth, blaming the other for its woes. The tension builds as each side refuses to budge on terms of settlement. Tension? Currently, this lockout has as much drama as a Bulls - Trailblazers game. Hey guys, a work strike only matters when there is work being done. That way, someone suffers, even if it is only the fan. This lockout has no real bite, but does raise some interesting image management issues.Normally, the creation and maintenance of a public image is focused on individuals in the hope that the net result is fruitful for teams, leagues and sports. With this lockout, attention has shifted from individuals to their collective groupings as owners or players. What this does is force the NBA to look at public response to their total product and the future of their game. This is not a simple case of handling a single player's indiscretions. Public reaction, or a lack of it, could impact the NBA for years to come.
While the NBA feels this lockout comes at an opportune time, when games aren't being played and workouts haven't started, they might be missing the bigger picture. Sure, no one is losing T.V. revenues, season ticket holders aren't upset, games aren't being missed, and corporate sponsors aren't losing money, but, unlike this lockout, not everything is linked to money.
This year fans struggled through another mediocre season dominated, once again, by news of money grubbing, undeserving talents and a predictable outcome. Fans are becoming more vocal about their disdain and might eventually look elsewhere for places to throw away their entertainment dollars. This lockout could be the motivation many fans need to walk away, money in tow.
Basketball fans are tired and frustrated by players who change teams more often than underwear, untested teenagers commanding millions in guaranteed salaries, games that lack hustle, and that constant bickering about money. If the NBA isn't careful, what they think is a timely dispute may ruin their game. Fans are speaking out—Commissioner Stern, the owners and the Players' Association might want to listen.
With regard to the lockout, one fan mused, "If Sadaam Hussein were in a prize fight with Adolph Hitler, who would you root for?" Another fan warned the league to keep an eye on the calendar because, "...Midnight Madness will be upon us soon. Your product will be secondary to the NCAA until March Madness is over. If we, the fans, lose interest because we found a better product, we might not remember to come back." If this lockout becomes a work stoppage, many disgruntled fans will stop watching, turn their attention to something else and move away from the NBA.
Unfortunately, the NBA has been led to believe it could survive, although only temporarily, without a strong fan base because of its guaranteed corporate sponsorships. Well, corporate America must heed the fans and is keeping close tabs on public reaction to the lockout. "The danger isn't what happens this year," says Lesa Ukman, editor of IEG Sponsorship Report. "but in the long term, some sponsors who leave might not come back."
Mega-agent Leigh Steinberg recognizes what could happen to corporate sponsorships if Americans sour to the NBA. "Sports is a fantasy," he says. "To the extent we destroy that illusion with strikes and lockouts, it becomes a less-desirable proposition for corporate America."
USC marketing professor, David Carter, examining the role of Coca-Cola as an NBA sponsor wrote, "If this lockout degenerates into fan anger at a bunch of greedy players and billionaire owners, Coke will have to reassess (its exclusive contract with the NBA)."
The NBA needs to wake up and recognize the damage they might cause by perpetuating this lockout. The people whose dollars matter most to the future of your sport often collect their pay in $5.25/hour increments. They are not going to stand for this. Tired of the same old song and dance, consumers will look elsewhere for their entertainment and corporate America will follow. The NBA needs to consider the image-impact of this lockout and respond with a sense of urgency.