The National Basketball Players Association Lockout: How It Affected the United States Economy
Economic Effects of the 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.
In an article entitled "Playing With Fire: A NBA Lockout Could Leave Fans Out in the Cold," a Phoenix Suns fan, Phil Lester, discusses the NBA lockout and how much money he spends on game nights. Phil says that "he can easily spend between $50-$100 on a night when the Suns are in town, counting dinner before the game, then some snacks and a couple of adult beverages during it. And that doesn 't include the money spent on the tickets." Without the NBA, the money usually spent by fans will go unspent, affecting businesses, workers, and the economy as a whole.
Restaurants near the
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.
In an article entitled "Playing With Fire: A NBA Lockout Could Leave Fans Out in the Cold," a Phoenix Suns fan, Phil Lester, discusses the NBA lockout and how much money he spends on game nights. Phil says that "he can easily spend between $50-$100 on a night when the Suns are in town, counting dinner before the game, then some snacks and a couple of adult beverages during it. And that doesn 't include the money spent on the tickets." Without the NBA, the money usually spent by fans will go unspent, affecting businesses, workers, and the economy as a whole.
Restaurants near the
Cited: Lee, Michael. "NBA Lockout: Owners, Players Reach Tentative Agreement to Start Season on Christmas." Washingtonpost.com. 26 Nov. 2011. Web. 28 Nov. 2011. . O 'Leary, David. "NBA Lockout Blues | August." Stepien Rules - A Cleveland Cavaliers Blog. 01 Aug. 2011. Web. 27 Nov. 2011. . Gregory, Sean. "The NBA Lockout and the Economy: An Overstated Impact | Moneyland | TIME.com." TIME.com. 07 Nov. 2011. Web. 28 Nov. 2011. . Donovan, John. "Playing With Fire." SI.com. 24 June 2011. Web. 30 Nov. 2011. .