The National Basketball Association last week decided to cancel its preseason and Monday chose to cancel the first two weeks of the regular season as the NBA lockout resumed, and that is bad news for small business owners.
It’s a situation similar to what many restaurant and small business owners faced during the summer when the National Football League went through its lockout and it was unknown if there would be a football season. Thankfully, the NFL is in full swing and didn’t cancel any regular season games.
But while the lockout was occurring, these entrepreneurs faced an uncertain future as the millionaire players battled with the billionaire owners over how to share revenue. Many businesses, especially restaurants, draw business during the sports seasons as fans find a place to drink beer and eat while they watch the games.
Now, the NBA is in the middle of a heated lockout and once again, people are worried.
According to a newspaper report out of Cleveland ”“ the city that is home to the Cleveland Cavaliers and whose fans fill Quicken Loans arena during home games ”“ one restaurant owner is worried that he will need to lay off employees, many of whom are single parents trying to raise their families.
He said that he worries about his employees and their 11 children, but he would need to put his business first, saying that he could not afford to have 15 servers if there wasn’t any business.
That is the grim reality of a professional sports league. It’s difficult for fans to swallow the news when millionaires and billionaires argue over more money. The NBA has some of the wealthiest players in the world who get paid to play a game. While they think about their already inflated bank accounts, luxury cars and million-dollar homes, they are not thinking about the little people. The little people are the ones who suffer, not the players or owners who should be financially sound.
At issue in the NBA, like the NFL, is how to split the revenue, which includes everything from ticket sales to league paraphernalia.
It’s hard to think that in these difficult economic times with so many Americans living paycheck to paycheck, that the situation for the athletes and owners could get worse as the rich argue over who will become richer.
This lockout doesn’t just hurt the small business owner. Many teams, who play a six-month season, are cutting lower level staff. These are the people who make between $20,000 and $60,000 per year. This also includes vendors who depend upon those six months to make as much money as they can. In the end, the players and owners won’t be hurt, but those employees who depend on the games to be played, will feel the sting.
Sure, players are out of work, but their main concern is finding ways to keep their skills sharp.
Kobe Bryant, a future hall of famer who is the Los Angeles Lakers star, has the luxury of finding a job with a European team. Other NBA players are going to Asia to play for teams during the lockout.
The smaller guy, such as ushers, security personnel and parking lot attendants who depend on the NBA season, can’t just run off and work elsewhere. Where are they going to find work in an America that sees its unemployment rate rise on a monthly basis? Simple answer is, they can’t.
The grim reality of canceling regular season games will be a major hit for these auxiliary businesses for the rest of the year.
One aspect to keep an eye on is the fans. Will they even want to go to games if the season does happen? They might feel jilted with the wealthy owners and athletes playing after squabbling over riches. It might take them a while to come back to the game.
Let’s hope that is not the case and that the issues get resolved quickly, or else a lot of people will be feeling the pain.
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Today’s editorial was written by Sports Editor Al Edwards on behalf of the Journal Tribune Editorial Board. Questions? Comments? Contact Managing Editor Kristen Schulze Muszynski by calling 282-1535, Ext. 322, or via e-mail at kristenm@journaltribune.com.
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