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Executive
            Summary                               Rational

                         NBA
 Legal
                        Lockout
Climate
                        History


            Agenda                                 Model
                                                 Adaptation

Financial               Mission &
 Climate                 Vision                                Strategic
                                                              & Tactical
              Org.                  Recommendations
                                                              Processes
            Structure
The issue:
The NBA locked out it’s players for 140
days. Players couldn’t access team            - Revenue sharing (BRI)
facilities, contact staff members, or         - League claimed they were losing money
workout with team trainers.                   - Wanted players to take a pay cut.
Most importantly, no games could be           - Which caused a disagreement.
played .

                                     Executive
                                     Summary
    What is the Collective Bargaining                      When these lockouts occur:
            Agreement (CBA)?                     - What can be done to win fans back?
A legal contract between the league and the              - What would it take?
    Players Association that setup rules.
                                                   - Make it cheaper or cost effective?
                                              - How well do fans react to the resolution?
• Started in1946 with 11                     • Unionized and formed in
  teams, known as Basketball                   1954
  Association of America                     • Gained 1st victory in 1964
• Currently @ 30                             • Has been the CBA rep for the
• Divided into 2 conferences                   players since its inception
  • Eastern
  • Western
                               NBA   NBPA



                               CBA   Bucks
• Established in 1970
• New agreements                             • 1st game played 1968
  followed                                   • 1971 Champions
  • 1973, 1976 & 1980                        • 2 NBA Finals
• 1976 CBA “Oscar                            • 8 Conference Finals
  Robertson”                                 • 13 Division Champs
Basketball
                            Operations    • Finance            • Comm. Relation
• President                               • Public Relations
• GM
                                                               • Game Ops.
                                          • Ticket Sales
• VP Operations      • Assist. GM         • Suite Sales
                                                               • Interactive
• VP Alt. Governor   • Coaching Staff     • Corporate &          Marketing
                     • Player personnel     Broadcast Sales    • Info Technology
                     • Scout Director     • Broadcast          • Administration
      Exec. Staff    • Directors of
                       Basketball Ops.            Business          Business
                     • Athletic Trainer          Operations
                     • Managers                                    Operations
                     • Medical advisors                              Cont.
Minimum Salaries                                                      Maximum Salaries
Years in   2005-06    2006-07   2007-   2008-09     2009-10    2010-11   2011-12*   Years in     Defined     2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
NBA**                            08                                                 NBA**       maximum
                                                                                                  salary
                                                                                       0       $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603,
   0       $398,762 $412,718 $427,1     $442,114 $457,588 $473,604 $490,180                     25% of cap*      000      000      250      000      500      750
                                 63
                                                                                       1       $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603,
   1       $641,748 $664,209 $687,4     $711,517 $736,420 $762,195 $788,872
                                                                                                25% of cap*      000      000      250      000      500      750
                                 56
   2       $719,373 $744,551 $770,6     $797,581 $825,497 $854,389 $884,293            2       $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603,
                                 10                                                             25% of cap*      000      000      250      000      500      750

   3       $745,248 $771,331 $798,3     $826,269 $855,189 $885,120 $916,100            3       $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603,
                                 28                                                             25% of cap*      000      000      250      000      500      750
   4       $771,123 $798,112 $826,0     $854,957 $884,881 $915,852 $947,907
                                                                                       4       $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603,
                                 46
                                                                                                25% of cap*      000      000      250      000      500      750
   5       $835,810 $865,063 $895,3     $926,678 $959,111 $992,680 $1,027,42
                                 41                                        4           5       $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603,
                                                                                                25% of cap*      000      000      250      000      500      750
   6       $900,498 $932,015 $964,6     $998,398    $1,033,3   $1,069,5 $1,106,94
                                                                                       6       $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603,
                                 36                       42         09         1
                                                                                                25% of cap*      000      000      250      000      500      750

   7       $965,185 $998,967 $1,033, $1,070,118     $1,107,5   $1,146,3 $1,186,45
                                                                                       7        $11,000,000   $14,400, $14,946, $15,649, $16,509, $16,224, $16,324,
                                 930                      72         37         9                 or 30% of       000      000      500      600      600      500
                                                                                                       cap*
   8       $1,029,8   $1,065,9 $1,103, $1,141,838   $1,181,8   $1,223,1 $1,265,97      8        $11,000,000   $14,400, $14,946, $15,649, $16,509, $16,224, $16,324,
                 73         18     225                    03         66         6                 or 30% of       000      000      500      600      600      500
                                                                                                       cap*
   9       $1,035,0   $1,071,2 $1,108, $1,147,523   $1,187,6   $1,229,2 $1,272,27      9        $11,000,000   $14,400, $14,946, $15,649, $16,509, $16,224, $16,324,
                 00         25     718                    86         55         9                 or 30% of       000      000      500      600      600      500
                                                                                                       cap*
  10+      $1,138,5   $1,178,3 $1,219, $1,262,275   $1,306,4   $1,352,1 $1,399,50     10+       $14,000,000   $16,800, $17,437, $18,257, $19,261, $18,928, $19,045,
                 00         48     590                    55         81         7                 or 35% of       000      000      750      200      700      250
                                                                                                       cap*




                                 Financial Climate
Start Year   End Year                      Milestones
   1970        1973     First CBA. Increased minimum salaries; Playoff
                        pool; Per diem.
  1973         1976     Arbitration.
  1976         1979     Suit blocking NBA/ABA merger settled; Limited
                        free agency (with team compensation).

  1980         1983     No-trade clauses eliminated.
  1983         1987     Salary cap; "Bird" rights.
  1988         1994     Unrestricted free agency; Length of draft
                        reduced.
  1994         1995     Temporary "No-strike, No-lockout" agreement.

  1995         2001     Ended 1995 lockout. Rookie scale contracts. Not
                        actually signed until 1996, and re-opened in
                        1998.
  1999        2005      Settled 1998-99 lockout. Maximum salaries;
                        Mid-Level exception; Escrow & luxury tax.
  2005         2011     Luxury tax in effect every season; Reductions in
                        contract lengths & raises. Ended 2011 lockout.
Fan Initiative

Fan-
Friendly         Retention
                   Plan

Fan Concierge
• Increase season
                                                                   tickets by 2%
                                                                 • Increase
                                                                   nonrenewal clients
                        • Action



                                     Plan has 6 specific goals
                                                                   by 2%
                                                                 • Increase
New retention plan is




                        • Reaction


                                     to enhance retention
                                                                   Ambassador Club
                        • Feedback                                 investments by 2%
                                                                 • Increase “Rookie”
                        • Repeat                                   clients by 2%
                                                                 • Increase or adjust
                                                                   promotions/events
about:




                                                                   by 2%
                                                                 • Increase Kids Club
                                                                   membership by 2%
Greater responsiveness to community needs in
    terms of programs offered, the promotion of the
    Bucks; areas of particular strength, and area
    workforce development

   Respond more effectively to the needs of ticket
   holders and partners


   Develop a youth foundation


   Creation and maintenance of trust between staff
   members, management, and the executives

   Establish adequate and effective communication
   throughout the office

   Recruit and retain an effective workforce and
   promote high morale


In the construction of rebuilding fans/consumer relationships, the strategic
and tactical planning process has to follow a logical sequence of
preventative measures.
Coordination of the effective implementation plan



   Assessment of staff member morale and
   addressing the issues of the lockout revealed,
   using such methods as surveys, focus groups, and
   informal feedback


   Implementation of staff development in order to
   contribute to the upkeep of staff morale and a
   positive organizational climate



   Refinement of participatory league policies and
   practices to ensure that the opportunity exists for
   participation by all staff members



Organization of policies and practices that promote outstanding
personnel morale and organizational climate involves the following.
October 2012 – Develop all policies and
   procedures pertaining to retention plan and
   relationship development for comments two
   weeks before the regular season meeting




   February 2013 – Approves all policies and
   procedures, and immediately start implementing
   them




   2012/2015 – Update policies and procedures
   based on experience and recommendation from
   the retention management team




To begin in the 2013/14 season includes the development of action
plans, including objectives, timelines, criteria employed to evaluate
progress, assignments of responsibility, and retention plans.
March 2012 – Analyze the current retention,
   relationship development, and start recruiting
   employees for any new functions



   April 2012 – Appointment of new employees and
   resources for the office



   March 2012 – Create retention suggestions
   template on creative ways on how to increase fan
   base



   2012/2015 – Run training programs for the staff in
   various areas of sales and customer service



During this process it is very important to have exceptional
communication from leadership such as regularly emailing reports
and meetings.
Develop and distribute a draft strategic
   communications plan for review by July 2012
   • Finalize communications plan and distribute by December 2012.
   • Continue to update plan as needed throughout five years ending 2017

   Develop guidelines, templates and samples for
   writing e-mail scripted messages to be used as a
   tool by staff by November 2012

   Discuss and develop list of regular/routine events
   and communication service and review other types
   of face-to-face meeting opportunities for new sales
   leads by July 2012

   Develop and implement communications
   worksheet to ensure proper review of game night
   Fan’s Concierge Service by October 2012

   Develop and publishing newsletter for new ticket
   holders, sponsorships, and corporate partners by
   December 2012


In the evaluating process the focus is on improving fan retention
management, training and communication channels with ticket
holders.
Enhance
                                                                 staff and
Increase                                       Increase          employee
public         Enhance          Alter          involvement       relations
awareness      the team’s       public         with the          and
of the team    image            perception     community         motivation

  To continue investing more valuable time and resources into
  staff training in the theme of client/fan/consumer relationship
  building/developing. There is no doubt that this type of
  investment will lead to higher rates of retention. Strategic and
  tactical processes, goals and objectives for the Milwaukee
  Bucks franchise have been suggested to try to rebound and
  regain fans from the devastating 2011 NBA lockout.
s   s
References
http://www.theatlanticcities.com/jobs-and-economy/2011/10/7-cities-most-
lose-nba-lockout/371/

http://www.wsws.org/articles/2011/nov2011/bask-n24.shtml

http://webfiles.uci.edu/lcoon/cbafaq/salarycap.htm

http://thurj.org/social-science/2011/04/2304

http://www.nytimes.com/2011/11/07/sports/basketball/nba-needs-a-
drastically-different-model.html?pagewanted=all

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Cap Preso

  • 1.
  • 2. Executive Summary Rational NBA Legal Lockout Climate History Agenda Model Adaptation Financial Mission & Climate Vision Strategic & Tactical Org. Recommendations Processes Structure
  • 3. The issue: The NBA locked out it’s players for 140 days. Players couldn’t access team - Revenue sharing (BRI) facilities, contact staff members, or - League claimed they were losing money workout with team trainers. - Wanted players to take a pay cut. Most importantly, no games could be - Which caused a disagreement. played . Executive Summary What is the Collective Bargaining When these lockouts occur: Agreement (CBA)? - What can be done to win fans back? A legal contract between the league and the - What would it take? Players Association that setup rules. - Make it cheaper or cost effective? - How well do fans react to the resolution?
  • 4. • Started in1946 with 11 • Unionized and formed in teams, known as Basketball 1954 Association of America • Gained 1st victory in 1964 • Currently @ 30 • Has been the CBA rep for the • Divided into 2 conferences players since its inception • Eastern • Western NBA NBPA CBA Bucks • Established in 1970 • New agreements • 1st game played 1968 followed • 1971 Champions • 1973, 1976 & 1980 • 2 NBA Finals • 1976 CBA “Oscar • 8 Conference Finals Robertson” • 13 Division Champs
  • 5.
  • 6. Basketball Operations • Finance • Comm. Relation • President • Public Relations • GM • Game Ops. • Ticket Sales • VP Operations • Assist. GM • Suite Sales • Interactive • VP Alt. Governor • Coaching Staff • Corporate & Marketing • Player personnel Broadcast Sales • Info Technology • Scout Director • Broadcast • Administration Exec. Staff • Directors of Basketball Ops. Business Business • Athletic Trainer Operations • Managers Operations • Medical advisors Cont.
  • 7. Minimum Salaries Maximum Salaries Years in 2005-06 2006-07 2007- 2008-09 2009-10 2010-11 2011-12* Years in Defined 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 NBA** 08 NBA** maximum salary 0 $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603, 0 $398,762 $412,718 $427,1 $442,114 $457,588 $473,604 $490,180 25% of cap* 000 000 250 000 500 750 63 1 $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603, 1 $641,748 $664,209 $687,4 $711,517 $736,420 $762,195 $788,872 25% of cap* 000 000 250 000 500 750 56 2 $719,373 $744,551 $770,6 $797,581 $825,497 $854,389 $884,293 2 $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603, 10 25% of cap* 000 000 250 000 500 750 3 $745,248 $771,331 $798,3 $826,269 $855,189 $885,120 $916,100 3 $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603, 28 25% of cap* 000 000 250 000 500 750 4 $771,123 $798,112 $826,0 $854,957 $884,881 $915,852 $947,907 4 $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603, 46 25% of cap* 000 000 250 000 500 750 5 $835,810 $865,063 $895,3 $926,678 $959,111 $992,680 $1,027,42 41 4 5 $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603, 25% of cap* 000 000 250 000 500 750 6 $900,498 $932,015 $964,6 $998,398 $1,033,3 $1,069,5 $1,106,94 6 $9,000,000 or $12,000, $12,455, $13,041, $13,758, $13,520, $13,603, 36 42 09 1 25% of cap* 000 000 250 000 500 750 7 $965,185 $998,967 $1,033, $1,070,118 $1,107,5 $1,146,3 $1,186,45 7 $11,000,000 $14,400, $14,946, $15,649, $16,509, $16,224, $16,324, 930 72 37 9 or 30% of 000 000 500 600 600 500 cap* 8 $1,029,8 $1,065,9 $1,103, $1,141,838 $1,181,8 $1,223,1 $1,265,97 8 $11,000,000 $14,400, $14,946, $15,649, $16,509, $16,224, $16,324, 73 18 225 03 66 6 or 30% of 000 000 500 600 600 500 cap* 9 $1,035,0 $1,071,2 $1,108, $1,147,523 $1,187,6 $1,229,2 $1,272,27 9 $11,000,000 $14,400, $14,946, $15,649, $16,509, $16,224, $16,324, 00 25 718 86 55 9 or 30% of 000 000 500 600 600 500 cap* 10+ $1,138,5 $1,178,3 $1,219, $1,262,275 $1,306,4 $1,352,1 $1,399,50 10+ $14,000,000 $16,800, $17,437, $18,257, $19,261, $18,928, $19,045, 00 48 590 55 81 7 or 35% of 000 000 750 200 700 250 cap* Financial Climate
  • 8. Start Year End Year Milestones 1970 1973 First CBA. Increased minimum salaries; Playoff pool; Per diem. 1973 1976 Arbitration. 1976 1979 Suit blocking NBA/ABA merger settled; Limited free agency (with team compensation). 1980 1983 No-trade clauses eliminated. 1983 1987 Salary cap; "Bird" rights. 1988 1994 Unrestricted free agency; Length of draft reduced. 1994 1995 Temporary "No-strike, No-lockout" agreement. 1995 2001 Ended 1995 lockout. Rookie scale contracts. Not actually signed until 1996, and re-opened in 1998. 1999 2005 Settled 1998-99 lockout. Maximum salaries; Mid-Level exception; Escrow & luxury tax. 2005 2011 Luxury tax in effect every season; Reductions in contract lengths & raises. Ended 2011 lockout.
  • 9. Fan Initiative Fan- Friendly Retention Plan Fan Concierge
  • 10. • Increase season tickets by 2% • Increase nonrenewal clients • Action Plan has 6 specific goals by 2% • Increase New retention plan is • Reaction to enhance retention Ambassador Club • Feedback investments by 2% • Increase “Rookie” • Repeat clients by 2% • Increase or adjust promotions/events about: by 2% • Increase Kids Club membership by 2%
  • 11. Greater responsiveness to community needs in terms of programs offered, the promotion of the Bucks; areas of particular strength, and area workforce development Respond more effectively to the needs of ticket holders and partners Develop a youth foundation Creation and maintenance of trust between staff members, management, and the executives Establish adequate and effective communication throughout the office Recruit and retain an effective workforce and promote high morale In the construction of rebuilding fans/consumer relationships, the strategic and tactical planning process has to follow a logical sequence of preventative measures.
  • 12. Coordination of the effective implementation plan Assessment of staff member morale and addressing the issues of the lockout revealed, using such methods as surveys, focus groups, and informal feedback Implementation of staff development in order to contribute to the upkeep of staff morale and a positive organizational climate Refinement of participatory league policies and practices to ensure that the opportunity exists for participation by all staff members Organization of policies and practices that promote outstanding personnel morale and organizational climate involves the following.
  • 13. October 2012 – Develop all policies and procedures pertaining to retention plan and relationship development for comments two weeks before the regular season meeting February 2013 – Approves all policies and procedures, and immediately start implementing them 2012/2015 – Update policies and procedures based on experience and recommendation from the retention management team To begin in the 2013/14 season includes the development of action plans, including objectives, timelines, criteria employed to evaluate progress, assignments of responsibility, and retention plans.
  • 14. March 2012 – Analyze the current retention, relationship development, and start recruiting employees for any new functions April 2012 – Appointment of new employees and resources for the office March 2012 – Create retention suggestions template on creative ways on how to increase fan base 2012/2015 – Run training programs for the staff in various areas of sales and customer service During this process it is very important to have exceptional communication from leadership such as regularly emailing reports and meetings.
  • 15. Develop and distribute a draft strategic communications plan for review by July 2012 • Finalize communications plan and distribute by December 2012. • Continue to update plan as needed throughout five years ending 2017 Develop guidelines, templates and samples for writing e-mail scripted messages to be used as a tool by staff by November 2012 Discuss and develop list of regular/routine events and communication service and review other types of face-to-face meeting opportunities for new sales leads by July 2012 Develop and implement communications worksheet to ensure proper review of game night Fan’s Concierge Service by October 2012 Develop and publishing newsletter for new ticket holders, sponsorships, and corporate partners by December 2012 In the evaluating process the focus is on improving fan retention management, training and communication channels with ticket holders.
  • 16. Enhance staff and Increase Increase employee public Enhance Alter involvement relations awareness the team’s public with the and of the team image perception community motivation To continue investing more valuable time and resources into staff training in the theme of client/fan/consumer relationship building/developing. There is no doubt that this type of investment will lead to higher rates of retention. Strategic and tactical processes, goals and objectives for the Milwaukee Bucks franchise have been suggested to try to rebound and regain fans from the devastating 2011 NBA lockout.
  • 17. s s