Causal Argument: Analyzing the Causes of The 2011 NBA Lockout

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In the American economy, capitalism is at the root of every major market; markets such as the textiles, healthcare, utilities, and sports entertainment. Professional basketball is a huge industry in the United States that many corporations and sports-lovers spend money on to watch and endorse. Devastating to many of the fans, the National Basketball Association (NBA) went into a lockout in 2011 because of the many economic issues that the league had been experiencing in the previous years. During a lockout, players cannot play, teams are not allowed to trade, sign or contact players, and many players do not get paid and cannot access NBA team facilities or staff. The 2011 NBA lockout was the fourth lockout in NBA history. The 2011 lockout …show more content…
A lockout for the 2005-2006 season was avoided though, because negotiations between the owners and players went smoothly and they were able to reach an agreement by June 2005. This new 2005 agreement had a major impact on the 2011 National Basketball Association lockout. The new contract guaranteed players 57% of all basketball-related income which included revenue from ticket sales, event parking, and concession. The length of new contract was for another six years, ending June 2011. Like most other businesses in the United States, the recession of 2007 had a huge impact on the NBA. The recession was considered to be the worst financial-crisis since the Great Depression. The recession led to many bank bailouts and foreclosures, the declination of the automotive industry, a drop in consumer wealth, and the stock market taking a huge hit which all-together caused a drop in the United States’ Gross Domestic Product. During the 2008-2009 season, nearly half of the NBA teams had posted losses in revenue. The main reason for this was because many teams experienced significant reductions in gate revenue for that season. The recession had drained the financial stability of many upper-class Americans and many could no longer afford to enjoy luxuries such as the thrill of attending an NBA basketball game. Mathew J. Parlow, the

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