As a a basketball fan the impending lockout looms large. The summer league has already been canceled, and there is sure to be a shortened NBA season as the owners and player's association butt heads over player compensation. Although the lockout is portrayed as a conflict between players and owners the origin of the lockout is the inherent competition among franchises.
A number of basketball teams are losing money and the owners are blaming bloated player salaries. The owners wish to create a more profitable environment by settling on a collective bargaining agreement which would lower salaries across the board. What is usually ignored in this very convoluted situation is that owners choose how much they play their players. If they wanted to pay less for a player they could simply offer them a contract for less money. In fact, franchises are given incentives to keep player salaries under the current salary cap, yet franchises continue to pay players to the point of financial ruin. The new collective bargaining agreement will become the league wide law which keeps compensation in check for all NBA teams, so no team will be able to shoot itself in the foot on a bad contract. So the real question is: Why do NBA teams make voluntary decisions to lose money?