The NBA announced Monday night that it has canceled the first two weeks of the season as league and union officials failed to come to agreement on how to divide $4 billion in league revenue, reports The New York Times.
Also at stake is the system of rules that govern team payrolls and player salaries. The two sides remain far apart on the key issues, according to NBA Commissioner David Stern.
The dispute marks the NBA’s second lockout in its history, following the 1998-99 season, which was reduced to 50 games, the story points out.
The decision to cancel the season’s first two weeks should have minimal impact on the NBA’s broadcast partners, according to The Hollywood Reporter.
ESPN plans to replace the canceled games with college football and basketball games, and issued a statement noting that the network remains "hopeful this will get resolved quickly," according to the story.
However, if the lockout continues, the NBA’s broadcast partners — which include ABC/ESPN and TNT — could see financial losses, as advertisers shelled out more than $800 million last year on NBA broadcasts, the story points out.