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WNBA and players union will not extend CBA deadline

The WNBA and its players union will not agree to another extension of the collective bargaining agreement after the deadline passes Friday night, WNBPA vice president Breanna Stewart said.

That does not mean players will strike or the league will lock them out. Stewart told reporters Thursday at a practice for the Unrivaled three-on-three league that players would continue to negotiate in good faith.

With the deadline just before midnight Friday, the league wouldn’t confirm that the sides won’t reach an extension. A spokesman did say the league would “continue to negotiate in good faith with the goal of reaching a deal as quickly as possible.”

“Our focus remains on reaching an agreement that significantly increases player compensation while ensuring the long-term growth of the business,” a spokesperson said.

The league and the players had two previous extensions and met several times this week. Any stalled negotiations could delay the start of the season. The last CBA was announced in the middle of January 2020, a month after it had been agreed to.

It easily could take two months from when a new CBA is reached to get to the start of free agency, which was supposed to begin this month.

While a strike or lockout isn’t imminent, both sides could change their viewpoints.

Stewart said calling a strike is “not something that we’re going to do right this second, but we have that in our back pocket.” The league hasn’t been considering a lockout, according to a person familiar with the decision. The person spoke to the Associated Press on condition of anonymity because of the sensitive nature of the negotiations.

As of Thursday, the sides remained far apart on many key issues, including salary and revenue sharing, and it seems unlikely a deal could be reached before Friday’s deadline.

Revenue sharing a sticking point in talks

The league’s most recent offer last month would guarantee a maximum base salary of $1 million that could reach $1.3 million through revenue sharing. That’s up from the current $249,000 and could grow to nearly $2 million over the life of the agreement, a person with knowledge of the negotiations told AP. The person spoke on condition of anonymity because of the sensitive nature of the negotiations.

Under the proposal, players would receive in excess of 70% of net revenue — though that would be their take of the profits after expenses are paid. Those expenses would include upgraded facilities, charter flights, five-star hotels, medical services, security and arenas.

The average salary this year would be more than $530,000, up from its current $120,000, and grow to more than $770,000 over the life of the agreement. The minimum salary would grow from its current $67,000 to approximately $250,000 in the first year, the person told the AP.

The proposal also would pay young stars like Caitlin Clark, Angel Reese and Paige Bueckers, who are all still on their rookie contracts, nearly double the league minimum.

The union’s counter proposal to the league would give players around 30% of the gross revenue. The players’ percentage would be from money generated before expenses for the first year and teams would have a $10.5-million salary cap to sign players. Under the union’s proposal, the revenue sharing percent would go up slightly each year.

Union wants expansion fees included; league saying no

The union feels that the $750 million in expansion fees that the league just received with the addition of franchises in Cleveland, Detroit and Philadelphia by 2030 should be considered revenue and included in projections. The league says that the money actually goes to all the current teams to make up for the future money they’ll be losing by dividing the total revenue by more franchises.

Other major sports leagues like the NBA, NHL and NFL don’t include expansion fees in their revenue-sharing structures. Major League Baseball’s salary structure is not tied to its revenue, so expansion fees don’t matter.

League wants players to pay for own housing

With the potential new minimum salary at approximately $250,000, the WNBA has said that like most every other pro league, players should pay for their own housing.
The union’s stance is that teams should continue to pay for players’ housing.

Why stalled negotiations could delay the season

An extended delay in getting a deal done could cause a number of problems, specifically getting the season started on time or even played for several reasons. There are several factors that indicate that time is near:

  • Free agency: With nearly all the veterans free agents this offseason, this will be the biggest year in the league’s history as far as potential movement. Free agency was supposed to start this month. However, once a new CBA is reached, it could take both parties two months to get free agency started.
  • Revenue-generating events could be delayed: The release of the schedule has been delayed. In the past the league tried to get it out before the holidays so teams could sell tickets. With so many players potentially changing teams as free agents, new merchandise wouldn’t be able to be sold.
  • Expansion draft: With Portland and Toronto entering the league this year, an expansion draft has to be held. Last year when Golden State came into the WNBA, a draft was held in December. Teams need to figure out who they will be protecting from being selected in the draft, and that is made more complicated because of all the free agents.

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House passes bill to extend healthcare subsidies in defiance of GOP leaders

In a remarkable rebuke of Republican leadership, the House passed legislation Thursday, in a 230-196 vote, that would extend expired healthcare subsidies for those who get coverage through the Affordable Care Act as renegade GOP lawmakers joined essentially all Democrats in voting for the measure.

Forcing the issue to a vote came about after a handful of Republicans signed on to a so-called “discharge petition” to unlock debate, bypassing objections from House Speaker Mike Johnson. The bill now goes to the Senate, where pressure is building for a similar bipartisan compromise.

Together, the rare political coalitions are rushing to resolve the standoff over the enhanced tax credits that were put in place during the COVID-19 crisis but expired late last year after no agreement was reached during the government shutdown.

“The affordability crisis is not a ‘hoax,’ it is very real — despite what Donald Trump has had to say,” said House Democratic Leader Hakeem Jeffries, invoking the president’s remarks.

“Democrats made clear before the government was shut down that we were in this affordability fight until we win this affordability fight,” he said. “Today we have an opportunity to take a meaningful step forward.”

Ahead of voting, the nonpartisan Congressional Budget Office estimated that the bill, which would provide a three-year extension of the subsidy, would increase the nation’s deficit by about $80.6 billion over the decade. It would increase the number of people with health insurance by 100,000 this year, 3 million in 2027, 4 million in 2028 and 1.1 million in 2029, the CBO said.

Growing support for extending ACA subsidies

Johnson (R-La.) worked for months to prevent this situation. His office argued Thursday that federal healthcare funding from the COVID-19 era is ripe with fraud, pointing to an investigation in Minnesota, and urged a no vote.

On the floor, Republicans argued that the subsidies as structured have contributed to fraud and that the chamber should be focused on lowering health insurance costs for the broader population.

“Only 7% of the population relies on Obamacare marketplace plans. This chamber should be about helping 100% of Americans,” said Rep. Jason Smith (R-Mo.), chair of the House Ways and Means Committee.

While the momentum from the vote shows the growing support for the tax breaks that have helped some 22 million Americans have access to health insurance, the Senate would be under no requirement to take up the House bill.

Instead, a small group of senators from both parties has been working on an alternative plan that could find support in both chambers and become law. Senate Majority Leader John Thune (R-S.D.) said that for any plan to find support in his chamber, it will need to have income limits to ensure that the financial aid is focused on those who most need the help. He and other Republicans also want to ensure that beneficiaries would have to at least pay a nominal amount for their coverage.

Finally, Thune said there would need to be some expansion of health savings accounts, which allow people to save money and withdraw it tax-free as long as the money is spent on qualified medical expenses.

Sen. Jeanne Shaheen (D-N.H.), who is part of the negotiations on reforms and subsidies for the Affordable Care Act, said there is agreement on addressing fraud in healthcare.

“We recognize that we have millions of people in this country who are going to lose — are losing, have lost — their health insurance because they can’t afford the premiums,” Shaheen said. “And so we’re trying to see if we can’t get to some agreement that’s going to help, and the sooner we can do that, the better.”

Trump has pushed Republicans to send money directly to Americans for health savings accounts so they can bypass the federal government and handle insurance on their own. Democrats largely reject this idea as insufficient for covering the high costs of healthcare.

Republicans bypass their leaders

The action by Republicans to force a vote has been an affront to Johnson and his leadership team, who essentially lost control of what comes to the House floor as the Republican lawmakers joined Democrats for the workaround.

After last year’s government shutdown failed to resolve the issue, Johnson had discussed allowing more politically vulnerable GOP lawmakers a chance to vote on another healthcare bill that would temporarily extend the subsidies while also adding changes.

But after days of discussions, Johnson and the GOP leadership sided with the more conservative wing, which has assailed the subsidies as propping up ACA, which they consider a failed government program. He offered a modest proposal of healthcare reforms that was approved, but has stalled.

It was then that rank-and-file lawmakers took matters into their own hands, as many of their constituents faced soaring health insurance premiums beginning this month.

Republican Reps. Brian Fitzpatrick, Robert Bresnahan and Ryan Mackenzie, all from Pennsylvania, and Mike Lawler of New York, signed the Democrats’ petition, pushing it to the magic number of 218 needed to force a House vote. All four represent key swing districts whose races will help determine which party takes charge of the House next year.

Trump encourages GOP to take on healthcare issue

What started as a long shot effort by Democrats to offer a discharge petition has become a political vindication of the Democrats’ government shutdown strategy as they fought to preserve the healthcare funds.

Democrats are making clear that the higher health insurance costs many Americans are facing will be a political centerpiece of their efforts to retake the majority in the House and Senate in the fall elections.

Trump, during a lengthy speech this week to House GOP lawmakers, encouraged his party to take control of the healthcare debate — an issue that has stymied Republicans since he tried, and failed, to repeal Obamacare during his first term.

Mascaro and Freking write for the Associated Press. AP writer Matt Brown contributed to this report.

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