The owners will cancel the 2011-2012 season. Phoenix and Boston's owners have already stated they are willing to do so for the long-term financial ramifications of the league. My guess is other owners will join them in this and show solidarity because they will NOT continue with the current agreement. The players union will start to break down: guys will end up overseas, some will hit the panic button because they've overextended their lives financially, and the players will eventually cave in to the demands of ownership. I predict (but I could be wrong) that this will be one of the ugliest work stoppages in professional sports that we've witnessed. The league talks about their popularity yet it sounds like it's a facade to hide the financial failures the league is experiencing.
So, what will a player be worth? I predict it won't be what it was in the previous agreement. So, JPosse, I believe the players will have to "sacrifice" and that the owners "will spend less on player salaries" thus proving your two headed argument laid out in your post.

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