June 9 (Bloomberg) -- The National Basketball Association appears headed for a ``suicidal'' lockout, said Billy Hunter, executive director of the union that represents players.

``It's looking like it might be going in that direction,'' Hunter said in a telephone interview from California, his latest stop in a tour to update union members on negotiations. ``The players can't understand why the owners would go to a lockout. It's suicidal.''

The current collective bargaining agreement between owners and players expires on July 1. That contract was reached after a lockout during the 1998-99 season, the first time in league history that games that counted were lost in a work stoppage.

NBA Commissioner David Stern is scheduled to address the media on Sunday in San Antonio, where tonight the Spurs and Detroit Pistons play Game 1 of the championship series. NBA spokesman Tim Frank declined comment.

Hunter said NBA owners might take a hard-line stance because of what's happening in the National Hockey League, which canceled its season because of labor discord.

Negotiators for the NHL and its players have agreed on a salary cap system based on team-by-team revenue, according to the Toronto Globe and Mail. Salary caps, or limits on team payrolls, help owners to control costs.

Cap Exemptions

The NBA has what's called a soft salary cap, meaning teams can spend more than the limit by exercising certain exceptions. Even though this season's salary cap was $43.9 million, the New York Knicks and Dallas Mavericks have payrolls more than double that amount.

``The owners must be emboldened by what is happening in ice hockey,'' Hunter said. ``Some of them figure they can get the same thing over here. What they have to realize is how much they're going to sacrifice.''

Unlike hockey, which doesn't have a rights-fee television agreement, the NBA reaps about $760 million a year from Walt Disney Co.'s ABC and ESPN and well as Time Warner Inc.'s TNT. Such agreements also help franchise values. The Phoenix Suns, for instance, in April of last year sold for a league-record $401 million.

``Unlike hockey, where nine teams are on the verge of bankruptcy, that's not the case here,'' Hunter said. ``The game is popular and it's growing.''

The sides last met on June 1, when the union offered to extend the current contract. The league rejected the proposal.

NBA owners want to cut the maximum length of player contracts, which are currently six or seven seasons. Management also wants a minimum-age requirement. The players, who earned an average $4.9 million this season, oppose both.

``Why would you destroy the league over such a small divide?'' Hunter asked. ``This isn't going to be a unilateral deal where the owners get everything they want and we get what's left over.''

To contact the reporter on this story: Scott Soshnick in San Antonio at ssoshnick@bloomberg.net

Last Updated: June 9, 2005 14:12 EDT