News from January 4.

The #1 draft pick has signed - with the Italian league.  Michael
Olowokandi has signed a contract with Kinder Bologna of the Italian
league.  He will be paid $1 million through February 15th, at which point
he has an opt-out clause where he can leave the team to join the NBA if
the lockout has been lifted.  If he remains with the team for the entire
season, his contract is worth $3 million.  The LA Clippers will retain his
NBA rights.  Also, in the past week or so, three NBA free agents have
signed contracts with teams in Europe.  They also have opt-out clauses
where they can return to the NBA at a certain point if the lockout is
lifted.  Vinny Del Negro (SA) has reached an agreement with Fortitudo
Bologna of the Italian league.  Vlade Divac (Cha) has signed a contract 
with Red Star Belgrade in Yugoslavia.  Arvydas Sabonis (Por) has signed a
contract with Zalgiras Vilnius in Lithuania.

On the labor front:
The Players Association has given the NBA their "final offer".  Both sides
have now rejected each others "final offer".  However, the Players
Association has called an all-members meeting for Wednesday where they
have said they will allow all the members present to vote on the NBA's
"final offer" - note that the leadership of the union expects [hopes] the
players to support the union's negotiating committee's recommendation of
rejecting the proposal.  The NBA Board of Governors has a meeting
scheduled for Thursday where it is expected that David Stern will
recommend the cancellation of the entire 98-99 season if a new agreement
has not been reached by that point and it is believed that the owners will
approve the cancellation of the season.