The NBA's current contract with their referees expires next week and the sides appear far apart on a new deal.

Sept. 1 is the expiration date of the current five-year pact. A source told ESPN.com that the league is proposing a ten percent reduction in the referee budget, which could prevent a new pact from being reached prior to the 2009-10 season.

As of "right now," according to the source, existing NBA referees "will not be working preseason [or the] regular season."

The source added that the NBA's hard-line approach with the referees could be an attempt to set a precedent for the collective-bargaining talks with players that began earlier this month.