NBA could hold player salaries in escrow if games are cancelled during COVID suspension

As a result of extended NBA suspension, league and National Basketball Players Association (NBPA) are considering holding at least 25% of all player salaries in escrow. salary cut will happen if some regular-season games get cancelled amid coronavirus outbreak. If NBA is looking to start NBA 2020-21 season by December, y might have to forgo regular-season and start with playoffs. 

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NBA salary cut: NBA suspension could result in a salary cut if regular-season games are cancelled

According to ESPN, league is currently figuring out ways to deal with financial impact caused by NBA suspension. With social distancing measures extended till at least April, NBA will be missing more than a month of games. Cancelling games will lead to players losing just over 1% of ir salaries for every game cancelled, which is based on 'force majeure' clause in Collective Bargaining Agreement (CBA). 

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NBA salary cut: Withholding salaries is a preventive measure taken by league

league already holds 10% of player salaries in an escrow account, which is given to players if salaries given fail to reach 'collectively bargained percent' of revenue for players. If salaries exceed amount, amount is distributed among owners. Adding ar account for escrow payments will most likely eliminate possibility where a player has to pay from his own pocket. For players who have received a majority of ir salary, difference could be covered next season. Apart from NBA salary cut, next season's salary cap is also being discussed by league. NBA executives, including NBA commissioner Adam Silver, will lose 20% of ir annual salaries. 

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NBA salary cut: NBA executives will need to deal with a short-term impact to prevent overall losses

NBA players with coronavirus

Currently, re are 10 NBA players with coronavirus. Utah Jazz's Rudy Gobert tested positive on March 11, after which NBA suspension was anunced. Apart from NBA players, five NBA members have also contracted virus. However, Gobert, Dovan Mitchell, two unnamed LA Lakers players and Boston Celtics' Marcus Smart have already been cleared of virus. While NBA is trying to make a return in June, official statement has been made. 

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