NBA could lose atleast $900 million from TV revenues if it cancels season: Report

While NBA is losing money as NBA season remains suspended, loss will be much more if league cancels 2019-20 season. As organization is looking at various ways to resume season, y have to also consider financial consequences if games are cancelled. As per recent reports, league can lose around $900 million NBA TV revenue if season is cancelled. 

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League to lose $900 million of playoff NBA TV revenues if season is cancelled

According to recent reports, cancelling NBA playoffs will cost league $900 million. However, this calculation does t include TV revenues that will be lost if league cancels remaining regular-season games. Regional sports networks are mostly owed at least 70 games in ir deals with NBA. Most teams have played around 60 games when season was suspended.

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Even if NBA decides to complete ir regular-season games, y will lose maximum of ir revenues due to fans t attending game. According to a recent analysis, 40% of total NBA revenues is from ticket sales. Without fans attending games, most of review comes from games being televised. This is why resuming season is extremely important for league for a financial standpoint. Earlier reports have also hinted that if league is cancelled, effects of losses will be faced by following few seasons. 

Also re | NBA finances: NBA teams could face upto $28.75 million penalty due to luxury tax problems if NBA cancelled

To soften financial blow, salaries of NBA players and officials have alrey been cut. Players with larger contracts like LeBron James and Steph Curry can reportedly owe league $420,000. Despite using methods like escrow withholdings and reclaiming money via Force Majeure clause, Collective Bargaining Agreement (CBA) will t be able to cover lost revenues caused by suspension. Various reports have suggested long-term methods like lowering salary cap to deal with loss.

Recent reports have confirmed that league will be lowering NBA salary cap, which could affect free nts and luxury tax. While official statement has been me, NBA commissioner am Silver will reportedly make a decision in 2-4 weeks. 

Also re | NBA finances: Steph Curry, LeBron James likely to owe NBA upto $420,000 after recent pay cuts before NBA return