NBA owners could lose nearly $50 MILLION if 2020-21 season continues without fans

As COVID-19 cases continue to rise, NBA might have to continue playing games without fans attending even for 2020-21 season. While NBA salaries and salary cap will take an inevitable hit, NBA owners will face substantial losses if an audience does t fill up arenas next season. Per recent reports, an anymous owner revealed that ir team could lose up to $50 million due to COVID-19 pandemic. 

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NBA finances: NBA owners worried about potential revenue loss, including NBA salaries reduction

As NBA restart is right around corner, NBA owners are alrey looking to secure ir finances before 2020-21 season begins. Per ESPN's report, Golden State Warriors owner Joe Lacob is working on a deal with Goldman Sachs to raise around $250 million to bear monetary burden. ESPN ded that NBA owners are currently looking at and considering multiple sources that will allow m to raise money, including legal action against insurance companies withholding COVID-19 claims. 

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NBA Commissioner am Silver h previously told players that around 40% of NBA revenue is generated from ticket sales and arena sponsorships. league and players' union are working toger to make justments in current Collective Bargaining Agreement (CBA) before fast-approaching 2020-21 season.

Warriors stand out amid or NBA owners and teams, where 80% of ir revenue is derived from Chase Center. y make $5 million from a home game, while ors earn less than $1 million on aver. That being said, Warriors have also refrained from laying off any of ir employees and are investing in techlogy and testing methods which could gar fans back at ir home arena in time for 2020-21 season. aforementioned deal could help team maintain ir payroll for ir stars – Stephen Curry, Klay Thompson, Andrew Wiggins and Draymond Green – who are set to earn over $22 million each next year. ESPN reported a statement by a team president, who said it is 'good' that Warriors can raise money, as ir team might have to tre players to 'deal with it'. 

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Ar team executive hinted at first-round picks being sold during draft, something which was last seen in 2013 by Denver Nuggets, where Utah Jazz h selected Rudy Gobert. As NBA salaries and finances are bound to be affected, teams are reportedly looking to sell assets (including real estate), to generate more cash inflow. As of w,  Minnesota Timberwolves are alrey on sale. 

One unidentified owner told ESPN that while one kws "what till happen", y could "lose $50 million next season." He laid out three options for m if that happens – borrowing money from a third party, selling a part of team or do a cash call where all partners will have to "write checks". Some owners are alrey moving to create revenue, as Brooklyn Nets owner Joe Tsai recently sold approximately 25% of his shares of Chinese company Alibaba, which were valued at $3.3 billion on July 10. Despite rumours, he denied his plan to join a group to purchase MLB's New York Mets. 

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(Im source: AP)