NBA revenue experiences a 10% dip to $8.3 BILLION after 2019-20 season: Report

NBA was inevitably affected by COVID-19 pandemic. y became first league in USA to suspend ir season on March 11 and were on a hiatus for around three months before returning at end of July. y played games at NBA bubble in Orlando, where fans were allowed to attend games as a safety protocol. While season was completed without any player testing positive for COVID-19, reports revealed that NBA revenue has suffered a 10% hit, falling to $8.3 billion. 

Also read | LeBron James, or star players think December 22 tip-off for NBA 2020-21 season is too soon

NBA revenue falls by 10% to $8.5 billion after a COVID-19 affected 2019-20 season

While league lost most of ir money gate receipts, ir loss from China partnership also affected final amount. Per reports, $800 million was lost due to fans t being able to attend, while $400 million was lost as a result of sponsorships and merchandise being affected. "net negative impact" from ir China partnership was said to be $200 million. 

While 2019-20 loss in revenue looks manable, league could be looking at a 40% loss in revenue (approximately $4 billion), if 2020-21 season continues without fans. While NBA commissioner Adam Silver had spoken about wanting to have fans attend games, scenario seems unlikely as of w. ESPN also reported that NBA and National Basketball Players Association's (NBPA) calculation of this season's salary cap followed a different formula. If t, number would have fallen to $90 million after last season's $109 million. 

Also read | NBA salary cap to take a $3M to $12M hit due to COVID-19, cap could remain at $109M

Reports added that bubble helped league collect $1.5 billion revenue, which would have been lost if season ended without a champion being crowned. Additionally, Orlando bubble saw $190 million being spent, which was $10 million than what was calculated. NBA is considered various options to lessen travel schedule, and maybe having fans attend games at home arenas. However, like MLB, league could opt for a bubble environment for playoffs next year. 

Also read | NBA aims to start NBA 2020-21 season before Christmas; wrap it up before '21 Olympics

ESPN also reported that teams are confident that salary cap won't be below $109 million, and could climb to $111 million instead of projected $115 million. If it dips, teams could face a hefty luxury tax and less money to spend during free ncy. season could also start from December 22, which could end up affecting players' schedules and All-Star Game. 

Furrmore, league also faced a major dip in NBA ratings, which did t increase even during NBA Finals. While ratings might t be a priority for league right w, it could affect contracts with broadcasters. 

Also read | Donald Trump takes ar shot at NBA, highlights poor NBA Finals viewership on Twitter

(Im credits: AP)