NBA's delayed comeback in January could result in a $1 billion loss

A few days ago, the NBA announced it had faced a 10% dip in revenue. Per reports, the 2019-20 season brought in $8.3 billion in revenue, some of which was a result of the NBA restart. While the Orlando bubble was a success, the league earned less than what it had projected. Recent reports add that if the league starts the next season in January, the NBA is worried they might lose another $1 billion. 

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NBA revenue: NBA January start could lead to $1 billion loss

With the termination of the Collective Bargaining Agreement (CBA) looming, the NBA and National Basketball Players Association have little time to decide when the next season will resume. While the NBA is looking at $4 billion in revenue loss already, a delayed season could push that figure up to $4.5bn or $5bn.

While the league's revenue is affected by various factors, the CBA's termination will also drop player salaries. According to reports, the NBA is aiming a December 22 start, with the season slated to end before the Tokyo Olympics scheduled in July. Even if the season starts early, players who were playing at the bubble will be hard-pressed to be available for a December start.

While a 10% loss has been noticed this year, there could be a steeper loss next year. As per reports, gate receipts make up 40% of the revenue. As most cities might not allow gatherings, the NBA might not be able to allow fans in at all. If they start in January, the league's TV ratings might plummet, while also going over the Olympics. Competition with the NFL could also eat into projected revenue. 

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The CBA remains under debate, as a force majeure clause was triggered by the pandemic and was not made to take these kinds of financial losses. A new CBA could also be the result of this jumble. The NBA and NBPA have once again extended the CBA's opt-out window. 

Also read | NBA, players extend deadline for opting out of CBA; NBA start date and NBA 2021 schedule

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While a December 22 start is not favoured by players, it seems to be the league's best bet. The NBA wanted a 72-game season, which would give the teams a chance to rest. The Christmas game could prove crucial for the NBA and they could play teams that were not invited to the bubble. The Warriors, who will have Klay Thompson and Steph Curry back, could play on Christmas. Throughout January, the games could be spaced out, giving players some time to adjust.

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

(Image credits: AP)