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

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

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

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

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

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

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CBA remains under debate, as a force majeure clause was triggered by pandemic and was t made to take se kinds of financial losses. A new CBA could also be result of this jumble. NBA and NBPA have once again extended 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 t favoured by players, it seems to be league's best bet. NBA wanted a 72-game season, which would give teams a chance to rest. Christmas game could prove crucial for NBA and y could play teams that were t invited to bubble. Warriors, who will have Klay Thompson and Steph Curry back, could play on Christmas. Throughout January, games could be d out, giving players some time to adjust.

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

(Im credits: AP)