NBA executives including Adam Silver to lose 20% of salaries after COVID-19 impact: Report

As the NBA 2019-20 season will continue to remain suspended, the league will be reducing the base salaries of NBA executives by 20%. The salary cut will include around 100 top NBA executives situated all over the world. Majority of the NBA executives at the New York headquarters, which includes NBA commissioner Adam Silver and deputy commissioner Mark Tatum, will be affected as a result of the decision.

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NBA pay cut: The league will reduce 20% of the NBA salaries

The salary reductions will take place immediately and will continue till the NBA remains suspended, according to reports. While there was no confirmed statement from NBA spokesman Mike Bass, he did talk about the ‘harsh economic impact’ caused by the virus. As per Bass, like every other company, the NBA will have to take certain measures to prevent long-term damage to their business by taking some short-term steps.

NBA pay cut: NBA executives will need to deal with a short-term impact to prevent overall losses

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NBA salaries: NBA commissioner and deputy commissioner to also face NBA pay cut

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As of now, there will be no widespread reductions to the rest of the league and no administrative or support staff will be impacted. To soften the blow caused by the extended NBA suspension which began on March 11, the NBA recently extended their credit line to $1.2 billion. This will allow the league to have more flexibility to use more cash for operating expenses.

NBA coronavirus: When will NBA return?

NBA coronavirus update

The only team to announce a reduction in salaries was Philadelphia 76ers. However, the team changed their decision after the backlash they received both internally and externally. Further reports have hinted at an estimated loss of around $1 billion if the season does not resume, which includes a $10-$15 million reduction in the salary cap. As the NBA return remains uncertain, the league will continue to face increasing losses. Though the NBA is eyeing for a mid-June return, no date has been confirmed. As of now, there are 14 NBA members who have been infected.

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