Published 12:13 IST, March 23rd 2020
NBA suspension could cause league whopping $1 billion loss in revenues: Report
NBA suspension: As a result of the extended NBA suspension due to COVID-19, the league will now suffer from a major loss in revenues of around $1 billion.
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As a result of the extended NBA suspension, the league will now suffer from a major loss of revenue. Considering the Hong Kong controversy and NBA suspension, the league could lose approximately $1 billion in revenue this year. Along with the loss of revenue, contracts of players like Giannis Antetokounmpo, Ben Simmons and Damian Lillard could also take a hit.
NBA suspension: The NBA suspension could lead to an NBA revenue loss of $1 billion
During the Hongkong controversy caused by Houston Rockets General Manager Daryl Morey’s tweet in support of protesters in Hong Kong, NBA commissioner Adam Silver had revealed an NBA revenue loss of around $400 million. However, reports suggest a $1 billion NBA revenue loss if the season does not resume soon. If the season ends up getting cancelled, the NBA revenue loss could in turn also affect the salary cap. According to reports, the salary cap has declined only twice over the span of 35 years, and never more than $23 million. Though Silver has stated that all steps will be taken after communicating with public health officials, the loss of revenue in case of cancellation would also affect the upcoming NBA seasons.
Also read | NBA revenue loss: Players might not get paid beyond April 1 during the ongoing suspension
NBA suspension: NBA might not pay the players on April 15
The NBA informed teams that league will provide "additional guidance" on the April 15 payment date, per memo today. Force Majeure language in CBA allows for a percentage of contracts to be withheld in extreme circumstances. It isn't a surprise NBA would wait on April 15 date. https://t.co/eTmCNL0UH5
— Adrian Wojnarowski (@wojespn) March 21, 2020
NBA suspension: NBA players could lose 21-24% salary due to NBA suspension
The NBA and the Collective Bargaining Agreement (CBA) have a clause termed as 'Force Majeure Event' regarding major scenarios like epidemics, war or natural disaster. The NBA could trigger the clause in extreme cases like the coronavirus pandemic. If the NBA triggers the clause, players could stand to lose a portion of their paycheck for every game they miss.
NBA suspension is a big blow to their television partners
Along with the NBA, its TV partners are expected to lose around $100 million. The suspension also affects the situation in two ways – the broadcast of the games and shows about the NBA where they review said games. If the NBA does not resume soon, their TV partners will now end up losing the revenue from the telecast and the commercials.
NBA suspension: NBA credit line to be increased to $1.2 billion to increase cash flow
Amid the coronavirus pandemic, the NBA is planning to raise its credit line up to $1.2 billion, sources tell ESPN. The previous credit line has been $650 million.
— Adrian Wojnarowski (@wojespn) March 17, 2020
NBA suspension: When will NBA return?
Story includes NBA’s willingness to consider team practice facilities for games with no fans — and perhaps a unique television viewing experience. Everything’s on the table. https://t.co/sUDowk4aac
— Adrian Wojnarowski (@wojespn) March 16, 2020
Silver's latest statement on the NBA return hinted at least one month without basketball action. As the Center for Disease Control (CDC) has recommended no gatherings of 50 or more people for at least two months, the NBA return could be pushed to mid-June. Even then, the games could still be played without an audience. Currently, there are 10 NBA players with coronavirus – Rudy Gobert, Christian Wood, Donovan Mitchell, Kevin Durant and three Brooklyn Nets players, two Los Angeles Lakers players and Boston Celtics' Marcus Smart.
12:13 IST, March 23rd 2020