Published 18:41 IST, June 13th 2020
NBA players set to lose $1.2 BILLION in salary if season doesn't resume in Orlando: Report
According to NBA reports, if the NBA players to do not support the league's decision to return in July, they can end up losing $1.2 billion of their salary.
As the NBA has now finalized their decision of returning in July, several NBA players have been reported to be against the plan to return in Orlando's Walt Disney World. While the NBA Commissioner Adam Silver has stated that no player is obligated to return and play, the league and NBA players salaries will severely be affected. Reports have also stated a loss of billions due to the COVID-19 pandemic, which will deepen if NBA stars decide to sit out of the games.
NBA needs players to support the league's Orlando report to avoid more financial losses
As per ESPN's Adrian Wojnarowski, NBA players are being warned by their respective agents about the financial impact they will have to bear if they do not play during the NBA return in Orlando. Wojnarowski added that agents have been warning players this entire week, explaining both the short-term and long-term implications if the games are not played. As per the report, players will be losing $300 million from their salary, while if the season does get cancelled, another 25 percent of the salary will be lost under the 'Force Majeure' clause. Along with that, an additional 10% salary held in escrow will also be reduced. In total, NBA players will end up losing $1.2 billion in salaries this season.
This also includes problems for the upcoming 2020-21 season. The league can terminate the collective bargaining agreement which already has a clause for a mutual opt-out for 2022-23. The NBA and National Basketball Players Association (NBPA) will have to negotiate various financial and competitive items to deal with the significant loss of revenue. The reports added that agents think the league will respond to the cancellation by ending the CBA, which will lock out the players and move to work on an 'unfavourable' financial share of the basketball-related income (BRI), which is currently a 50-50 split.
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While the NBA has stars like Los Angeles Lakers' LeBron James supporting the NBA return, the league now needs more players to completely be on board about the restart in Orlando. Brooklyn Nets Kyrie Irving, who is also the NBPA's vice president, was one of the players against travelling to Orlando. Wojnarowski reported that Kyrie Irving had become 'less communicative' before his conference call on Friday (Saturday IST) with the executive committee and was more involved with the NBA return and social justice reforms. However, Irving was also reported to say that though he does not agree with the plan, he will travel to Orlando if all players think it is the correct decision.
(Image source: AP)
Updated 18:41 IST, June 13th 2020