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

The NBA was inevitably affected by the COVID-19 pandemic. They became the first league in the USA to suspend their season on March 11 and were on a hiatus for around three months before returning at the end of July. They played games at the NBA bubble in Orlando, where no fans were allowed to attend the games as a safety protocol. While the season was completed without any player testing positive for COVID-19, reports revealed that the NBA revenue has suffered a 10% hit, falling to $8.3 billion. 

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NBA revenue falls by 10% to $8.5 billion after a COVID-19 affected 2019-20 season

The NBA is reporting $8.3 billion in revenue for the 2019-20 season — a 10% drop.

- $800M loss in gate receipts
- $400M loss in sponsorships & merchandise
- $200M "net negative impact" from China partnership

All things considered, that’s not terrible.

— Joe Pompliano (@JoePompliano) October 28, 2020

While the league lost most of their money gate receipts, their loss from the China partnership also affected the final amount. Per reports, $800 million was lost due to fans not being able to attend, while $400 million was lost as a result of sponsorships and merchandise being affected. The "net negative impact" from their China partnership was said to be $200 million. 

While the 2019-20 loss in revenue looks manageable, the league could be looking at a 40% loss in revenue (approximately $4 billion), if the 2020-21 season continues without fans. While NBA commissioner Adam Silver had spoken about wanting to have fans attend the games, the scenario seems unlikely as of now. ESPN also reported that the NBA and National Basketball Players Association's (NBPA) calculation of this season's salary cap followed a different formula. If not, the number would have fallen to $90 million after last season's $109 million. 

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Sources: The NBA bubble in Orlando recouped $1.5B in revenue that would've been lost without restarting the season. Expenses for the bubble were $190M -- $10M more than originally estimated. https://t.co/LxEDLoprot

— Adrian Wojnarowski (@wojespn) October 28, 2020

Reports added that the bubble helped the league collect $1.5 billion revenue, which would have been lost if the season ended without a champion being crowned. Additionally, the Orlando bubble saw $190 million being spent, which was $10 million than what was calculated. The NBA is considered various options to lessen the travel schedule, and maybe having fans attend games at home arenas. However, like MLB, the league could opt for a bubble environment for the playoffs next year. 

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One thing that is unanimous is that teams are lobbying for the tax level to come in at $139M and apron at $145M.

If the tax stays flat at $132.7M, FA and the trade market essentially will become frozen.

A flat tax would only benefit the teams with cap space.

— Bobby Marks (@BobbyMarks42) October 26, 2020

ESPN also reported that teams are confident that the salary cap won't be below $109 million, and could climb to $111 million instead of the projected $115 million. If it dips, teams could face a hefty luxury tax and less money to spend during free agency. The season could also start from December 22, which could end up affecting players' schedules and the All-Star Game. 

Furthermore, the league also faced a major dip in NBA ratings, which did not increase even during the NBA Finals. While the ratings might not be a priority for the league right now, it could affect contracts with broadcasters. 

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(Image credits: AP)