If the rest of the 2019-20 regular season is canceled, the NBA may be able to keep up to 25 percent of the salaries its players receive after April 1, according to ESPN’s Adrian Wojnarowski.
League officials are in discussions with the National Basketball Players Association about a deal that would amend the collective bargaining agreement to give players a greater share of the financial damage inflicted by the coronavirus outbreak that’s put the current season on hold.
Wojnarowski writes that while the NBA has “no plans to announce the cancellation of games in the immediate future,” it’s preparing for all scenarios, including one in which coronavirus isn’t contained in time to salvage the regular season.
The NBA has already been withholding 10 percent of the players’ salaries with the promise of paying out the remaining 90 percent through April 1. In accordance with the CBA’s Force Majeure provision (reserved for catastrophic events), that money has been held by the NBA with a certain percentage slotted to be returned to teams at the end of the year depending on how much revenue is lost.
However, it appears the 10 percent cut has not been sufficient for softening the blow dealt by the season’s suspension. Per Wojnarowski, Commissioner Adam Silver and about 100 top league officials have already agreed to 20 percent pay cut. With team owners handling their own financial ramifications, the league is hoping for its players to help alleviate that burden and prevent the NBA from having to recoup additional percentages from the players after the season.
The purpose of the Force Majeure is to prevent the salary cap and luxury tax from taking a nosedive next season and beyond. By recouping additional salary, teams would be in better standing for spending relatively close to what they’ve done the past few years.
If the two sides don’t come to an agreement, players could owe back portions of their salaries at the end of the season. In an effort to avoid seizing past salaries, the league is asking the NBPA to agree to a deal while working on a plan to help players budget their spending based on reduced incomes.
As much as the NBA would like to resume its regular season in some fashion, the coronavirus pandemic has entirely changed the outlook—both logistically and financially—of professional sports in 2020 for the worst. Everything the league does now is just part of an effort to limit the damage as best it can.
Stay connected to the Capitals and Wizards with the MyTeams app. Click here to download for comprehensive coverage of your teams.
MORE WIZARDS NEWS: