With the spread of the coronavirus continuing to impact many parts of the world, it puts many countries in a tight spot. Among those notably suffering has been the United States, who have quickly taken precautionary actions toward helping lower the number of people affected by the virus. It has put the sports world at a complete halt with almost all professional sports stopping amid the widespread concern. The NBA is at the forefront of all that, which has now begun to impact them significantly financially. With that in mind, commissioner Adam Silver has made himself a part of the initial significant monetary loss in the league.
NBA suspends 2019-20 season
It has been over two weeks since the NBA decided to suspend the rest of the 2019-20 season due to the coronavirus.
That came after it was discovered Utah Jazz star big man Rudy Gobert had contracted the virus. Not long after that, his teammate Donovan Mitchell had also been diagnosed with it.
Since then, there have been several players and employees on a few other teams to have tested positive for the virus. It has put the entire league and many other sports leagues and events at a complete standstill.
The uncertainty around the situation has begun to make a financial impact on the NBA, which the league responded quickly.
Adam Silver among initial pay cuts
It has undoubtedly been a tough time all the way through for the NBA that has seen several players and team employee members impacted by the virus.
With the NBA currently suspending the 2019-20 season, it has had some financial implications over the last couple of weeks. According to Adrian Wojnarowski of ESPN, about 100 of the league’s top-earning executives, including Silver and deputy commissioner Mark Tatum will be part of the 20% decrease in salary.
In the midst of a shutdown for the coronavirus pandemic, the NBA is reducing base salaries by 20% for about 100 of the league office’s top-earning executives around the world, sources tell ESPN.
Many of the executives and officials who are impacted work in the league’s New York headquarters, including commissioner Adam Silver and deputy commissioner Mark Tatum, sources said.
It’s an unprecedented move by Silver and many of those top league executives to take that financial burden before it hits the regular employees of the NBA and the players. All of this comes just a day after the Philadelphia 76ers’ ownership almost forced “at-will” employees with salaries greater than $50,00 to take a 20% pay cut before they were moved otherwise through the negative feedback on social media.
The NBA is looking to make sure there isn’t a huge loss financially that impacts everyone and taking this reduction demonstratest that. It’s a trying time right now, and the league led by Silver is acting honorable to his duty.
What could be next for the NBA
The current course of action will likely see the NBA take a financial hit like many of the professional sports leagues in the United States.
There is still much uncertainty concerning if the league will be able to resume any of the remaining regular or the playoffs at all. If not, that could result in what has been projected to hundreds of millions of dollars.
That alone could see even more financial ramifications for the NBA that would see a considerable drop in the league salary cap for the 2020-21 season. There is just so much unknown right now with how the coronavirus will impact the country and world over the next few months as many believe it will only get worse before it gets better.
Until then, the NBA, among other sports leagues and businesses beyond that realm, will prepare for what may be a substantial financial hit.