The virus outbreak could push the NBA's revenue hit this season past $1B if play does not resumeGETTY IMAGES
The NBA in a memo to teams Friday said that player salaries will be paid on April 1, and it "expects to notify teams and players before the April 15 payments are due about the league's plans" regarding the possible enforcement of force majeure, according to Peter Botte of the N.Y. POST. If force majeure is enforced, players "still could recoup missed payments if those games are made up if/when play resumes at a later date" (N.Y. POST, 3/22). In DC, Ben Golliver noted the spread of coronavirus "presents an even greater financial challenge to the league" than the NBA-China fallout. The virus "could push the NBA's revenue hit past" the $1B threshold "should the regular season and postseason be canceled." Gauging the "precise economic hit of the NBA’s suspended season is impossible." But one high-ranking team exec said that the "total damage could reach" $40M per team, or more than $1.2B, if the "playoffs are lost." NBA teams average roughly $2M of "revenue per regular season home game" (WASHINGTON POST, 3/22). ESPN's Trey Wingo said NBA owners "are flush" with cash, so, "I don't know how well this would go over." He added this will "not be a one-sided discussion," as the NBPA is one of the "strongest unions out there" ("Golic & Wingo," ESPN Radio, 3/23).
TOUGH TO GAUGE: NBA Commissioner Adam Silver said of the league's potential losses, "It's too soon to tell what the economic impact will be. We've been analyzing multiple scenarios on a daily if not hourly basis and we'll continue to review the financial implications." The AP's Tim Reynolds wrote the NBA's financial losses "will be massive and will obviously just keep growing if this season cannot resume or if next season is affected." The league has "asked teams for building availability dates through the end of August, an indicator that this season -- if it resumes -- may stretch deep into the summer." So far, there are 14 people within the NBA community, including at least 10 players, "known to have tested positive" for coronavirus (AP, 3/21).
A LOT OF UNCERTAINTY: In Indianapolis, J. Michael cited a source as saying that the Pacers "aren't getting their players tested unless they have symptoms" given the "limited number of tests available." Meanwhile, the NBA league office has been "tight-lipped with details about what's ahead even with team officials, such as whether there will be playoffs or regarding the salary-cap because of decreased revenues" (INDIANAPOLIS STAR, 3/21). SI.com's Rohan Nadkarni wrote under the header, "The NBA's Financial Future Is Incredibly Complicated" (3/21).
