Updated April 8th, 2020 at 15:52 IST
NBA owners might receive player compensation deal as refunds after COVID-19 pandemic
According to NBA reports, NBA owners (and players) might receive refunds under an NBA player compensation deal after the coronavirus suspension is over.
Advertisement
NBA owners might receive refunds under an NBA player compensation deal after the coronavirus suspension is over. The NBA owners could reportedly get the NBA refunds which the players have already received from their negotiations with the National Basketball Players Association (NBPA). After the suspension was announced on March 11, various reports have stated that a potential NBA salary cut is on the cards to avoid long-term losses.
Also read | NBA salary cut: Players stand to lose $600 million on 2019-20 season getting cancelled
NBA refunds: NBA owners might receive refunds after an NBA player compensation deal
Ongoing negotiations between the league and union break down thusly: The NBA hopes to reach agreement with the NBPA on imposing reductions in salary sooner rather than later and placing withheld money in escrow to either keep or return later depending on how many games are lost
— Marc Stein (@TheSteinLine)
Also, as @jgsiegel succinctly framed it in his piece, force majeure "doesn’t discriminate based on advance payments or payment schedule." If games are officially canceled and "force majeure" indeed takes hold, all players would be subject to the same withholdings, meaning ...
— Marc Stein (@TheSteinLine)
Meaning that the select group of NBA players who have already received the vast majority of their 2019-20 salaries would eventually have to make paybacks through a different mechanism ... likely funds withheld from next season's contract
— Marc Stein (@TheSteinLine)
According to reports, NBPA executives stated that any NBA player compensation deal initiated by the NBPA and NBA owners will involve refunds for all contracts. The repayments will affect players who receive their salary on a six-month cycle the most. As per ESPN, players like LeBron James are on those cycles and are yet to receive two more paychecks (April 15 and May 1).
Advertisement
Published April 8th, 2020 at 15:52 IST