NBA Suspension Could Cause League Whopping $1 Billion Loss In Revenues: Report

Basketball News

NBA suspension: As a result of the extended NBA suspension due to COVID-19, the league will now suffer from a major loss in revenues of around $1 billion.

Written By Devika Pawar | Mumbai | Updated On:
NBA suspension

As a result of the extended NBA suspension, the league will now suffer from a major loss of revenue. Considering the Hong Kong controversy and NBA suspension, the league could lose approximately $1 billion in revenue this year. Along with the loss of revenue, contracts of players like Giannis Antetokounmpo, Ben Simmons and Damian Lillard could also take a hit. 

Also read | NBA's Adam Silver seeking answers, which are in short supply

NBA suspension: The NBA suspension could lead to an NBA revenue loss of $1 billion

During the Hongkong controversy caused by Houston Rockets General Manager Daryl Morey’s tweet in support of protesters in Hong Kong, NBA commissioner Adam Silver had revealed an NBA revenue loss of around $400 million. However, reports suggest a $1 billion NBA revenue loss if the season does not resume soon. If the season ends up getting cancelled, the NBA revenue loss could in turn also affect the salary cap. According to reports, the salary cap has declined only twice over the span of 35 years, and never more than $23 million. Though Silver has stated that all steps will be taken after communicating with public health officials, the loss of revenue in case of cancellation would also affect the upcoming NBA seasons. 

Also read | NBA revenue loss: Players might not get paid beyond April 1 during the ongoing suspension

NBA suspension: NBA might not pay the players on April 15

NBA suspension: NBA players could lose 21-24% salary due to NBA suspension

The NBA and the Collective Bargaining Agreement (CBA) have a clause termed as 'Force Majeure Event' regarding major scenarios like epidemics, war or natural disaster. The NBA could trigger the clause in extreme cases like the coronavirus pandemic. If the NBA triggers the clause, players could stand to lose a portion of their paycheck for every game they miss.

Also read | Does Kyrie Irving have coronavirus? NBA players with coronavirus

NBA suspension is a big blow to their television partners

Along with the NBA, its TV partners are expected to lose around $100 million. The suspension also affects the situation in two ways – the broadcast of the games and shows about the NBA where they review said games. If the NBA does not resume soon, their TV partners will now end up losing the revenue from the telecast and the commercials.

NBA suspension: NBA credit line to be increased to $1.2 billion to increase cash flow

NBA suspension: When will NBA return?

Silver's latest statement on the NBA return hinted at least one month without basketball action. As the Center for Disease Control (CDC) has recommended no gatherings of 50 or more people for at least two months, the NBA return could be pushed to mid-June. Even then, the games could still be played without an audience. Currently, there are 10 NBA players with coronavirus – Rudy Gobert, Christian Wood, Donovan Mitchell, Kevin Durant and three Brooklyn Nets players, two Los Angeles Lakers players and Boston Celtics' Marcus Smart. 

Also read | NBA players with coronavirus: Marcus Smart urges people to take its impact seriously

First Published:
By 2030, 40% Indians will not have access to drinking water