With the Coronavirus still around, the next NBA season will need careful planning and protocols before the green light can be given for its resumption. However, the most important aspect for the league to function is revenue. And because of the virus, the league cannot generate its estimated amount. This means that the NBA players might suffer, and here’s why.
The NBA always has an estimated projected revenue before the season resumed. According to ESPN, before the pandemic, the NBA had expected to generate $9 billion worth of revenue. How the breakdown works is that half of the revenue is generated from television and other media deals. Then, 10 percent comes from other sources, while a whopping 40 percent comes from the arenas.
But now that the league has to maintain social distancing. Either an audience won’t be allowed entirely or far less than what is estimated. This puts that 40 percent of the revenue in jeopardy. So, how does this concern the players?
How does the system work?
Well, the NBA owners and players have an understanding. Both get an equal 50-50 of the basketball-related revenue. The half that belongs to the players determines the salary cap for the teams. And it is based on this growing salary cap that future player contracts are designed.
So, the revenue that the teams bank on could be very less. This means the entire planned system will be broken. There is only one solution to this problem, which is to pretend that the whole revenue breakdown still exists.
This means the salary cap won’t collapse, but it also means that each NBA player will have to cut down from his salary. This will ensure that the 50-50 agreement with the owners continues. This includes the highest-paid players and the rookies. With a chance of a shorter season, players might receive fewer game checks too.
Utmost concern for the impact it will have on NBA players
On ESPN’s ‘The Jump’, being a Former NBA player, Perkins addressed these concerns. “It’s very concerning, and it goes to show you that we didn’t make sure we did our job in the last CBA agreement and how the NBA won that deal.
“This is what I was talking about earlier in the show. Why it’s so important that some of these guys get back to work. I know a lot of people talking about ‘Oh! these players make millions of dollars. They shouldn’t be worried. They should be financially straight. But that’s not it. When you throw in taxes and escrow, a lot of these guys on the lower tier, they depend on their NBA salary.”
This is a very tough situation to be in for the NBA players. First, all these fresh changes in location, playing and living like in the Orlando Bubble. Now sacrificing their hard-earned money to keep the NBA afloat. But is there really another choice? What will Adam Silver do?
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