NBA Will Likely Need To Restructure CBA Amid Pandemic

During Adam Silver‘s call with NBA players on Friday, many near-term questions were presented, but there was a shortage of definitive answers as the league aims to resume its 2019/20 season. Silver stressed the need for testing and how it will expand as players return to practice facilities. Additionally, more information was provided in terms of travel, training camp and the 2020/21 season.

All of that doesn’t even scratch the surface of the financial impact the league will endure. With the season suspended in March, there have been no NBA games for two months and if they do resume, there is no guarantee fans will be allowed, potentially for all of 2020.

Per ESPN’s Bobby Marks (Twitter link), the NBA was projecting $8 billion in revenue for the current season and $8.4 billion in 2020/21. However, those projections were in place before the coronavirus outbreak. As Silver noted, having fans in the stands for all games equates to 40% of the NBA’s revenue.

If the league moves forward with fan-less arenas, which may be limited to one or two locations at least for the rest of 2019/20, the loss of revenue will essentially force the league to restructure the current collective bargaining agreement. The league has already cut back salaries of employees, including players, while teams evaluate paying non-laid off or furloughed employees on a month to month basis.

View Comments (11)