Due to the coronavirus outbreak and the suspension of this year’s season, the players are placed in a difficult position. There are actions to make sure that everyone is paid, but there is no long-term plan proposed. However, the NBA promised that the players will receive their pay on April 1.
Usually, the NBA pays the players on every first and 15th of every month each season while some players are paid depending on what is written on their individual contracts.
The announcement made by the league is just a short-term solution. The problem with stabilizing its finances is still at risk. The owners have to cover-up for the financial damages to make sure that the salaries are given to the player based on their projected revenue. The plan is to pay the players as if it was a normal season.
Just like other leagues, the NBA has its tools to compromise. All of the players who have force majeure clauses allow the teams to keep 1/92.6th of their salary for every cancelled game. On the other hand, 10% of a player’s salary is held in escrow in case the player ends up earning more in a given season.
To make things clear, escrow is a financial agreement wherein there is a third party hired to regulate the salary of the players.
Thus, the league and the player will have to work together to compromise the money lost in cancelled games. However, compromising is still a subject to be cleared. There are suggestions that the salary cap needs to go down but this solution is not ideal for everyone.
As of now, the NBA, teams, and the players are still looking for the middle ground wherein it would be fair for everyone. Both parties will lose money, but if it goes down in a proper agreement, it should be less chaotic.
On the other hand, Utah Jazz’s Rudy Gobert gave an update regarding his situation. It has been 11 days since his self-isolation and said that he hasn’t been able to taste or smell over the past four days.
As of now, there are ten NBA players who have contracted the virus. Among them are Marcus Smart, Kevin Durant, Donovan Mitchell, three players of Brooklyn Nets, and a couple of unnamed Los Angeles players.
Due to this pandemic, there is still no assurance if the NBA will resume. This being said, Commissioner Adam Silver talked about his plan to resume the season even without the fans.
‘Something I’ve always said is 99% of people consume our game through some sort of media platform. It’s only a tiny percentage of fans who get to see our games in arenas. So those fans who watch on television or whatever device they have are fans just like people in the arena, and maybe through new kinds of technology there are ways fans can be virtual and react to plays and make noise in the arena’, Silver stated.