File this story in the ‘Who Gives a Shit’ folder!
Not sure which group to side with….
The Millionaires?…..or the Billionaires?
Should the remainder of the NBA season be cancelled, players could see it affect their paychecks, according to a report from ESPN’s Adrian Wojnarowski.
Sources told Wojnarowski that the league and the its Players’ Association are “discussing scenarios for withholding up to 25 percent of players’ remaining salaries in a league escrow should regular-season games eventually be cancelled.”
Until now, the league has remained resolute in its belief that the season will return, and the league remains optimistic that the season could resume, according to Wojnarowski. But it is becoming increasingly unlikely that teams will complete all 82 games, and the league is clearly bracing for what could be a fairly significant financial hit.
Last week, Ben Golliver of The Washington Post reported that the current NBA hiatus could cost the league $1 billion, and The Athletic‘s John Hollinger and Danny Leroux estimated that the 2021 salary cap could dip by $8 million. That would put some teams in an unforeseen bind, triggering unplanned — and, in some cases, exorbitant — luxury tax payments. (The Hawks won’t have to worry about crossing into the tax with their existing contracts, but could see their massive amount of cap space dwindle.) The league has the option of artificially smoothing the cap to prevent a massive one-time dip, and could likely work around potential luxury-tax complications if it chooses to do so.
The NBA’s collective bargaining agreement includes a Force Majeure provision, which would cost players roughly one percent of their salary for each missed game. That clause is automatically put into effect if the league cancels games, and could also help prevent a drastic reduction of the salary cap.