The NBA was the first professional sports league to suspend its season due to coronavirus concerns. The league closed on March 11, mid-season, with months to play. Now it looks like the season will end up being canceled entirely and players will have to return a portion of their wages to the team owners. It is a simple fact that the NBA is losing money with each passing day without basketball games being played. The teams signed players who expected a certain amount of revenue to pay their billionaire wages. Now, that income is not coming, but the players are owed the money stipulated in their contracts. While the owners and players have discussed the situation, there is still no plan on how to resolve this. One idea that is possible is a refund / pay cut.
The NBPA, the players' union, clarified that any compensation agreement drawn up by the NBA will include rebates in NBA contracts for the part of the season that has been suspended. Some players receive their checks on a six-month cycle, which means they earn more money per pay period, but are not paid during the off-season. Other contracts require that they be paid on a 12-month plan. This will be difficult for players on a six-month cycle, as well as for those who have been given full or partial payment for their contracts in advance.
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Players who are under contract and who spend this season may not have to repay half of the season salary because owners could recoup this season's funds for the duration of the player's contract. Future free agents in the last year of their contact could be asked to write checks to NBA owners for the salary they received in advance. Players who received a preview include Kevin Durant, a Brooklyn Nets star, and Detroit Pistons forward Blake Griffin.
The NBA may withhold approximately 1% of players' paychecks for each game canceled in accordance with the current collective bargaining agreement. The funds are recoverable through force majeure, an unpredictable event such as a natural disaster or a pandemic. The NBA and players previously discussed a plan to withhold wages and place funds in a league deposit account if the games are canceled.
The league may try to recover 50% of the players' remaining wages for the 2019-2020 season. Usually the last check for players in the six-month cycle is in early July. Agents will also be affected by any salary reimbursement as they will not get their commission for that money. Oklahoma Thunder player Chris Paul is president of the NBPA and indicated that the players are aware of this potential situation. NBA commissioner Adam Silver said any decision on the refund of salary is still several weeks away.
It seems that the NBA regular season is over. Public health experts don't know when it will be safe to resume professional sports.
Read more: NBA players may have to pay suspended season wages