The NBA is bracing itself for a down year in terms of income. Without fans in its arenas for the 2020-21 season, the league could be looking at reduced salaries for its players.
Last week, ESPN insiders Zach Lowe and Brian Windhorst provided some insight on how much money might be cut from players’ salaries next season. It’s a jaw-dropping numbers, that’s for sure.
“Agents are bracing for the possibility of up to 40% of the escrow being withheld from players,” Lowe and Windhorst said. “The salary withheld is roughly $1.6 billion based on $4 billion of projected salary for the 2020-21 season.”
The escrow that Lowe and Windhorst are referring to is the amount of money withheld from players in the event the NBA doesn’t meet its revenue projections next season.
ESPN put this issue into perspective by creating a graphic that shows how players’ salaries would change if there is a 40-percent escrow withholding. For All-Star guard Steph Curry, his salary would drop from $43 million to $25.8 million next season.
Boston Celtics forward Jayson Tatum couldn’t help but react to the graphic that was shared on ESPN’s Get Up, as he tweeted “Sheesh.”
— Jayson Tatum (@jaytatum0) October 30, 2020
Another issue for the NBA is figuring out when the 2020-21 season should begin.
There are rumors that league officials want to begin right before Christmas, but players believe that’s too short of an offseason since the NBA Finals just finished a few weeks ago.
It’s fair to say this might be the most important NBA offseason in league history, especially when you consider the financial ramifications.