The NBA and players association members are planning for a case-to-case scenario in deducting up to 25 percent of the remaining pay of players should the regular-season games be concluded as cancelled, sources from ESPN.
The leagues remain positive despite the pandemic crisis the world is facing at the moment, believing to have a continuation for the regular season games and playoffs, yet surrounded by a lot of doubts for the season to meet its full 82-game length, especially when you talk about the costs financially delivering a big hit across the owners and players.
The Collective Bargaining Agreement (CBA) states that players lose an estimated amount of 1% of salary per canceled game, based on a Force Majeure provision covering several catastrophic circumstances, such as epidemics and pandemics.
Once there is a cancellation of games, the force majeure is automatically triggered under the premises of the CBA.
NBA Commissioner Adam Silver, Players Association director Michele Roberts and a group of lawyers have discussed plans for preparing players on what would be the outcome should they lose money over the cancelled games.
In case that there is no plan in place by April 15, players will receive their full game paychecks, but they would be obliged to pay back later should the games be canceled, with the amount owed determined by a formula based on each player’s team and his own salary.
The league as much as possible, doesn’t want to see a scenario in which forcing players to pay up is needed if one refuses to, as the NBPA finds ways for each player to budget the loss of income on this season’s salary over an extended period.
Wojnarowski reported on Thursday that NBA executives, including Commissioner Adam Silver, received a 20 percent pay cut in response to the suspension.
The Force Majeure becomes one more mechanism for the NBA to make the financial formula work on delivering the players to the agreed-upon 51% share of the revenues with the owners, and also paves the way against a dramatic decline upon the salary cap and luxury tax for the next season.
Yet, the NBA had displayed no interest from the above mentioned option with what’s happening, so the best thing to do from here is to wait.
The league has no plans to announce the cancelling the schedule of games in the near future as well, sources said. The NBA plans to make progress by working on a number of contingencies for return from a break since March 11, based on how many days the league has to work with to rescue a season.