The 76ers just got shamed out of reducing salaries by 20 percent for certain employees. That appeared to be a lesson to other big businesses: The savings might not be worth the backlash.
The NBA came to a different conclusion.
Adrian Wojnarowski of ESPN:
The NBA is reducing base salaries by 20 percent of approximately 100 of the league office’s top-earning executives around the world, sources tell ESPN.
— Adrian Wojnarowski (@wojespn) March 26, 2020
When reached, NBA spokesman Mike Bass wouldn’t confirm, but told ESPN: “These are unprecedented times and, like other companies across all industries, we need to take short-term steps to deal with the harsh economic impact on our business and organization.” https://t.co/xLclePHF5L
— Adrian Wojnarowski (@wojespn) March 26, 2020
This salary reduction includes commissioner Adam Silver and deputy commissioner Mark Tatum, sources said. There are no widespread cuts to the rest of organization; no support or administrative staff are impacted. Top executives and senior leaders are first to takes these cuts now
— Adrian Wojnarowski (@wojespn) March 26, 2020
Many businesses, including the NBA, have been hit hard by coronavirus-related interruptions. However you measure it, the economy is reeling. More of these tough choices are coming.
People don’t feel a personal connection to most businesses. Sports teams are different, which sparked much of the response to the 76ers.
We’ll see how the NBA gets treated. Starting the pay cuts at the top will alleviate some concerned outsiders.
But remember, though Adam Silver is commissioner, he – and, therefore, his underlings in the league office – report to billionaire owners like the 76ers’ Josh Harris, who just generated so much outrage with his similar decision.