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Report: NBA, players’ union in talks to withhold some of players’ salaries

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The forced suspension of the NBA’s regular season is hitting the league hard — and it’s about to hit players’ paychecks hard.

The NBA and the players’ union are in negotiations to withhold more of players’ paychecks in an escrow account if the rest of the NBA season is canceled, as is seeming more and more likely. Up to 25 percent of the players’ salaries will be withheld, reports Adrian Wojnarowski of ESPN.

The NBA and National Basketball 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 canceled, sources tell ESPN…

The Collective Bargaining Agreement maintains that players lose approximately 1 percent of salary per canceled game based on a Force Majeure provision, which covers several catastrophic circumstances, including epidemics and pandemics…

Commissioner Adam Silver, NBPA executive director Michele Roberts and a group of league and union lawyers have been discussing a number of ways to prepare financially for how the likely cancelling of scheduled games will impact some percentage of lost salary for players, sources said.

In every NBA check, even in a typical season, 10 percent of a players’ salary is held back in an escrow fund. Then, at the end of the season when the books are balanced, and the players get 50 percent of the basketball related income (BRI). If league income was slightly lower than projected, the players do not get all of their money back from the escrow fund, the league takes whatever portion is needed to get to the CBA’s prescribed 50/50 BRI split (and the rest is returned to the players).

This season, due to the coronavirus possibly canceling more than 20 percent of the season and condensing the playoffs, there is going to be more than a 10 percent shortfall in the projected BRI.

Players will get a full regular paycheck on Wednesday, April 1. If the NBA and players union reach an agreement before April 15, that check could start to see the reductions as money goes to the escrow account.

The vast majority of players have their pay stretched out for the entire year (the first and 15th of every month), but some players take an option to get more of that money up front. Regardless, everyone will pay into the escrow fund.

The NBA has not officially announced the cancelation of regular season games yet, but games will be lost. Warriors coach Steve Kerr said he doesn’t expect the Warriors will play any more games this season. More and more sources think the regular season is lost, but the league is holding out hope.

It’s impossible to calculate how big the revenue hit to the league will be until a plan for the postseason is put together (if one is put together), but it will be massive. Possibly more than a billion dollars if the season and playoffs are canceled. Right now, the league is simply running a lot of scenarios to try and project how to lessen that blow when they do return to action.

Still, the coronavirus suspension is going to hit the players’ pocketbooks. This increased escrow account is just the first wave.

 

Report: NBA deprioritizing playing regular-season games for local TV

Steve Kerr and LeBron James before NBA game
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The NBA is financially incentivized to play more regular-season games to satisfy local-TV contracts.

How does that square with resuming play – currently suspended due to the coronavirus pandemic – with a play-in tournament and playoffs?

It doesn’t.

Marc Berman of the New York Post:

According to one source, getting some teams to a magical number of 70 regular-season games had been a goal, but in the last week has taken on less of a priority.

This stoppage is going to cost the NBA a lot of money. There’s no way around that. Not every source of revenue can be preserved. It’s about finding the optimal setup.

Importantly, canceling games could allow the NBA to reduce player salaries through force majeure. Of course, the union would consider that action when negotiating how to proceed.

LeBron James advocated for playing some regular-season games before the playoffs so everyone could get back into shape. But Steve Kerr called it very unlikely the Warriors would play another regular-season game. Perhaps, playoff-bound teams like the Lakers will play tune-up regular-season games while Golden State – the only team officially eliminated from the playoff race before the hiatus – doesn’t. It’d be a little odd to have such different formats, though. (Then again, these are odd times).

Considering this report, we ought to give more credence to the idea that Kerr knows something about the NBA’s plan and that the regular season is finished.

Arizona State leading scoring Remy Martin declares for 2020 NBA Draft

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Arizona State junior Remy Martin has declared for the 2020 NBA Draft:

The six-foot point guard took on more of scoring role in his third season with the Sun Devils than he had in his first two seasons. Martin averaged 19.1 points per game on 43.2% shooting from the field. Martin also dished out 4.1 assists per game, after averaging 5.0 assists as a sophomore.

Arizona State’s leading scoring may just be testing the waters, as he’s expected to go undrafted. NBA scouts have concerns over Martin’s size at the NBA level. One concern is his ability to hold up defensively, as NBA point guards are trending bigger and bigger in recent years.

As a smaller guard, Martin was one of the players who could have benefited from the traditional pre-draft process. With in-person workouts on hold, and potentially cancelled entirely, players have limited opportunities to improve their draft stock. Teams may be drafting off previous in-person scouting and off of tape.

Steve Kerr: ‘Very unlikely’ Warriors will play another regular-season game

Warriors coach Steve Kerr
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NBA owners and players are reportedly united on finishing the season or, as Adrian Wojnarowski put it, “finding a way to be able to crown a champion this season.”

Where does that leave the Warriors, the only team eliminated from the playoff race before coronavirus forced a league-wide stoppage?

Golden State coach Steve Kerr on “The Full 48,” via Ali Thanawalla of NBC Sports Bay Area:

“Look, for us, our season is basically over,” Kerr said. “If the league was somehow to start up again, it’s very unlikely we would be playing regular-season games given that they’d be in such a time crunch. Who knows?

“But I’m feeling for all the teams in the fight, in the thick of it for a championship, that are in the playoff race, teams that have put so much into this, and this was obviously a year for us where we were trying to get healthy, trying to develop some young guys. So I’m not concerned about our guys, our team. I feel sorry for the teams that are kind of in limbo right now.”

There’s chatter about resuming play with a play-in tournament and postseason in Las Vegas. The league could be sharing plans internally. Kerr could be proven right. It’s certainly possible Kerr was even already told the Warriors are finished with the regular season.

But I don’t share his prediction.

There’s a lot of money to be made by holding more regular-season games, especially for high-revenue teams like Golden State.

This was a gap year for the Warriors. They’re clearly ready to move on.

But Stephen Curry is healthy again. By the time the hiatus ends, Klay Thompson might be cleared. With other stars on the court, Draymond Green could be more engaged. Though there would be limits on Golden State’s competitiveness, that team would be a draw that could help stuff the league’s coffers.

As Kerr said, there are unprecedented timing issues. Yet, every game is a revenue opportunity. That matters, too.

Colorado junior forward Tyler Bey declares for NBA draft

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University of Colorado forward Tyler Bey has declared for the 2020 NBA Draft:

The junior averaged 13.8 points, 9.0 rebounds and 1.1 blocks per game for the Buffaloes. Bey shot 53% from the field overall and 74.3% at the free throw line.

Bey also extended his range a bit in his third year at Colorado. He knocked down 13-of-31 three-pointers (41.9%) on the season. At just six-foot-seven, he’ll need to be able to score from behind the arc to find a place in the NBA.

Most draft analysts have Bey pegged as an early second-round pick. Some thought he could play his way into the back-end of the first-round with strong pre-draft workouts. With the pre-draft process up in the air, NBA front offices may have to make their decisions based on what they’ve already seen in person and on tape.