NBA players set for pay cut

NBA players will see 25 per cent of their pay cheques taken out starting May 15, the first direct hit to their salaries because of the coronavirus pandemic.

The decision was finalised Friday in a board of governors meeting, and was done in concert with the National Basketball Players Association.

Players will be paid in full on May 1. The cutback in salary has been expected for some time, in response to the NBA’s shut-down that started March 11, and has no end in sight. The regular season would have ended Wednesday, and 259 games have yet to be played – but none have been officially called off yet.

“Through this agreement, and in order to provide players with a more gradual salary reduction schedule, partial reductions of 25 per cent will begin with the players’ twice-a-month payment due on May 15,” the NBA said in a news release.

The NBA playoffs would have started today. If none of the 259 outstanding regular season games are played, the league’s players would lose about US$800 million (J$110 billion) in gross salary.

Taking 25 per cent out of cheques on May 15 – and, presumably, cheques on June 1 and June 15, should play not resume by then – would amount to players across the league missing $40 million (J$5.5 billion) in each pay period.

The reduction in pay is in anticipation of what the Collective Bargaining Agreement (CBA) between the league and its players describes as a “force majeure event” – the legal term for unforeseeable circumstances such as an epidemic or pandemic. Per the CBA, players could lose 1.08 per cent of their annual salary for each game that is cancelled.

By taking some money out now, the hit the players would take later, if games are cancelled, would be lessened.

AP