The NBA may be reducing the base salaries of approximately 100 of the league office’s top-earning executives by 20 per cent amid the shutdown of the league due to the coronavirus pandemic.
According to ESPN, NBA Commissioner Adam Silver and Deputy Commissioner Mark Tatum are among the executives whose salaries will be slashed. Sources have also stated that these reductions will be implemented immediately and are expected to continue through the course of the coronavirus crisis.
League spokesman Mike Bass, however, would not confirm or deny the news and stated: “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.”
ESPN reported that there are no current intentions for widespread cuts to the rest of the organization, including support or administrative staff. The indefinite suspension of league play has already had some major financial ramifications. Although NBA clubs have expressed their intent to pay all their players on schedule up to April 1st, it has reported that there is no current commitment to continue giving players their salary beyond that date.
The NBA will apparently also increase it’s line of credit to $1.2 billion from $650 million to increase cash flow while the NBA is on hiatus. As recently as Tuesday March 24, the Philadelphia 76ers reversed course on a plan to temporarily cut employee salaries by up to 20 per cent instead opting to implement a four-day workweek.