NBA Could Withhold 25% Of Players’ Remaining Salaries If Season Gets Canceled

The NBA and National Basketball Players Association are discussing scenarios for withholding up to 25% of players' remaining salaries in a league escrow should regular-season games eventually be canceled

The NBA and National Basketball Players Association are discussing scenarios for withholding up to 25% of players’ remaining salaries in a league escrow should regular-season games eventually be canceled, sources told ESPN.

Players lose approximately 1 percent of salary per cancelled game based on Force Majeure provision, which covers several catastrophic circumstances, including epidemics/pandemics. Once/if there’s a cancellation of games, Force Majeure automatically triggers under language of CBA.

Players have the choice of either 12 or 24 installments when it comes to their contract. In the case of a possible salary reduction, every player is on equal footing. For players with only 2 paychecks remaining (after 4/1), a reduction could come in future salary owed (20-21).

If NBA does lose games and trigger the Force Majeure, it provides the league an option within 60 days of re-opening and renegotiating CBA with NBPA. Deal runs through 2025. The NBA’s expressed no interest in executing that option under these current circumstances, sources said.

 

Fonte: espn.com.

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