The NBA’s plan to offset revenue losses due to COVID-19
Adam Silver and the NBA’s league office has evidently put together a plan to address the inevitable revenue loss at the hands of COVID-19 for the 2020-21 season. Per Sham Charania of The Athletic, Silver plans to institute on-court endorsements along the baseline of all NBA teams’ courts. The NBA began experimenting with virtual on-court endorsements during the resumption of the 2020 NBA Disney bubble.
“The NBA is also finalizing new revenue opportunities for the 2020-21 season, including a new on-court endorsement signage along the baseline of arena courts as well as allowing teams flexibilities to casino and alcohol partnerships,” per The Athletic.
There’s been much guesswork around the league as to what the new CBA would consist of, giving the recent losses in revenue that the league took last season due to COVID-19 preventing fans in the arena, along with the amount of time the league went on a hiatus due to the virus and the unknown in its trajectory.
Silver had recently addressed the current issues that both the Board of Governors and the NBPA currently face before the CBA deadline on Friday.
“If we just went by the formula in the collective bargaining agreement, we’d have a huge reduction in the cap and tax, and not only would it create havoc in terms of planning purposes for our teams, but I think roughly a third of the league would be free agents, and so there would be enormous inequity there because there would be no cap room for those players to sign contracts,” Silver told Sports Illustrated’s Sam Amico.
Silver also has received some critical rejection from multiple players around the league at the idea of a Dec. 22 start date for the next season, seeing as how it creates such a little window for offseason transactions before the start of training camp.