The NBA has already taken some big financial hits this year.
Now, with the coronavirus pandemic forcing the suspension of the regular season, it appears there will be ramifications in terms of each team’s spending capital.
Marc Berman of the New York Post reports it is all but certain the salary cap number will be lowered for the 2020-21 season:
There is so much uncertainty with the coronavirus pandemic, but one thing is for sure: the salary cap will be lowered, according to league sources. On the surface, that makes it advantageous to build around younger players on cheaper contracts.
The 2019-20 salary cap is at just over $109 million, and the projection for 2020-21 is at $115 million. It’s hardly a surprise to hear the league will lower the cap, but it’s unclear if it will be lower than the 2020-21 projection or the 2019-20 number.
The NBA already lost out on a substantial amount of revenue when some of their partnerships with China were severed after Houston Rockets general manager Daryl Morey’s tweet in support of protestors in Hong Kong.
Still, the pandemic is unquestionably the driving force behind revenue loss.
Tentative estimations for next year’s cap actually had the year-over-year number going up — albeit slightly –even after the CBA incident. But the situation is now far more tenuous.
Previous reports suggested the NBA could lose up to $1 billion due to COVID-19. Even if play resumes, it is unlikely the league could make up much ground, particularly considering games would almost certainly be played behind closed doors without fans.
A lower cap might have a butterfly effect on the rest of the league. Most teams would have entered the summer with limited space, but front offices might be in more of a bind depending on just how much the cap is lowered for the 2020-21 season.
Follow Us
Subscribe