NBA, players union agree to 25% salary cut starting May 15th

NBA teams and the players union finally reached an agreement that each NBA player will have 25% of their paycheck withheld starting May 15th. NBA players usually get paid on the 1st and 15th of the month, meaning they were paid in full last April 1st, 15th, and this coming May 1st, even if no games are currently being played.

The NBA has suspended games since March 11th after a Utah Jazz player tested positive for the novel coronavirus minutes before tip-off. Since then, many other NBA players were found to have been infected by the virus, stopping the 2019-2020 season until further notice.

Without games, team revenue is virtually zero. There are no ticket sales and broadcasting rights income. Presold season tickets are either being refunded or deferred. It would mean that teams will have to shoulder the losses of tens of millions of dollars due to the league suspension. Player salaries are the most significant expense that teams have, and NBA teams negotiated with the players union a week after the games were suspended to share the burden.

The players union refused the initial offer of a 50% pay cut starting April 15th. They countered with a 25% pay cut starting May 15th. According to Bleacher Report, the NBA team managements have agreed to the deal.

At this point, it is unknown when the games will resume due to the coronavirus pandemic or in what form the league will continue, assuming the games restart at some point in the future.

The NBA has been hit harder than any other American sports league registering over 20 players confirmed to have the virus. That does not include staff, coaches, referees, and team owners, some of whom have been infected as well.

It is also unclear if the withheld payments will be released once games resume or if they will be permanently forfeited. Until the NBA releases an official plan on when and how the games will continue, both the management and the players union feel it is a moot topic to discuss the adjustments in player salaries any further.