NBA owners might get back a refund from the players. What?
It’s true! Owners could get some financial relief with players returning pay in any compensation deal.
On Tuesday afternoon, executives at the National Basketball Players Association (NBPA), the players’ union informed the agents. Any compensation deal constructed by the union and team owners will include refunds on all NBA contracts.
Players who receive paychecks on a six-month cycle will be hit the hardest. These players receive more money per pay cycle but don’t get checks during the off-season.
However, most agents advise their clients to take a 12-month payment plans to protect players from over-spending. Once the season ends, paychecks stop rolling in and many players experience hardship during that time.
Also, players who have received advances will be hit.
Will The Regular Season Officially Be Over?
There is no succinct plan for how owners will recover the funds. However, agents were warned that should the league cancel the remainder of the season, collections would begin.
According to reports, players under contracts that run past the current season could be partly spared. Owners can decide to recoup funds over the life of the deal. However, free agents that haven’t completed the last year of contracts could be forced to write checks to pay back any advances.
Brooklyn Nets star Kevin Durant received an advance according to reports. He is scheduled to earn around $37 million this season. Also, Detroit Pistons forward Blake Griffin who is supposed to earn $34 million.
Lebron James’ agent, Rich Paul’s Klutch Sports Group has nine clients that are all on six-month pay cycles.
The NBA is already allowed to retain around 1% of players’ paychecks. The clause, force majeure, covers unforeseeable events like COVID-19.
According to reports, their NBA is discussion of a plan to hold remaining salaries in a league escrow if games are canceled.
The league may try to halt 50% of players’ remaining pay until the completion of the league’s 2019-20 accounting in early July. In addition, agents will not receive their commissions.
The NBA became the first league to suspend its season last month due to the coronavirus pandemic. The move triggered other pro sports leagues to follow.