By Stefan Djordjevic/ email@example.com
The NBA has reached an agreement with the NBPA (National Basketball Players Association) to extend until September the league’s right to terminate the collective bargaining agreement in the wake of the coronavirus pandemic, according to ESPN.
NBA had the option to terminate the CBA under the force majeure event provision during the past two months, starting on March 11 when the competition was suspended. However, there has been optimism that the sides can get through the hardships and agree on the finances concerning the 2020-21 season.
This agreement also allows for the possibility of continuing the current season in some form, which would ease the financial hit but Adam Silver also noted that in case the league resumes, it would be without fans and that could also be the situation for the start of the next season.
The expenditures by fans through gate receipts, concessions, and other game-night receipts constitute approximately 40 percent of the league’s revenue.
It has also to be noted that after this deal the start of free agency is also expected to be postponed, something that will affect the basketball market on a global level.
Silver also noted: “This CBA was not built for an extended pandemic. There’s not a mechanism in it that works to properly accept a cap when you’ve got so much uncertainty; when we’d be going in next season saying, “Well, our revenue could be $10 billion or it could be $6 billion. Or maybe it could be less.”