Just three days away from the NBA restart, I’m sure there couldn’t be any more excitement for play to begin from its fans, players, and executives. But looking a little further into the future, things are far from over for the NBA ownership group who are quietly preparing to weather the storm that is without a doubt heading their way.
COVID-19 will be taking a massive toll on revenue for every franchise that will perhaps be hosting games in empty or near-empty stadiums next season, and the owners are taking no chances. Take Golden State Warriors majority owner Joe Lacob, for example, who recently informed his fellow owners of a deal he’s considering with Goldman Sachs to raise up to $250 million to manage the upcoming expenses.
It’s not just the Warriors that are flying the white flag. Other owners are investigating opportunities to raise capital, with some even pursuing legal action against insurance companies that have denied coronavirus pandemic claims. Following this, NBA commissioner Adam Silver told players that roughly 40% of the league’s revenues come from ticket sales and arena sponsorships, which is why they have already set up a time to make adjustments to the correct collective bargaining agreement before next season.
Every team expects to lose tens of millions in revenue losses next season and might have to slash payroll, or even trade players away to handle the money challenges. Even the Minnesota Timberwolves are already publicly for sale.
Catch you Thursday.