National Basketball Players Association alerts members that a percentage of payment could be withheld in event of a cancellation
Players could lose 1/92.6th of their salary for every game missed as a result of a force majeure event.
The National Basketball Players Association on Friday sent a memo to its players detailing a doomsday provision in the collective bargaining agreement that could free the owners from paying players a percentage of their salaries should the season be canceled, according to a source.
The NBA postponed its season on Wednesday due to the coronavirus outbreak and the next evening, commissioner Adam Silver suggested that the hiatus “will be likely at least 30 days.”
The CBA contains a clause called the “force majeure event” clause.
A force majeure event is defined in the CBA as an event that makes it impossible for the NBA to perform its obligations under the agreement. There are several examples, including a pandemic.
According to Article XXXIX, Section 5 of the CBA, players could lose 1/92.6th of their salary for every game missed as a result of a force majeure event.
Bloomberg News estimates that each player on the roster could forfeit about 1% of his pay per game canceled.
The next scheduled paycheck for players comes on Sunday and those will be fulfilled.
Based on back-of-the-envelope math, the NBA could lose $500 million just in ticket revenue if the season is not picked back up.