Sports
Report: NBA Owners May Get Refunds in Player Compensation Deal After COVID-19
Jae C. Hong/Associated PressNBA owners would reportedly recoup pay that players have already received as a part of compensation negotiations with the National Basketball Players Association, according to Jabari Young of CNBC.Per that report, NBPA executives “cleared up misinformation and told agents that any compensation deal constructed by the NBPA and league owners will include…
Jae C. Hong/Associated Press
NBA owners would reportedly recoup pay that players have already received as a part of compensation negotiations with the National Basketball Players Association, according to Jabari Young of CNBC.
Per that report, NBPA executives “cleared up misinformation and told agents that any compensation deal constructed by the NBPA and league owners will include refunds on all NBA contracts” in an hourlong call Tuesday.
Young added that the “repayments will hit hardest for players who receive their paychecks on a six-month cycle.”
As Adrian Wojnarowski of ESPN reported in late March, players like LeBron James on those cycles have two more checks coming to them for the year (April 15, May 1).
Marc Stein @TheSteinLine
Nine who secured these all-you-can-get deals, which pay out 90-plus percent of their 2019-20 salaries by April 1, are represented by Klutch Sports on contracts structured and negotiated by agent Rich Paul and attorney Mark Termini
Marc Stein @TheSteinLine
The nine Klutch players are naturally led by LeBron James and include John Wall, Kentavious-Caldwell Pope, Dejounte Murray, Miles Bridges, Darius Bazley, Darius Garland, Terrance Ferguson and Trey Lyles. Next season it will be 10 when Draymond Green’s contract extension kicks in
Marc Stein @TheSteinLine
Other known players in this select club include the Nets’ star duo of Kevin Durant (repped by Rich Kleiman) and Kyrie Irving (Roc Nation), Detroit’s Blake Griffin (Jeff Schwartz and Sam Goldfeder) and Chicago’s Otto Porter (David Falk and Danielle Cantor)
Woj also reported that if any regular-season games were canceled—a looming possibility as the United States remains under social-distancing guidelines through April because of the COVID-19 pandemic—a force majeure provision would be triggered, leading to players giving up 1 percent of their salary per game lost.
And with the league itself losing revenue, the players will inevitably bear some of that burden.
Marc Stein @TheSteinLine
@jgsiegel @earlybirdrights The implication is delaying that measure could bring the NBA to a point later in the year where larger chunks or even full checks have to be withheld if the season can't be saved. @espn reported tonight that the sides “are discussing ways for an orderly redistribution of money”
Marc Stein @TheSteinLine
@jgsiegel @earlybirdrights @espn Meaning that the select group of NBA players who have already received the vast majority of their 2019-20 salaries would eventually have to make paybacks through a different mechanism … likely funds withheld from next season's contract
How much they'll bear remains a point of contention. Shams Charania of The Athletic and Stadium reported Friday that the league proposed a 50 percent reduction in player salaries beginning April 15, while the NBPA countered with a 25 percent reduction beginning mid-May.
“We're aware,” NBPA president Chris Paul told Young regarding the potential of returned payments. “As long as we have the conversations about it and try to make sure that guys are as prepared as possible, I think we'll be fine.”
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