NBA revenue losses up to US$1.5 billion last season

NBA revenue losses up to US$1.5 billion last season

The NBA lost up to US$1.5 billion in revenues this past season because of several factors, but the COVID-19 pandemic was the main culprit.

The dust from the recently concluded NBA season has settled. Now the entire league is looking forward to moving on from one of the toughest stretches that it had to endure. Playing in the bubble for almost four months was mentally challenging for the players.

However, because they endured the pain of being away from their families, they were able to save the league from a more devastating financial loss.

NBA lost up to $1.5 billion in revenues because of COVID-19

The past season was one for the NBA history books. It was the longest NBA season in record because of the 100 plus days of NBA game suspensions. The main culprit was COVID-19. As soon as the first positive case of Rudy Gobert was confirmed, the league was suspended indefinitely.

Fortunately, Adam Silver and his team were quick enough to devise a plan to salvage what was left of the season. In an interview with an anonymous source close to league execs, he said that the NBA lost up to $1.5billion in revenues. This number comprises of several factors, but the ticket sales lost was the biggest pain point.

It was earlier claimed that 40% of the league’s revenue comes from the game night tickets bought in arenas.

In other words, the NBA lost its cash cow from ticket sales. As such, the NBA is hoping to regain it in the next season. Many factors will rely on the projection made by the front offices. Part and parcel of it will be the salary cap set for the teams. In other words, long-term plans of teams in signing big free agents will be put on hold in the meantime.

2020-2021 season hoping to start by December 22

If everything falls into its proper place, the 2020-2021 NBA season could start as early as December 22 this season. The games will be played in the home arenas of each team. However, there will still be no fans present to watch the game.

If the season indeed pushes through with its start in December, it will be on pace to complete a 72-game season. Also, it can properly start the 2021-2022 season by October next year.

As to when fans can return to the arenas to watch their teams play is still up in the air. It will all depend on how each state can control the spread of the virus in their areas. As far as some teams are concerned, they are already looking into placing rapid-testing centers for their fans.

 

Image from Chris Smoove/ YouTube thumbnail

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