Adam Silver's 6 years of hard work or failure will face huge compensation if he does not start
Since taking over as president of the NBA in 2014, Adam Silver has been committed to making the NBA the No. 1 of the four major sports leagues in North America. After signing a huge new broadcast contract, this goal is indeed only one step away. During his six years in office, the NBA ’s broadcast revenue alone has increased several times, and the average salary of players has risen linearly. However, the occurrence of the Adam Silver epidemic has put the NBA in an awkward position.
As early as the epidemic escalated, the price of tickets for NBA teams fell to varying degrees. You need to know that tickets account for a large portion of the revenue of each team. Take the Warriors as an example, their ticket revenue per game is between 2.5 million and 3 million US dollars. Before the NBA announced the suspension of the game, the management of the league was once ready for the empty game. After all, under the influence of the epidemic, on second-hand websites, tickets for certain games have been as low as $ 7. In the case of a game, at least the cooperation with the broadcaster can continue.
But the plan is not as fast as the change, Gobel and Mitchell were diagnosed, making NBA officials have to make a decision to suspend the game. Prior to the season suspension, there are basically less than 10 home games left for each of the league's teams, and the total home ticket revenue for these 30 teams will exceed 500 million U.S. dollars, which is what each team will face directly. Loss. For those small teams, such losses account for almost half of the team's income.
Compared to the reduced revenue of each team, the NBA is facing major compensation for broadcast contracts. As early as 2014, just when Adam Silver took office, the NBA reached a 9-year broadcast contract with ESPN and TNT for a total price of nearly $ 24 billion, and this contract only began to be implemented in the 2016-17 season. With the signing of this new broadcast contract, the NBA officially rose to the top of the four major sports leagues in North America.
Although some professional lawyers said that although the forced suspension of the league was a force majeure factor, major broadcasters did not think so. After all, after purchasing such a high broadcast right, the suspension of the NBA ’s suspension brought to broadcasters Losses are also immeasurable. In the face of such a situation, the NBA official cannot bear this compensation alone. They will assume this responsibility together with the management of 30 teams, but the small ball market may be more difficult because of this.
Because for each team, after losing a part of the ticket income, the players' salary is also a large part of what they need to bear. Although players can get $ 300,000 in compensation through the player union's insurance for them, the shutdown will have a huge impact on their future income. The salary cap for the 2020-21 season has dropped to 115 million US dollars. The outbreak now will further reduce the salary cap for next season. If players are dissatisfied with the adjustment of the salary cap. Then the suspension due to disputes between employers and employees will probably happen again.
And it should be noted that if the league's remaining regular season games are cancelled and the playoffs are compressed, the amount of this compensation will be further expanded, which may be a more difficult follow-up reaction. For Xiao Hua, his six-year operation has brought the NBA into a new era, but the sudden outbreak of this epidemic has once again made him face new and bigger problems, and it may even be After years of hard work, all disappeared.