This week, the NBA officially put its season on hold, as the COVID-19, aka novel coronavirus, continues to spread across the globe and spurs an unprecedented health crisis that threatens the safety of millions. Most other sports leagues have followed suit in recent days with canceling upcoming events or putting things on indefinite hiatus.
The NBA has said it will reassess the situation in a month and that, while it’s possible the season could resume if the virus is adequately contained in that time, it’s equally possible that we’re facing a canceled season, the ripple effects of which would be exponential to everyone involved.
On Friday, the league announced that it was working together with the players’ union on an agreement to enter a moratorium period that would freeze all transactions, effectively immediately and lasting until April 10, when the situation can be reassessed.
NBA and players union's moratorium period is planned to be effective March 12 (yesterday) to April 10, then reassess. Players will be paid in full on next check on March 15. https://t.co/ukLtTyarij
— Shams Charania (@ShamsCharania) March 13, 2020
However, the NBPA also notified the players of what’s been termed a “doomsday provision” in the current CBA that could potentially cost them part of their salaries if the season is indeed canceled altogether, although Adrian Wojnarowski was quick to clarify that this hasn’t been made official.
In email to players, the NBPA spelled out terms on a doomsday provision included in CBA that could free owners from paying players a percentage of their salaries should rest of season be lost to the coronavirus pandemic. Story on ESPN: https://t.co/s3cQSqCN8w
— Adrian Wojnarowski (@wojespn) March 13, 2020
There's been no discussion about the league/owners trying to trigger the Force Majeure should the season be lost because of coronavirus pandemic — but union clearly wants to make sure players understand it exists. https://t.co/aZ3MVIfDUB
— Adrian Wojnarowski (@wojespn) March 13, 2020
“According to Article XXXIX, Section 5 in the CBA, players lose 1/92.6 of their salary for every game missed as a result of a force majeure event — this refers to events or conditions that make it impossible for the NBA to perform its obligation under the CBA,” Wojnarowski wrote.
The potential financial implications of a lost season would be astronomical, and it appears the owners have built in at least some safeguards to make sure they have financial recourse if worse comes to worse. The good news is that, for now, it doesn’t look like this is an avenue anyone will explore.
