The influence of COVID-19 has led the NBA to cut costs, many players have their salaries deducted. However, how did LeBron James “escape” the salary reduction?
NBA was heavily influenced by COVID-19
According to estimates from the NBA, the COVID-19 pandemic will cause the tournament to lose nearly $1 billion, an extremely large number. In the 2019-20 season, the NBA saw the highest paid salary for each team in history with $109.1 million. However, for the first time in many years, the amount of money spent on the players will decline due to the economic effects.
“There is a lot of uncertainty because of COVID-19, but one thing is for sure, the salary fund for the players will decline,” the New York Post quoted sources within the tournament. “That leads to a formation around young talent because the contracts are much cheaper.”
This is also part of the reason that the organizers NBA is trying hard to save the 2019-20 season because when the game takes place, they will have a part of the revenue from television.
Not only that, but many players who are enjoying high salaries may also be on the liquidation list of the teams. A drop in the salary fund means lower taxes, and maximum contracts become a financial burden.
But the immediate loss is inevitable, so the NBA and the players association reached an agreement to cut 25% of wages during the pay period in mid-May, a way to share difficulties between the epidemic season.
However, ESPN expert Bobby Marks has reported that LeBron James is one of five players who will not get a pay cut in the NBA 2019-20 season. The remaining four names mentioned are Stephen Curry, John Wall, Paul George, and Blake Griffin.
Lebron James still avoids salary cuts
Explaining this “exit” deduction of LeBron James and the four players, Bobby Marks said that they are the only five names in the NBA who received 100% of the salary for the NBA 2019-20 season before the meeting. The salary reduction agreement was signed.
As a rule, players will be paid in parts, divided into 2 pay stages per month, and last throughout the season.
However, some players may agree on a different payment plan. In this case, LeBron James along with Curry, John Wall, Paul George, and Griffin received a full salary even though the season was not over. This is the result of the separate payment terms the team made to them.
But avoiding a drop in wages this season does not mean that the five players will “escape”. Bobby Marks further noted that the deduction of 25% of a pay period for these special cases will begin next season.
In the first paycheck in the 2020-21 season, LeBron James will lose $ 390,000, and Stephen Curry will be deducted $ 420,000. If the player association and the NBA continue to make similar arrangements in the next pay period, LeBron James, Curry or the players named above will also suffer the same fate.