FILE PHOTO: A man walks past an NBA logo at an NBA exhibition in Beijing, China October 8, 2019. REUTERS/Jason Lee
(Reuters) – The NBA has reached an agreement with the National Basketball Players Association to withhold 25% of each player’s salary from May 15 due to the shutdown of the sport because of the coronavirus pandemic.
The deal would provide a gradual reduction in player salaries in case a “force majeure” event, such as the pandemic, wipes out the rest of the regular season.
The money will be placed in escrow and paid back to players if all of the remaining regular season games are played, ESPN reported.
If only part of the season can be played, the amount paid out would be on a pro rata basis based on the number of games completed.
The salary reductions will continue through the first two months of the 2020-21 NBA season, ESPN said.
The NBA has not held a game since March 11 and it is unclear when it might return to action.
Reporting by Rory Carroll in Los Angeles, editing by Pritha Sarkar