The National Basketball Association (NBA) is set to reduce its base salary by 20 per-cent for around 100 of the league’s top-earning executives, including the company’s commissioner Adam Silver and deputy commissioner Mark Tatum, according to reports by ESPN.
The reductions are reportedly put in place to reduce the financial impact COVID-19 has placed on the league with its season temporarily suspended from March 11.
It is also important to note that the NBA was the first major US sports league to suspend its games, which has likely resulted in greater financial restraints.
NBA spokesman Mike Bass, who spoke to ESPN, stated: “These are unprecedented times and, like other companies across all industries, we need to take short-term steps to deal with the harsh economic impact on our business and organisation.”
This comes after news that the NBA recently extended its credit limit to $1.2 billion so the league can invest more into its operating expenses while the coronavirus continues to spread across the country.
As sporting organisations across the world are adapting to this new unprecedented landscape, more financial sacrifices are having to be made in order to stabilise its competitions.
PGA Tour commissioner Jay Monahan decided to indefinitely forgo his salary during the pandemic in order to reduce the organisation’s finances. Whereas, Germany’s top four Bundesliga sides Bayern Munich, RB Leipzig, Bayer Leverkusen and Borussia Dortmund have provided €20m to support clubs in its top two divisions.