Costly Revenue Drop

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COVID-19 Pandemic Forced NBA’s Revenue to Drop by 10% in 2019-20

Much like most other business, the NBA endured a hefty drop in revenue this past season.

According to sources close to ESPN, the NBA’s revenue dropped was by approximately 10% down to $8.3 billion. This included a loss of $800 million in gate receipts and $400 million in sponsorships and merchandise.On top of that, the NBA also lost $200 million due to its rocky partnership with China stemming back to the comments former Houston Rockets general manage and now president of basketball operations for the Philadelphia 76ers Daryl Morey made on Twitter, referencing the ongoing situation in Hong Kong.

This is an additional reason as to why the NBA is pushing for an earlier start as it could mean a near $500 million increase in revenue.

The losses that the league experienced this past season are expected to be compounded by the losses the league will face in 2020-21. With the possibility of no fans in the stands from the very start of the season, the NBA is projecting a 40% loss in overall revenue which equates to approximately $4 billion. The absence of an All-Star Weekend this season will only added to the pile of losses the league will face.

The NBA is facing a very interesting future and it will be up to the league and the NBPA to come up with the decision of how to handle it best.

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