In professional basketball, the game is as intense as the financial aspect off the court, and it’s not unheard of for NBA players to get suspended. Have you ever wondered if NBA players get paid when they’re suspended?
NBA players get reduced pay when suspended, subject to the suspension period. They lose 1/145th of their salaries per game for suspensions less than 20 games and 0.9% (1/110th) for suspensions longer than 20 games. These rules are outlined in the Collective Bargaining Agreement.
Let’s dive deeper into this interesting aspect of the NBA pay and how suspension affects player salaries.
How Much Do NBA Players Lose When Suspended?
According to NBC Sports, the amount NBA players lose when suspended depends on the length of the suspension.
- For suspensions lasting less than 20 games: 1/145th of their salary per game is deducted. If a player’s salary is $10 million per year and they are suspended for 10 games, they would lose $69,065 per game or a total of $690,650 for the 10-game suspension.
- For suspensions longer than 20 games: 1/110th of their salary for each game is deducted. For example, if a player’s salary is $10 million per year and they are suspended for 50 games, they would lose approximately $909,091 for the entire suspension.
If a player is suspended by the league, the team doesn’t pay the NBA the money that the player would have earned during the suspension.
The team instead loses the corresponding amount of salary cap space, as only 50% of the lost salary is counted towards the team’s salary cap. The player doesn’t receive pay during the suspension.
When Are NBA Players Paid?
In the NBA, players typically receive their salaries on the first and 15th of each month. However, this is a general guideline, and players can negotiate a different payment schedule.
This could be a lump sum payment, where the player receives a significant portion of their salary upfront. For instance, Kobe Bryant received 80% of his $30.5 million salary in one lump sum when he extended his contract in 2013.
Sources of Revenue for the NBA
The NBA generates revenue from multiple sources that help fund player salaries. These sources include the following:
Leasing of Arenas for Events
The NBA allows teams to lease their arenas for events such as:
- Concerts
- Shows
- Other entertainment-related activities
In this way, teams can generate additional revenue from ticket sales for these events.
TV Broadcasting Contract
The NBA’s primary source of revenue comes from its $24 billion TV broadcasting contract shared among all teams in the league. ABC, ESPN, and TNT are among the networks that air NBA games and charge advertisers to advertise during these games.
Local TV Deals
In addition to the league-wide TV broadcast contract, the NBA also generates revenue from local TV deals with individual teams. These deals allow teams to negotiate their own TV broadcast contracts with local networks and provide additional revenue for the team and the league.
Naming Rights
The NBA earns revenue from naming rights for arenas and stadiums. Teams sell the rights to name their arena to corporate sponsors in exchange for a fee, which is a significant source of revenue for the league.
Jersey and Merchandise Sales
The NBA earns money selling jerseys and merchandise featuring team and player logos. This includes items such as:
- Jerseys
- Hats
- T-shirts
- Other merchandise
Concession Stands and Restaurants
Some teams generate additional revenue from concession stands and restaurants inside their arenas. This includes selling food and drinks, merchandise, and other items. This provides a way for teams to monetize their arenas and generate additional revenue for their operations.
Conclusion
NBA players don’t receive full pay during a suspension, whether it is imposed by the team or the league. The loss of pay is a way to enforce the contracts and rules of the league.
The COVID-19 pandemic also presented challenges for player pay, as the league was suspended, and players lost a portion of their salary for each game missed due to the suspension.
However, the loss of pay is outlined in the Collective Bargaining Agreement. It is considered a result of a force majeure event.