The financial fallout of NBA games not being played hit hourly arena workers first, although all 30 teams — and a number of players — have stepped up with some kind of plan to offer financial assistance to those people.
Now comes the next hit:
Salaried staff with the Philadelphia 76ers (and the NHL’s Devils) have been hit with a 20 percent pay reduction and a four-day workweek because of the crisis. Marc Stein of the New York Times broke the news.
Sixers and Devils at-will employees were informed today that temporary salary reductions of up to 20 percent will be instituted for employees making more than $50,000 starting April 15 through the end of June, @NYTSports has learned
— Marc Stein (@TheSteinLine) March 23, 2020
Contracted employees, such as members of the Sixers' coaching staff and front office, have also been asked to participate in the program but cannot be forced to do so, according to a person briefed on the situation who was not authorized to discuss it publicly
— Marc Stein (@TheSteinLine) March 23, 2020
Executives such as Sixers GM Elton Brand, Devils president Jake Reynolds, Sixers president Chris Heck and Harris Blitzer Sports & Entertainment CEO Scott O'Neil have agreed to participate in the program, according to the person
— Marc Stein (@TheSteinLine) March 23, 2020
The Sixers and Devils consider this a temporary measure aimed at avoiding layoffs and, according to the person, have not reduced any health or 401K benefits for the teams' employees. It was not immediately known if any other NBA teams have instituted a similar program
— Marc Stein (@TheSteinLine) March 23, 2020
This does not apply to NBA players, who fall under a different category. Players will get their full paycheck on April 1, but the owners have kept their options open about the April 15 checks (there is a clause in all player contracts that could allow owners to take a step that direction).
The 76ers are owned by Harris Blitzer Sports & Entertainment. Josh Harris, worth $3.8 billion, is the official primary owner of the Sixers. That has led to a backlash on NBA Twitter of people wondering why Harris needs to protect his immense wealth by cutting the salaries of people who can afford it less.
Scott O’Neil, CEO of Harris Blitzer Sports & Entertainment, sent this statement to impacted employees:
“As we navigate this evolving COVID-19 environment, we are mindful of the long-term impact the suspension of live events and games will have on our organization and industry, To ensure we can continue to support and operate our businesses during these uncertain times without reducing our workforce, we are asking our full-time, salaried employees to temporarily reduce their pay by up to 20 percent and move to a four-day week.”
The NBA remains suspended indefinitely. Mark Cuban optimistically thinks games could return by May, while most people around the league predict June. Nobody really knows, it could be later than that, depending on what happens with the COVID crisis in the United States. Until then, some Sixers staff will take the hit.
