The NBA players association will, at the end of the month receive $160 million in escrow funds. The NBA today confirmed that the players will receive the money earned from last season despite threats they would withhold the funds until the end of the labour stoppage. Split between the player’s union members, the money will allow the players to dig their heels in for the long run in this labour lockout.
During each season the NBA players are entitled to a guaranteed 57% of all basketball related income (BRI). To ensure the salaries and percentage split equate correctly each season, the NBA withholds 8% of every player’s salary in an ‘escrow’ fund.
The league then redistributes a percentage of this money each August until the salaries paid equates to 57% BRI.
In most cases the total league salary comes in above the 57% mark, even with escrow deducted. When this occurs the league keeps the money collected in escrow funds.
Owing to the financial uncertainty of the looming lockout this season, team owners were reluctant to spend, resulting in salaries coming in under the percentage split point.
The result is that every member of the NBAPA will receive thousands of dollars in lost salary next month, a first time occurrence since the concept was initiated in 1999.
The added pay for the players will help them finance their living for the remainder of the lockout, perhaps resulting in a temporary power shift in negotiations towards the player group.
Unfortunately for fans, this means the players will be more willing in to sacrifice salary come spring time and will almost certainly mean a prolonged lockout.
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