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The NBA and National Basketball Players Association are discussing withholding up to 25% of players' remaining salaries in a league escrow should the regular season not resume, league sources told ESPN's Adrian Wojnarowski.
Players will lose approximately 1% of their salary per canceled game based on the force majeure provision, which covers several catastrophic circumstances, such as the ongoing stoppage caused by the COVID-19 pandemic, according to the league's collective bargaining agreement.
For players with only two paychecks remaining after April 1, a reduction could come from their future salary owed in 2020-21, according to ESPN's Bobby Marks.
The force majeure is automatically exercised once the NBA cancels contests.
The league reportedly has no plans to cancel games in the immediate future, but NBA commissioner Adam Silver and NBPA executive director Michele Roberts have reportedly spoken about ways to prepare financially should that change.
The use of the force majeure protects against a steep drop in the salary cap and luxury tax for next season. It also provides the league with the opportunity to reopen and renegotiate the current CBA with the players' union. However, neither side is said to be interested in engaging in such conversations.
The league office has already done some cost-cutting of its own. Silver and deputy commissioner Mark Tatum are reportedly among approximately 100 of its top-earning executives who've had their base salaries reduced by 20%.