Teams Deciding On Season-Ticket Renewals As NBA At Financial Standstill

Some NBA teams appear likely to delay charging season-ticket holders for 2021-22 renewals as the league continues to figure out its next steps, as relayed by ESPN reporter Adrian Wojnarowski.
The league was already facing a decline in projected revenues after issues with China to start the season. Now, the novel coronavirus that has put the entire world on pause is expected to impact the league financially even further.
Renewals are a major source of income for teams.
"Everyone wants to get paid here -- the players, the teams, the owners," Wojanrowski said on his latest podcast. "They want to play as many games as they can so the financial hit is as limited as possible. It may not be possible and they may not have control over that."
NBA commissioner Adam Silver said last week that the league is taking at least a 30-day hiatus. Many expect the stoppage in play to last longer than that.
ESPN's Brian Windhorst suggested on his own podcast that the league is hoping to play a 70-game season, regardless of when play resumes. That too would be a decision based on income.
"This is a year in which, I think financially for the owners and ... health and the well-being people, I believe, is the No. 1 priority," Wojnarowski said. "It has to be. But money plays a part because it does in everything."
Three players have tested positive for the coronavirus. They have been identified as Utah Jazz center Rudy Gobert and point guard Donovan Mitchell, and Detroit Pistons big man Christian Wood. All three players have not shown any symptoms, per reports.
Teams have not yet begin to return to full practices and there is no indication when that might happen.
And as Wojnarowski indicated, while the priority is doing its part to contain the virus, the league is a business that relies on revenue -- and has to figure out what to do from that end as well.
"I think the league could have survived the hit on China financially with a bigger hit for Houston than it was for other teams," Wojnarowski said. "I think everybody was going to feel it just a little bit.
"This will be a much bigger percentage -- whether it's television revenue, gate receipts, sponsorships and all the things going forward."
He added that this is a time of year when teams automatically renew season tickets for next season.
"Some teams might put those through. Some, I'm told, may not. They may hold off on depositing that money right now in the wake of this," he said. "There's a lot at stake."
Along with season-ticket renewals, the league and its teams typically cash in on merchandising and television revenue. The latter is one reason the NBA is almost certainly contemplating holding games without fans in the building, and may even utilize some G-League facilities to make it happen.
"The league, more than gate receipts, ultimately, it's getting the games on television," Wojnarowski said. "Whether it's the regional networks or the national deals from Turner and ESPN. ... The league is open to not having these games in (empty) arenas."
Sam Amico covers the NBA and Cleveland Cavaliers for SI.com. Follow him @AmicoHoops.
