Economic conditions have caused the NBA to implement a hiring freeze and other cost-cutting measures around the league office.
In a memo obtained by The New York Times sent to NBA staff members Tuesday, the league said it was “facing a very different economic reality than just one year ago,” and added, “We are seeing significant challenges to achieving our revenue budget with additional downside risk still in front of us.”
NBA employees were told to cancel some off-site meetings or host them virtually, while other expenses related to travel and entertainment are being cut.
Commissioner Adam Silver said last year that the NBA expected to make about $10 billion in revenue for its 2021-22 season.
The budget cuts come just days after the NBA announced it sold the most tickets for a regular season in league history in 2022-23 and set new records for all-time attendance and sellouts.
The NBA’s current media rights package expires after the 2024-25 season, and the league is seeking between $75 billion and $100 billion in its next wave of broadcast and streaming deals.
Industry Trend
Other leagues have also begun reducing costs amid macroeconomic concerns.
Front Office Sports reported last month that the NFL is laying off staff from its media division. ESPN is also expecting to undergo layoffs amid widespread job cuts from parent company Walt Disney.
The NBA’s last round of layoffs occurred in 2020, ahead of the league’s restart during the pandemic.
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