N.B.A. Blames Economy for Hiring Freeze and Budget Cuts
The NFL is facing a difficult financial situation and is looking for ways to cut costs.
The N.B.A., citing "economic headwinds," instructed league staff to significantly reduce hiring and cut expenses for the remainder of the fiscal year on Tuesday, according to an internal memo obtained by The New York Times.
In the memo, Kyle J. Cavanaugh (a league executive) and David Haber (the league's chief finance officer) instructed staff to stop hiring with some exceptions and to cancel or virtualize certain off-site meetings. The memo also states that travel, entertainment, and other expenses will be reduced.
Mike Bass, a N.B.A. In a statement, the spokesman told The Times that they were not immune to macroeconomic pressures.
In the memo, it was stated that N.B.A. The memo said that the N.B.A. The report continued: 'We face significant challenges in achieving our revenue target with an additional downside risk.'
The N.B.A. The N.B.A. Bass, the spokesperson, didn't answer questions regarding which initiatives of the league would be affected or if layoffs would occur.
These changes are made just before the N.B.A. The league announced that it had set a record in attendance and sold-outs during the regular season of 2022-23. The league and players' union announced on April 1 that they tentatively agreed to a new collective agreement for the next season. The agreement is still awaiting ratification from players and team owners. It includes a midseason bonus tournament for players, and a luxury tax tier that applies to high-spending clubs.
Jaylen brown, executive vice-president of the Boston Celtics union, said to The Times during negotiations that players wanted "more of a partner" with the league. This included sharing more revenue streams from the N.B.A. Revenue streams.
In the last year, companies in many sectors, especially the technology sector have begun to implement cost-cutting and layoff measures due to the economic impact of rising inflation and rate increases. The N.B.A. The N.B.A. The N.F.L. Recently, the N.F.L. Walt Disney Company is laying off thousands. ESPN, a broadcast partner of the N.B.A. ESPN, one of the N.B.A.
N.B.A. Adam Silver, the commissioner of the NBA, said that the league expects to earn roughly $10 billion between sponsorships, television deals and attendance. The N.B.A. The N.B.A. In a market that includes streaming services, the new deal is expected to boost league revenue significantly.