NBA players lose $480M due to revenue shortfall

NBA players will forfeit more than $480 million from the league’s escrow fund following a shortfall in basketball-related income (BRI) for the 2024–25 season.

According to a source familiar with the league’s financials who spoke under the condition of anonymity, the NBA’s total BRI came in at $10.25 billion, falling short of internal projections.

Under the terms of the collective bargaining agreement (CBA), the league and its players maintain a near-even revenue split, with players entitled to approximately 51 percent of total BRI.

To manage that split and protect against revenue fluctuations, the league withholds 10 percent of all player salaries in an escrow account each season.

📉 Players to Retain Just 90.9% of 2024–25 Salaries

Due to the revenue shortfall, players will receive only 90.9 percent of their contracted salaries for the 2024–25 season. That means every player will lose a portion of their pay – with superstars hit the hardest due to their high salaries.

For example:

Stephen Curry, the NBA’s highest-paid player, who earned $55.8 million, will forfeit roughly $5.1 million of that amount.
Joel Embiid and Nikola Jokic will each lose about $4.7 million.
Bradley Beal and Kevin Durant will each surrender $4.6 million of their earnings.

A player with a $20 million salary would take home approximately $18.2 million before taxes, agent fees, and other deductions.

📺 Media Revenue & Market Dynamics Behind the Shortfall

The disappointing BRI figure appears to be primarily driven by two factors:

Instability in local and regional sports broadcasting, with some RSNs (regional sports networks) losing distribution or experiencing financial turmoil.
Underwhelming playoff revenue, particularly because several small-market teams advanced deep into the postseason, while major-market teams like the Lakers, Knicks, and Warriors failed to make long runs.

This mix created lower-than-expected ticket sales, reduced TV ratings in major markets, and less advertising revenue during the NBA’s most lucrative months.

📊 Escrow System: A Volatile but Crucial Mechanism

The NBA’s escrow system – in place since the 1999 collective bargaining agreement – serves as a financial stabilizer between the league and the players’ union.

When league revenue exceeds expectations, players can receive a portion of the escrow money back. When revenue falls short, the league retains those withheld funds to balance out the agreed-upon revenue share.

In 2022–23, thanks to a post-pandemic boom and strong media revenues, players collected nearly 100% of their earnings, with most of the escrow returned. However, this season’s drop is a reminder of how volatile that system can be.

📈 Brighter Outlook for 2025–26 Season

There’s optimism that this situation will improve quickly. The 2025–26 salary cap has been set at $154.6 million, reflecting the maximum allowable 10% increase year-over-year under the current CBA – a strong signal of financial health moving forward.

This increase stems largely from the NBA’s new media rights deals with NBC, ESPN/ABC, and Amazon, which are collectively worth $77 billion over 11 years.

Those deals begin next season and are expected to significantly boost BRI, meaning players are expected to collect 100% of their salaries next year.