In a stunning financial developments, NBA players will forfeit more than $480 million from their escrow fund after the league’s basketball-related income (BRI) fell short of projections for the 2024–25 season. The news, first reported by Sportico, has sent ripples through the league, especially among its highest-paid stars.
Under the terms of the NBA’s collective bargaining agreement, the league withholds up to 10% of player salaries in an escrow fund to ensure the agreed-upon 51/49 revenue split between players and owners. If league revenues fall short of projections, the withheld funds are used to balance the books. This year, the shortfall was significant enough that players will retain just 90.9% of their projected salaries.
The biggest names in the league are feeling the pinch. Stephen Curry, the NBA’s highest-paid player at $55.8 million, will forfeit $5.1 million. Joel Embiid and Nikola Jokić, both earning over $50 million, will each lose $4.7 million, while Bradley Beal and Kevin Durant are set to forfeit $4.6 million and $4.5 million, respectively.
The revenue shortfall has been attributed to a combination of factors, including a “choppy local media environment” and a playoff landscape dominated by small-market teams, which dented postseason gate receipts and TV ratings. The league had projected BRI at $10.25 billion, but actual figures came in well below that mark.
Despite the setback, the NBA remains bullish on its long-term financial outlook. A new media rights deal worth $77 billion over 11 years, featuring partnerships with NBC, ESPN/ABC, and Amazon, is expected to stabilize and grow revenue streams moving forward. The salary cap for the 2025–26 season has already been set at $154.6 million, the maximum 10% increase allowed under the CBA.
Still, the escrow forfeiture is a stark reminder that even in a league flush with billion-dollar deals, financial turbulence can hit hard… and fast. For players, especially those on the margins of the roster, the loss of 9.1% of their salary is more than just a rounding error.
