The Golden State Warriors are in the sidelines, having been one of the NBA teams who were eliminated this season. And while Dubs fans are disappointed at this development, it could be a blessing in disguise. With the financial side of sporting clubs hit hard by the COVID-19 pandemic, team owners can focus on how to keep their respective clubs afloat moving forward.
The Warriors are not spared from that financial crunch. Team owner Joe Lacob knows that for a fact, a reason why he needs to figure out how to keep the Dubs up and going next season. One of the big problems is that revenue will take a drastic hit. With no fans in the stands at the Chase Center, the Dubs stand to lose close to $5 million in gate receipts from home games. That is noticeably higher compared to the usual $1 to $2 million that other clubs make on average, NBC Sports reported.
To somehow offset those losses, ESPN reports that Lacob is considering a deal with Goldman Sachs. He has reportedly informed other owners as well. If the move gets done, the Dubs can infuse as much as $250 million in capital to aid the club's expenses next season.
A big chunk of the Dubs expenses is the salary of its top stars. Stephen Curry, Draymond Green, Klay Thompson and Andrew Wiggins make up almost $22 million of their expenses next season. The added capital can help ease that concern for the Warriors to keep their payroll intact.
"The Warriors can raise money that a lot of teams can't," an unnamed team president said. "Good for them. If our team was in that situation, we may have to trade players to deal with it."
It remains to be seen if Lacob or Warriors management will explore other options to raise capital. They stand to lose close to 80 percent of their income from games due to the coronavirus pandemic.
The same issue is expected to plague other teams. But even more interesting is how free agents and incoming rookies would be impacted by the whole COVID-19 situation. Lavish contracts are unlikely to be scarce until some certainty looms against the pandemic.
Ironically, the Dubs will be in the spotlight come the 2020 NBA Draft. LaMelo Ball and Anthony Edwards are believed to be on their radar but some questions are in the air on how much either player could get from the Dubs or whichever team they may end up with.
