By Stefan Djordjevic/ info@eurohoops.net
The Philadelphia 76ers employees were facing a temporary salary reduction of up to 20% and a four-day week in order to “ensure we can continue to support and operate our businesses during these uncertain times without reducing our workforce,” as stated by HBSE CEO Scott O’Neil.
Only at-will employees – over $50,000 a year in salary – were required to accept the Sixers salary reductions. Those under contract were needed to “volunteer” to do it, per Adrian Wojnarowski.
However, the decision caused quite a big backlash and it seemed to force the organization to change course. Scott O’Neil made another statement which includes the following:
“Our commitment has been to do our best to keep all of our employees working through this very difficult situation. As part of an effort to do that we asked salaried employees to take a temporary 20% pay cut while preserving everyone’s full benefits — and keeping our 1500 hourly workers paid throughout the regular season. After listening to our staff and players, it’s clear that was the wrong decision. We have reversed it and will be paying these employees their full salaries. This is an extraordinary time in our world – unlike any most of us have ever lived through before – and ordinary business decisions are not enough to meet the moment. To our staff and fans, I apologize for getting this wrong.”
Meanwhile, other NBA owners have been watching Sixers and weighing the PR fallout vs. the desire to do the same with salary reductions – including some considering furloughs, staff cutbacks, etc, per Wojnarowski.