"We are reallocating resources"- NBA layoffs dozens of employees as league pushes for digital growth in the AI age

The NBA has reportedly laid off dozens of employees, citing reallocation of resources. These layoffs have come amid the rise of digital and international business. The league's chief communications officer Mike Bass confirmed the report regarding the cuts to Sports Business Journal via text, saying:

"We are reallocating resources to our priority business areas, including digital and international growth, and that has resulted in the elimination of a number of positions at the league office."

Bass didn't confirm the official number, but according to SBJ's sources, dozens of employees were eliminated from their positions, including long-term and short-term employees. SBJ also reported that Mike Wade, Director of Team Business & Partner Communications Mike Wade, a 17-year league employee, was among those who faced the axe.

The layoffs were made for employees who fell under the services department. More layoffs aren't expected. Nobody from the revenue generation department has been eliminated, as per reports.

The NBA could be looking to accelerate its profits more after making $10.1 billion in revenues after the 2021-22 season. League commissioner Adam Silver said the figure exceeded the projections considering the losses they had endured following the Covid-19 pandemic.

"The numbers surprised me to some degree because they exceeded our projections," said Silver (h/t The Spun).

"So to the extent that our projections represent where we think our business was going, exceeding $ 10 billion in revenue is clearly I think it's pretty extraordinary considering where we came from, where we were only two and a half years ago."

These numbers also spring a surprise that the layoffs were made as the NBA has done an exceptional job business-wise over the last two years, following significant losses in 2019-20 and 2020-21.

Click here to read SBJ's report.

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NBA introduces In-Season tournament with new broadcast deal set to fetch significant profits as well

The NBA's layoffs seem like a surprise, with the league finding new and effective ways to generate more revenue every year. This year, the In-Season tournament makes its debut. The idea behind the tournament is that it gives fans more meaningful basketball to watch early in the year.

"We have to recognize the casual fan that wants to know there’s something more at stake and that’s where I think these cup competitions come in," said commissioner Adam Silver during an interview on KG Certified podcast.

Meanwhile, the NBA is also planning to increase its media rights fees by a significant percentage once the current deals with ESPN and TNT end in 2024-25. The league currently makes $2.6 billion and is reportedly aiming to earn $7 to $8 billion annually on the next deal.