The Sacramento Kings will put one-third of the franchise's full-time workers on a four-month furlough beginning June 1st as a result of the COVID-19 pandemic.
Kings President of Business Operations John Rinehart made the announcement in an email to employees.
Rinehart explained the sports and entertainment industries were hit hard by the suspension of NBA play and live events at Golden 1 Center, resulting in “an unprecedented impact on our bottom line” and “significant fiscal uncertainty about the future.”
“Since all live events have been cancelled or postponed in the arena for at least the next several months, we need to reduce our operations to meet our current economic situation,” Rinehart said in the email. “We delayed this for as long as possible but, unfortunately, the harsh economic realities facing the live sports and entertainment industries were just too much to overcome.”
The Kings will retain their employees in basketball operations as well as health and performance.
Rinehart said all furloughed employees will continue to receive full medical benefits and the team has amended its retirement plans to ensure greater access to funds “during this time of need.”