NJ Devils and 76ers temporarily reducing staff salaries due to coronavirus
Abbey Mastracco, North Jersey Media Group Abbey Mastracco
With the NHL and NBA on hiatus during the coronavirus pandemic, the company that runs the Devils and 76ers are reducing staff salaries.
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NHL Writer
The group that owns the New Jersey Devils and the Philadelphia 76ers, Harris Blitzer Sports and Entertainment, will temporarily be reducing some staff salaries. A source confirmed a report by Marc Stein of the New York Times on Monday night, saying at-will employees making $50,000 a or more will be subjected to a 20 percent reduction from April 15 through June.

An earlier version of the story stated that the company intended to repay the difference. However, the a Devils' spokesperson said the company did not make that promise.

The team presidents of both teams, Jake Reynolds of the Devils and Chris Heck of the 76ers, as well as Philadelphia general manager Elton Brand and HBSE CEO Scott O’Neil agreed to participate in the program.

O'Neil addressed the news in a statement.

“As we navigate this evolving COVID-19 environment, we are mindful of the long-term impact the suspension of live events and games will have on our organization and industry," he said. "To ensure we can continue to support and operate our businesses during these uncertain times without reducing our workforce, we are asking our full-time, salaried employees to temporarily reduce their pay by up to 20 percent and move to a four-day week.

"In addition to supporting our people, we are committed to playing an ongoing role in funding efforts to help the most impacted residents in our home cities. In the coming days, we will enter into additional partnerships in Philadelphia, Camden and Newark to assist our neighbors with food and resource distribution during this public health crisis.”

The NHL and NBA have suspended operations indefinitely amid the COVID-19 pandemic and all events at Prudential Center, which is owned and operated by HBSE, have been canceled through March.

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Owners and managing partners Josh Harris and David Blitzer have been paying hourly and event staff at Prudential Center during the unprecedented shutdown and pledged to do so for all postponed games and concerts.

This salary reduction program is a way to prevent layoffs. Health benefits and 401K plans were not affected.

All arenas and large-scale entertainment venues are in the same situation right now, losing money without the ability to bring in revenue from tickets, concessions, parking and corporate events. An HBSE staffer who asked to remain anonymous said employees were made aware in a meeting Monday and were told it was a unanimous decision and management cited a desire to keep each staff member in place during this time period.

An at-will employee is classified as one that can be fired at any time, for any reason, with the exception of some legality.

Abbey Mastracco is the Devils beat writer for NorthJersey.com. For unlimited access to all Devils analysis, news, trades and more, please subscribe today and download our app.