What happened
On Monday, March 23, 2020, employees of the Philadelphia 76ers and New Jersey Devils were informed they would take temporary salary reductions of up to 20% starting April 15 through the end of June, alongside a four-day work week. Harris Blitzer CEO Scott O'Neil framed the moves as a way to 'support and operate our businesses during these uncertain times without reducing our workforce.' The cuts initially applied to employees making more than $50,000.
The backlash was immediate. 76ers center Joel Embiid announced he would donate $500,000, part of it going to team employees whose salaries had been reduced. On Twitter, critics cited the owners' wealth — Forbes puts Josh Harris at $3.8 billion — and minority owner Michael Rubin was reportedly furious about the decision.
On Tuesday morning the threshold was raised to employees making at least $100,000, but hours later the entire pay cut and the shorter work week were scrapped. Owner Josh Harris said in a statement: '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.... To our staff and fans, I apologize for getting this wrong.'
The same day, Groupe CH, owner of the Montreal Canadiens, announced a temporary reduction for 60% of its workforce, with an assistance fund paying 80% of base salary for eight weeks plus loans for those who needed them — a contrast in how ownership groups handled the same revenue shock. Harris and Blitzer had already committed to paying arena part-time workers for postponed games through the end of the regular season.
What it cost
The cut was fully reversed within a day; owner Josh Harris publicly apologized for 'getting this wrong.'
Why it happened
The cut hit salaried staff while the owners are billionaires — Forbes put Harris at $3.8 billion — making pandemic austerity optics toxic.
Star player Joel Embiid publicly pledged $500,000, part earmarked for hit employees, undercutting the decision in public.
The group's own minority owner, Michael Rubin, was reportedly furious — the decision lacked internal alignment.
Rival owners handled the same shock differently — Montreal's Groupe CH kept salaries at 80% via a fund — raising the comparison cost.
The lesson
Austerity optics fail fast for billionaire owners: a pay cut that looks proportionate on a spreadsheet can cost more in reputation than it saves in payroll.
Aftermath
Salaries were restored in full and the four-day week dropped within roughly a day of the announcement. Before the episode, Harris and Blitzer had been among the first NHL owners to commit to paying part-time arena workers for postponed or cancelled games and concerts through the end of the regular season. Other clubs kept their own virus-era cost measures.
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