NEW YORK -- SportsBusiness Journal reports the NBA plans to borrow $175 million to distribute to teams in need of additional cash.
The deal comes at a time when leagues are laying off staffs and cutting ticket prices. It will allow the NBA to distribute up to $11.66 million to 15 teams that responded to a league survey gauging interest in the money, SportsBusiness Journal said.
The report says the league plans to borrow the money Thursday.
The report also says JPMorgan Chase and Bank of America arranged the private-placement deal, in which non-banking lenders extend the cash at a fixed rate. In this case, the interest rate is 8.27 percent for $100 million; 7.45 percent for the remaining $75 million.
Teams can use the money for any purpose.
CREDIT: ESPN.com
We talked about this a couple weeks ago when it came to Baseball and the economic state of the US. What are your thoughts about the latest news regarding the NBA?
theres some rumors that some franchises might be going down the tank. i heard the hornets may not be in new orleans next year, also the kings in sacremento might be in jeoprady too
No pro sports league or team is going to open up their books to the general public, so it's very hard to tell exactly why the NBA took out this loan, and where the money is going.
This is going to be a moot point in 2years when the NBA gets locked out again. From everything I can gather the owners are willing to shutdown the entire season
