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i hope the clippers go bankrupt and defunct....they are a complete waste of time
NBA reportedly set to borrow 175 million dollars
Thu Feb 26, 6:46 PM
CHARLOTTE, North Carolina (AFP) - The National Basketball Association will borrow 175 million dollars to serve as aid to teams that might struggle in the weak global economy, Sports Business Journal reported Thursday.
The report said the presumption is teams would use the funds to cover operating losses and that while the league was not looking to borrow, Bank of America and JPMorgan came to the NBA several weeks ago with the opportunity.
Half of the league's 30 teams agreed there was a need to go through with the borrowing, according to the report, which said the money will supplement a 1.7 billion-dollar credit facility that uses the NBA's broadcast contracts as loan collateral.
The deal comes with interest rates up to 8.27 percent and each of the 15 teams that wanted to borrow could take a maximum of 11.66 million dollars from the debt proceeds, according to the Journal.
"In this economic environment, it's tremendous that the league can place such a facility," Orlando Magic chief operating officer Alex Martins told the Journal.
"It certainly helps us bridge the time period between now and when we move into our new events center in 2010. We've been operating at a 15 (million) to 20 million (dollar annual) loss over the past half-dozen years so it helps us."
The Sacramento Kings are another likely candidate to dip into the loan funds after reports earlier this month said the California club could lose as much as 25 million dollars this season.
i hope the clippers go bankrupt and defunct....they are a complete waste of time
They won't, they're one of the most profitable teams in bball because they always get high draft picks and don't pay worth damn hence high player turnover and not having to entertain big contracts.
I would bet that the Grizzlies are having their @$$ handed to them finanacially.
I guess they haven't given enough away for karma to reward them.
Actaully it's not even 175 million. I was driving home and listening to some sports radio station and supposedly NBA officials came out and said it's more like 200+ million.
Darius Miles thread.
Hmmm maybe the need to stop paying players so much... Let them skip to Europe, their economies are crumbling too...
No one...i mean NO ONE goes to Grizzlies games in Memphis. I go to school in Chattanooga but i have quite a few friends from Memphis that were telling me they'd pay 30 bucks for crap seats and walk right on down to the first few rows and find new seats before the game even started.
I hope this leads to the WNBA going away
baseball is the only sport not borrowing
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