Report: NBA Taking $900 Million Loan For Financial Security
Dec 7, 2020, 11:06 AM | Updated: 11:17 am
Commissioner of the National Basketball Association (NBA) Adam Silver speaks during a press conference prior to the preseason game between Houston Rockets and Toronto Raptors at Saitama Super Arena on October 08, 2019 in Saitama, Japan. (Photo by Takashi Aoyama/Getty Images)
(Photo by Takashi Aoyama/Getty Images)
SALT LAKE CITY, Utah – The NBA is going to extraordinary lengths to ensure the financial health of its 30 teams. According to a report from the Sports Business Journal, the NBA will split a $900 million loan among the franchises in light of the COVID-19 pandemic.
The money was gathered from the private placement market, which includes a collection of insurance companies and institutional investors.
The loans are for three and four years according to SBJ and will be paid back with interest. Each team will receive $30 million in aid for the season.
#BREAKING: The @NBA will give $30 million in cash to each of its 30 teams this month to help protect their finances ahead of the 2020-21 season (@sbjlombardo).
Free to read: https://t.co/8KTiEiZeOU pic.twitter.com/oGTLoIZszI
— Sports Business Journal (@sbjsbd) December 7, 2020
The NBA is depending on the loan as a result of the revenue lost as the league prepares to open the season with few or no fans in most arenas. According to ESPN, the league earns roughly 40 percent of its revenue from ticket sales.
The Utah Jazz are one of a handful of teams that do plan to have fans in attendance. The Jazz will allow 1,500 fans at games to open the season with strict safety guidelines to protect the health of those in the arena.
The NBA season begins on December 22.
