NBA to borrow $175 millionPosted by Inside Hoops
The Sports Business Journal (Daniel Kaplan and John Lombardo) reports: The NBA is set to borrow $175 million Feb. 26, marking one of the first league financings since the implosion of the credit markets last fall. The money, which will be available to 15 teams, supplements an existing $1.7 billion leaguewide credit facility that uses the NBA’s media contracts as collateral to secure loans for the clubs. The NBA surveyed its teams, and 15 responded they would like to tap into the new borrowing. While the league said it is pleased to borrow in an extremely illiquid credit market, the deal came at a cost, with interest rates up to 8.27 percent, hammering home the notion that the era of cheap money in sports is over. The 15 teams can use the money for any purpose, but covering operating losses may be high on the list.
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