View Single Post
Old 03-23-2009, 10:35 PM   #4
Local High School Star
Copperhead's Avatar
Join Date: Nov 2006
Posts: 1,360
Default Re: Hornets to Seattle?

Here's a piece of the source...

The Hornets, for the first time since relocating to New Orleans from Charlotte, N.C., in 2002, are experiencing unmatched ticket sales and attendance figures that in larger markets and better financial times would not be unusual. But in this time and place it is, as Hornets President Hugh Weber said, "an interesting story."

Stressing that the Hornets are in sound financial condition, team president Hugh Weber says the team might consider tapping into the $175 million the NBA has made available to its member clubs.

The loan, which would total about $11.6 million, has been arranged by the NBA through several financial institutions, including JP Morgan Chase and Bank of America. Non-banking lenders are extending the cash at a fixed rate of 8.27 percent for the first $100 million and 7.45 percent for the rest of the loan, $75 million.

"We're one of a lot of teams who are looking at that as an option," Weber said. "It's more looking at it as a rainy day fund. It's not needed right now. But one of the things that's been phenomenal about this market, whether it's basketball or the auto business or whatever, is banks are just not loaning money.

"It's not needed. It's something we're saying, whether to pay down other debt or whatever, we're not looking to borrow more money. It's a loan. It's a facility (the NBA) is setting up not because teams need it, it's because teams can't go out on their own and do it. Banks have been so incredibly restrictive."

Attendance at Hornets games has never been higher since the team relocated from Charlotte, N.C., to New Orleans in 2002.

"We've had some season-ticket functions, and they read blogs and things," Weber said. "I can tell you that the team is in better financial shape than it's been in a long time. And that's not saying we were in bad shape. We have a healthy plan, great responsibility as far as our debt management. We've got great ownership. We're not impacted by this incredible fall in the marketplace.

People going around saying the Hornets are "broke" have never produced any numbers showing that they are broke. The assumption without doing actual homework is that as long as the Hornets are in New Orleans, they are broke which is not true. And just because they'd rather not have to pay the lux tax does not mean they are broke. Most owners would prefer to not have to pay the lux tax. Seattle should've did what it had to in order to keep it's historic franchise.

Last edited by Copperhead : 03-23-2009 at 11:05 PM.
Copperhead is offline   Reply With Quote