Associated Press
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.
Copyright 2009 by The Associated Press.
Maybe these teams should stop handing out Max contracts....
ReplyDeleteWhat is interesting to me is how the economic decline will affect the famed free agency class of 2010. Maybe those max deals will be far less lucrative if teams can't afford to pay them what was previously considered top dollar.
ReplyDeleteI think by 2010 we will be in a recovery and teams will spend maximum dollars like they usually do. The teams that any of these really good players would go to would spend the money anyways.
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