Friday, February 27, 2009

NBA Bank Bailout Story

It seems the tough economic times are even affecting sports, which has always been a booming business driven by ticket sales, merchandise, pay-per-view packages and other related purchases. According to the Associated Press, $200 million dollars in total bank loans is being made available to interested NBA teams. Street & Smith’s SportsBusiness Journal has reported that a maximum of $11.66 million will be available to each of the 15 NBA teams that expressed interest in the assistance. David Stern noted that this is not a bailout, but instead a show of the "credit worthiness of NBA teams". The money can be used for any purpose, hopefully within reason.

According to Sports Handicapping, the money was being secured from Bank of America and JP Morgan. One team, the Phoenix Suns, has reportedly dropped their line of credit from a local bank in favor of the new line of credit. The Suns have relied on the local bank funding in addition to the NBA's for the past fice years. According to, the money made available through the NBA will replace current debt rather than be used for incremental loans.

Read more about the funding and bailout possibilities here.

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