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March 1, 2009
NBA lines up $200 million for teams
AP via ESPN.com
In a "show of strength" (their words, not ours), the NBA is borrowing money to help keep a dozen struggling franchises afloat.
The NBA has lined up $200 million to distribute to teams interested in additional cash, which the league considers a sign it remains strong in a slumping economy.
Between $13 million and $20 million will be available to each of 12 teams that have expressed interest in the funds, commissioner David Stern said Thursday. The money can be used for any purpose, including helping teams deal with operating losses incurred because of the economy.
It should not, Stern said, be construed as a bailout. At a time when credit markets have been frozen, investors saw the NBA as a safe bet.
"It's exactly the opposite" of a bailout, Stern told The Associated Press "This was a show of strength in the creditworthiness of the NBA's teams."
Are Bruce Ratner's Nets, whose losses this season project in the $20—$30 million range, among the dirty dozen? We don't know, because...
The NBA declined to name the teams interested in the money.
However...
The 12 interested teams aren't necessarily those in the worst financial shape.
"Many of them are doing well," Stern said.
NoLandGrab: In the Alice in Wonderland world of the NBA, "doing well" apparently means "needing to borrow between $13 million and $20 million." It's safe to say that we've learned nothing from the sub-prime lending mess.
Posted by eric at March 1, 2009 10:00 AM