Wednesday, February 18, 2009

Late-Night Off-Topic News: NBA borrowing $175 Million

According to the Atlanta Journal Constitution, Sports Business Daily, and Sports Business Digest; the NBA is borrowing $175 million which is to be distributed among 15 of its franchises. Where are they getting this money? Check out this quote from Sports Business Daily:
The private-placement deal was arranged by JPMorgan Chase and Bank of America. In a private placement, non-banking lenders such as pension funds and insurers extend the cash, commonly at fixed rates for five- to seven-year terms and at rates higher than what banks offer for floating-rate loans.
Wow. As much as I dislike the sport of basketball and the NBA, this worries me as the NBA is the direct competitor to the NHL. Is the NHL is this bad of shape? From the vibe I've been getting covering the business of the league in only two-three months, it seems as though the NHL is more liquid than the NBA. With over 40% of the leagues revenue in ticket sales last season, how much credit is each team paying off?

Obviously, this is very much inside information, and nothing I could get my hands on without being arrested. Let's just hope the NHL doesn't fall into a similar situation.

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