The 30 NBA teams will receive $ 30 million each as aid to maintain their finances and protect themselves against any liquidity problems caused by the coronavirus pandemic, according to a report released Monday in the Sports Business Journal .
The money comes from the 900 million that the league collected from tickets issued by the NBA in the private placement market, the specialized publication reported.
According to the same source, the market generally includes insurance companies and institutional investors.
MEDIUM AND LONG TERM
The notes are for three or four years and will be repaid with interest from “general collective league sources.”
The publication noted that the NBA’s financial strength allowed it to secure funding and that the league was being proactive.
The Sports Business Journal further noted that this is the first time the NBA has turned to the private placement market to fund league initiatives.
A source told the publication that the $ 30 million per team will help with cash flow and liquidity problems caused by playing with few or no fans to start the new season on December 22.
The NBA gets about 40 percent of its revenue from ticket sales and lost $ 700 million last season.
