The 30 NBA teams will each receive $ 30 million 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 raised from tickets issued by the NBA in the private placement marketreported the specialized publication, which also assured that the market generally includes insurance companies and institutional investors.
The notes are for three or four years and will be repaid with interest from “sources of the general collective league”.
The report noted that the NBA’s financial strength allowed it to secure funding and that the league was being proactive. He also reported that this is the first time that the NBA has resorted to the private placement market to finance league initiatives.
A source commented to the publication that the 30 million dollars per team will help with the cash flow and liquidity problems caused by playing with few or no fans to start the new season from next December 22.
The NBA gets about 40 percent of its revenue from ticket sales and lost $ 700 million last season.