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Report: NBA Teams to Receive $30M Each to Help with Finances Amid COVID-19
December 7, 2020
The NBA is giving each team a cash distribution of $30 million to help with finances amid the COVID-19 pandemic, according to John Lombardo of Sports Business Journal (h/t ESPN).
The league reportedly used the private placement market to raise $900 million, which will now help teams dealing with cash-flow issues.
These notes are expected to be paid back with interest within three or four years.
The money could be especially valuable with the 2020-21 season set to begin on Dec. 22 despite local restrictions preventing the type of sold-out arenas that bring in money for organizations.
Several teams have already announced they will begin the year without fans in the stands.
According to Adrian Wojnarowski and Zach Lowe of ESPN, the league projects a 40 percent loss in overall revenue if games will be played all year without fans.
The league reportedly lost 10 percent of its revenue in 2019-20 due to the pandemic, including $800 million in gate receipts and about $400 million in sponsorships and merchandise.
Completing the postseason in the bubble helped recoup a significant portion of the money, allowing the NBA to end the season with $8.3 billion in revenue generated.
