Broke Teams to Borrow Millions from the NBA

by February 18, 2009

And your bank manager gives you a funny look when you try to borrow $100: “The Orlando Magic plan to borrow about $10 million from the NBA to largely offset operating losses incurred by the franchise, helping to bridge its move into a new arena in 2010. Alex Martins, the Magic’s chief operating officer, said on Tuesday that the club is among as many as 15 teams who intend to tap into a $1.7 billion league-wide credit facility that will soon be supplemented…The league surveyed its 30 teams, and 15 were interested in acquiring a loan. Each of the 15 teams can borrow a maximum of $11.7 million from the debt proceeds.”