All 30 teams are receiving $30 million from the NBA to assist with financials, per John Lombardo of Sports Business Journal.
According to the report, the money will be dispersed from $900 million raised by the league from notes issued in the private marketplace. That marketplace generally includes investors and insurance companies.
Notes are for three or four years, per the SBJ report, and will be paid back with interest from “general collective league sources.” The notes are for three or four years and will be paid back with interest.
This marks the first time the NBA has turned to the private placement market for funding, SBJ noted — with one source saying the $30 million will help with cash flow by playing in either entirely empty arenas, or arenas with limited fans.
NBA commissioner Adam Silver recently said 40 percent of the league’s total revenue comes from game-day revenues. The list includes ticket sales, concessions, merchandise, etc.
