In the well-oiled PR behemoth that the National Basketball Association is, you don’t often learn about its financial struggles. This report however, breaks the news that the league is set to borrow $175 million to cover “operating losses” among 15 teams. This should come as no surprise; the league is low on star-quality (Kobe Bryant, Dwayne Wade, Dwight Howard, LeBron James), high on overpaid ‘franchise’ players (Stephon Marbury anyone?) and the cost of running an NBA franchise in the current economic climate is no small-piece meal:
The NBA was not looking to borrow at this time, Benjamin said, but JPMorgan and Bank of America came to the league several weeks ago to say there was an opportunity to do so. The league, after polling its teams and finding a need, agreed to the deal in part because of the lack of borrowing opportunities since the fall.