According to the report:
[The] NBA plans to borrow $175 million to distribute to teams in need of additional cash.
The deal comes at a time when leagues are laying off staffs and cutting ticket prices. It will allow the NBA to distribute up to $11.66 million to 15 teams that responded to a league survey gauging interest in the money, SportsBusiness Journal said.
The report also says JPMorgan Chase and Bank of America arranged the private-placement deal, in which non-banking lenders extend the cash at a fixed rate. In this case, the interest rate is 8.27 percent for $100 million; 7.45 percent for the remaining $75 million.
Teams can use the money for any purpose.
In any case, it's borderline despicable that the government, and therefore we the people, are shelling out billions to save the banks, while the banks are shelling out a few hundred millie to basketball teams who's primary product are a bunch of supremely overpaid athletes. I hope the players are smart enough to realize that there will be a considerable backlash in the coming months - if not years - from the consumers directly targeted at these millionaires who contribute little more to society than a high-end circus show.
Don't get me wrong, I am the first to recognize the dedication and hard work put into becoming an elite athlete every day of their lives. I am also a firm believer that anything someone is willing to pay you is what you're worth. But when they can no longer pay you and your salary becomes the investment of a Bank likely to receive billions in Federal bailout money, then you become - in the eyes of millions of Americans - overpaid, undeserving and a large part of the problem this country is facing. Unfortunately, fair or not, if this story builds up steam and gains traction in the American conscience, the players will take a huge amount of blame and resentment from the public.
Not that their rich asses care.
Joe Friday: 11-5
The parity in our respective gambling skills is just stunning. This competition is clearly more exciting than the plan to build an enormous telescope in Chile large enough to see "The Cosmic Eye." Interestingly enough, I believe they called it The Alan Parsons Project.
OBJ: Cleveland/Houston OVER 185
I stared at these lines for 45+ minutes. Couldn't figure it out. The "insider" information didn't help worth a shit either. Just confused me with like, numbers and stuff. Going with the gut.
Joe Friday: Phoenix (+12.5) over Los Angeles