Reported: NBA takes out a $175m loan

[Thruthelookingglass]

$175 million.  Not really a ton of money by NBA (or stimulus bill) standards.  That would pay for a year on 7 or 8 max contracts.  Still, I think it bodes very ill for free agents-to-be.  2009 could be a year of upheaval.  As free agents lose out, will the player's union continue to support the high-priced stars and their agents or the entire pool of players?  Ideas?  The article is below.

http://www.breitbart.com/article.php?id=CNG.1c9410f52a65c5c99d8964a72b43ea22.1151&show_article=1

[Andy Jick]

...and in 2010 the owners will spend money for that crop of free agents whether the economy rebounds or not.

i'd love to see the league with fewer teams, and have a dispersal draft (do we REALLY need a team in oklahoma city?  should charlotte be given ANOTHER team after they failed the first time?).

[SquishPCfriar]

This is not looking good and the MLB/NFL are gonna get hit badly soon by this recession.  NBA players are just over payed especially during a time like this when companies are holding back on advertising and sponsorships.  

[blake]

didn't the NBA just donate 200M to families in need? 

i'd love to see the league with fewer teams, and have a dispersal draft (do we REALLY need a team in oklahoma city?  should charlotte be given ANOTHER team after they failed the first time?).

Yes.  We REALLY need a team in OKC.

[the_Bird]

...and in 2010 the owners will spend money for that crop of free agents whether the economy rebounds or not.

i'd love to see the league with fewer teams, and have a dispersal draft (do we REALLY need a team in oklahoma city?  should charlotte be given ANOTHER team after they failed the first time?).

We need a team in Seattle, but not OKC, not in Charlotte, and not in Memphis.  I've said it before, I'll say it again; a world that does not need Bear Sterns and Lehman Brothers does not need the Memphis Grizzlies.  It'd be in the League's best interests, I believe, to fold two franchises and figure out a way to get one of these three into Seattle.

Haven't I been reading that the Magic are losing money hand over fist as well?  Could you imagine picking up Dwight Howard in a dispersal draft? 

[Andy Jick]

no inside information and just taking a stab in the dark, but if the economy doesn't recover (and today's reports show a negative 6.1 in the latest quarter - ouch!) - it wouldn't shock me if professional sports consider contraction of teams.

expansion has watered down the product anyway...fewer teams would mean better teams...more competition (less gap between the good and bad ones)...and that would drum up more interest, no doubt.

people used to have sports as an escape during tough times...now all people see is the athletes continually getting richer and they don't care as much.

is it just me, but do people seem to be talking less about baseball this year?  years ago, baseball was all people had...

[Cman]

$175 million.  Not really a ton of money by NBA (or stimulus bill) standards.  That would pay for a year on 7 or 8 max contracts.  Still, I think it bodes very ill for free agents-to-be.  2009 could be a year of upheaval.  As free agents lose out, will the player's union continue to support the high-priced stars and their agents or the entire pool of players?  Ideas?  The article is below.

http://www.breitbart.com/article.php?id=CNG.1c9410f52a65c5c99d8964a72b43ea22.1151&show_article=1

While it doesn't bode well for free agents, I think it bodes well for championship caliber teams like the Celtics.  They can't offer much money, but nobody can.  What they can offer instead is a shot at a ring...

[blake]

no inside information and just taking a stab in the dark, but if the economy doesn't recover (and today's reports show a negative 6.1 in the latest quarter - ouch!) - it wouldn't shock me if professional sports consider contraction of teams.

expansion has watered down the product anyway...fewer teams would mean better teams...more competition (less gap between the good and bad ones)...and that would drum up more interest, no doubt.

people used to have sports as an escape during tough times...now all people see is the athletes continually getting richer and they don't care as much.

is it just me, but do people seem to be talking less about baseball this year?  years ago, baseball was all people had...

I don't claim to be an expert on anything about the finances of basketball teams, but even a team that is "losing money" isn't really losing.  I'm pretty sure at the end of the day the owner is on top.

Baseball has been slowly dying a slow death since the strike.  The only thing that brought it back was the homerun showing of McGuire and Sammy.  Now that is tainted, and the general public doesn't really care that much.

[Andy Jick]

yeah, i don't know if this is "debt" or "operational" issues...

if it's debt (past), then the money can just pay it off and they're good to go...but if this is day-to-day operational expenses (present) that can't be covered that's not a good thing.

[the_Bird]

Maybe they're taking the loan out so they can buy out a couple of owners.... 

[Andy Jick]

rick pitino should give some back...

[Thruthelookingglass]

$175 million.  Not really a ton of money by NBA (or stimulus bill) standards.  That would pay for a year on 7 or 8 max contracts.  Still, I think it bodes very ill for free agents-to-be.  2009 could be a year of upheaval.  As free agents lose out, will the player's union continue to support the high-priced stars and their agents or the entire pool of players?  Ideas?  The article is below.

http://www.breitbart.com/article.php?id=CNG.1c9410f52a65c5c99d8964a72b43ea22.1151&show_article=1

While it doesn't bode well for free agents, I think it bodes well for championship caliber teams like the Celtics.  They can't offer much money, but nobody can.  What they can offer instead is a shot at a ring...

True.  We have what takes years and luck to build and that's a genuine shot at the ring.  I think you are right that as far as the NBA goes, this means the rich get richer. 

[Thruthelookingglass]

rick pitino should give some back...

****.  If we made a list we could probably turn a surplus for the league . . .

[QuinielaBox]

I need a team in Oklahoma City. I would like Kansas City and Wichita to get a team too.

Seriously, we could see the NBA contract in the next couple of years as owners go bankrupt due to lack of fan support, corporate sponsorships,  and advertising revenue.

Stern cannot deal with realities of deflation along with the very poor quality of officiating. 

[RebusRankin]

Why can't players make less? What if instead of making 20 million, a star makes 5 million and so on down the line. Its still a great living and costs could be lowered as well.