NBA Adds $200 Million To Credit Facility
NBA commissioner David Stern told CNBC on Thursday afternoon that the league expects to close today on a deal that will add $200 million to the league's existing $1.7 billion credit facility.
And while the presumption is that the money will be used to cover teams with operating losses, Stern said that some of the 12 teams that eventually decided to take part in the borrowing "are doing quite fine."
League officials decided to add to the credit facility because it could, Stern said.
"We had standing instructions to the bankers that we work with, that when the liquidity crisis eased, we would want to continue to enlarge our credit facility," Stern said. "The average business operates on credit, they draw down and pay back and this is just an indication of how credit worthy we are and how healthy our business is."
The banks originally estimated that they could secure $150 million, but Stern said that number eventually increased by $50 million.
Stern noted that while the NBA has a smaller credit facility as compared to Major League Baseball and the NFL, the NBA has the least amount of credit outstanding.
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