Bailout for the Bobcats?
Posted February 27th, 2009 at 6:24 AM by Jeff A. TaylorSports Business Journal is reporting that Bank of America — holder of $45b. in taxpayer bailout dollars — and JP Morgan are extending a $175m. loan to the NBA in order to help franchises struggling financially. The Bobjohnsons would certainly fit that description with owner Bob Johnson having lost millions since he brought the expansion team to Charlotte.
Orlando and Sacramento are mentioned in the article as likely recipients of up to $11m. in emergency borrowing power. You can also bet that George Shinn’s NO operation could use the cash as well, along with Memphis.
Unless David Stern finds a way to sucker another city into building a new arena for a team — NO to Seattle, anyone? — the league is staring contraction in the face.
February 27th, 2009 at 9:27 am
Big Sport may be the next wave of meltdowns. The salaries are much too high for the market to bear, and you can only fill club seats and other ridiculous luxuries for so long.
Let me give an example. When Dave Winfield signed with the Yankees in 1981, his salary was a mere $2M a year, which is about $5M in today’s dollars, which now will get you a warm body to fill the 4th slot in a rotation and go 13-15 with a 5.25 ERA.
February 27th, 2009 at 3:31 pm
I think they may Contract the Grizzlies. They were only around to test the Canadian Market. Memphis is a mini me of Charlotte. World Class Aspirations with Graceland and FEDEX instead of Nascar and Banks. Charlotte is big enough to support at least one pro team. Memphis isn’t.
February 27th, 2009 at 8:27 pm
Contraction might actually be good for some sports and paticularly the NBA. It would reduce the talent dilution of the league. And, with fewer teams, that might justify shortening the god-awful long postseason.
February 27th, 2009 at 9:14 pm
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