All 30 NBA teams will receive up to $30 million each to help with finances and protect against any liquidity issues due to the pandemic.
According to a report in the Sports Business Journal, the money comes from $900 million the league raised from notes issued by the NBA in the private placement market. SBJ said that market generally includes insurance companies and institutional investors.
The notes are for three or four years, and will be paid back with interest from “general collective league sources,” SBJ reported, citing multiple sources in its report. SBJ said this is the first time the NBA has turned to the private placement market to fund league initiatives.
The NBA gets about 40% of its revenues from game-day revenues, including ticket sales, concessions and other in-arena income.