Lakers got money from loan program, returned it play undefined Kevin Arnovitz reporters on the Lakers returning $4.6 million that they received from a federal LOS ANGELES -- The Los Angeles Lakers have returned approximately $4.6 million that they received from a federal government program intended to help small businesses weather the economic burden caused by the coronavirus pandemic, the team said in a statement to ESPN on Monday. The Lakers, one of the NBA's most profitable franchises, applied for relief through the Small Business Administration's Paycheck Protection Program, and were among the companies and nonprofits granted loans during the first round of distributions. But after reports that several large or highly capitalized entities were securing aid from the program's initial $349 billion pool -- while hundreds of thousands of smaller businesses were shut out -- the Lakers said they returned the money. "The Lakers qualified for and received a loan under the Payroll Protection Program," the Lakers said in a statement to ESPN. "Once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need. The Lakers remain completely committed to supporting both our employees and our community." The program, which was established as part of the $2.2 trillion CARES Act and launched on April 3, enables small businesses to apply for and receive loans to cover employee salaries and other expenses. As a business with about 300 employees, the Lakers were eligible for a PPP loan, which is forgivable so long as the recipient spends 75% of the amount on payroll and doesn't fire anyone. The PPP ran out of money after less than two weeks, leaving many mom and pop businesses without the assistance they sought. Some of those loans went to high-profile companies with strong relationships with commercial or private banks, who were able to simplify the application process for their clients. Those lopsided outcomes drew considerable public outcry, especially toward brands consumers know well. Shake Shack, the specialty burger chain with a market capitalization of $2 billion, received a $10 million loan. AutoNation, a Fortune 500 auto retailer, received $77 million from the PPP. Both companies have since announced they would return the funds. Likewise, the Lakers opted to send back their loan of approximately $4.6 million in the days following the news that the PPP had exhausted its funds. The Lakers' value was estimated to be more than $4 billion prior to the virus outbreak. They have the league's most lucrative local broadcast deal, which generates more than $150 million in annual revenue. In addition to the Buss family, which presides as the controlling owners, the franchise has three billionaire minority partners -- Philip Anschutz, Patrick Soon-Shiong and Ed Roski Jr. But with the completion of the NBA regular season and playoffs in doubt, tens of millions of dollars in revenue from a potential playoff run are at risk for the Lakers, from ticket sales to unfulfilled local television dates. The Lakers have pledged not to lay off or furlough any employees, and in early April, senior staff took a voluntary 20% salary deferral. In preparation for a second round of PPP funding that begins Monday, the SBA last Thursday issued new guidance that discourages applications from wealthier businesses that have access to liquidity and credit markets. The Lakers are considered one such organization. As a tentpole NBA franchise, the Lakers have the capacity to borrow at favorable rates. For instance, the NBA extended its credit line to $1.2 billion soon after it suspended the season. Teams in need of cash can tap the league's credit facility program, so long as they abide by the NBA's $325 million debt limit. Sources say at least one team has pursued this option. https://www.espn.com/nba/story/_/id/29104444/lakers-got-money-loan-program-returned-it
I heard that the max assist from Government is 100 million dollars. Landry should be qualified. I hope he can trade Gordon for the same salary. PPP money for small business can be used for a MLE player.
PPP money will be forgiven only if you keep all your employees. Tilman already disqualified himself by charitably letting his employees get to the front of the unemployment line.
Report: Lakers were only NBA team to apply for Paycheck Protection Plan loan Dan Feldman NBC SportsApr 28, 2020, 7:35 AM The Lakers returned a $4.6 million forgivable loan they received under a federal program ostensibly designed to help small businesses through the coronavirus pandemic. But should the Lakers have applied through the Payroll Protection Program in the first place? The mounting evidence sure looks unfavorable for Jeanie Buss’ franchise. Darren Rovell of The Action Network: <blockquote class="twitter-tweet"><p lang="en" dir="ltr">Confirmed that the Los Angeles Lakers were the only NBA team to ask for a Paycheck Protection Plan loan from the Small Business Administration. They received $4.6M and, as first reported by <a href="https://twitter.com/kevinarnovitz?ref_src=twsrc^tfw">@kevinarnovitz</a>, they have now returned it.</p>— Darren Rovell (@darrenrovell) <a href="">April 27, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> Treasury Secretary Steven Mnuchin, via Fred Imbert of CNBC: “I’m not a big fan of the fact that they took a $4.6 million,” Mnuchin told CNBC’s “Squawk Box.” “I think that’s outrageous.” Mnuchin added he “would have never expected in a million years that the Los Angeles Lakers” would take such a loan. He also said he was glad the team returned the money, “or they would have had liability.” The Lakers are a business. Buss has a fiduciary duty to the team’s minority owners. That means exploring potential sources of revenue. But this incident harms the Lakers’ brand, which is built on forging a deeper connection with fans. It’s in their financial best interest to be viewed as a basketball team, not a coldly transactional company. That’s on the Lakers’ side. The bigger issue: Why were they approved for this loan if it shouldn’t have been for them? This entire program is plagued with problems. Report: Lakers were only NBA team to apply for Paycheck Protection Plan loan originally appeared on NBCSports.com https://sports.yahoo.com/report-lakers-were-only-nba-143522613.html
Godspeed for Gordon and nba world wide! Gordon has time to watch video on clippers/Lakers! Upmost respect for Landry's restaurant group!
Cuban was fair to them on CNBC. Said everyone assumed there'd be enough money. Once it was known there wasn't, the companies that didn't give the loan back should be villainized.
but really? they really thought $350B was gonna cover every single company that wanted money? these super-business savvy people couldn't determine what i could determine from my couch - that this would be a drop in the bucket? a $4B enterprise like the lakers really thought they were part of the "small business" community that needed this money? just because you can do something, doesn't always mean you should. they tried to stomp on small businesses at a time of crisis just because they could. and then pretended like they couldn't believe they shouldn't have done it only after getting caught.
Exactly. How could a multi-billion-dollar sports team be considered "small business"? Like I said, some of those players (which BTW are their "employees") could have donated that amount of money they got from the government.
Businesses do it all the time and they're cheered on for it. I wouldn't be surprised if Ferntits got his shell companies to ask for the easy loan, or maybe he doesn't even need to and goes directly to his "friends" for lower rates. I wish the laws were more clear and help the intended people but that's a different forum discussion of how lazy voters generally are.
It's absolutely hilarious to me that they returned the money, even if it was the right thing in the end. The fat kid got slapped reaching for the cookie jar while everyone else is fasting.
shame on the Lakers for taking advantage of an ill-conceived hastily-implemented policy/law not sure if they're the fat kid. Lakers ownership is probably the only non-corporate one whose main source of income is from the team. Tillman has his corporation, so do the Warriors (Silicon valley & hollywood), the Clips, the NYY, the Nets, OKC, Mavs, Atl, Hornets, et al
the nba should fine the lakers $4.6M just for the optics of it all. i think that's within the limits, doesn't do any real damage (they didn't break an actual law), and would be a bit of an embarrassment for being the exact opposite of the loan request as opposed to some generic $2.5M or $5M fine.
