http://sports.espn.go.com/nba/news/story?id=3936991 Pretty alarming. The salary cap and luxury tax are definitely going to drop next year. I know 5 teams that are in the red....but 15 want to borrow big money? Wow.
Bad news...no stop, dont wanna hear... i mean, its now OUR problem, right? ... *goes to superficial Marko Jaric/Adriana Lima thread to ignore*
The terms (interest rate) aren't that great either. I know the loan was secured by the NBAs TV contracts which I would have thought would merit a lower rate.
dam economy is terrible right now. Lets hope the Tickets go down so i can finally go to a Knicks game!
Based on what's happened with baseball free agency and how the economy has continued to go downhill, I think this summer is going to be truly ugly for NBA free agents. The much-discussed summer of 2010 could be a lot worse.
Heard on espn radio tonight that teams do this regularly....they are just making a big deal about it now because of the economy. Apparenly there are some teams doing the borrowing that are in a little trouble, and some doing it that arent really in too much trouble, but are taking advantage of the extra credit. Apparently there are many teams that regularly lose money over the course of a year and borrow money from the league every season to cover operating costs, etc.
