All 30 NBA teams will be issued $30 million in financial assistance that will help protect against cash-flow and liquidity issues caused by the coronavirus pandemic, John Lombardo of the Sports Business Journal reports.
The $900 million originates from money the NBA raised through issuing notes in the private placement market. It's the first time the NBA has used this market to support league initiatives, according to Lombardo, who adds the league will pay back the notes with interest in the next three-to-four years.
Nearly 40% of the NBA's revenue is earned through ticket sales, so the league should expect significant losses given numerous teams have already announced they'll begin the 2020-21 season without fans in attendance.
The NBA helped mitigate its financial shortcomings from last year's midseason stoppage by forming a bubble at Orlando's Walt Disney World resort to close out the campaign. The move reportedly salvaged $1.5 billion in potential losses.