With the gloomy economy influencing the bottom line with the NBA, the league is expected to borrow $175 million today to address the losses. According to Tim Lemke of the Washington Times:

The league will distribute the funds among 15 teams that requested them, with each team getting no more than $11.66 million. The borrowing, which is in addition to the $1.7 billion credit facility used by the league, comes as NBA teams are dealing with lower attendance and a loss of sponsorships.

[…]

While the NBA has not disclosed which 15 teams will receive the funds (the Wizards said they are not one of them), it's clear there are a number of teams in need of help. All around the league, some teams are playing in front of half-empty buildings, and no team can count on the once-reliable support from automakers and banks. The Memphis Grizzlies have been forced to keep payroll well below the league salary cap in recent years as attendance has fallen to less than 13,000 a game, last in the NBA. The Orlando Magic have been operating at a more than $10 million loss. And the Sacramento Bee reported last week that the Kings were on pace to lose more than $25 million before unloading the salaries of center Brad Miller and several others via trade last week.

The loan comes on top of the league’s $1.7 billion that uses the NBA’s media contracts as collateral. The news of the loan first came last week via the SportsBusiness Journal. According to the SBJ, the loan comes with a steep interest rate of 8.27 percent over seven years. This loan will come on top of a previous loan of $75 million at 7.45 percent over five years.

  OTHER NEWS ACROSS THE BUSINESS OF SPORTS NETWORK

• White Sox to Offer 11 Spring Training Webcasts for Free - The Biz of Baseball
• A Small Glimpse Inside the 2009 Red and Green Books - The Biz of Baseball
• Umpires for World Baseball Classic Announced - The Biz of Baseball
• Today on Baseball Prospectus: Salary Arbitration Beats Free Agency - The Biz of Baseball
• "Straps" Could be Latest Promo Craze for MLB, Minors - The Biz of Baseball
• Anti-Doping Chief Wants Baseball To Come Clean - The Biz of Baseball
• Lewis Wolff Announces that A’s Relocation to Fremont is Officially Dead - The Biz of Baseball
• MLB Network Releases Spring Training Broadcast Schedule - The Biz of Baseball
• Detailed Report: 2009 MLB Salary Arbitration by Club, Position, and More - The Biz of Baseball
• Show Time: Barry Bonds Trial Soon Gets Underway - The Biz of Baseball
• Thomas Ricketts, Final Cubs Bidder, Resigns From TD Ameritrade Board - The Biz of Baseball
• Dennis Eckersley Signs Multi-Year Extension with TBS - The Biz of Baseball
• Oregon Baseball Back in Business - The Biz of Baseball
• Panel Studying Concussions Recommends Ban on all Fighting in Hockey - The Biz of Hockey
• Is the Glass Half Empty or Full for the NHL? - The Biz of Hockey
• Canadiens Goalie Carey Price on the Cover of ESPN The Magazine - The Biz of Hockey
• Vegas Strip, Yankee Stadium, Rose Bowl Possible Locations for NHL Winter Classic - The Biz of Hockey
• NHL Network Now Carried on AT&T U-verse - The Biz of Hockey
• Commissioner Roger Goodell Takes 20 Percent Pay Cut Amidst Layoffs - The Biz of Football
• Here I Go Again: Favre Announces Retirement - The Biz of Football
• Network Ad Criteria Smacks of Hypocrisy - The Biz of Football