The money will be available to 15 teams and will join the existing debt of NBA (1.7 billion dollars), made under the guarantee contract with the league media. Before taking a new loan, consulted with league clubs, 15 of whom stated that they do not like to take the loan.

The League argues that the current credit market illiquidity cost per loan of 8.27 per annum - a good deal that puts a cross on speculation that the era of cheap money in sport is over. 15 clubs may use the money for any needs, although coverage of operating costs will surely lead the list of necessities.

- The current economic situation, it’s just wonderful that league clubs can provide this assistance, - says head of Operations, “Orlando Magic” Alex Martins, who plans to take advantage of the new loan. - The money is very helping us until the move to a new hall in 2010. Over the past few years, our annual losses range from 15 to 20 million dollars, so that we can credit a great help.“

Each of the 15 teams from the current loan can take a maximum 11.66 million dollars.

Technically, the transaction was provided by two well-known companies - JPMorgan Chase and Bank of America. It was decided not to take credit in the banking sector, as companies such as pension funds and insurance companies that have cash. But while their fixed rate loan at 5-7 years, as a rule, slightly higher than the floating bank.

Harvey Benjamin, executive director of the NBA, which is responsible for business and finance, insists that it is impossible to compare the current interest and those who pay the NBA for credit before the crisis. We need to properly assess the situation, talking about how much is worth to take a similar amount. From this perspective, according to Benjamin, 8.27 percent for 100 million and 7.45 for the remaining 75 - this is a good deal: “This shows how the NBA is valued in the credit market.”

Rob Tillis, a lot of years working for JPMorgan Chase and now established his own firm, agrees that in the current market interest rates can hardly be described as predatory.

In fact, the NBA is not going to borrow money. According to Benjamin, a few weeks ago, representatives of JPMorgan and Bank of America have informed the league about the possibility. After consultation with the teams need to credit all the same was found, and the NBA went to a transaction, the more so since the fall to take a loan is not too often. Benjamin is not called the clubs, who will get the loan from the league.

In the meantime Tillis points out that in the past few weeks, lending a bit slightly to the borrowing companies, such NBA.

Borrowing on the loan comes in the context of a change in the structure of loan portfolio of the NBA. Most banks cannot afford to enter into treaties in this field at the old terms, while some short-term loans League. Two other major North American leagues (football and baseball) have not been able to refinance the next season. Their debt in this way will automatically receive a fixed rate of interest, slightly more than before.

Benjamin has declined to comment on what steps would be taken in the NBA this area in May, the deadline for some of the contracts. However, noted that the league right now is negotiating with banks to seek alternatives.

Of the total loan portfolio of the NBA in 1, 7 billion dollars, 1 - this is just short-term contract, which are updated annually. The remaining part - private loans, like the one that the league has now.

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