LA Lakers received $4.6M from the government's coronavirus Paycheck Protection Program, and eventually returned the money.
The PPP loans are primarily designed to help small businesses with fewer than 500 employees pay salaries and are forgivable if 75 percent of the money is used on payroll and no employees are let go. A portion of the loans can also be used to pay for expenses like mortgage or rent.The Lakers have fewer than 500 employees and were thus able to qualify under the program's loose guidelines, despite being valued at more than $4 billion.
"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 team said in a statement."The Lakers remain completely committed to supporting both our employees and our community." A second round of PPP money was added Monday. But the SBA gave new guidance discouraging companies like the Lakers, which have access to capital from other sources, from applying., which franchises can now draw from if they're in need of cash.
No other NBA teams received PPP funds, according to a source with knowledge of the situation who asked not to be named to discuss league business. With the NBA season suspended, teams risk losing millions in revenue from ticket sales and unfulfilled television commitments. The Lakers said they won't furlough employees and issued salary deferrals for the most senior employees.Ahiza García-Hodges covers the intersection of media, tech, sports and business.
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