Even the professional sports leagues are not immune from the difficulties of the current economic crisis.
NFL Commissioner Roger Goodell will give up 20-25% of his $11 million dollar salary, and the rest of the NFL's executive staff will take similar cuts. The NFL has to cut 169 jobs, 15% of the staff, and needs to find ways to reduce 20% of its expenses. Similarly, all of the 32 franchises expect to cut a total of 200 jobs. AMERICAblog wonders whether this will affect players salaries.
The NBA is set to borrow $175 million to help teams struggling in the global economy. The money will help teams cover their operating costs. Apparently, Bank of America and JPMorgan - aren't these bail-out superfiends? - approached the NBA and offered the loan, to which a majority of teams agreed to the necessity of funds.
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I'm having a hard time wrapping my head around the NBA loan. First there's this:
The Yankees and troubled Bank of America have ended talks for a major sponsorship deal for the new Yankee Stadium, a bank spokesman confirmed to Newsday on Thursday.
But the economy and Bank of America's stock have taken a major swan dive since reports of the talks first surfaced. Bank of America has accepted $45 billion in government bailout money from TARP (Troubled Assets Relief Program) and has had to fend off talk that it might have to be nationalized.
Stadium sponsorship deals by banks who have taken bailout money from the government -- such as Citigroup's current 20-year, $400-million naming rights deal for Citi Field -- have come under fire from some in Congress who see them as examples of corporate excess at taxpayers' expense. Other lawmakers see these deals as legitimate business and marketing expenses.
http://www.newsday.com/iphone/ny-spybank0227,0,5019520.story
Now sure, a loan is different than a sponsorship. But I'm not really sure that 175 million to the NBA is a good investment. Isn't this a bailed out bank loaning money to a business staffed by millionaires?
The players are heavily unionized, meaning any attempt to cut thier salaries could lead to a lock-out. If that happens, how can the NBA repay this loan?
Just my gut reaction without going over the details.
The stadiums and teams that are sponsored by institutions who received bailout money eg AIG, Band of America: should be called The Tax Payers Stadium. Maybe then we will start to realize the connection between our pockets and the "stimulus".
Why are we giving these guys a free pass? Necessary business expense? Come on.
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