Magic Losing $20 Million Per Year

[Basketball Player2]

http://realgm.com/src_wiretap_archives/57764/20090307/magic_to_borrow_at_least_$15m/


Magic To Borrow At Least $15M


Mar 07, 2009 5:33 PM EST

The Orlando Magic will borrow at least $15 million from the NBA, according to the Sentinel.

Alex Martins, the club's Chief Operating Officer, said that the Magic would borrow more than the $10 million the club originally said it was seeking.

The club is losing approximately $20 million per season.

 

[mvblair2]

The club is losing approximately $20 million per season.

This is really bad. I wish there was more information about where the money is being lost. It's not all in salaries, because these NBA games are huge carnival productions. Arena operating costs must be outlandish.

 

[the.stig2]

Maybe it’s time to cut all the firework displays during introductions… I know the NBA is probably single headedly keeping the firework industry going throughout the year, but when you are loosing 20 Mil a season you have to save some money somewhere…

 

[Levenspiel2]

http://sports.espn.go.com/nba/news/story?id=3936991

Between $13 million and $20 million will be available to each of 12 teams that have expressed interest in the funds, commissioner David Stern said Thursday.

The 12 interested teams aren't necessarily those in the worst financial shape.

"Many of them are doing well," Stern said.

SportsBusiness Journal first reported that a credit deal was in the works. Alex Martins, chief operating officer of the Orlando Magic, told the journal that the money would help the Magic offset losses of between $15 million and $20 million and "bridge the time period between now and when we move into our new events center in 2010."