The Lakers were the only NBA team to apply for a Paycheck Protection Plan loan
The lakers repaid a forgivable loan of $ 4.6 million they received as part of a federal program ostensibly designed to help small businesses weather the coronavirus pandemic.
But should the Lakers have applied through the Payroll Protection Program in the first place?
The growing body of evidence seems unfavorable to Jeanie Buss’s franchise.
Darren Rovell of the Action Network:
Confirmed that the Los Angeles Lakers were the only NBA team to apply for a Paycheck Protection Plan loan from the Small Business Administration. They received $ 4.6 million and, as first reported by @kevinarnovitz, they have now returned it.
– Darren Rovell (@darrenrovell) April 27, 2020
Secretary of the Treasury Steven Mnuchin, via CNBC’s Fred Imbert:
“I’m not a huge fan of the fact that they took out $ 4.6 million,” Mnuchin told CNBC. “Scream Box. “” I think this is outrageous. “
Mnuchin added that he “never would have expected the Los Angeles Lakers” to take out such a loan in a million years. He also said he was happy the team returned the money, “or they would have had a responsibility.”
The Lakers are a business. Buss has a fiduciary duty to the minority owners of the team. It means exploring potential sources of income.
But the incident is hurting the Lakers’ brand, which relies on building a deeper connection with fans. It is in their financial best interests to be seen as a basketball team, not a coldly transactional business.
It’s on the Lakers’ side.
Biggest Problem: Why were they approved for this loan if it shouldn’t have been for them? This whole program is plagued by problems.