Majority Of NBA Teams Have Already Maxed Out $325M Credit
A majority of NBA teams have already maxed out the credit owners are allowed to borrow against the equity in their teams, sources tell ESPN\'s Brian Windhorst.
The league has set that limit at $325 million, which is a rule to protect teams from being overleveraged. The NBA raised that limit from $250 million to $325 million in 2018. Sources tell ESPN that there have been discussions about boosting it again.
The Houston Rockets and Golden State Warriors are two franchises that have been identified as maxing out that credit.
Tilman Fertitta took out a $300 million loan at more than 10 percent interest in April to handle the debt service on his hundreds of restaurants, hotels, casinos and the Rockets. Fertitta purchased the Rockets in 2017 for $2.2 billion.
The Warriors are considering a raise of $250 million financed by Goldman Sachs to help deal with coming expenses.
