Lakers received money under the PPP and returned it
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PostPosted: Tue Apr 28, 2020 2:19 pm    Post subject:

This is how our country works. If this is news to you, you were living in fantasy land. We are all contributors to this kind of culture. You think anyone that faux pocket pats to the homeless on the way to the Starbucks door really gives a damn about the little guy that falls upon hard times? Stop lying to yourselves... we are this petty. It just matters when it negatively impacts you personally. This is Great America. This is why we exist. You want to redefine it, then stay consistent with the culture you celebrate. We have been a nation of the haves and the have nones since the hippies devolved to boomers.
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PostPosted: Tue Apr 28, 2020 4:07 pm    Post subject:

activeverb wrote:
The God Particle wrote:
activeverb wrote:
dabask11 wrote:

If the FO can't recognize the lakers aren't a small business who should need a loan then it makes you wonder what else they can't recognize in terms of operations.


To be fair, the Lakers did qualify as a small business under the original terms of the program. This is really about legalese, public relations, and companies taking advantage of government socialism whenever it's in their self-interest to do so.


I'm not sure anyone is contending they didn't "qualify". Clearly they got the loan.

Many of us are just ashamed that while millions are completely without, and many other millions are starving, that our beloved franchise would even think about extending their hand out.

This is akin to seeing Jeanie Buss in line at the local food bank - yes, she "qualifies", but is that really the point?



I learned long ago that most companies will use every advantage and loophole they can find.

The Lakers are just another business, acting in their own self interest.

The NBA is filled with owners who built their fortune on unethical behavior. I find it funny that some people use this example to praise Ballmer, who became one of the weathiest men in the world screwing people in anyway he could.


Because the Lakers took advantage of the situation in an embarrassing fashion where it's easy to call them out.

No doubt there are owners who've done unethical behavior to gain their wealth. The difference, however, between most of them so far and this laker situation is like pickpocketing someone's wallet without him/her noticing vs mugging said individual for it in broad daylight while police watch closely.

They're both wrong but the first method requires thought and skill while the second one is tone deaf and shows a lack of intelligence. The lakers applied for this loan incompetently without thinking things through and now they're getting roasted on social media as a result.

Ballmer has skeletons in his closet but he at least has the brains to keep the door close reasonably. The lakers just showed they'll open their closet without hesitation and foolishly let skeleton after skeleton fall out while cameras roll.
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PostPosted: Tue Apr 28, 2020 6:26 pm    Post subject:

dabask11 wrote:
activeverb wrote:
The God Particle wrote:
activeverb wrote:
dabask11 wrote:

If the FO can't recognize the lakers aren't a small business who should need a loan then it makes you wonder what else they can't recognize in terms of operations.


To be fair, the Lakers did qualify as a small business under the original terms of the program. This is really about legalese, public relations, and companies taking advantage of government socialism whenever it's in their self-interest to do so.


I'm not sure anyone is contending they didn't "qualify". Clearly they got the loan.

Many of us are just ashamed that while millions are completely without, and many other millions are starving, that our beloved franchise would even think about extending their hand out.

This is akin to seeing Jeanie Buss in line at the local food bank - yes, she "qualifies", but is that really the point?



I learned long ago that most companies will use every advantage and loophole they can find.

The Lakers are just another business, acting in their own self interest.

The NBA is filled with owners who built their fortune on unethical behavior. I find it funny that some people use this example to praise Ballmer, who became one of the weathiest men in the world screwing people in anyway he could.


Because the Lakers took advantage of the situation in an embarrassing fashion where it's easy to call them out.

No doubt there are owners who've done unethical behavior to gain their wealth. The difference, however, between most of them so far and this laker situation is like pickpocketing someone's wallet without him/her noticing vs mugging said individual for it in broad daylight while police watch closely.

They're both wrong but the first method requires thought and skill while the second one is tone deaf and shows a lack of intelligence. The lakers applied for this loan incompetently without thinking things through and now they're getting roasted on social media as a result.

Ballmer has skeletons in his closet but he at least has the brains to keep the door close reasonably. The lakers just showed they'll open their closet without hesitation and foolishly let skeleton after skeleton fall out while cameras roll.


Okay, let's play Devil's Advocate. The Lakers are eligible for a loan, and they apply for a loan. They receive it. They have no way of knowing at that point that the program will run out of money. If the program hadn't run out of money, would this has been a big deal at all?

It seems most of the criticism is that the Lakers didn't foresee that potential PR issues. Such is life. I doubt this is going to be anything more than a one day story.

To me, the real story is how incompetently the program was run. It seems replete in fraud and cronyism. But that's the Trump Administration for you
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PostPosted: Tue Apr 28, 2020 8:30 pm    Post subject: Re: Lakers received money under the PPP and returned it

GTL wrote:
Quote:
LOS ANGELES -- The Los Angeles Lakers have returned approximately $4.6 million that they received from a federal government program intended to help small businesses weather the economic burden caused by the coronavirus pandemic, the team said in a statement to ESPN on Monday.

The Lakers, one of the NBA's most profitable franchises, applied for relief through the Small Business Administration's Paycheck Protection Program, and were among the companies and nonprofits granted loans during the first round of distributions. But after reports that several large or highly capitalized entities were securing aid from the program's initial $349 billion pool -- while hundreds of thousands of smaller businesses were shut out -- the Lakers said they returned the money.



Link

I mean, I'm a struggling small business who applied with 6 different banks, all denied for a variety of different reasons and excuses with rules changing hourly, and I credit the Lakers for returning the funds, but there you have it folks.


correct me I am wrong guys, the bill only covers salaries up to 100K. For example, if you have a worker that gets paid 150K..it will cover 100K of that 150K under loan forgiveness.

Given these players make multi-millions, they couldn't use much of it for the players. So yes they for sure should have enough money to pay their other staff without it.
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PostPosted: Tue Apr 28, 2020 9:34 pm    Post subject:

venturalakersfan wrote:
Thus the speculation that this stoppage will hit family-owned teams the most.


If the Lakers under Jeannie Buss as so out of cash, we ought to look at possible money management woes. A billion dollar team, a lucrative media deal, 3 other billionaire pat owners? Are the Buss kids starting from Jeannie milking the Lakers like their ATM?
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PostPosted: Tue Apr 28, 2020 10:06 pm    Post subject:

I'm not going to defend the Lakers applying for this loan, mostly because it looks bad and smacks of self-entitlement.

But is it possible that the Lakers, and the Buss family, have financial issues and/or lots of debt we don't know about? After all, they've missed the playoffs the last 6 years, and ever since Kobe's Achilles rupture, they've probably sold a lot less merch than they did in the 2000s.

If that's true, and if they thought they fit the criteria of this loan, then that changes the whole dynamic of the story.

Just what's considered a "small business?" My business mentor told me it's a business with less than 500 employees. But what if said business also has billions of $ in annual revenue?

As others said, this ultimately shows the gross negligence of the Trump administration and the entire GOP of the last 40+ years. "Supply side economics" just doesn't work.
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PostPosted: Tue Apr 28, 2020 10:36 pm    Post subject:

I’m shocked the Rockets owner didn’t apply.
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PostPosted: Wed Apr 29, 2020 6:53 am    Post subject:

activeverb wrote:
dabask11 wrote:
activeverb wrote:
The God Particle wrote:
activeverb wrote:
dabask11 wrote:

If the FO can't recognize the lakers aren't a small business who should need a loan then it makes you wonder what else they can't recognize in terms of operations.


To be fair, the Lakers did qualify as a small business under the original terms of the program. This is really about legalese, public relations, and companies taking advantage of government socialism whenever it's in their self-interest to do so.


I'm not sure anyone is contending they didn't "qualify". Clearly they got the loan.

Many of us are just ashamed that while millions are completely without, and many other millions are starving, that our beloved franchise would even think about extending their hand out.

This is akin to seeing Jeanie Buss in line at the local food bank - yes, she "qualifies", but is that really the point?



I learned long ago that most companies will use every advantage and loophole they can find.

The Lakers are just another business, acting in their own self interest.

The NBA is filled with owners who built their fortune on unethical behavior. I find it funny that some people use this example to praise Ballmer, who became one of the weathiest men in the world screwing people in anyway he could.


Because the Lakers took advantage of the situation in an embarrassing fashion where it's easy to call them out.

No doubt there are owners who've done unethical behavior to gain their wealth. The difference, however, between most of them so far and this laker situation is like pickpocketing someone's wallet without him/her noticing vs mugging said individual for it in broad daylight while police watch closely.

They're both wrong but the first method requires thought and skill while the second one is tone deaf and shows a lack of intelligence. The lakers applied for this loan incompetently without thinking things through and now they're getting roasted on social media as a result.

Ballmer has skeletons in his closet but he at least has the brains to keep the door close reasonably. The lakers just showed they'll open their closet without hesitation and foolishly let skeleton after skeleton fall out while cameras roll.


Okay, let's play Devil's Advocate. The Lakers are eligible for a loan, and they apply for a loan. They receive it. They have no way of knowing at that point that the program will run out of money. If the program hadn't run out of money, would this has been a big deal at all?

It seems most of the criticism is that the Lakers didn't foresee that potential PR issues. Such is life. I doubt this is going to be anything more than a one day story.

To me, the real story is how incompetently the program was run. It seems replete in fraud and cronyism. But that's the Trump Administration for you


False choice!

If my aunt had balls, she'd be my uncle too. But she doesn't.

Everyone and their aunt, including the Lakers knew that the money was going to run out. It takes basic 5th grade, ok 7th grade math to have known that.

No question, this, like everything else this admin rolls-out, was a complete (bleep)-show. But their utter incompetence didn't force the Lakers to show their hand as greedy, unethical grifting, leeching, free-loaders. The Lakers organization did all that by themselves!
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PostPosted: Wed Apr 29, 2020 7:06 am    Post subject:

slavavov wrote:
I'm not going to defend the Lakers applying for this loan, mostly because it looks bad and smacks of self-entitlement.

But is it possible that the Lakers, and the Buss family, have financial issues and/or lots of debt we don't know about? After all, they've missed the playoffs the last 6 years, and ever since Kobe's Achilles rupture, they've probably sold a lot less merch than they did in the 2000s.

If that's true, and if they thought they fit the criteria of this loan, then that changes the whole dynamic of the story.

Just what's considered a "small business?" My business mentor told me it's a business with less than 500 employees. But what if said business also has billions of $ in annual revenue?

As others said, this ultimately shows the gross negligence of the Trump administration and the entire GOP of the last 40+ years. "Supply side economics" just doesn't work.


No, it's not possible! That Lakers brand is truly a money printing machine.

A few years back they signed the richest TV deal in the history of the NBA. TV and Media deals far outweigh the Gate revenue or merchandise revenue.
And they've been at the top of the merchandise and gate revenue list forever! The Lakers brand sells man, it sells easily, it sells a lot.

This was pure unadulterated greed. A free loading money grab. Nothing more, nothing less.
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PostPosted: Wed Apr 29, 2020 7:16 am    Post subject:

The God Particle wrote:
slavavov wrote:
I'm not going to defend the Lakers applying for this loan, mostly because it looks bad and smacks of self-entitlement.

But is it possible that the Lakers, and the Buss family, have financial issues and/or lots of debt we don't know about? After all, they've missed the playoffs the last 6 years, and ever since Kobe's Achilles rupture, they've probably sold a lot less merch than they did in the 2000s.

If that's true, and if they thought they fit the criteria of this loan, then that changes the whole dynamic of the story.

Just what's considered a "small business?" My business mentor told me it's a business with less than 500 employees. But what if said business also has billions of $ in annual revenue?

As others said, this ultimately shows the gross negligence of the Trump administration and the entire GOP of the last 40+ years. "Supply side economics" just doesn't work.


No, it's not possible! That Lakers brand is truly a money printing machine.

A few years back they signed the richest TV deal in the history of the NBA. TV and Media deals far outweigh the Gate revenue or merchandise revenue.
And they've been at the top of the merchandise and gate revenue list forever! The Lakers brand sells man, it sells easily, it sells a lot.

This was pure unadulterated greed. A free loading money grab. Nothing more, nothing less.


I unfortunately completely agree with you and am glad the Lakers returned the money.
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PostPosted: Wed Apr 29, 2020 7:53 am    Post subject:

hoopschick29 wrote:
DancingBarry wrote:
First off, a chapter in your company's history is going to be written by what you do and don't do during this time. This is just such an awful decision, there is no sugar coating it.

Right now is not a time for what I can get. It's about how much can I give. Can I take care of everyone in my company even if we are hurting? What can I do for their families or vendors that might be devastated? Can we sacrifice something or do something extra to make a difference in their lives?

I'm sure in most companies the accounting people probably came to the leadership and said, hey, this is an option for us. My people did that for me. But the answer is pretty simple for us...no. Save it for those who need it. We can manage.

Secondly, I don't understand how an organization as financially successful as the Lakers are cannot have enough in reserve to be able to make payroll for many, many months should something happen to revenues. And, how, as successful as they are that they cannot easily find a way to take care of their own should they somehow not have the cash on hand.

Just a bad look on this decision and one that's a bit hard to understand.


It bears repeating - interest rates are damn near zero. Even if by some yoga-inspired stretch of the imagination the Lakers were cash poor, they can walk into AnyBank USA, and name their price on a line of credit that would help them cover any pending expenses. Instead they, like what is an increasing number of rich flush companies, made a run on a fund that was supposedly meant for the most vulnerable of small businesses.

I'm starting to think this whole small business relief thing was a scam all along. How easy would it have been to put some safe guards in place to prevent this? You could even bribe the banks with a few more points on the dollar to process actual small businesses. But what actually happened was desperate small business got thrown in the trick bag, while the rich businesses applied, were approved, and got their money in the same time it takes to get a payday advance loan from Check N2 Cash.


As I understand it, the banks were paid processing fees based upon the total amounts of the loans, so they prioritized larger applicants. More reward, less work than working with thousands of small applicants.

Not to excuse the Lakers from a really bad-looking move, but the banks handling the loan applications are just as much as fault as anyone in handling PPP loans. Also, the Lakers are far from the worst offender ...

https://www.cnbc.com/2020/04/26/small-business-loans-public-companies-took-855-million.html

Clearly not what was intended.
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PostPosted: Wed Apr 29, 2020 8:41 am    Post subject:

Oh no, the Lakers took a low interest loan!!!!! They're stealing money from - absolutely nobody. They even repaid the loan when the program fell flat on it's face.

Is everyone here (bleep) about it giving their stimulus checks back if they still have a job?
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PostPosted: Wed Apr 29, 2020 9:43 am    Post subject:

LakersRGolden wrote:
Oh no, the Lakers took a low interest loan!!!!! They're stealing money from - absolutely nobody. They even repaid the loan when the program fell flat on it's face.

Is everyone here (bleep) about it giving their stimulus checks back if they still have a job?


So much ignorance in this post.
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PostPosted: Wed Apr 29, 2020 12:13 pm    Post subject:

LakersInFour wrote:
hoopschick29 wrote:
DancingBarry wrote:
First off, a chapter in your company's history is going to be written by what you do and don't do during this time. This is just such an awful decision, there is no sugar coating it.

Right now is not a time for what I can get. It's about how much can I give. Can I take care of everyone in my company even if we are hurting? What can I do for their families or vendors that might be devastated? Can we sacrifice something or do something extra to make a difference in their lives?

I'm sure in most companies the accounting people probably came to the leadership and said, hey, this is an option for us. My people did that for me. But the answer is pretty simple for us...no. Save it for those who need it. We can manage.

Secondly, I don't understand how an organization as financially successful as the Lakers are cannot have enough in reserve to be able to make payroll for many, many months should something happen to revenues. And, how, as successful as they are that they cannot easily find a way to take care of their own should they somehow not have the cash on hand.

Just a bad look on this decision and one that's a bit hard to understand.


It bears repeating - interest rates are damn near zero. Even if by some yoga-inspired stretch of the imagination the Lakers were cash poor, they can walk into AnyBank USA, and name their price on a line of credit that would help them cover any pending expenses. Instead they, like what is an increasing number of rich flush companies, made a run on a fund that was supposedly meant for the most vulnerable of small businesses.

I'm starting to think this whole small business relief thing was a scam all along. How easy would it have been to put some safe guards in place to prevent this? You could even bribe the banks with a few more points on the dollar to process actual small businesses. But what actually happened was desperate small business got thrown in the trick bag, while the rich businesses applied, were approved, and got their money in the same time it takes to get a payday advance loan from Check N2 Cash.


As I understand it, the banks were paid processing fees based upon the total amounts of the loans, so they prioritized larger applicants. More reward, less work than working with thousands of small applicants.

Not to excuse the Lakers from a really bad-looking move, but the banks handling the loan applications are just as much as fault as anyone in handling PPP loans. Also, the Lakers are far from the worst offender ...

https://www.cnbc.com/2020/04/26/small-business-loans-public-companies-took-855-million.html

Clearly not what was intended.



We're not sure what the situation was. In addition to the bank issue you mention, there has been suggestions of favoriticism. Without question, it's been a very badly run program and the money hasn't gone to those it was most intended to help. I don't know how much of this is corruption, how much general incompetence, and how much rushing ahead without pausing a moment to think about the best way to do so.

It's like all the federal government response to coronavirus. There's no one in charge taking responsibility for anything, so everything is disjointed and done in a half-assed way.
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PostPosted: Wed Apr 29, 2020 12:15 pm    Post subject:

LakersRGolden wrote:
Oh no, the Lakers took a low interest loan!!!!! They're stealing money from - absolutely nobody.



Because the Lakers took the money, it wasn't available to small businesses who really needed it, and consequently some of them went out of business. Whether that's the Lakers fault is open to debate. However, clearly, the money wasn't intended for companies like the Lakers, and there have been negative outcomes from it.
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PostPosted: Wed Apr 29, 2020 1:44 pm    Post subject:

The God Particle wrote:


False choice!

If my aunt had balls, she'd be my uncle too. But she doesn't.

Everyone and their aunt, including the Lakers knew that the money was going to run out. It takes basic 5th grade, ok 7th grade math to have known that.

No question, this, like everything else this admin rolls-out, was a complete (bleep)-show. But their utter incompetence didn't force the Lakers to show their hand as greedy, unethical grifting, leeching, free-loaders. The Lakers organization did all that by themselves!



That's a fair point. And I'm glad your aunt doesn't have balls.
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PostPosted: Wed Apr 29, 2020 1:57 pm    Post subject:

kentu_tiro wrote:
venturalakersfan wrote:
Thus the speculation that this stoppage will hit family-owned teams the most.


If the Lakers under Jeannie Buss as so out of cash, we ought to look at possible money management woes. A billion dollar team, a lucrative media deal, 3 other billionaire pat owners? Are the Buss kids starting from Jeannie milking the Lakers like their ATM?



Well, the Lakers are worth a lot, but they're really not a huge company -- over the past decade they've generated a yearly profit of $22 million to $147 million, according to Forbes. If the entire profit was paid out to the owners, the individual Buss family have been getting $3 million to $17 million a year apiece.
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PostPosted: Wed Apr 29, 2020 2:12 pm    Post subject:

Who gets fired over this immediately? If this went to a senior committee and then was walked back it should have some consequences.
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PostPosted: Wed Apr 29, 2020 4:22 pm    Post subject:

Jellojigglin wrote:
Who gets fired over this immediately? If this went to a senior committee and then was walked back it should have some consequences.



Probably no one. The Lakers are taking the attitude, "We got a loan we were entitled to, but we realized others needed the money more, so we gave it back." I doubt anyone will be talking about this in another day or two.
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PostPosted: Wed Apr 29, 2020 4:26 pm    Post subject:

[quote="activeverb"]
kentu_tiro wrote:
venturalakersfan wrote:
Thus the speculation that this stoppage will hit family-owned teams the most.


If the Lakers under Jeannie Buss as so out of cash, we ought to look at possible money management woes. A billion dollar team, a lucrative media deal, 3 other billionaire pat owners? Are the Buss kids starting from Jeannie milking the Lakers like their ATM?



Lost in all of this is that the sports world needs fans more than fans need the sports world. The fans pay for the tickets/jerseys etc however that doesn't trump(no pun intended) basic necessities. NBA is talking about coming back because they need to to survive.

I think the sports landscape as we know it is going to change drastically.
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PostPosted: Wed Apr 29, 2020 4:26 pm    Post subject:

A couple comments about the current discussion:

It looks like banks may have given preferential treatment to their biggest clients. Lakers still had to apply, but they could have had a leg up over the mom-and-pop shop with a regular business banking account.

Quote:
The historic coronavirus bailout package directed $349 billion to small businesses hammered by lockdowns and closures. Such business owners were told that cash would be doled out on a first-come, first-serve basis. But some big banks reportedly gave their wealthiest clients a different option: To skip the line. https://www.businessinsider.com/wealthy-clients-skipped-line-for-the-small-business-coronavirus-bailout-2020-4


Lakers owners could be asset rich but cash poor because the Buss kids appear to derive most of their wealth from the Lakers. Throw in a real black swan event and the family may not have the same liquidity as other owners may have.

Interestingly a new PE fund is trying to launch to address.

Quote:
After watching the value of pro-sports franchises skyrocket in recent years, owners are now confronting a harsh reality: It’s becoming harder and harder to sell passive minority stakes when they need to raise cash, especially during economic downturns.

With high valuations scaring away many potential investors, the problem has led leagues to loosen their ownership restrictions -- and created an opportunity for a new kind of private equity investor focused on acquiring limited stakes in franchises. https://www.businessinsider.com/wealthy-clients-skipped-line-for-the-small-business-coronavirus-bailout-2020-4
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PostPosted: Wed Apr 29, 2020 5:38 pm    Post subject:

bluehill wrote:
A couple comments about the current discussion:

It looks like banks may have given preferential treatment to their biggest clients. Lakers still had to apply, but they could have had a leg up over the mom-and-pop shop with a regular business banking account.

Quote:
The historic coronavirus bailout package directed $349 billion to small businesses hammered by lockdowns and closures. Such business owners were told that cash would be doled out on a first-come, first-serve basis. But some big banks reportedly gave their wealthiest clients a different option: To skip the line. https://www.businessinsider.com/wealthy-clients-skipped-line-for-the-small-business-coronavirus-bailout-2020-4


Lakers owners could be asset rich but cash poor because the Buss kids appear to derive most of their wealth from the Lakers. Throw in a real black swan event and the family may not have the same liquidity as other owners may have.

Interestingly a new PE fund is trying to launch to address.

Quote:
After watching the value of pro-sports franchises skyrocket in recent years, owners are now confronting a harsh reality: It’s becoming harder and harder to sell passive minority stakes when they need to raise cash, especially during economic downturns.

With high valuations scaring away many potential investors, the problem has led leagues to loosen their ownership restrictions -- and created an opportunity for a new kind of private equity investor focused on acquiring limited stakes in franchises. https://www.businessinsider.com/wealthy-clients-skipped-line-for-the-small-business-coronavirus-bailout-2020-4

This is what we want to be sure of before we outright criticize the Buss family for acting out of self-entitlement.

After all, as I said earlier in this thread, they've missed the playoffs the last six years, and have probably seen a drop in jersey and merchandise sales ever since Kobe's Achilles injury. Add in the suspension of the season, plus the apparent fact the the Buss family doesn't have any other revenue streams outside of the Lakers, and maybe they don't have the perpetual cash flow that we've always thought they had.

If I had to guess, there are many big enterprises that seem cash-rich on the outside, but in reality have significant cash flow issues.
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venturalakersfan
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PostPosted: Wed Apr 29, 2020 6:29 pm    Post subject:

LakersRGolden wrote:
Oh no, the Lakers took a low interest loan!!!!! They're stealing money from - absolutely nobody. They even repaid the loan when the program fell flat on it's face.

Is everyone here (bleep) about it giving their stimulus checks back if they still have a job?


We didn’t apply for stimulus checks. The Lakers were tone deaf and did apply so they deserve all of the criticism that they are getting.
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The God Particle
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PostPosted: Thu Apr 30, 2020 7:42 am    Post subject:

slavavov wrote:
bluehill wrote:
A couple comments about the current discussion:

It looks like banks may have given preferential treatment to their biggest clients. Lakers still had to apply, but they could have had a leg up over the mom-and-pop shop with a regular business banking account.

Quote:
The historic coronavirus bailout package directed $349 billion to small businesses hammered by lockdowns and closures. Such business owners were told that cash would be doled out on a first-come, first-serve basis. But some big banks reportedly gave their wealthiest clients a different option: To skip the line. https://www.businessinsider.com/wealthy-clients-skipped-line-for-the-small-business-coronavirus-bailout-2020-4


Lakers owners could be asset rich but cash poor because the Buss kids appear to derive most of their wealth from the Lakers. Throw in a real black swan event and the family may not have the same liquidity as other owners may have.

Interestingly a new PE fund is trying to launch to address.

Quote:
After watching the value of pro-sports franchises skyrocket in recent years, owners are now confronting a harsh reality: It’s becoming harder and harder to sell passive minority stakes when they need to raise cash, especially during economic downturns.

With high valuations scaring away many potential investors, the problem has led leagues to loosen their ownership restrictions -- and created an opportunity for a new kind of private equity investor focused on acquiring limited stakes in franchises. https://www.businessinsider.com/wealthy-clients-skipped-line-for-the-small-business-coronavirus-bailout-2020-4

This is what we want to be sure of before we outright criticize the Buss family for acting out of self-entitlement.

After all, as I said earlier in this thread, they've missed the playoffs the last six years, and have probably seen a drop in jersey and merchandise sales ever since Kobe's Achilles injury. Add in the suspension of the season, plus the apparent fact the the Buss family doesn't have any other revenue streams outside of the Lakers, and maybe they don't have the perpetual cash flow that we've always thought they had.

If I had to guess, there are many big enterprises that seem cash-rich on the outside, but in reality have significant cash flow issues.


Stop!

The Lakers have been one of the most profitable franchises in the league for decades now. They can go 0-82 and still turn a significant profit. They operate with 0 debt and they generate a (bleep) of revenue.

The Buss family trust is sitting on a 20,000% gain on their initial investment in the Lakers. If my memory serves me, they get more a year from Wish for that silly ad spot on the jersey shoulder, than this loan.

IF the Lakers are cash strapped they have countless levers to pull to fill that gap.

IF the Lakers are cash poor then every single other NBA organization is cash poor, and so would 95%+ of all other sports franchises across the 4 leagues. But embarrassingly enough, the only franchise to extend their hand out was the Lakers.

Shame. Shame. Shame. Shame. Shame.
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LakerSD
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PostPosted: Thu Apr 30, 2020 9:27 am    Post subject:

Still don’t think it was a good look for the Lakers and I wouldn’t have done it if I were them but from a business perspective Mark Cuban has a point.

https://twitter.com/arashmarkazi/status/1255872167218049024?s=21
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