Lakers repay loan meant to help small businesses

According to Forbes, only seven professional sports franchises around the world were worth more in 2019 than the Los Angeles Lakers, who were valued at US$ 3.7 billion.

The team’s local television deal alone brings in $ 150 million annually. During the 2016-17 season, a year in which the Lakers won only 26 games, the franchise generated an NBA- best $ 115 million profit as measured by net income, even after the team paid out almost $ 49 million in revenue sharing.

Nevertheless, amid the novel coronavirus pandemic that has halted the NBA season, the Lakers were one of the companies that applied for and received a federally subsidized loan through the Small Business Administration’s Paycheck Protection Program, a federal program that aimed to help small businesses get through this trying economic climate. But according to ESPN’S Kevin Arnovitz, the Lakers returned the $4.6 million it received once news broke that the program had run out of money, leaving many small businesses in dire straits.

“The Lakers qualified for and received a loan under the Payroll Protection Program,” the team said in a statement to ESPN. “Once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need.”

The Lakers were eligible for the loan because they are a company with around 300 employees (the limit is 500). The money is forgivable if the company that receives the funds uses it to pay employee salaries and does not fire anyone. Other highly valued companies applied for and received PPP loans, including Shake Shack ($ 10 million) and Autonation ($77 million). Both also have said they will return the money and, in all, more than $2 billion has been returned, the Small Business Administration said Monday. At least $ 500 million of that figure went to large publicly held companies, The Post has determined.