NBA Increasing Team Owners' Debt Limit For First Time Since Late '14

The NBA has "raised the debt limit of owners" to $325M, a $75M increase that "could soften the impact of anticipated higher team payrolls and luxury taxes next season," according to sources cited by Adrian Wojnarowski of ESPN.com. Sources said that the league's BOG "unanimously passed the increased debt limit in a vote on Friday." The NBA "hadn't raised the debt limit available through its loan facility to teams" since late '14, "shortly after completion" of its $2.6B media deal. The rising valuations of NBA teams "affords the league the ability to work with banks to increase the debt ceiling of each of its franchises" (ESPN.com, 6/25). The decision comes ahead of "higher team payrolls and luxury taxes expected throughout the league next season." NBA franchises are "being valued higher than ever before, and players are being paid greater salaries" (REUTERS, 6/25).