The weak economy has taken a savage toll on the tiny U.S. Basketball League, which reported last week that it lost $77,846 in the nine-month period ending Nov. 30, compared with a $97,305 gain in the same period a year earlier.
The summer professional basketball league said it expects further losses in the next 12 months because teams are having difficulty paying their franchise fees due to the stumbling economy.
"The company has not been able to attract any new franchises for the forthcoming 2002 season, which starts in May," the USBL said in its quarterly report. "While there was some interest by third parties, no sales were consummated, primarily due to current general economic conditions."
As it has in its recent quarterly reports, the USBL said there were "substantial doubts" about its ability to proceed as a going concern. The league promised that the Meisenheimer family, which controls 81 percent of the common stock, is committed to the league. Dan Meisenheimer is chairman and chief executive of the USBL, which has 11 teams and has been playing since 1985.
| |
| Category | 2001* | 2000* | Decline |
| Revenue | $432,087 | $517,708 | 16.50% |
| Net income | ($77,846) | $97,305 | 180.00% |
| Net cash provided by operating activities | $13,381 | $133,830 | 90.00% |
* For nine months ended Nov. 30
Source: USBL quarterly report |
