NHL commissioner Gary Bettman announced a new plan to survive the shortened season.
The league is borrowing approximately $1 billion. The money will be divided among all 31 teams to curtail cash-flow issues, payroll costs, and other operational expenses, according to Sports Business Journal.
The NHL is in the beginning stages of its 56-game season. The commissioner had announced on Jan. 11 that the league could lose billions in potential revenue.
The league has already implemented other measures to make up for lost revenue from the 2019-20 season:
- Helmet ads are expected to generate $15 million across all teams.
- New division sponsors — Discover, Honda, MassMutual, and Scotiabank — are viewed as a “one-year-only” campaign.”
The NBA issued a similar plan by acquiring $900 million in debt and giving each of its franchises $30 million to help teams navigate financial losses.
Months away from the postseason, chances are Bettman’s billion-dollar announcement won’t be the last major adjustment.
