May 15, 2022

Sports franchises may be eligible for loans that are less than the $2 trillion coronavirus relief bill

KEY POINTS

  • The sports franchises in the United States may be eligible to receive aid to help retain employees.
  • Dallas Mavericks owner Mark Cuban was applauded for his support of small businesses in the Coronavirus Relief Bill.

Numerous sports franchises in the United States might be receiving some assistance from the government to keep low-salaried and hourly workers in the workforce.

In the $2 trillion coronavirus relief legislation coronavirus relief bill that President Donald Trump signed on Friday that $350 billion was reserved for small-business loans. The funds can be used to assist business owners in covering the cost of wages, salary, and other benefits, which is 25% of an employers’ monthly pay, up to the maximum amount of loans being $10 million.

The sports franchises with under 500 workers may be allowed to participate, as per Dallas Mavericks owner Mark Cuban who said that the bill’s inclusion is “the proper way to go.”

Cuban talked about the agreement terms during a media company SportTechie’s State of the Industry 2020 event on Friday.

“You can visit the bank or to the popular Instant Approval site and request this loan for protection against payroll, and they’ll lend you the initial amount of cash for the number of your wages during the past three months for employees earning less than 100,000,” Cuban said at the conference online. “That’s completely insane, but in the best way.”

As per the U.S. Small Business Administration website ( sba.gov), which sets out guidelines for small-sized businesses, they can apply for loans that range from $0 to $5.5 million, which are available for “long-term fixed assets as well as working capital.”

The program also offers the tax credit for employees who are retained, which can amount to 50 percent of the wages that are paid during the recession in the case of businesses that have been forced to cease operations or have seen their gross revenues fall by 50% compared to the previous year.

Cuban explained that the bill’s option could also help cover utility costs, rents, utilities “plus some amount of debt, as in the case that the amount is less than $10 million” to smaller companies which include significant franchises of corporations with less than 500 employees.

“It’s sure to prove fascinating because there’ll be a variety of teams of sports that it is applicable for,” Cuban said. “The Mavs do not have 500 employees. We have plenty of people who make more than $100,000, including players. ….But for those making less than $100,000, it will be constructive in keeping salaried workers on the hour and those with lower wages in the game.”

As per an NBA source, specific teams have started determining the eligibility requirements for applying for the loan that will help pay for the cost of keeping employees.

The various sports franchises across the nation are trying to retain workers and avoid the backlash experienced by the Philadelphia 76ers. They asked, “salaried employees to take a 20 percent reduction in their pay.” This request caused a public relations storm to be that was so intense that the owner of the franchise, billionaire Josh Harris reneged on the request and, in a statement, apologized to the team for “getting the wrong thing to do.”

Cuban encouraged small-business proprietors to make an application for the loan and praised it as “patriotic.”

Cuban: Cuban: “We’re going to be a lot more secure as a country if we ensure that people are employed instead of having to endure the process of finding a job and hoping to be at the other end of the spectrum trying to find employment.

“If you’re a small company is important to keep your workers working,” he added. “It’s appropriate to make an application for the loan. It’s also patriotic to remain employed and apply for the loan so that you don’t need to pay the loan back.”

The NBA was forced to suspend its season on March 11, following the discovery that Utah Jazz player Rudy Gobert was positive for COVID-19. This led to which led to the closure. Other leagues, such as those of the National Hockey League and Major League Baseball, were also affected.